Commercial property firm British Land reported a slight rise in its half-year profit on Wednesday, as operational strength at its retail park properties countered valuation weakness in its office-focused campuses.
The British commercial property market is recovering from the post-pandemic freeze, with stabilizing property values and expectations of near-term rate cuts boosting sector optimism.
The group’s strategy of boosting investments in retail parks is paying off, as retailers seek cost-effective out-of-town space for online operations, driving strong rental growth and valuation increases in the sub-sector, British Land CEO Simon Carter said.
The company, which blends leisure, retail and hospitality facilities at its office-focused ‘Campus’ developments, said EPRA Net Tangible Assets – a key measure that reflects the value of its buildings – inched up 0.2% to 567 pence, as of Sept. 30, compared with the March-end valuation.
The value of its retail park assets, which constitute about a third of the overall portfolio, climbed 5.1% from March-end, while the office-focused Campuses saw a 1.7% decline in valuation.
The company raised its full-year earnings per share forecast to 28.1 pence, up from 27.9 pence, following the accretive 441 million pounds ($560.20 million) retail park portfolio acquisition and a share placement last month.
Source Homevior.in
