Chris Grigg, Chief Executive said: "These results reflect the resilience of British Land's business. It is noteworthy that underlying profits are up 6.3% despite the tougher economic environment. At the same time, occupancy, income and ERV all rose in the quarter. We have also made further progress on our office development programme. In total, we have now locked in future annual rent of £32 million through a series of binding pre-lets. These pre-lets mean that our office development programme is already 50% pre-let even though it mainly reaches practical completion between 2013 and 2014. Of course, the current economic outlook is uncertain, but overall our business is defensively positioned today and will benefit further as economic growth returns."
Strong asset management and investment delivering resilient results
- Q3 UPBT up 6.3% to £68 million versus prior year (last 12 months UPBT +4.7%)
- Portfolio valuation up to £10.3 billion: +0.1% over 3 months (last 12 months: +4.5%)
- EPRA NAV up 0.3% to 593 pence over 3 months (last 12 months +8.2%)
- Quarterly dividend of 6.5 pence as previously indicated
- Total accounting return over 12 months of 13.0%
Securing and growing income: occupancy up and lettings ahead of ERV
- Total portfolio ERV growth of 0.2% over 3 months; (last 12 months +2.3%)
- £8.7 million pa of new rent from 1.6 million sq ft of leasing activity (including pre-lets) in Q3
- Lettings and renewals 7.5% above ERV in retail; 9.0% above ERV in offices
- Occupancy up 20 bps to 98.0%;UK retail ahead at 98.4% and offices up to 97.8%
