Land Securities (LON:LAND) shares fell on Tuesday after the company reported increased losses and scrapped the final dividend.

Full year losses before tax increased to £837m, up from a loss of £123m in 2019.

The impact if COVID-19 meant the Real Estate Investment Trust had to set aside provisions for disruption to rental income in the coming year.

Land Securities also had to record an 8.8% drop in the valuation of their property portfolio, amounting to £1,178m.

The company said it had experience an increase level of rent deferrals and expected rent payments to decline over the coming year.

The disappointing outlook drove the board to scrap the final dividend in an effort to conserve cash through the crisis.

A lot of the attractiveness of Land Securities and other REITs was the dividend paid from rental income earned from the underlying property portfolio.

Land Securities operates a diverse UK-focused property portfolio comprising of retail, leisure and workspace.

“I join Landsec at an extraordinary time,” said Mark Allan, Chief Executive of Land Securities.

“The effects of Covid-19 are accelerating ongoing structural trends across the real estate sector, while its longer-term societal and economic consequences are yet to be determined. Landsec’s strong balance sheet and resilient operational performance have enabled us to respond to immediate challenges posed by Covid-19 with speed and decisiveness.

“Our £80m rent relief fund has offered targeted support to occupiers, alongside broader options of rent deferrals and monthly payments, and our £500,000 of community grants is providing financial assistance to our charity partners.”

“I am confident Landsec is approaching the future from a position of strength. We are prepared to be bold in our thinking as we navigate both the challenges and opportunities arising in the long term from changing market trends and will not lose sight of our wider sustainability objectives. We will continue to lead the sector on major issues such as climate change and remain committed to acting as a force for good in the communities in which we operate.”