British Land has returned to profit on the back of rental value growth, although its portfolio value has declined.
The owner made an IFRS profit of £1m in the year ending 31 March. That compares with a loss of more than £1bn in the previous year.
Portfolio value fell by 2.6% to £8.7bn. EPRA net tangible assets per share was down by 4.4% to 562p in the year.
However, ERV growth reached 5.9%. BL also outperformed the MSCI benchmark by 300 basis points. Underlying profit grew by 2% to £268m.
British Land said it expected ERV to rise by 3-5% in each of its markets for its 2025 financial year.
Chief executive Simon Carter said the owner’s operational momentum “continues with high occupancy, strong leasing and good cost discipline driving underlying profit growth”.
“We have achieved much this year – the surrender and joint venture of 1 Triton Square, the commitment to 2 Finsbury Avenue following the record-breaking prelet to Citadel, and the sale of Meadowhall are all good examples of our active approach to capital recycling. As a result, 93% of our portfolio is now in our chosen markets.
“Although the geopolitical and economic landscape remains uncertain, with a portfolio net equivalent yield over 6%, 3-5% forecast rental growth and development upside, we expect to generate attractive future returns.”
Image from British Land
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