17th Nov 2015 07:34
LONDON (Alliance News) - British Land Co PLC on Tuesday reported that its net asset value, measured on the European Public Real Estate Association basis, grew by 7.5% in the first half of its financial year against the corresponding period the prior year, as UK property markets remained strong amid low interest rates and unemployment.
The real estate investment trust's EPRA NAV per share amounted to 891 pence per share as of September 30, compared with 829p at the equivalent stage the year prior, which the company said was due to the strength of the markets in which it is invested, as well as its actions to improve and manage its portfolio.
Underlying pretax profit, which excludes capital and other one-off items, grew to GBP171.0 million in the half, against GBP155.0 million in the corresponding period the prior year, driven by leasing activity and lower financing costs. Pretax profit fell to GBP823.0 million in the half from GBP1.04 billion when including those items.
"We are reporting another strong set of results. In recent years we have positioned our portfolio to benefit from long-term macro trends. This focus has underpinned our performance in the last six months where we have benefited from strong occupational demand and a sound UK economy. Moreover our high quality portfolio and attractive and flexible development opportunities, position us well for the future," Chief Executive Chris Grigg said in a statement.
The property investor said it generated total property returns of 6.9% for the six months, outperforming All Property IPD market benchmarks on both a capital and a total returns basis.
"Looking forward, we remain positive about occupational demand in our markets which is supported by UK economic performance. We are, of course, mindful of increased volatility in a number of capital markets which could adversely impact our investment markets. Looking beyond any near-term uncertainty, the business is in good shape," Grigg said.
"We expect to maintain our capital discipline with investment and development over the coming year being at least balanced by asset disposals. Overall, our business is more modern and more London-focused, we understand our customers better, and we have attractive opportunities in the near and medium-term, so we feel well positioned for the future," the chief executive added.
By Samuel Agini; [email protected]; @samuelagini
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