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Values recover at British Land

Valuations have bounced back from post-referendum lows, but managers of London's second largest Reit retain a cautious stance
May 17, 2017

The key figure to look at from British Land's (BLND) figures for the year to March 2017 is the adjusted net asset value (NAV), which was all but unchanged from a year earlier. This confirms that values have largely bounced back from the post-referendum panic depression, when valuations were plucked out of the air rather than based on transactions, of which there were very few.

IC TIP: Hold at 655.5p

Even so, there was still a £144m negative valuation movement in the portfolio compared with a £616m uplift the previous year; hence the apparent drop in headline profits. In fact, underlying profits moved ahead by 7.4 per cent to £390m, and not only was the annual dividend maintained, but the proposed dividend for the year to March 2018 has been raised to 7.52p per share on a quarterly basis, totalling 30.08p per share.

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