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Results day

British Land’s Preliminary Results for the year ended 31 March 2009 were announced on 21 May 2009

Financial summary:

• Portfolio valuation reduced by 28.2% this year, (Q4: down 9.2%)

  • portfolio gross top up1 initial yield 7.6%, net equivalent yield 7.4%, 183bps higher since year end March 2008

• Net Asset Value 2 per share 398 pence, down 64%

  • “Triple Net Asset Value”3 per share 508 pence (reflecting valuable debt structure)
  • IFRS Net Assets £3.2 billion
  • total property portfolio £8.6 billion
  • properties owned or managed £12.3 billion

• Underlying pre-tax profit 4 £268 million (2007/8: £284 million)

  • profits maintained at 2007/8 level excluding Songbird dividend, based on underlying growth in rents offsetting reduced performance fees this year
  • IFRS pre-tax loss on ordinary activities £3,928 million

• Underlying earnings per share 4 41 pence (2007/8: 44 pence)

  • maintained at 2007/8 level excluding Songbird dividend

• Dividend up 3% to 29.8 pence per share for the year

  • including 6.5 pence for Q4 (payable August 2009)

Customer focused business with resilient operational performance:

  • £1.9 billion of property sales (gross) in the year, £6.6 billion over the last 3 years (£5.4 billion British Land’s share)
  • £26 million pa additional rent5 from over 2 million sq ft of new lettings and renewals, plus 215 rent reviews settled in the year overall 3% ahead of ERV
  • like for like rental income growth 2.7% (ahead of IPD) for the year
  • new 50:50 joint venture for Meadowhall Shopping Centre formed February 2009

Balance sheet strength with cash flow security:

  • £740 million proceeds from Rights Issue
  • property portfolio 96%6 let, 13 years average lease length7
  • only 6% of rent up for renewal before March 2012
  • debt at 5.3%8, 12.7 years average maturity8, £3 billion undrawn bank lines

Investment market reflects economic conditions:

  • Financial turmoil and market stress continues to adversely affect the property market, resulting in challenging conditions
  • IPD Benchmark net equivalent yield now 8.8%, some 530 bps over the 10 year gilt
  • Initial signs of renewed investor interest in property at current levels, but lack of availability of debt and uncertainty of outcomes in the economy is inhibiting activity

 

All per share data movement for the year based on March 2008 as adjusted for the March 2009 Rights Issue – see Note 2 to the accounts

1 yield to British Land (without notional purchaser’s costs) adding back rent frees and contracted rental uplifts
2 EPRA (European Public Real Estate Association) basis – Note 2 to the accounts
3 see Table A
4 see Note 2 to the accounts
5 British Land’s share of increase in headline rents (before any tenant incentives)
6 includes accommodation subject to asset management initiatives and under offer
7 remaining term to first break
8 includes share of Funds and Joint Ventures

 

Conference call details:

UK Free Number : 0800 028 1277
UK Toll Number : + 44 (0) 207 806 1955
US Freephone : 1 888 935 4577
PASSCODE : 8607484

Replay details:

UK Free Number : 0800 559 3271
UK Toll Number : + 44 (0) 207 806 1970
US Freephone : 1 866 239 0765
PASSCODE : 8607484#

 

Relevant Links - Year End 2009

Links to PDFs & webcasts will open in a new browser window

Preliminary results announcement PDF > (3.4MB)
Preliminary Results supplementary information PDF > (614KB)
Presentation > (1.76MB)
Chris Grigg - Cantos interview >
Webcast >