REG - British Land Co PLC - First Quarter Trading Update <Origin Href="QuoteRef">BLND.L</Origin>

British LandAnnouncement

25/07/2015 09:30

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RNS Number : 4416T
British Land Co PLC
20 July 2015 
 
British Land first quarter trading update 
 
Chris Grigg, Chief Executive said: "We've had a good start to the year, making
real progress against the priorities set out at our results in May in what are
strong occupational and investment markets. In Retail, our operational metrics
remain strong and we continue to recycle capital by selling selected mature
assets and investing into our existing portfolio. In Offices, we're pleased
with the deals we've done at The Leadenhall Building and in the supply
constrained City market we're positive about our prospects on the remaining
space. We handed over 5 Broadgate to UBS in June, progressed our development
pipeline and continued to invest in our campuses through public realm
enhancements and refurbishments. We've taken advantage of favourable market
conditions to raise £350 million of convertible bonds at a zero coupon,
continuing our strong track record in accessing funding on competitive terms
from a range of sources." 
 
Strong occupational demand with lettings well ahead of ERV 
 
•     129,000 sq ft of Retail lettings/renewals; investment lettings/renewals
9.4% ahead of March 2015 ERV 
 
•     Retail footfall +0.9%, continuing to outperform (+240bps vs market);
retailer same store sales +3.3% 
 
•     132,000 sq ft of Office lettings/renewals; investment lettings/renewals
1.6% ahead of March 2015 ERV; a further 60,000 sq ft under offer 12.5% ahead
of ERV 
 
•     The Leadenhall Building now c.90% let/under-offer (from 84% at full
year) with 107,000 sq ft of completed deals in the period and a further 52,000
sq ft under offer 
 
Successfully delivering developments and enhancing existing assets 
 
•     Achieved practical completion at 5 Broadgate in June and handed over to
UBS to start fit out 
 
•     Progressing Broadgate vision; planning submitted at 1 Finsbury Avenue
for 300,000 sq ft of office and retail space having recently received planning
permission on 517,000 sq ft at 100 Liverpool Street 
 
•     On-site with refurbishment of 72,000 sq ft of office space at 338 Euston
Road, substantially pre-let to Facebook 
 
•     Opening of 110,000 sq ft of leisure extensions at Broughton, Chester and
Fort Kinnaird, Edinburgh as well as 112,000 sq ft M&S anchored extension at
Glasgow Fort; driving strong increases in footfall 
 
Disciplined recycling of assets 
 
•     £210 million acquisition of One Sheldon Square, increasing ownership at
Paddington Central 
 
•     39 Victoria Street in the market and seeing strong investor demand
(94,700 sq ft of recently refurbished and fully let office space) 
 
•     Ongoing retail disposals including sale of Birstall Shopping Park,
Leeds; c.£200 million under offer/on the market 
 
•     Residential sales exchanged in the quarter total £12 million (BL share),
with a further £27 million (BL share) reserved or under offer; units under
offer 6.5% ahead of March 2015 valuation 
 
Financial position remains strong 
 
•     Raised £350 million of convertible bonds due 2020, at a zero coupon with
flexible settlement options 
 
•     Proportionally consolidated LTV at 36.5% based on March 2015 valuations
(LTV of 33.7% pro-forma for 2012 convertible bond) 
 
•     Weighted average interest rate reduced by 20bps to 3.6% (proportionally
consolidated) 
 
•     First quarter dividend confirmed at 7.091 pence, 2.5% ahead of prior
year 
 
Note 1 - Dividend 
 
The first interim dividend payment for the quarter ended 30 June 2015 will be
7.09 pence per share, a 2.5% increase on the comparable period last year. The
first interim dividend will be paid on 6 November 2015 to shareholders on the
register at close of business on 2 October 2015. The current issued share
capital (excluding Treasury shares) is 1,020,718,319 ordinary shares of 25p
each. An announcement on the split between PID and non-PID income along with
the availability of any scrip dividend alternative will be made no later than
4 business days before the ex-dividend date of 1 October 2015. 
 
For Information Contact 
 
Investor Relations 
 
Sally Jones, British Land                                020 7467 2942 
 
Media 
 
Pip Wood, British Land                                   020 7467 2838 
 
Gordon Simpson, Finsbury                             020 7251 3801 
 
Guy Lamming, Finsbury 
 
Forward-Looking Statements 
 
This release contains certain "forward-looking" statements reflecting, among
other things, current views on our markets, activities and prospects.  By
their nature, forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances that may or may not occur and
which may be beyond British Land's ability to control or predict (such as
changing political, economic or market circumstances).  Actual outcomes and
results may differ materially from any outcomes or results expressed or
implied by such forward-looking statements.  Any forward-looking statements
made by or on behalf of British Land speak only as of the date they are made
and no representation or warranty is given in relation to them, including as
to their completeness or accuracy or the basis on which they were prepared. 
Except to the extent required by law, British Land does not undertake to
update or revise forward-looking statements to reflect any changes in British
Land's expectations with regard thereto or any changes in information, events,
conditions or circumstances on which any such statement is based. 
 
Notes to Editors: 
 
About British Land 
 
We are one of Europe's largest publicly listed real estate companies. We own,
manage, develop and finance a portfolio of high quality commercial property,
focused on retail locations around the UK and London offices. We have total
assets in the UK, owned or managed of £18.9 billion (of which British Land
share is £13.6 billion), as valued at 31 March 2015. Our properties are home
to over 1,200 different organisations ranging from international brands to
local start-ups. Our objective is to deliver long-term and sustainable total
returns to our shareholders and we do this by focusing on Places People
Prefer. People have a choice where they work, shop and live and we aim to
create outstanding places which make a positive difference to people's
everyday lives. Our customer orientation enables us to develop a deep
understanding of the people who use our places. We employ a lean team of
experts, who have the skills to translate this understanding into creating the
right places, and we have an efficient capital structure which is able to
effectively finance these places. 
 
UK Retail assets account for 55% of our portfolio. As the UK's largest listed
owner and manager of retail space, our portfolio is well matched to the
different ways people shop today. We are focused on being the destination of
choice for retailers and their customers by being the best provider of spaces
and services. Comprising around 22 million sq ft of retail space across
shopping parks, superstores, shopping centres, department stores and leisure
assets, the retail portfolio is modern, flexible and adaptable to a wide range
of formats. 
 
Our Office and Residential portfolio, which accounts for 45% of our portfolio
is focused on London.  We have an attractive mix of high quality buildings in
well managed environments and a pipeline of development projects which will
add significantly to our portfolio. Increasingly, our Offices are in mixed-use
environments which include retail and residential elements. Our 6.7 million sq
ft of high quality office space includes Regent's Place and Paddington Central
in the West End and Broadgate, the premier city office campus (50% share). 
 
Our size and substance demands a responsible approach to business. We believe
leadership on issues such as sustainability helps drive our performance and is
core to the delivery of our overall objective of driving shareholder value and
creating Places People Prefer. 
 
Further details can be found on the British Land website at
www.britishland.com 
 
This information is provided by RNS
The company news service from the London Stock Exchange