British Land flags strong start to the year, reaffirms outlook

(Sharecast News) - Commercial property group British Land Company reiterated annual guidance on Tuesday, following a robust start to the year.

Updating investors at the annual general meeting, the landlord - a specialist in London campuses and retail parks - said the leasing momentum seen at the end of the previous year had continued into the first quarter. A total of 567,000 sq ft of leasing was completed in the three months to 30 June, 4.8% of estimated rental value and 8.7% up on previous passing rent.

A further 1.1m sq ft was under offer, the blue chip added, 6.8% ahead of ERV.

As a result, British Land said it was confident about delivering underlying earnings per share of at least 30.5p in the current year, with like-for-like rent growth at the top end of the 3% to 5% range. Underlying EPS was 28.9p in the previous year, while net rental growth was 6%.

Outgoing chief executive Simon Carter said: "We have started the year well. Both of our core markets remain strong. Demand continues to outstrip supply across campuses and retail parks, leasing remains head of previous passing rents and forecast indicators give us confidence that these favourable market conditions will persist."

Carter - who has been with British Land for a total 18 years, five of which as chief executive - announced in January that he was leaving to take up the top job at GIC-owned P3 Logistics Parks. He is being replaced by Joanne McNamara, who is joining in September from Oxford Properties.

Carter said he was preparing to hand over to McNamara "with great confidence", adding: "Our high-quality portfolio, value-added mindset and exposure to two of the UK's most attractive real estate sectors provide a strong platform for EPS growth."

As at 0900 BST, the stock was down 2% at 416p.

See latest RNS on Investegate