British Land Company PLC

Latest Results (02.10.2025):

British Land Company PLC has reported its financial results for the year ended 31 March 2025, demonstrating strong operational and financial performance despite ongoing macroeconomic volatility. The company achieved above-inflation rental growth and maintained its underlying earnings per share, setting a positive outlook for future earnings growth.

Financial Performance

Underlying Profit increased by 4% to £279 million, while underlying earnings per share remained steady at 28.5p. The company maintained its dividend per share at 22.80p. Total property return was reported at +6.9%, and total accounting return at +5.0%.

Balance Sheet Strength

EPRA Net Tangible Assets per share rose by 1% to 567p. The Loan-to-Value (LTV) ratio slightly increased to 38.1%, and Group Net Debt to EBITDA stood at 8.0x. British Land secured £1.3 billion in new financing, with £1.8 billion in undrawn facilities and cash available until late 2028.

Capital Activity

The company executed £597 million in disposals, including Meadowhall and a stake in 2 Finsbury Avenue, and acquired £738 million worth of retail parks at a blended net equivalent yield of 7.1%. Additionally, £301 million was raised through an equity placing in October 2024, and a committed development pipeline of 2.4 million sq ft is progressing.

Strong Occupancy and Rental Growth

Portfolio occupancy reached 98%, with campuses at 97% and retail & London Urban Logistics at 99%. Leased space was 8.6% ahead of ERV, and like-for-like net rental growth was +3%, driven by +2% in campuses and +5% in retail & logistics sectors.

Portfolio Valuation

Property values increased by 1.6%, with retail parks outperforming at +7.1%. The second half of the year saw campus values return to growth, up by 0.8%. ERV growth across the portfolio was 4.9%, supported by strong performance in retail parks and logistics.

Sustainability Initiatives

British Land achieved a GRESB rating of 5* for both standing investments and developments, scoring 100/100 for developments. Additionally, 68% of the portfolio is rated EPC A or B, up from 58% in the previous year.

Outlook

The company reiterated its guidance of 3-5% per annum ERV growth across the portfolio. It expects FY26 underlying earnings per share to remain broadly flat, translating to a 2% growth in underlying profit, and anticipates 3-6% per annum earnings growth in subsequent years, bolstered by developments in FY27.