TIDMBLND
RNS Number : 5958N
British Land Co PLC
26 September 2023
BUSINESS UPDATE
British Land is publishing an update ahead of its Half Year
results on 13 November 2023.
Simon Carter, CEO, said:
"I am pleased with the continued momentum in the business.
Operationally we are seeing strong leasing activity which reflects
the exceptional quality of our portfolio and has resulted in our
recent upgrade of the expected ERV growth in retail parks. We have
also strengthened our balance sheet in the period and continue to
actively recycle capital with the disposal of non-core assets ahead
of book value. Meta's surrender of our building at 1 Triton Square
also enables us to accelerate our plans to reposition Regent's
Place as London's premier Innovation and Life Sciences campus."
Operational performance
Achieved 1.2m sq ft of leasing across the portfolio in the first
5 months to 31 August 2023, 13.1% ahead of ERV, with a further 1.1m
sq ft under offer, 17.4% ahead of ERV.
Campuses
- 262,000 sq ft of leasing completed 8.2% ahead of ERV,
including 64,000 sq ft of Storey leasing, and a further 137,000 sq
ft under offer, 10.5% ahead of ERV. In addition, we have 1.7m sq ft
in negotiations as demand continues to gravitate to best in class
space.
- Meta surrender of 1 Triton Square - one of the two buildings
it has leased at Regent's Place - for GBP149m, received on 25
September 2023. Although this will result in a EPS dilution, post
interest savings, of c.0.6p for the six months to March FY24 we are
comfortable with current market expectations for FY24 due to better
collection of historic COVID arrears than anticipated.
- Secured one of the UK's largest life science lettings this
year, 48,000 sq ft of lab and office space at the Priestley Centre,
Guildford to LGC, a leading global life science company.
Retail
- 980,000 sq ft of Retail leasing completed, 15.0% ahead of ERV,
with a further 951,000 sq ft under offer, 19.4% ahead of ERV. This
includes 511,000 sq ft of deals across Retail Parks, 15.3% ahead of
ERV and 677,000 sq ft under offer at 19.4% above ERV.
- Upgraded Retail Park ERV growth guidance for FY24 from 2-4% to
3-5% as a result of strong leasing activity ahead of ERV.
Balance sheet and capital recycling
- Exchanged on the sale of an office and data centre portfolio
for GBP125m, a NIY of 4.6%, which delivered an IRR of 8.2% per
annum since acquisition in 2007.
- As a result of the Meta surrender and the disposal of the
office and data centre portfolio, March 2023 LTV of 36.0% on a
pro-forma basis would be 33.6%.
- In August, Fitch affirmed British Land's senior unsecured
credit rating at 'A' with Stable Outlook.
- Strong liquidity maintained, with GBP1.7bn of undrawn
facilities and cash, with no requirement to refinance until early
2026.
-ENDS-
Investors:
Sandra Moura, British Land 07989 755 535
Media Enquiries:
Charlotte Whitley, British Land 07887 802 535
About British Land
Our portfolio of high quality UK commercial property is focused
on London Campuses and Retail & London Urban Logistics. We own
or manage a portfolio valued at GBP13.0bn (British Land share:
GBP8.9bn) as at 31 March 2023 making us one of Europe's largest
listed real estate investment companies.
We create Places People Prefer, delivering the best, most
sustainable places for our customers and communities. Our strategy
is to leverage our best in class platform and proven expertise in
development, repositioning and active management, investing behind
two key themes: Campuses and Retail & London Urban
Logistics.
Our three Campuses at Broadgate, Paddington Central and Regent's
Place are dynamic neighbourhoods, attracting growth customers and
sectors, and offering some of the best connected, highest quality
and most sustainable space in London. We are delivering our fourth
Campus at Canada Water, where we have planning consent to deliver
5m sq ft of residential, commercial, retail and community space
over 53 acres. Our Campuses account for 63% of our portfolio.
Retail & London Urban Logistics accounts for 37% of the
portfolio and is focused on retail parks which are aligned to the
growth of convenience, online and last mile fulfilment. We are
complementing this with urban logistics primarily in London,
focused on development-led opportunities.
Sustainability is embedded throughout our business. Our approach
is focused on three key pillars where British Land can create the
most benefit: Greener Spaces, making our whole portfolio net zero
carbon by 2030, Thriving Places, partnering to grow social value
and wellbeing in the communities where we operate and Responsible
Choices, advocating responsible business practices across British
Land and throughout our supply chain, and maintaining robust
governance structures.
Further details can be found on the British Land website at
www.britishland.com
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END
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