British Land takes £1.3bn IFRS hit

British Land has suffered a £1.3bn IFRS fair value loss on the back of the
credit crunch.

The
FTSE
100 giant
said in its third quarter report to 31 December that the reflected
a pre-tax IFRS loss on ordinary activities.

The loss comes as a consequence of IFRS fair value requirements relating to
its investments. For the same period in 2006, the company made a £381m profit.

Because of the value decline, its gearing jumped to 45%.

British Land chairman Chris Gibson-Smith said: ‘Macro-economic uncertainty
and the global credit crunch have depressed property values. However, the worst
should now be behind us, though uncertainties remain on timing and extent of the
correction.’

Further reading:

Fair
value shockwaves far from over

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