British Land records first Net Asset Value increase in three years

Real estate investment trust British Land Company (LON:BLND) reported its first full-year Net Asset Value (NAV) increase since 2007 - a positive signal of recovery for property prices and lending some support to banks still weighed down by shaky mortgage assets.

Rob Hull
shareprices.com - Tuesday, May 18, 2010

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British Land's Meadowhall shopping centre development in Sheiffield

British Land, which is responsible for the development of shopping centres and office properties like Meadowhall in Sheffield and Broadgate’s Exchange Square, announced a NAV growth of 27 per cent to 504p for the year closing 31 March.

And with the portfolio valuation increasing by 13.5 per cent to £8.5bn and Chief Executive Chris Grigg confirming the group plans to pump between £470m and £500m into three current London office developments over the next four years.

Investors reacted positively to the results which have out-performed many analyst predictions.

The share price grew by 2.7 per cent by the time the market opened this morning and has peaked before 10:00BST at 452.60p – 4.45 per cent or 19.3p up.

Grigg said in this morning’s announcement: “In a year of real volatility, we have performed well, reflecting the quality and strength of our portfolio and the actions we’ve undertaken to improve it.

“We are focussed on the right assets in the right sectors and outperformed versus almost every measure tracked by the IPD, a key indicator of our achievement.”

Not only have the full-year results report helped lift the group to the heights of the FTSE 100 risers leaderboard today, they will also offer some prosperity for RBS (LON:RBS) and Lloyds Banking Group (LON:LLOY).

Both taxpayer-owned banks have been waiting for stronger market conditions so both can offload poor-performing mortgage assets without the sales punching big holes in the balance sheets.

Grigg also confirmed today the group was looking into letting some space at its Leadenhall building as well as looking for a joint venture partner for the scheme ahead of the development.

 

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