British Land Company (LSE:BLND) told investors on Thursday that it expects underlying earnings per share of 16.1p for the six months to 30 September, up 5% on the 15.4p reported a year earlier,
In a trading update ahead of its half-year results, due on 18 November, the London-listed real estate investment trust, which owns a portfolio of office-led campuses, retail parks and London urban logistics assets, said like-for-like net rental income grew 12% in the first half, with underlying profit rising to £166m from £155m.
Portfolio values rose 1.5% over the six months, driven by estimated rental value (ERV) growth of 3.0% across the portfolio, with campuses up 3.9% and retail and London urban logistics up 2.0%.
Jo McNamara, who became chief executive in mid-September, said demand for the group's space had driven "double-digit like-for-like net rental income growth and an excellent leasing performance across the portfolio" despite macroeconomic volatility.
Across campuses, British Land completed 78 deals covering 689,000 sq ft at rents 14.8% ahead of ERV, with One Triton Square now fully let and Broadgate Tower now 62% let following a further six deals. At 2 Finsbury Avenue, a final agreement with Citadel for 33% of the building has taken the scheme to 52% let or under offer, with a further 119,000 sq ft under offer.
Retail parks leased 438,000 sq ft at rents 6.8% ahead of ERV and 9.6% ahead of previous passing rents, with occupancy at 99% and a further 533,000 sq ft under offer.
The group sold £247m of assets at a net initial yield of 4.7%, broadly in line with book value, with a further £202m under offer, and acquired Telford Bridge retail park for £30m at a topped-up net initial yield of 8.3%, alongside its previously completed acquisition of Life Science REIT.
Loan-to-value stood at approximately 39.6%, up from 39.2% at the last financial year-end, while net debt to EBITDA fell to approximately 7.0x from 7.7x. EPRA net tangible assets per share rose to 599p from 590p.
British Land reiterated its guidance for FY27 underlying EPS of at least 30.5p, representing 6% year-on-year growth, and its medium-term target of 3-6% annual EPS growth, alongside expectations for portfolio-wide ERV growth of 3-5% a year.