British Land reveals good performance

British Land shares were up 2.3% after it posted a fiscal third-quarter net profit of £623 million compared to a year-earlier loss of £1.59 billion, helped by strong growth in valuations across its portfolio.Net asset value rose 18% to 438 pence a share and its portfolio rose in value by 8.2%.

The group also said early signs of recovery seen in the second quarter have extended right across its portfolio.

Chris Grigg, Chief Executive, comments:

“Our third quarter performance saw a continued recovery with strong valuation growth right across the portfolio. The significant increase in our property valuation reflects the quality of the portfolio and focus on asset management. Our retail estate is virtually 100% let and characterised by prime locations and strong customer relationships. Our office portfolio is well positioned as London letting activity picks up. We have over 250,000 sq ft of space under offer, including nearly 220,000 sq ft to Macquarie , and have over 650,000 sq ft of additional new space available from recent development activity.

“During the quarter we commenced the Broadgate JV with Blackstone, an important part of our long-term plan to re-balance the portfolio. We are investing in high quality opportunities such as Surrey Quays, where we can add considerable value, and we expect further attractive assets to emerge over the next 18 months. We’re well placed: British Land combines a prime portfolio, strong income profile, talented people, and significant financial firepower.”