REG - British Land Co PLC - Half-year Financial Report

British LandAnnouncement

19/11/2025 07:00

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RNS Number : 0735I  British Land Co PLC  19 November 2025

The British Land Company plc

 

HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025

 

19 November 2025

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)

1. Occupancy excludes developments completed in the previous 12 months.

2. Excluding Storey.

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

 

Summary performance

 Period ended                                          30 September  30 September  % Change

2025

                                                                     2024
 INCOME STATEMENT
 Underlying Profit(1)                                  £155m         £143m         8%
 Underlying earnings per share(1)                      15.4p         15.3p         1%
 IFRS profit after tax                                 £218m         £109m
 IFRS basic earnings per share                         21.9p         11.7p
 Dividend per share                                    12.32p        12.24p        1%
 Total accounting return(1)                            4.0%          2.8%

 As at                                                 30 September  31 March

2025
2025
 BALANCE SHEET
 Portfolio at valuation (proportionally consolidated)  £9,801m       £9,486m       1.2%(2)
 EPRA Net Tangible Assets per share(1)                 579p          567p          2%
 IFRS net assets                                       £5,819m       £5,710m
 Net Debt to EBITDA (Group)(3, 4)                      7.2x          8.0x
 Loan to value (proportionally consolidated)(4, 5)     39.1%         38.1%
 Fitch Senior Unsecured credit rating                  A             A

 Period ended                                          30 September  30 September

2025

                                                                     2024
 OPERATIONAL STATISTICS
 Lettings and renewals over 1 year                     1.2m sq ft    1.4m sq ft
 Total lettings and renewals                           1.4m sq ft    1.7m sq ft
 Committed and recently completed developments         2.8m sq ft    2.9m sq ft
 SUSTAINABILITY PERFORMANCE
 MSCI ESG                                              AAA rating    AAA rating
 GRESB (standing investments / developments)           5* / 5*       5* / 5*

 

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 and 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.

 

Dividends

Our dividend is semi-annual, and in line with our dividend policy, is
calculated at 80% of Underlying EPS based on the most recently completed
six-month period. Applying this policy, the Board have declared an interim
dividend for the six months ended 30 September 2025 of 12.32p per share, which
will be a Property Income Distribution. Payment will be made on Wednesday 14
January 2026 to shareholders on the register at close of business on Friday 5
December 2025. A Dividend Reinvestment Plan (DRIP) is provided by Equiniti
Financial Services Limited which enables the Company's shareholders to elect
to have their cash dividend payments used to purchase the Company's shares.
More information can be found at www.shareview.co.uk/info/drip.

 

full unedited text

In accordance with DTR 6.3.5 (1A), the full unedited Half Year results for the
six months ended 30 September 2025 will shortly be available to download from
the National Storage Mechanism. A copy is also available on the Company's
website: https://www.britishland.com/news/half-year-results-202526/
(https://www.britishland.com/news/half-year-results-202526/) and
here: http://www.rns-pdf.londonstockexchange.com/rns/0735I_1-2025-11-18.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0735I_1-2025-11-18.pdf)

 

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:

Click for access:                      Webcast link
(https://stream.brrmedia.co.uk/broadcast/68cd5ac9e1a2e30013133bbb)

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

 

individual retail investor interactive Q&A

Tailored to individual retail investors, British Land will also host a live
interactive Q&A following a replay of the half year results investor
presentation on the Engage Investor platform, on 25 November 2025 at 3pm GMT,
with Sean Pearcey-Stone (Investor Relations Manager).

British Land welcomes all current shareholders and interested investors to
join and encourages investors to pre-submit questions. Investors can also
submit questions at any time during the live presentation.

Investors can sign up to Engage Investor at no cost and follow British Land
from their personalised investor hub.

Register interest in this event here:

https://www.engageinvestor.com/event/68cd507f41d8c34b7a1a5a13

 

For Information Contact

Investors

Jonty McNuff, British Land                    07931 684
272

 

media

Charlotte Whitley, British Land              07887 802 535

 

 

 

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