London - Liberty International, the UK's largest shopping centre company, would post slower growth in the value of its stores this year as consumers reined in spending, according to Kempen & Co analysts.
London-listed Liberty said last week that the net value of its assets rose more than 4 percent in 2002 as higher rents boosted the worth of its properties.
In January the monthly gain in values of UK retail stores slipped to 0.3 percent compared with December's 0.8 percent monthly gain, Kempen analysts said in a report.
The slide in growth of store values 'seems to already reflect the weakening fundamentals and risks involved for the UK retail sector', the report said.
Consumer spending buoyed UK retail sales last year, advancing at the fastest rate in eight months in December. That helped propel Liberty's stock up 17 percent in 2002 because of its focus on shopping centres, while the FTSE 350 real estate index declined 4.6 percent.
The index was dragged down by shares of office developers, whose property values slid as banks fired people, reducing their demand for space.
Kempen maintained a neutral rating on Liberty shares while raising its profit estimate for 2003 to 27.39p a share, from 26.78p a share.
The 2002 results were better than Kempen anticipated because of higher-than-expected profit on trading of properties, the analysts said. - Bloomberg
Publisher: Business Report
Source: Business Report
Value of Liberty International's stores likely to grow more slowly.
Posted On Wednesday, 19 February 2003 10:01 Published by eProperty News
Liberty International, the UK's largest shopping centre company, would post slower growth in the value of its stores this year as consumers reined in spending, according to Kempen & Co analysts.
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