British Land confident in office space demand as annual profit rises

(Alliance News) - British Land PLC on Wednesday posted strong full-year earnings, buoyed by office space demand, and lifted its dividend.

The London-based real estate investment trust focused on UK commercial and retail property booked pretax profit of GBP450 million for the year ended March 31, up 32% from GBP342 million the year prior.

Revenue rose 15% to GBP523 million from GBP454 million, as net rental income advanced 8.4% to GBP476 million from GBP439 million.

The company has declared a final dividend of 10.80 pence per share, up 2.3% from 10.56p on-year. This lifts the total dividend by 1.4% to 23.12p from 22.80p.

British Land shares traded 0.2% lower at 377.36p on Wednesday morning in London, and are down 8.1% over the past year.

On an EPRA basis, net tangible assets per share rose to 590p as of March 31 from 567p a year earlier. Underlying earnings per share rose to 28.9p from 28.5p. This matched guidance, which was revised up in April from 28.5p, after British Land completed its GBP150 million acquisition of peer Life Science REIT PLC.

Underlying profit came in at GBP294 million, as per revised guidance, and up from GBP279 million in financial 2025.

Total accounting return was 8.1%, in line with guidance provided in April, while the loan-to-value ratio as of March 31 stood at 39.2%, versus 38.1% on-year.

Looking ahead, the company is targeting EPS of at least 30.5p in financial 2027, "underpinned by like-for-like net rental growth at the top end of our 3-5% range". In subsequent years, it expects 3% to 6% annual EPS growth. It also reiterated guidance of 3% to 5% annual estimated rental value growth across its portfolio.

British Land estimates that its portfolio was 96.9% occupied at the end of March.

Chief Executive Simon Carter said: "A record year of leasing has driven strong ERV growth, like-for-like net rental growth and an attractive earnings outlook. We are benefiting from our leading positions in campuses and retail parks, where demand is growing and supply remains constrained. Our offer is clearly resonating with customers: we have around a 5% share of the London office market, but accounted for 15% of reported leasing activity last year, rising to 33% in the fourth quarter.

While the geopolitical and interest rate backdrop has become more uncertain, the occupational fundamentals underpinning our portfolio are as strong as I have seen them. Central London office net take-up is at its highest level in 20 years and our retail parks are 99% occupied."

By Holly Munks, Alliance News reporter

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