FTSE real estate firms issued eight profit warnings in the second quarter this year, on top of the 16 recorded in the first quarter of the year. This is nearly five times the number issues in the equivalent period in 2019. All warnings this year cited the impact of Covid-19.

Helen Pratten, EY strategy and transactions partner, said: “Profit warnings decreased in Q2 compared with Q1 but remain high. Covid-19 has been cited in all real estate profit warnings as the pandemic exposed underlying structural weaknesses and exacerbated existing challenges. Vulnerable real estate sectors, such as retail, have seen accelerated disruption.”