Solid portfolio for British Land as commercial property market recovers

By Daily Mail Reporter
Updated: 17:17 EDT, 23 May 2011

British Land yesterday became the latest developer to benefit from the recovery in the commercial property market.

The company said its portfolio of offices and shops rose 6.9 per cent in value in the 12 months to the end of March.

Profits increased by 2.8 per cent to £256million and net asset value per share – a key measure of health for property developers – jumped 12.5 per cent to 567p.

Improving demand: British Land boss Chris Grigg said rents are rising at its offices in central London and for high-quality shops

Chief executive Chris Grigg said: ‘These are pretty strong figures and if you cast your mind back a few years then they are remarkable results.’

He said rents are rising at its offices in central London and for high-quality shops. The company is spending £1.1billion on new offices in London in the next three years to take advantage of improving demand. 

But shares in British Land – which crashed from above £14 to just £3 in the recession – fell 16.5p to 576p. The dividend was held at 26p a share.

Its rival Land Securities was also on the slide but not by as much, with shares down 11p to 779p.

Land Securities last week cheered investors with a better than expected 9.7 per cent rise in property values.

John Cahill, an analyst at Evolution Securities, said British Land ‘was always going to find it harder to surprise’ the market than Land Securities.