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REITS

Interim Statement 2006 dividend policy extract

Extract from the Chairman's Statement

REITs and dividends

An important element of REITs is higher cash distributions for shareholders. Reflecting our continued growth in profits, we are pleased to announce today an 8% increase to the interim dividend
to 5.6 pence per share [1st Interim dividend for 2006/7]. Thereafter we will switch to payment of dividends quarterly – smoothing cash flows for shareholders that are more reflective of the long-term continuous rental inflows that so distinguish our business.

Our first quarterly dividend will be paid in May 2007 in respect of the three month period to 31 December 2006 and will be 6.5 pence per share [2nd Interim dividend for 2006/7]. Our first dividend in respect of REIT trading will be 8.25 pence for the quarter to 31 March 2007, paid in August [Final dividend for 2006/7].

In respect of our first fiscal year as a REIT, we expect the four quarterly dividends together to total no less than 33 pence, which would be 94% up on the dividend paid for our 2005/6 financial year.

British Land will continue to direct its strategy towards long-term growth in income and creating superior total returns. Dividends and their growth will be a more important component of return than before, but still only an element alongside capital appreciation.

 

As at 21 November 2006