Lendlease reports $232m loss after post-Grenfell legislation

The news: Lendlease has posted an after-tax statutory loss of $232 million, amid difficult market conditions, lower property valuations and warranty laws for residential buildings in the UK. It recorded a core operating profit after tax of $257 million, down from $276 million the year before.

The numbers: Lendlease divested $1.3 billion of its assets over the duration of the financial year, with $48.3 billion in funds under management. Development work in progress was up 24% on FY22 to $22.9 billion and Lendlease's investment grade pipeline is worth more than $60 billion.

The context: UK laws retrospectively extending warranties on residential building to 30 years were introduced in response to the Grenfell Tower tragedy of 2017, leading to a $295 million provision for Lendlease in its latest earnings. The company also cited lower property valuations, inflation, high interest rates and residual effects from the pandemic as factors behind today's numbers.