13th Nov 2013 08:59
LONDON (Alliance News) - Property development and investment firm British Land Company PLC Wednesday reported an increase in underlying pretax profit for the first half, as its UK portfolio was valued 2.8% higher than in 2012.
The real estate investment trust (REIT) posted underlying pre-tax profit of GBP146 million for the period ended September 30, up from GBP135 million a year earlier.
Underlying pretax profit includes valuation movement in UK properties during the period, as well as purchases and sales, and fee and rental income.
British Land said its portfolio was valued 2.8% higher at GBP11.2 billion compared with GBP10.2 billion at the year end 2012/13, while its European Public Real Estate Association (EPRA) net asset value per share rose 4.5% to 623 pence from 596 pence a year earlier.
EPRA is the industry body for European REITs.
Gross rental and related income also increased to GBP179 million, from GBP165 million in 2012 while British Land said its loan-to-value ratio stood at 42.3% compared with 40.2% at the end of March.
Financially the company said it was in a "strong" position with GBP610 million of low cost new borrowings agreed since the beginning of the year.
During the period the company made a number of acquisitions, including Paddington Central.
At GBP470 million, Paddington Central, a 610,000 sq ft office led mixed use estate close to Paddington railway station, is British Land's our largest purchase since 2005.
Looking ahead, British Land said it was encouraged by the indicators across its markets.
"We believe the future of London will remain bright, underpinned by improving occupational demand for offices and residential properties and expect development in the capital to continue to offer superior returns," it said.
However, while the UK retail market is more complex, there are now clear signs of improvement in occupational markets, especially for strong real estate, the company said.
British Land said it expects its new assets, including Paddington Central to make strong contributions to shareholder value over time.
The board proposed a quarterly dividend of 6.75 pence bringing the half year to 13.5 pence, up from 13.2 pence a year earlier.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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