Real estate investment trust British Land Co. Plc (BLND.L) Tuesday reported an 18% sequential growth in net asset value for the third quarter, and an 8.2% improvement in portfolio valuation. The company also reported a profit for the quarter, compared with a loss last year.
On a European Public Real Estate Association,or EPRA, basis, net assets value for the quarter declined to 438 pence from 595 pence. Meanwhile, net asset value were up 18% sequentially, due principally to the increase in property valuations. EPRA net asset value per share excluded the mark to market on effective cash flow hedges and related debt adjustments, deferred taxation on revaluations.
Total property portfolio valuation declined to GBP 7.90 billion from GBP 10.17 billion a year earlier. Sequentially, portfolio valuation rose 8.2%. Retail portfolio dropped to GBP 5.25 billion from GBP 6.02 billion. While it increased 8.4% sequentially, with retail warehouses, superstores and department stores performed strongly, reflecting the depth of investor appetite for the product.
Office portfolio decreased to GBP 2.46 billion from GBP 3.93 billion a year ago, while it rose up 8.2% from the preceding second quarter. The company noted that since the beginning of 2010, there is evidence of improving rental value.
On IFRS basis, pre-tax profit for the quarter was GBP 611 million compared with a loss of GBP 1.61 billion in the previous year. Underlying pre-tax profit, which reflected the completion of the re-balancing of the portfolio through property disposals, was GBP 58 million, down from GBP 63 million in the same quarter last year. Profit attributable to shareholders of the company was GBP 623 million or 72 pence per share, compared with a loss of GBP 1.59 billion or 257 pence per share in the prior-year quarter. Underlying earnings were GBP 57 million or 7 pence per share, lower than GBP 61 million or 10 pence per share a year ago. The company noted that prior year loss per share results were restated for the rights issue.
Commenting on the results, Chief Executive Chris Grigg said, "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."
Gross rental and related income dropped to GBP 87 million from GBP 137 million last year, net rental and related income fell to GBP 71 million from GBP 118 million a year ago. Segment-wise, revenues from offices declined to GBP 40 million from GBP 65 million last year, and net rental income lowered to GBP 27 million from GBP 58 million a year ago. Revenues from retail plunged to GBP 43 million from GBP 71 million in the same quarter last year, and net rental income also decreased to GBP 41million from GBP 55 million a year ago.
Like for like rental income growth for the quarter was up 1.4% year-over-year, with retail increased 2% driven by retail warehouses and superstores, whilst shopping centres declined 3.7%. Like for like rental income growth for offices were unchanged, where a 1.1% decline in the City portfolio was offset by an increase of 3.9% in the West End.
Footfall increased 5% year-on-year across retail parks and Meadowhall shopping centre for the third quarter, compared with a national average of 3% as reported by the British Retail Consortium.
Total properties owned at the end of the quarter, including share of funds and joint ventures, were GBP 7.9 billion or GBP 12.7 billion including properties under management.
For the nine-month period, pre-tax profit was GBP 498 million versus a profit of GBP 2.94 billion in the comparable period. Profit attributable to shareholders of the company was GBP 511 million or 60 pence per share or GBP 2.90 billion or 470 pence per share in the prior-year period.
For the nine months, gross rental and related income was GBP 327 million, down from GBP 420 million a year ago, and net rental and related income decreased to GBP 279 million from GBP 366 million.
The company declared a third quarter dividend of 6.5 pence per share, totalling GBP 56 million, payable on May 14, 2010 to shareholders on the register at close of business on April 9.
BLND is currently trading at 448.40 pence per share, up 10.30 pence or 2.35% , on the London Stock Exchange.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.