Liberty Optimistic in Face of Expected Consumer Slip

LONDON-Officials of retail investment firm Liberty International have said its performance would not slide if consumer spending dipped as many economists anticipate. Founder and chairman Donald Gordon--in his last results announcement before he retires in June--warned that the outlook for consumer spending had become "more challenging." The fall in house prices in the last quarter of 2004, a January wobble in high-street sales and a surge in insolvencies have prompted fears over the sector. But, Gordon stated: "Prime regional shopping centers have demonstrated historically their resilience and stability when market conditions are more difficult."

Analysts agreed yesterday that a slowdown did not pose much of an immediate threat to the firm since Liberty had almost full occupancy and many tenants were on long leases. Only 5% of the group's income was turnover-related, said chief executive. "Only 11 out of 1,400 of our units are empty," he reported, "so it is not like we have very large significant vacancies to worry about."

Liberty, which has investments in excess of euro 7.3 billion ($9.3 billion), said 2004 was one of its most successful years since it was incorporated in 1980. It raised its 2004 dividend 6% to 26.5 pence after declaring a final dividend of 14.1 pence.

Gordon, said in a statement that the company's long-term prospects remain strong, and it will stick with its strategy of increasing net property value and profits, "through appropriate rent reviews, lettings and active management."

The board also announced it was appointing Ian Henderson, the former chief executive of Land Securities, and Sir Robert Finch, the former Lord Mayor of London, to non-executive positions. Henderson is expected to replace Gordon as chairman in the summer. Pre-tax profits were up 11% to euro 230 million ($294.5 million), above analyst expectations.