Good results in tough markets; continued outperformance vs IPD
- Net rental income 1.1% ahead; UK like for like growth +1.2%
- Underlying PBT up 3.8% to 137 million; IFRS PBT of 109 million (HY 2011/12: 331 million)
- Portfolio valuation in line with 31 March 2012 at 10.4 billion (UK +0.2%)
- Continued outperformance vs IPD benchmarks: total returns +170 bps; capital returns +200 bps
- EPRA NAV ahead at 596 pence, +0.8% increase over 12 months; +0.2% over 6 months
- IFRS Net Assets flat at 5.1 billion (HY 2011/12: 5.1 billion)
- Quarterly dividend of 6.6 pence; bringing the half year to 13.2 pence (+1.5%)
Good leasing activity in slow market reflects portfolio strength and asset management expertise
- Outperforming the market on all key operational metrics
- 953,000 sqft of lettings and lease renewals/extensions at 4.5% above ERV; occupancy maintained at high levels (like-for-like UK 98.3%)
- Rental value growth at +0.3% outperforming IPD benchmark by 40 bps
- UK retail footfall +0.3% outperforming Experian benchmark by 300 bps
Successfully crystallising value from office developments
- 6.9% increase in value of committed office developments
- 54,000 sq ft of pre-lets agreed since 1 April: 56% of office programme now pre-let
- Further 34,400 sq ft of space under offer post half year end
- 216 million of profit (24 pence per share) crystallised to date on the programme
- 175 million of profit yet to come (19 pence per share) based on valuers' current estimates
Disposals release capital to invest in future growth and replenish development pipeline
- 351 million of disposals (235 million BL share) exchanged or completed; 3.1% ahead of March 2012 valuation
- 316 million of acquisitions (274 million BL share) exchanged or completed since 1 April 2012: focused on replenishing development pipeline
- Acquisitions include: Clarges Estate (130 million), a 191,000 sqft office/residential development opportunity in Mayfair and a retail development in Hereford (90 million forward funding)
Continued access to diverse range of low cost financing
- Achieved 917 million (BL share 703 million) of new financings since the beginning of the financial year; successful convertible bond issue: 400 million raised with a coupon of 1.5%
- Proportionally consolidated loan to value (LTV) at 46.0% (March 2012 45.3%)
Chris Grigg, Chief Executive said: "Today we're reporting a good set of numbers in what continues to be a tough market. Our income, profits and NAV are up on the same period last year and we have continued to outperform the UK property market on all key metrics - rental growth, capital returns and total returns. Our results underline the strength and resilience of British Land's business. The decisions we have taken in recent years are ensuring we are not only delivering good results today but are also building growth into our portfolio for the future."
