British Land Reports Strong Leasing Performance and Upbeat Outlook, Shares Gain

Shares of The British Land Company PLC (BLND) are trading higher today following the release of a trading update for the financial year ended March 31, 2026 (FY26). The report, ahead of the full results announcement, showcases robust leasing activity and improved financial guidance, driving positive market sentiment.

British Land anticipates FY26 Underlying Earnings Per Share (EPS) of 28.9p, exceeding previous expectations. Like-for-like net rental growth reached 6%, also surpassing guidance, with a notable 12% increase within the company’s campus portfolio. This strong performance is expected to deliver a total accounting return of 8.1% for FY26, aligning with the company’s target range.

The company’s strategic focus on campuses and retail parks appears to be paying dividends. Occupancy rates are high, with the retail park portfolio virtually full at 99%. The campus portfolio, benefiting from demand from AI and innovation-led businesses, boasts a 95% occupancy rate.

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The acquisition of Life Science REIT, completed on April 20, 2026, is expected to be earnings accretive, further bolstering British Land’s financial outlook. As a result, the company is upgrading its FY27 Underlying EPS guidance to at least 30.5p, up from the previous estimate of 30.2p.

For the year ended 31 March 2026, British Land expects Underlying Profit of £294m (FY25: £279m) and Underlying EPS of 28.9p (FY25: 28.5p). Portfolio valuation increased by 2.3%, with campuses up 2.0% and retail parks up 3.3%. EPRA Net Tangible Assets stand at 590p (FY25: 567p) contributing to a Total Accounting Return (TAR) of 8.1%. Loan to value is at 39.2% (FY25: 38.1%) and Group Net Debt to EBITDA c.7.7x (FY25: 8.0x).

Leasing activity has been particularly strong in London campuses, with 1,692,000 sq ft of deals completed over the year, accelerating in Q4. A significant deal with Herbert Smith Freehills Kramer at Broadgate’s 1 Appold Street set record rents for the campus. The company is seeing increased demand from AI and innovation-led businesses, especially in the Knowledge Quarter where Regent’s Place is well-positioned.

Driver Breakdown:

Campus Demand: Surging demand from AI and innovation companies driving rental growth.

Retail Park Strength: High occupancy and new entrants contributing to leasing ahead of previous passing rents.

Strategic Acquisitions: Life Science REIT acquisition boosting future earnings potential.

Simon Carter, Chief Executive, said: “This has been an excellent year of leasing, reflecting our market-leading position in campuses and retail parks, where availability for high-quality space in the right locations is near record lows, and occupational fundamentals continue to strengthen, despite ongoing macroeconomic volatility.”