Half Year Results 2025/26

STRATEGY DELIVERING

Simon Carter, Chief Executive said:

“We've delivered a good operational and financial performance in the first half of the year, underpinned by the strong occupational fundamentals that support our core sectors of prime London office campuses and retail parks. We are capitalising on these tailwinds to drive performance and capture reversion, delivering 4% like-for-like net rental income growth on the standing portfolio. This, combined with a 12% reduction in admin expenses, more than offset higher funding costs and delivered earnings growth in the half.

As a result of the strategic calls we made back in 2021, we are the market leader in London office campuses and retail parks, positioning us well to continue to benefit from the 10m sq ft shortage of prime office space in Central London and the rapid expansion of retailers out of town. We are on track to deliver 8-10% total accounting return target through the cycle, underpinned by sustainable EPS growth of 3-6% per annum, with at least 6% expected for FY27.”       

FINANCIAL

• Underlying Profit £155m, up 8% (HY25: £143m)
• Underlying earnings per share (EPS) 15.4p, up 1% (HY25: 15.3p)
• Dividend per share 12.32p, up 1% (HY25: 12.24p)
• EPRA cost ratio 17.4% (HY25: 15.3%)
• Total property return +3.8% and total accounting return +4.0%

OPERATIONAL METRICS

• Portfolio occupancy 95%¹: Campuses 92%¹, Retail & London Urban Logistics 98%¹
• Leased 1.4m sq ft, 5.3% ahead of ERV with 1.3m sq ft under offer, 7.5% ahead of ERV
• Campus leasing: 486k sq ft, 3.0% ahead of ERV, with 629k sq ft under offer, 6.0% ahead of ERV 
• Campus leasing accelerating post period end with a further 308k sq ft under offer and 819k sq ft in negotiations
• Retail & London Urban Logistics leasing: 901k sq ft, 7.3% ahead of ERV and 708k sq ft under offer, 9.5% ahead of ERV
• Like-for-like net rental growth +4%: Campuses +7%, Retail & London Urban Logistics +2%²

PORTFOLIO VALUATION

• Values up 1.2%: Campuses +0.9%, Retail & London Urban Logistics +1.6%
• ERV growth of 2.4%: Campuses 2.6%, Retail & London Urban Logistics 2.1%
• Net equivalent yield -2 bps to 6.1%: Campuses -1 bps to 5.6%, Retail & London Urban Logistics -2 bps to 6.6%

BALANCE SHEET

• EPRA Net Tangible Assets per share 579p, up 2%
• LTV 39.1% (FY25: 38.1%)
• Group Net Debt to EBITDA 7.2x (FY25: 8.0x)
• £1.9bn of financing activity, including new £450m Green Loan secured against 1 Broadgate
• £1.7bn undrawn facilities and cash, with no requirement to refinance until mid-2029
• Fitch Senior Unsecured credit rating at ‘A’ with stable outlook (affirmed July 2025)

CAPITAL ACTIVITY

• £59m of assets disposed at an average of 5% above book value 
• £52m of retail acquired, principally two retail parks, at 8.4% Topped Up NIY
• Progressing 1.7m sq ft committed development pipeline on a de-risked, capital light basis

SUSTAINABILITY

• GRESB rating of 5* for both standing investments and developments, achieving our best scores across both measures
• 72% of the portfolio rated EPC A or B, up from 68% at FY25

OUTLOOK

• Like-for-like net rental growth expected to be c.5% for FY26
• Reiterating guidance of 3-5% per annum ERV growth across the portfolio  
• Expect FY26 Underlying EPS of at least 28.5p, with growth of at least 6% expected for FY27 (30.2p), and 3-6% beyond
• Comfortable with current market expectations for Underlying EPS

_{1 Occupancy excludes developments completed in the previous 12 months
2 Excluding Storey}

SUMMARY PERFORMANCE

1.    See Note 2 to the condensed interim financial statements for definition and calculation.
2.    Valuation movement during the period (after taking account of capex) of properties held at the balance sheet date, including developments (classified by end use), purchases, sales.
3.    Net Debt to EBITDA on a Group basis excludes joint venture borrowings and includes distributions and other receivables from joint ventures.
4.    See Note 8 to the condensed interim financial statements for definition, calculation and reference to IFRS metrics.
5.    EPRA Loan to value is disclosed in Table B of the condensed interim financial statements.

RESULTS PRESENTATION AND INVESTOR WEBCAST

A presentation of the results will take place at 9am on Wednesday 19 November 2025 at Peel Hunt, 100 Liverpool Street, Broadgate, London, EC2M 2AT and will be broadcast live via webcast which can be accessed via the following link:

A replay and accompanying slides will be made available at Britishland.com.

FOR INFORMATION CONTACT