Real estate group British Land delivered an 8% increase in underlying profits over the first half, supported by higher rents and strong occupancy levels across the core sectors of prime London office campuses and retail parks.
Underlying profit totalled £155m over the six months to 30 September, up from £143m a year earlier, as a 4% increase in like-for-like rental income combined with a 12% reduction in administration expenses. Underlying earnings per share were 1% higher at 15.4p.
Occupancy levels across the portfolio stood at 95% by the end of the period, with campuses seeing 92% occupancy and the retail and London urban logistics reporting 98%.
The company leased 1.4m square foot across the first half at 5.3% ahead of estimated rental values, with a further 1.3m square feet under offer at 7.5% ahead of ERV.
Meanwhile, the portfolio value improved by 1.2%, with campuses up 0.9% and the retail and London urban logistics arm up 1.6%.
“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,” said chief executive Simon Carter.
Looking ahead, British Land said it expects LFL net rental growth to be around 5% for the year ending 31 March, with 3-5% ERV growth across the portfolio. Underlying earnings per share is expected to be at least flat on last year at 28.5p, before growing to at least 6% in FY27 and a further 3-6% beyond.
The stock was down 1% at 375p by 0814 GMT.