Results day

British Land's Third Quarter Results 2009/10 were announced at 0700 GMT on Tuesday, 9 February 2010.

The replay dial in details for the conference call are as follows:

Replay number: +44 (0) 207 111 1244
PASSCODE: 6342062#

Third Quarter Results

  • NAV 1 up 18% to 438p. IFRS Net Assets £3.6 billion
  • Portfolio valuation up 8.2% with strong growth in all main subsectors
  • Underlying profit before tax 2 £58 million, Underlying EPS 2 7 pence (Q3 2008/9: £63 million;
    10 pence 3 ) includes effects of portfolio re-balancing during 2009
  • IFRS pre-tax profit £611 million (Q3 2008/9: loss £1,614 million)
  • 1.4% like for like rental income growth compared to Q3 2008/9
  • Quarterly dividend of 6.5p

Business Highlights

  • Over 250,000 sq ft under offer at Ropemaker Place and Broadgate Tower
  • £3.6 million pa of new retail rent generated from 1.7 million sq ft of lettings and rent reviews
  • Broadgate JV with Blackstone commenced
  • £240 million of new investments and £128 million of development spend in the year to date
  • 370,000 sq ft of West End office developments now complete

£8 billion prime portfolio resilient and positioned to deliver growth

  • Retail portfolio 99% let and offers growth from 750,000 sq ft of potential extensions
  • Q3 footfall up 5% across retail parks & Meadowhall, exceeds UK average (3% 4 )
  • Over 650,000 sq ft of new London office space available to benefit from market upturn
  • Rent contracted in 3 years time already at 97% of current rent
  • Strong balance sheet with substantial capacity to invest over next 18 months

1 EPRA (European Public Real Estate Association) basis
2 see Note 1 to the accounts
3 restated for Rights Issue
4 as reported by British Retail Consortium  

Chris Grigg, Chief Executive, comments:

“Our third quarter performance saw a continued recovery with strong valuation growth right across the portfolio. The significant increase in our property valuation reflects the quality of the portfolio and focus on asset management. Our retail estate is virtually 100% let and characterised by prime locations and strong customer relationships. Our office portfolio is well positioned as London letting activity picks up. We have over 250,000 sq ft of space under offer, including nearly 220,000 sq ft to Macquarie , and have over 650,000 sq ft of additional new space available from recent development activity.

“During the quarter we commenced the Broadgate JV with Blackstone, an important part of our long-term plan to re-balance the portfolio. We are investing in high quality opportunities such as Surrey Quays, where we can add considerable value, and we expect further attractive assets to emerge over the next 18 months. We’re well placed: British Land combines a prime portfolio, strong income profile, talented people, and significant financial firepower.”

 

Download the Third Quarter Results Presentation as a PDF >

Download the Third Quarter Results Report as a PDF >