British Land has swung back into the black after an annual loss in the depths of the pandemic, its chief executive now eyeing expansion in various markets to boost its development pipeline and bottom line.
The FTSE 100 REIT posted a profit after tax of £960m for the year to 31 March, having lost almost £1.1bn a year earlier. The company made a total accounting return of 14.8%, driven by a 6.8% increase in its portfolio valuation to almost £10.5bn.
Chief executive Simon Carter said the results showed “a strong performance” over the course of the year.
“We are active recyclers of capital, releasing over £1bn since April 2021 to invest into higher value-creating opportunities in development and growth segments of the market,” he said. “We have a wealth of development opportunities across our London campuses, including Canada Water, and in urban logistics, which altogether we expect will generate around £2bn of future profit.”
Carter added: “We are mindful of current elevated economic and geopolitical uncertainties, but our strategic advantage in sectors with pricing power means we can look ahead with confidence.”
British Land invested £350m in retail parks during the year. Carter described that market as offering “an attractive, cost-effective format” and noted that valuations had risen by a fifth, the sharpest rise of any of the REIT’s asset classes.
Its campus valuations rose by a combined 5.4%, with a flat valuation and a yield contraction for its £319m urban logistics portfolio. Carter said the fundamentals of the urban logistics market remain “compelling given the chronic shortage of space”, adding that the REIT has built a £1.3bn development pipeline in 12 months.
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