Revaluations swell British Land

The trading performance was underpinned by a strong property market, Ms Bell admits, and the portfolio received a 13.4 per cent valuation uplift to £13.6bn. However, strong demand for office and retail space also boosted net rental income by 20 per cent to £375m, with total leasing activity within office and retail reaching 2.4m sq ft. Within that, 1.1m sq ft of retail lettings and renewals were secured 8.7 per cent ahead of estimated rental value (ERV), while 809,000 sq ft of office space achieved rates 10.8 per cent above ERV. The continued clamber for space was also reflected in occupancy rates, which rose from 96.1 per cent to 98.3 per cent.

The major development programme that started in 2010 will be largely complete after the imminent completion of 5 Broadgate in London. However, given the strength of the market, there are 1.5m sq ft currently under construction and a similar amount forming the near-term pipeline. Acquisitions since the year end included the Surrey Quays Leisure Park for £135m. The 7m sq ft site has taken five years to secure, and will include office, retail, leisure and community space, with planning applications expected to be submitted next year.

Analysts at Panmure Gordon forecast adjusted net asset value per share of 877p by the end of March next year.