Land Securities is a pile of mostly UK property supported by borrowings. When property values are rising this is good for shareholders because the borrowings gear up the gains.
In a property bear market such as we have now, the reverse happens and net asset backing for the shares can fall rapidly.
The question is how bad are conditions going to become in property markets. The economy is heading for what could be a deep recession. This could have painful implications for commercial property values and could also mean many voids.
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