British Land’s (BLND) pre-tax losses rose by more than 10-fold during the first half of its financial year, following a sharp devaluation in its retail portfolio. Retail assets declined by 10.7 per cent in value, with the multi-let portfolio faring even worse.
However, some liquidity has returned to the market for smaller retail assets, according to chief financial officer Simon Carter. “It’s provided valuation evidence to our valuers,” he told us. Demand for supermarkets has also proved robust, demonstrated by the sale of 12 Sainsbury’s (SBRY) superstores, which sold at a “modest” premium to book value and allowed the commercial property group to bank £194m in the process.
Also performing better than retail was the campus-focused office portfolio, which recorded a 0.2 per cent growth in estimated rental values. Lettings and renewals covered 671,000 square feet of space and were agreed at an average 11.1 per cent ahead of estimated rental values, compared with 6.5 per cent the same time last year.
The group secured resolution to grant planning permission on the 53-acre Canada Water masterplan, progress that prompted a 12.4 per cent rise in the value of the scheme.
House broker Panmure Gordon forecasts an adjusted net asset value (NAV) of 877p at the March 2020 year-end, rising to 891p 12 months later.
| BRITISH LAND (BLND) | ||||
| ORD PRICE: | 555p | MARKET VALUE: | £5.14bn | |
| TOUCH: | 554.2-555p | 12-MONTH HIGH: | 649p | LOW: 465p |
| DIVIDEND YIELD: | 5.7% | TRADING PROPERTIES: | £45m | |
| DISCOUNT TO NAV: | 35% | NET DEBT: | 39% | |
| INVESTMENT PROPERTIES: | £11.1bn* | |||
| Half-year to 30 Sep | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018 | 916 | -42 | -4.9 | 15.50 |
| 2019 | 860 | -440 | -42.9 | 15.97 |
| % change | -6 | - | - | +3 |
| Ex-div: | 2 Jan | |||
| Payment: | 7 Feb | |||
| *Includes investments in joint ventures | ||||
