Press releases
Interim results for the six months ended 30 September 2006
21/11/2006
Financial Highlights
Net Asset Value 1 pershare 1624 pence, up 11% underlying 2 9% headline
- NAV per share up 29% in 12 months
- EPRA Net Assets 1 £8.6 billion
- Net Assets £6.6 billion
Total return 3 12% for six months, underlying 2
Underlying pre-tax profit 4 up 27% to £130 million
- Headline pre-tax profit 5 £702 million
- Profit on ordinary activities before tax £670 million
Underlying earnings per share 4 up 33% to 20 pence
- Headline earnings per share 111 pence
- Interim dividend up 8% to 5.6 pence
Portfolio valuation increase 6.2% in six months
- Valuation uplift led by London Offices and Out of Town Retail
- Comparable with IPD data
Properties owned or managed £19.8 billion
Business Highlights
Delivering on our promises to renew and work the business hard
- £1.7 billion (gross) of asset turnover in six months; tightening focus, recycling capital, improving growth prospects
-
London Offices development programme is accelerating; customer focused with good prospects
- £1 billion debenture refinancing; reducing future interest expense
- Like for like rental value growth of 2.8% (IPD 1.8%) underlines growth prospects for British Land’s prime space
On track for REIT conversion on 1 January 2007. First full year REIT dividends not less than 33 pence per share – 94% higher than 2005/6
Board succession plans announced at AGM on 14 July 2006
Market leadership in prime London Offices and Out of Town Retail – a strong platform for outperformance
1
EPRA (European Public Real Estate Association) basis
2
before debenture refinancing charge
3
increase in EPRA NAV plus dividends paid
4
underlying profits exclude (inter alia) gains on asset revaluations & disposals and related tax, debt refinancing costs, intangible asset movements and the capital allowances effects of IAS 12
5
with proportional consolidation of Funds and Joint Ventures
Sir John Ritblat, Chairman, said: “This is my last report as Chairman of British Land. I could not be more pleased, therefore, to record that British Land is in sparkling form.
“We are specialists – commercial property specialists. We offer shareholders both large and small a superb platform to enjoy the secure growth that commercial property offers, spiced up by our active management and deal-doing.
“Property is a long-term business, and that is both its charm and its challenge. Buildings are around for many years and can deliver the most lucrative rewards to the patient investor – and we have the long-term rental cash flows to service our needs irrespective of cycles.
“It has been a privilege to lead the Company and, as Honorary President, I will derive great satisfaction in watching British Land adapt to change, evolve and continue to flourish.”
Stephen Hester, Chief Executive, said: “Our strategy is working well. We are creating shareholder value through an intense focus on meeting customer needs with actively managed, efficiently financed real estate.
“We intend to make the REIT election with effect from 1 January 2007. We believe that the REITs regime will reinforce the competitive position of quoted property companies like British Land, offering focused real estate investment with a pre-eminent combination of performance, scale and accessibility.
“We bid farewell to our outgoing Chairman, Sir John Ritblat, who above all others created the industry leader we see in British Land today. His contribution to the Company and our industry has been immense.”
Download the full preliminary results as a PDF > (303KB)
This preliminary announcement, the slides from our interim results presentation and Stephen Hester’s interview with Cantos can be viewed from the relevant links section on the Results day page.
British Land:
Laura de Vere 020 7467 2920
Finsbury:
Gordon Simpson 020 7251 3801
Ed Simpkins
Download the full press release as a PDF > (303KB)