British Land (BLND) is expected to deliver another upbeat performance when its trading statement is released on Tuesday. The property group has been steadily repositioning its portfolio towards London and the south-east, while reducing its exposure to non-core regional retail assets.
And while the development pipeline established in 2010 is now largely complete, the existing pipeline is being financed wherever possible through recycling assets rather than increasing debt levels. Further disposals are likely, as emphasis focuses on core multi-let assets while offloading single let, non-core assets. The proportion of food stores in the portfolio has halved in the past two years to just 6 per cent. Retail lettings and renewals are likely to edge higher, but the retail side is still facing challenges and does not offer the same growth as office and commercial rents. This helps to explain why the shares continue to trade at a discount to forecast net asset value.