British Land increases profits despite difficult retail climate
British Land increased its pre-tax profit by 5.1% in 2011 despite challenging market conditions for the retail sector.
In the year to 31 March 2012, underlying pre-tax profit rose to £269 million reflecting a 5.4% growth in net rental income to £28 million. Portfolio occupancy increased to 98.0% from 97.8%.
The property company, whose retail assets account for 61% of its portfolio, said 347,000 sq ft of UK retail developments had been committed in the year with 72% already let or under offer. In addition, a further 960,000 sq ft of retail developments with planning had been secured or were pending. The company said the retail sector had experienced a difficult year hit by the “twin impacts of austerity at home and the debt crisis in Europe”.
During the year, British Land increased the pace of its retail development activity to take advantage of a shortage of high quality space triggered by a lack of development finance. This included new projects such as Whiteley, a 302,000 sq ft out of town shopping centre, and a 45,000 sq ft leisure extension at the Glasgow Fort shopping centre.
Never Miss a Retail Update!British Land chief executive Chris Grigg said: “We outperformed the broader UK commercial property market on almost all key measures and our balance sheet is strong.
“I am particularly pleased by our high level of leasing activity and development progress over the period.
“Our results also show we are defensively positioned in today’s more challenging markets, but also well placed to continue to outperform in the future, as a result of the decisions we have taken.”
