British property group Brixton said it was pinning its hopes on an expected economic recovery next year after posting a gain in first-half profits.
Its pre-tax profits for the half year to end-June rose to £21.7 million sterling from £19.9 million last year. Analysts had forecast pre-tax profits between £21 million and £21.5 million.
The firm - which focuses on industrial, warehouse and business space in southeast London - said although it was cautious over its immediate prospects, it expected demand in its core markets to strengthen over the next two years.
"We believe we're well placed and indeed the current results bear that out. We should be able to show stronger future performance capitalising on the stronger economic growth figures for 2003 and beyond," Brixton chief executive Mr Tim Wheeler said.
But the company, whose tenants include computer giant IBM and drugs firm GlaxoSmithKline, said it was cautious immediate outlook, given the uncertainty in economic and financial markets.
Shares edged up 0.2 per cent to 215-1/2 pence in morning trade. The stock has performed broadly in line with its peers in the British property sector over the last year.