British Land’s first half results, covering the six months ended 30 September 2015, show the company’s EPRA NAV climbing by 7.5% and its diluted underlying earnings per share rising by 4.6% to 16p . The first half dividend was increased by 2.5% to 14.18p.
The valuation of the portfolio increased by 4.7%. That broke down into a 4.5% gain in the value of their standing investments and an 8.5% gain in the value of their developments. Offices & Residential outperformed Retail and leisure, delivering returns of 8.2% against 1.8%. British Land’s returns were 10bp ahead of the return on the equivalent IPD Index.
They signed 573,300 sq ft of lettings and renewals in the period bringing occupancy to 98.4%.
They invested £920m during the period including the acquisition of One Sheldon Square and made £258m of disposals. Various developments are progressing well. they expect to submit a planning application for their 46 acre, 5.5m sq ft Canada Water site by the end of next year.
The weighted average interest rate fell by 20bp to 3.6% as they issued £350m of zero coupon convertible bonds. the loan to value ratio fell by a point to 34%.
BLND : British Land outperformance of IPD driven by Offices and Developments