British Land increases its 2014 full year dividend by 2.5%

DividendMax Ltd.

British Land increases its 2014 full year dividend by 2.5%

The British Land Company PLC Full Year Results

Chris Grigg, Chief Executive said: "We are announcing a strong set of results today with the Group continuing to outperform on a range of measures. This reflects the strategic decisions we have taken over the last five years to re-position the business, alongside the strength of our day to day asset management activities. I am particularly pleased with our exceptional leasing activity over the year, which is the clearest indication we are creating environments where people want to work, shop and live. As we look ahead, our results give us confidence we are well positioned for changing trends in the real estate sector: we have a modern portfolio focused on the right locations; a strong balance sheet with a low cost of debt; and an exciting development programme."

Strong full year results

• Total accounting return of 24.5% (2014: 20.0%)

• Underlying PBT +5.4% to £313 million; IFRS PBT of £1,789 million (2014: £1,110 million)

• EPRA NAV +20.5% to 829 pence; IFRS Net Assets at £8.6 billion (2014: £7.1 billion)

• Quarterly dividend of 6.92 pence per share; bringing the full year to 27.68 pence (2014: 27.0 pence per share)

• First quarter dividend of 7.09 pence per share proposed for 2016, an increase of 2.5%


Valuation uplift reflecting strong markets and our own actions; continuing to outperform

• Total portfolio valuation +12.1%; standing investments +11.1%; developments +25.9%

• Strong uplift in Offices & Residential +18.8% reflecting buoyant markets; good uplift in Retail & Leisure +7.5%

• ERV growth of 4.6%; strengthening rental growth in Offices and Retail  

• Outperforming IPD: all property total returns +130 bps; capital returns +190 bps

Exceptional leasing activity; portfolio close to full occupancy

• 2.4 million sq ft of leasing activity across Retail and Offices

• 1.1 million sq ft of Retail lettings and renewals, 8.7% ahead of ERV; further 348,000 sq ft under offer

• 809,500 sq ft of Office lettings and renewals, 10.8% ahead of ERV; further 151,700 sq ft under offer

Continued repositioning of the portfolio with £2.4 billion of gross investment activity1

• £210 million acquisition of One Sheldon Square post year end, increasing ownership at Paddington Central

• £733 million property exchange with Tesco, increasing weighting towards multi-let assets in the South, and reducing weighting to standalone foodstores to under 7%

• Acquired additional £169 million interest in the HUT portfolio, increasing our ownership to 69.2%

• Total residential sales of £370 million; includes £259 million at Clarges Mayfair

• £903 million of mature asset disposals (including Tesco property exchange)

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