13th Jul 2007 11:25
British Land Co PLC13 July 2007 The British Land Company PLC Annual General Meeting Statement Friday 13 July, 2007 British Land holds its Annual General Meeting this morning at 11.30 a.m. at theLandmark Hotel, London. Extracts from comments by the Chairman, Chris Gibson-Smith, to be made at themeeting are as follows: "British Land has made a good start to the financial year. Our strategy isunambiguously 'customer-centric' and throughout our business evidence is visibleof the appeal of our buildings and locations. As a result, we enjoy a very highoccupancy rate and the longest leases in our sector. In London, good progresson developments and capturing rental increases across the office sector is beingmade. In the retail portfolio, our market leadership in out-of-town retailparks and superstores positions us in the strongest segments of customer demand. "The Company has also continued to recycle capital aggressively. Our REITstatus makes this more tax efficient than hitherto. In the 3 months since thestart of this financial year we have completed or exchanged on £1,161 million(BL share) of property sales across the portfolio, at an average premium of 2.5%to March valuations. This level of activity, following on from £7 billion ofsales and purchases in the previous 2 years, has given us significant advantagein improving our portfolio's appeal to customers and its corresponding financialprospects. "We continue to look actively at new investment, whether through our 5m sq.ftdevelopment programme (£500 million spend expected in 2007/8) or elsewhere. "The potential impact of higher interest rates on the property investment markethas been widely discussed. At present occupier markets are generally in goodshape. As a result the principal changes in property pricing relate to areas ofoccupancy strength (where pricing is strong) or weakness (where some outwardyield shift is evident). This type of realignment we have been anticipating forsome time. We believe that British Land's portfolio, development, financial andmanagement strengths will continue to show through clearly even in a tougherenvironment should that transpire. "Our next financial results, for the quarter to 30th June, 2007, will beannounced on August 16th. We anticipate reporting a further advance in netasset values at that time. "The Board is particularly conscious of demonstrating its regard for shareholdervalue at a time of market uncertainty. The best way to do this is throughsuccessful prosecution of our added-value strategies which, as outlined, areprogressing well. However we are also focused on conversion of our efforts tocash for shareholders. In this context we announced a £250 million sharebuyback programme last week since when we have already repurchased £65 million.Today, complementing that effort, I can announce increased ordinary dividends.We previously set these at a minimum of 33p/share (8.25p/quarter) for 2007/8.We now intend to pay out 35p/share for the current financial year (8.75p/quarter) - a further 6% increase on the previously announced 94% increasecompared to our last full year before REIT status. We continue to expect tooperate a policy of progressive dividend growth in future years. "This is my first AGM "in the Chair" at British Land. May I close by payingcompliments, on shareholders behalf, to our people. Firstly to John Travers,who tragically died last month having joined our Board as a non-Executiveearlier in the year. Our thoughts are with his family. Sir John Ritblat, ourhonorary president, has presided at this event for many years. We are delightedhe is here today and continues to actively support our work. Finally, toBritish Land's people, continuing thanks and appreciation are due. Yourunstinting efforts position us well for the future." Media Enquiries:British Land: Laura De VereTel: +44 20 7467 2920/Mobile: + 44 (0)7739 292920 Finsbury: Ed SimpkinsTel: +44 207 251 3801/Mobile:+ 44 (0) 7947 740 551 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
British Land