The British Land Company reiterated its outlook for at least 30.5p of underlying earnings per share (EPS) in the financial year ending March 2027, in an AGM trading update covering the three months to 30 June.
The commercial property landlord, focused on campus offices and retail parks, said like-for-like net rental growth is tracking the top end of its 3-5% target range.
British Land completed 567,000 sq ft of campus leasing in the quarter, 4.8% ahead of estimated rental value (ERV) and 8.7% ahead of previous passing rent, with a further 1.1 million sq ft under offer at even steeper premiums.
Retail parks and London urban logistics contributed 303,000 sq ft of completed deals, 4.8% ahead of ERV, with retail park lettings running 13.7% ahead of previous passing rent given near-full occupancy.
The newly integrated Life Science REIT portfolio added 82,000 sq ft of deals in its first three months under British Land ownership, with a further 52,000 sq ft under offer.
On the capital recycling side, British Land sold or exchanged £83 million of assets at a 3.2% net initial yield (NIY), with £223 million more under offer, and bought Telford Bridge retail park for £30 million at an 8.3% topped-up NIY.
"We have started the year well, with momentum continuing from the end of our last financial year," said chief executive Simon Carter, who added he was handing over to Joanne McNamara in September "with great confidence".
British Land expects portfolio-wide ERV growth of 3-5%.
