By Anita Likus Of DOW JONES NEWSWIRES LONDON -(Dow Jones)- Retail landlord Liberty International PLC (LII.LN) Wednesday said that, while conditions in the property investment and debt markets have improved, short-term pressures on the group's earnings continue. The company said that, notwithstanding the welcome signs of improvement in the property markets and greater activity in tenant markets, it's still facing short-term pressure from the low returns on temporary cash holdings and the lower income attributable to short-term re-lettings following last year’s tenant failures. Commercial property landlords have been hit by the recession, as the lack of property financing curbed demand, causing property values to fall. Liberty has also been dealing with vacant space as retailers, hit by constratined consumer spending, went into administration or contracted their businesses. Excluding tenants in administration occupancy rate for the period from July 1 to Nov. 4 increased to 97.6% from 96.3% in June 30. Capital shopping centers' occupancy had improved, as it relet most of the vacant space left behind by tenants in administration, to 98.9% from 98.3%. The company opened a new extension of its Welsh shopping center, St.David's in Cardiff, with 70% already rented by area, or 65% by income. It also concluded a GBP290 million debt facility secured on the property. Liberty owns the center in a 50:50 joint venture with U.K.'s largest real estate investment trust Land Securities PLC (LAND.LN) Net external debt fell to GBP3.1 billion after a GBP274 million capital raise with pro forma debt to assets standing at 51%. Liberty International shares closed Tuesday at 433 pence, valuing the company at GBP2.67 billion. -By Anita Likus, Dow Jones Newswires; +44 20 7842 9407; anita.likus@dowjones.com
