British Land Share Price Surged 6.3% on Upbeat H1 2024 Results

The British Land Company PLC (LON: BLND) share price surged 6.3% after its half-year trading report showed impressive performance. The company reported a 3.4% increase in its underlying profits.

The company has made significant strides in cost management, reducing the EPRA cost ratio to 14.8%, a substantial improvement from the 19.5% reported in FY23, which ended in May. The firm’s underlying earnings per share have shown strong growth, reaching 15.2p, reflecting a 3.4% increase.

Shareholders will be pleased to know that the dividend per share has risen to 12.16p, a 4.8% increase. Despite challenges, British Land Company maintains robust EPRA Net Tangible Assets per share of 565p, demonstrating resilience in market dynamics, albeit down 3.9%.

The Loan-To-Value ratio is 36.9%, a slight increase from FY23's 36.0%. Meanwhile, Group Net Debt to EBITDA has improved to 6.0x from 6.4x in FY23. Fitch has affirmed the company's Senior Unsecured credit rating at ‘A' with a stable outlook, underscoring its financial stability and creditworthiness.

British Land Company's portfolio boasts a robust occupancy rate of 96%, with specific segments performing exceptionally well, including Campuses at 94%, Retail Parks at 99%, and London Urban Logistics achieving full occupancy at 100%.

The company has outperformed expectations in leasing, securing 1.6 million sq ft, 12.2% above Estimated Rental Value (ERV). Additionally, there is a promising pipeline with a further 1.1 million sq ft under offer, surpassing ERV by 16.6%.

British Land Company maintains a solid financial position with £1.7 billion in undrawn facilities and cash reserves, providing flexibility for future endeavours.

British Land’s CEO Simon Carter said: “We are pleased with the performance in the first half, with underlying profits increasing 3% on the back of another strong period of leasing and good cost control. We have seen yields continue to move out, but as we predicted in May, at a slower pace. Rental growth has accelerated, with lettings 12% ahead of ERV, and occupancy remains strong at 96%, well above levels in the wider market. We are benefitting from our decision to pursue a value-add strategy across campuses, retail parks and London urban logistics. These submarkets have the strongest occupational fundamentals and highest rental growth within the office, retail and logistics sectors. We now expect ERV growth at the top end of our previous guidance for FY24.”

British Land (BLND) share price. 

The British Land Company (BLND) share price surged 6.30% to trade at 334.30p from Friday’s closing price of 314.50p.