British Land reported a slight rise in half-year profits, supported by strong performance in its retail park properties, which offset valuation declines in its office-focused Campuses. The company's retail park assets, constituting a third of its portfolio, gained 5.1% in value, while Campus valuations fell by 1.7%. CEO Simon Carter highlighted the success of investing in retail parks, as demand for affordable out-of-town spaces grows. The company raised its full-year earnings per share forecast to 28.1 pence, up from 27.9 pence, following a £441 million retail park acquisition and a share placement. The UK property market shows signs of recovery.
British Land, a commercial property firm, recently announced a modest increase in its half-year profit, driven by strong performance in its retail park properties, which offset declines in the valuation of its office-focused campuses. The UK commercial property market is gradually recovering from the post-pandemic slowdown, supported by stabilising property values and growing optimism fueled by anticipated near-term interest rate cuts.
British Land's focus on increasing investments in retail parks is yielding results, with retailers drawn to affordable out-of-town spaces for supporting their online operations. This has driven significant rental growth and valuation gains in the segment, according to CEO Simon Carter. The company, which integrates leisure, retail, and hospitality amenities into its office-focused "Campus" developments, reported a 0.2% rise in EPRA Net Tangible Assets-a key metric reflecting property value-to 567 pence as of September 30, compared to the valuation at the end of March.
The value of British Land's retail park assets, which make up roughly one-third of its total portfolio, increased by 5.1% since the end of March, while valuations for its office-focused Campuses dropped by 1.7%. The company also raised its full-year earnings per share forecast to 28.1 pence, up from 27.9 pence, driven by the recent acquisition of a retail park portfolio worth £441 million ($560.2 million) and a share placement completed last month.
British Land saw modest profit growth, driven by strong retail park performance, which offset declining valuations in its office-focused Campuses. Retail park assets rose 5.1% in value, while Campuses fell by 1.7%. Increased demand for cost-effective out-of-town spaces boosted rental growth. The company raised its earnings per share forecast to 28.1 pence after a £441 million retail park acquisition and share placement
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