Key Points – Leasing momentum is strong across British Land’s London campuses and retail parks, with record campus leasing, occupancy rising to 95%, and retail park occupancy at 99%.
Management said constrained supply and resilient demand should support ERV growth of 3% to 5%. – The company is seeing growing demand from science, technology, and AI occupiers, and its Life Science REIT acquisition has lifted science and tech exposure to 35% of campus footprint
British Land said the deal is immediately earnings accretive and adds upside from leasing newly delivered space. – British Land posted 5% underlying profit growth and guided to at least £0.305 EPS for FY27, with strong balance sheet metrics including £1.6 billion of liquidity and no refinancing need until 2029. It also raised its dividend 1% and said total accounting return reached 8.1%, within target for the first time since 2022. British Land (LON:BLND) said strong leasing momentum across its London campuses and retail parks is supporting earnings growth, as executives pointed to tight supply, resilient occupier demand and active asset management as key drivers of performance.
Chief Executive Simon Carter told investors that Campuses and Retail Parks now account for 90% of the business and are benefiting from “strong occupational fundamentals,” with net absorption high and supply constrained in both markets. Carter said the company expects to outperform inflation going forward and guided to estimated rental value, or ERV, growth of 3% to 5%. “We have the right real estate in the right sectors and locations where demand is strong and supply is constrained,” Carter said, adding that British Land remains confident in its ability to deliver attractive earnings growth and total returns through the cycle. Record campus leasing helped lift occupancy Carter said London office demand remains robust despite uncertainty around hybrid working and artificial intelligence.