Midlands-based IM Properties’ pretax profit for 2019 has more than halved after a write-down of its retail assets saw £35m stripped from its portfolio.
Profits for the year plummeted to £24m, down from £61m the previous year.
Managing director Tim Wooldridge said that without the revaluation headline profits would be in line with 2018 figures.
He said: “The challenges facing bricks-and-mortar retail have been compounded since our financial year ended, and recent events in the property sector have underlined the particular problems for high street retail.”
IM Properties reported 87% of rent collected in Q1, with total returns ahead of the market at 4%.
It is focusing on development sites to bring forward some 15m sq ft of logistics space with a GDV in excess of £1.5bn.
Woolridge added: “Like many businesses, we have found elements of the real estate market that we operate within being disrupted at an extremely fast pace.
“However, the diversified structure of our group provides us with a stable base, with positive cash generation from our core investments, enabling us to remain resilient throughout the pandemic.”
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