REG - British Land Co PLC - Trading Update

British LandAnnouncement

15/10/2025 07:10

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RNS Number : 4629D  British Land Co PLC  15 October 2025

the british land company plc

trading update

 

British Land issues a trading update for the six-month period ended 30
September 2025, ahead of its half year (HY26) results announcement scheduled
for 19 November 2025.

 

Simon Carter, Chief Executive of British Land, said:

 

"Occupational fundamentals continue to favour our prime London office campuses
and retail parks. Office attendance is accelerating, retailers are expanding
out of town, and supply remains very constrained across both markets. We are
taking advantage of these positive trends through proactive asset management
and development, having leased 1.4m sq ft at rates 5.3% above ERV across 251
deals, and we have a strong pipeline of 1.3m sq ft in solicitors' hands.
Strong like-for-like rental growth of 4%, development leasing and lower admin
expenses have offset increased funding costs during the period as we delivered
Underlying EPS of 15.4p. As a result, and reflecting our focus on delivering
sustainable earnings growth, we now anticipate FY26 Underlying EPS of at least
28.5p, with growth of at least 6% projected for FY27. Alongside this earnings
outlook, going forward we expect to deliver a total accounting return of 8-10%
p.a., of which 4% was achieved in the first half."

 

Strength of occupational fundamentals drives rental growth and valuations

 

Across our portfolio we continue to see strong occupational fundamentals, with
six-month ERV growth of 2.4%, at the top end of our guidance of 3-5% on an
annualised basis. In retail parks, our portfolio is practically full, with 99%
occupancy across our c.1,200 unit portfolio. At our London campus assets,
following a summer of elevated activity, EPRA occupancy has increased over
500bps to 88%. We have seen particularly strong activity at Broadgate where we
have only one floor available to lease excluding on site developments. Given
the strength of demand, we have been proactive in the period in taking back
and re-letting space, securing surrender premia and capturing reversion across
the portfolio. Overall, surrender premia and other one-off items combined have
had a positive contribution on performance in HY26, and are in line with HY25.

 

On our recently completed developments, we have made good progress at Norton
Folgate which is now 81% leased, under offer or in negotiations. Similarly, at
our Aldgate build to rent scheme, we have leased 80% of the residential units.
We continue to expect both schemes to be fully let by year end. Across the
wider portfolio, virtually all of our remaining vacant office space is new or
recently refurbished and given robust demand, shortage of supply and ongoing
negotiations, we expect to make further progress on lettings in the second
half.

 

Take-up of space from AI businesses is increasing across London and
particularly in the Knowledge Quarter. This is reflected in our own leasing
activity, where we have leased space to 11 AI-led businesses since April
including Collibra, ContractPodAI, Juvenescence, Relation Therapeutics, Sierra
and StackAdapt, in addition to the Synthesia letting in February. Activity has
been particularly pronounced at Regent's Place, which we are repositioning as
a science and technology campus, with 49k sq ft leased to such businesses.
This bodes well for our 1 Triton Square innovation scheme, which launches
today, where we are in negotiations with several prospective occupiers.

 

With yields stable, ERV growth drove valuations up 1.2% in HY26, with gains
across both sectors. This delivered a total accounting return of 4.0%, in line
with our 8-10% target for the full year.

 

For the six-month period ended 30 September 2025, subject to external review,
the Group expects:

 

Earnings

−    Underlying Profit of £155m (HY25: £143m) and Underlying EPS of
15.4p (HY25: 15.3p).

 

Portfolio valuation

−    Values up 1.2%, with Retail & London Urban Logistics +1.6% and
Campuses +0.9%.

−    ERV growth of 2.4%, with Retail & London Urban Logistics +2.1%
and Campuses +2.6%.

−    NEY stable at 6.1%.

−    EPRA Net Tangible Assets of 579p (FY25: 567p) and TAR of 4.0%.

 

Capital recycling

−    £59m of assets disposed at an average of 5% above book.

−    £52m of retail acquired, principally two retail parks at 8.5%
Topped Up NIY.

 

Operational update

−    1.4m sq ft of leasing across the portfolio, 5.3% ahead of ERV, with
a further 1.3m sq ft under offer, 7.5% ahead of ERV.

−    Like-for-like net rental growth of 4%.

 

Campuses

 

−    0.5m sq ft of leasing, 3.0% ahead of ERV, with a further 0.6m sq ft
under offer, 6.0% ahead of ERV.

−    Occupancy of 92% 1  (#_ftn1) , and 88% occupancy on an EPRA basis.

−    Like-for-like net rental growth of 7%.

 

Retail and London Urban Logistics

 

−    0.9m sq ft of leasing, 7.3% ahead of ERV, with a further 0.7m sq ft
under offer, 9.5% ahead of ERV.

−    Occupancy of 98%(1) (retail parks at 99%), and 95% occupancy on an
EPRA basis.

−    Like-for-like net rental growth of 2%, reflecting near full
occupancy and a largely rack rented retail park portfolio, which should become
increasingly reversionary as rents continue to grow.

 

Outlook

 

−    Reiterate guidance for future ERV growth of 3-5% p.a. across our
portfolio.

−    Expect FY26 Underlying EPS of at least 28.5p, with growth of at
least 6% projected for FY27, and are comfortable with current market
expectations.

 

- ENDS -

 

Investors:

David Walker / Jonty McNuff, British Land
                                    0207
486 4466

Media:

Charlotte Whitley, British
Land
            07887 802 535

 

Notes to Editors

About British Land

British Land is a UK commercial property company focused on real estate
sectors with the strongest operational fundamentals: London campuses, retail
parks, and London urban logistics. We own or manage a portfolio valued at
£14.6bn (British Land share: £9.5bn) as at 31 March 2025.

Our purpose is to create and manage Places People Prefer - outstanding places
that deliver positive outcomes for all our stakeholders on a long term,
sustainable basis. We do this by leveraging our best in class platform and
proven expertise in development, repositioning and active asset management.

We have both a responsibility and an opportunity to manage our business in an
environmentally and socially responsible manner. Our approach to
sustainability is focused on three pillars: Greener Spaces, Thriving Places
and Responsible Choices.

Read more about us at www.britishland.com (http://www.britishland.com) .

Forward-looking statements

Nothing in this announcement should be construed as either an offer or
invitation to sell or any offering of securities or any invitation or
inducement to any person to underwrite, subscribe for or otherwise acquire
securities in any company within the Group or an invitation or inducement to
engage in investment activity.

Certain information contained in this announcement may constitute
"forward-looking statements", which can be identified by the use of terms such
as "may", "will", "would", "could", "should", "expect", "anticipate",
"project", "estimate", "intend", "continue", "target", "plan", "goal", "aim"
or "believe" (or the negatives thereof) or other variations thereon or
comparable terminology. These forward-looking statements include all matters
that are not historical facts and include statements regarding the Company's
intentions, beliefs or current expectations and those of our Directors and
employees concerning, amongst other things, the Company's results of
operations, financial condition, changes in global or regional trade
conditions, changes in tax rates, liquidity, prospects, growth and strategies,
acts of war or terrorism worldwide, work stoppages, slowdowns or strikes,
public health crises, outbreaks of contagious disease or environmental
disaster. By their nature, forward-looking statements involve inherent risks,
assumptions and uncertainties that could cause actual events or results or
actual performance of the Company to differ materially from those reflected or
contemplated in such forward-looking statements. No representation or warranty
is made as to the achievement or reasonableness of and no reliance should be
placed on such forward-looking statements.

The Company does not undertake any obligation to update or revise any
forward-looking statement to reflect any new information or change in
circumstances or in the Company's expectations.

 1  (#_ftnref1) Excluding developments completed in the previous 12 months.

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