14th May 2014 07:54
LONDON (Alliance News) - Property development and investment firm British Land Company PLC Wednesday reported an increase in profit for the full year, as its UK portfolio was valued 8.3% higher than a year earlier.
The real estate investment trust posted pretax profit of GBP1.11 billion for the year ended March 31, up from GBP260 million a year earlier, after a valuation movement gain of GBP615 million compared with GBP88 million in financial year 2013.
Underlying pretax profit rose to GBP297 million from GBP274 million a year before.
Gross rental and related income rose to GBP384 million from GBP329 million, boosted by the strength of the retail portfolio, which benefited from high occupancy and increased footfall.
On the back of a strong performance the company increased its final quarterly dividend to 6.75 pence per share from 6.6 pence per share, making a total dividend of 27.0 pence up from 26.4 pence a year earlier.
British Land said its UK portfolio was valued at GBP11.95 billion, up from GBP10.24 billion, which the company said represented an increase of 8.3% when excluding the effect of capital expenditure. The company said there was a marked improvement in rental values across its UK portfolio.
The company also said it benefited from its decision in 2010 to commit to a GBP1.5 billion development programme, focused on London. Today, London and the South East accounts for 61% of its portfolio, up from 50% four years ago, British Land said.
Overall British Land said its UK portfolio generated a total property return of 14% compared with 6.3% a year earlier, made up of an income return of 5% and a capital return of 9%.
The value of the company's retail and leisure portfolio rose to GBP6.85 billion from GBP6.38 billion a year earlier. It said retailers have become noticeably more confident not only in the outlook for the market but also the role that "physical space will play in their omni-channel strategies." British Land said appetite for high quality space in the best locations has improved.
The office and residential arm also did well during the period, with the value of the portfolio rising to GBP5.10 billion from GBP3.86 billion a year earlier. It said the office market saw continued strong investment flows driven both by international investors along with the re-emergence of domestic investors.
FTSE 100-constituent British Land said its net asset value per share rose 15% to 688 pence from 596 pence a year earlier.
The company said its loan-to-value ratio remains unchanged at 40%.
Looking ahead, British Land said it plans to take advantage of market strength to sell more mature retail assets.
"Although the market remains competitive, we believe we can continue to take advantage of more complex situations to make attractive acquisitions," Chief Executive Chris Grigg said in a statement. "We will also move forward progressively with our new development programme and expect to commit to (mixed-use site) 4 Kingdom Street at Paddington in the coming year".
British Land shares were trading at down 0.4% Wednesday at 712.50 pence.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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