British Land portfolio value bounces
British Land, the UK’s second biggest property company, reported a strong bounce in the value of its estate during the third quarter to £8bn, as the real estate recovery began to feed into the balance sheets of the listed sector.
The company reported a net asset value of 438p for the third quarter, a jump of 18 per cent, which led to a profit of £611m, compared with a loss of £1.6bn last year.
The value of its properties increased 8.2 per cent to almost £8bn. Earnings per share were 60p, compared with a loss per share of 470p in the period last year. The company has spent £121m on properties since last September, including a half stake in Surrey Quays shopping centre in London. British Land has £2.8bn of undrawn debt and £342m of cash.
Chris Grigg, chief executive, said the company was well-positioned to take advantage as further attractive assets emerged over the next 18 months. Mr Grigg said there were no plans to “push the button” on any new developments, in spite of a large potential pipeline and plans at rival real estate investment trusts, although it would refurbish two buildings at Broadgate as part of plans to update the 1980s office estate with its new partner, Blackstone.
Mr Grigg also said there were no regrets about selling half of the £2bn Broadgate estate to Blackstone last summer in spite of the rise in value. He said the move was a “long-term strategy decision” for an asset that required a significant amount of capital expenditure.
Source: Financial Times |
