British Land takes £1.9bn hit and warns of more damage

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Chief executive Stephen Hester said the estate, including the Broadgate office development in the City, fell 10% in value to £13.5 billion in the 12 months to 31 March.

However, he pointed out that falls of 2.2% in the fourth quarter were not as bad as almost 9% in the third as investors, tempted by lower prices, returned to the market.

"We believe that property pricing is now generally much more supportable than at the market peak and that the worst of yield correction should be behind us," said Hester, who recently became deputy chairman of Northern Rock.

"The slowdown of price declines in the last quarter supports this view. However, markets have often been known to overshoot in both directions and we do expect a further decline in the current year.

"So we have our tin hats on and are busy toiling in the trenches. One has to strike a cautionary note because clearly the credit crunch isn't yet over, and the impact on the real economy is still unfolding. We need to keep an eye on that."

Net asset value per share fell 20% to 1344p but profits rose 11% to £284 million. The shares, which were above 1700p early last year, rose 5p to 793p.

Chairman Chris Gibson-Smith said that while the downturn "has been unusually fast and severe", it was "time for cool heads". He said: "A year ago, real estate markets were close to all-time highs. Today, doom and gloom is widespread and fears of the impact of the global credit crunch are not yet receding. Like the proverbial curate's egg, the true position is more complex."