UK-based real estate investment trust Liberty International today reported 20.1 pence in adjusted earnings per share for the nine months ended September, down from 26.7 pence the same time a year ago.

Underlying profit before tax fell to GBS77.8 million from GBS96.7 million but net rental income increased to GBS281.3 million from GBS270.5 million but this was offset by £13.9 million increase in finance costs resulting from net capital expenditure.

Dividend per share at 16.5 pence was unchanged from the same time a year ago.

"The third quarter of 2008 and the period since the end of September will long be remembered for the extreme turbulence in financial markets, which has had a marked impact on the UK commercial property sector," said
.

But Burgess said after 15 months of falling market values, the group's assets were more defensively stated with limited transactional evidence available to its valuers.

"The scarcity value and strong competitive position of our UK regional shopping centres is unlikely to be substantially further challenged for a sustained period, given the sharp reduction we anticipate in the potential supply pipeline of UK shopping centre space," he said.

Looking ahead, it will take active steps to minimise capital expenditure commitments and reduce administrative expenses due to the adverse conditions in both property and debt markets.

"With continued high occupancy levels and defensive income streams, the directors consider the business of Liberty International to continue to be sound notwithstanding the relatively unfavourable UK economic and property background," said Burgess.