Watkin Jones, a British rental property developer, has revised downward its annual profit forecast, citing delays in key contracts caused by high interest rates and ongoing global economic uncertainty. The company had anticipated stronger earnings during the second half of the financial year but now expects that several investor-backed deals will not be finalized before the year ends on September 30.

As a result, Watkin Jones forecasts that its operating profit for the full year will remain close to the levels reported in the first half. Despite the setback, the company highlighted the strength of its balance sheet, expressing confidence that it will be well-positioned to benefit once market conditions improve.

The adjustments underscore the challenges facing developers amid tightening financial conditions and broader economic volatility, which have affected project timing and investor activity in the rental property sector. Watkin Jones’s outlook reflects cautious optimism as it navigates the current environment while preparing for potential opportunities in the future.