Press releases

Full Year Results 2016/17

17 May 2017


Chris Grigg, Chief Executive said: “We are reporting a good set of results today despite an uncertain environment over the last 12 months.  We are particularly pleased by the increase in underlying profits, by our strong leasing performance across the business and by the very successful sales we have made. The increase in valuations in the second half is also better than many expected six months ago.  These results reflect the continuing execution of our strategy, providing space that responds to changing lifestyles and really fulfils customers’ needs.  We expect to be operating in an uncertain environment for some time; in this context we will benefit from the resilience of our business, the quality of our portfolio and the strength of our finances.  We also look forward with cautious optimism as we believe that we can generate incremental returns by allocating capital to development opportunities we have created, whilst keeping risk at an appropriate level and maintaining flexibility to respond to changes in our markets.”

Good financial performance reflecting an active year executing our strategy

  • Underlying profit +7.4% to £390 million (2015/16: £363 million); IFRS PBT of £195 million (2015/16: £1,331 million)
  • EPRA NAV -0.4% to 915 pence; IFRS Net Assets at £9.5 billion (2015/16 £9.6 billion)
  • Final quarterly dividend of 7.3 pence (+3.0%); bringing the full year to 29.2 pence (+3.0%)
  • 2017/18 full year dividend of 30.08 pence per share proposed, +3.0%; first quarter 7.52 pence
  • Total accounting return of +2.7% (2015/16: +14.2%)

Modest reduction in valuation, improving performance in the second half and continuing ERV growth

  • Portfolio valuation -1.4%; +1.6% gain in H2; 15 bps yield expansion in the year
  • Offices valuation -0.7%; ERVs +0.5%
  • Retail valuation -1.8%; ERVs +1.6% with multi-let +2.4%

Strong leasing and operational performance, evidencing good demand for the places we create

  • 1.7 million sq ft of lettings and renewals across the portfolio, 8.0% ahead of ERV, adding £22 million of rent
  • Occupancy 98%, with average lease length of 8.3 years
  • 1.3 million sq ft of Retail lettings and renewals, 10.8% ahead of ERV; letting more space on better terms, to a broader range of occupiers than a year ago
  • Outperforming benchmarks on footfall by +240 bps and in-store sales growth by +220 bps
  • 279,000 sq ft of Office lettings and renewals, 1.4% ahead of ERV, letting up standalone developments
  • Under offer or in advanced negotiations on a further 700,000 sq ft at our campuses, including 310,000 sq ft pre-let of proposed redevelopment of 1 Triton Square, Regent’s Place; further 850,000 sq ft of discussions
  • 44% reduction in carbon intensity versus 2009 (2015/16: 40%) as we progress towards our 55% reduction target by 2020

£2 billion of gross capital activity – well positioned to exploit optionality in our pipeline

  • £1.5 billion of disposals, 9% ahead of valuation; includes sale of 50% interest in The Leadenhall Building for £575 million which is expected to complete post year end in May 2017
  • Retail disposals of £881 million at an average yield of 4.3%; includes Debenhams, Oxford Street for £400 million and £226 million of superstore sales reducing weighting of superstores to 4% of the total portfolio
  • £195 million acquisitions focusing on adjacencies; £292 million capital spend; net divestment £1.1 billion
  • Speculative development commitment below 4%;  £1.7 billion pipeline across a range of uses benefiting from 2.3 million sq ft of planning consents secured in the year, plus Canada Water

Improved financial position with continued access to low cost finance

  • LTV at 29.9% (March 2016: 32.1%) and weighted average interest rate at 3.1% (March 2016: 3.3%); LTV at 26.9% and weighted average interest rate at 3.4% pro-forma for sale of The Leadenhall Building
  • Based on current commitments, the Group has no requirement to refinance until early 2021

Year Ended 31 March

2016 2017 Change
Income statement      
Underlying profit1 £363m £390m +7.4%
Diluted underlying earnings per share1,2 34.1p 37.8p +10.9%
IFRS profit before tax £1,331m £195m  
IFRS basic earnings per share 131.2p 18.8p  
Dividend per share 28.36p 29.20p +3.0%
Total accounting return1 14.2% 2.7%  
Balance sheet      
Portfolio at valuation (proportionally consolidated) £14,648m £13,940m -1.4%3
EPRA Net Asset Value per share1 919p 915p -0.4%
IFRS net assets £9,619m £9,476m  
Loan to value ratio (proportionally consolidated) 32.1% 29.9%  

1 See Glossary on pages 87 to 93 for definition
2 See Note 2 to the condensed set of financial statements
3 Valuation movement during the year (after taking account of capex) of properties held at the balance sheet date, including developments (classified by end use), purchases and sales

Financial disclosure
Reflecting the long term nature of our business, we will cease publication of first and third quarter trading updates going forward.  We will continue to provide trading updates ahead of our AGM each year. The next AGM is scheduled for 18 July 2017 and we will continue to provide timely updates on the business as appropriate. 

Investor Conference Call
A presentation of the results will take place at 9.30am today, 17 May 2017, and will be broadcast live via webcast ( and conference call.  The details for the conference call are as follows::
UK Toll Free Number: 0808 109 0700
Passcode:  British Land
A dial in replay will be available later in the day and will be available for 7 days. The details are as follows:
Replay number: 0208 196 1998
Passcode: 9929006#

For Information Contact
Investor Relations  
Jonathan Rae, British Land 020 7467 2938
Pip Wood, British Land  020 7467 2838
Guy Lamming, Finsbury 020 7251 3801
Gordon Simpson, Finsbury 020 7251 3801

Back to Press releases