British Land share price: Group updates investors on FY performance

Underlying profit +7.4% to £390 million

British Land share price: Group updates investors on FY performance

British Land (LON:BLND) has updated investors on its full-year performance this morning.

Highlights from the company statement:

Chris Grigg, Chief Executive said: "We are reporting a good set of results today despite an uncertain environment over the last 12 months. We are particularly pleased by the increase in underlying profits, by our strong leasing performance across the business and by the very successful sales we have made. The increase in valuations in the second half is also better than many expected six months ago. These results reflect the continuing execution of our strategy, providing space that responds to changing lifestyles and really fulfils customers' needs. We expect to be operating in an uncertain environment for some time; in this context we will benefit from the resilience of our business, the quality of our portfolio and the strength of our finances. We also look forward with cautious optimism as we believe that we can generate incremental returns by allocating capital to development opportunities we have created, whilst keeping risk at an appropriate level and maintaining flexibility to respond to changes in our markets."

Good financial performance reflecting an active year executing our strategy

• Underlying profit +7.4% to £390 million (2015/16: £363 million); IFRS PBT of £195 million (2015/16: £1,331 million)

• EPRA NAV -0.4% to 915 pence; IFRS Net Assets at £9.5 billion (2015/16 £9.6 billion)

• Final quarterly dividend of 7.3 pence (+3.0%); bringing the full year to 29.2 pence (+3.0%)

• 2017/18 full year dividend of 30.08 pence per share proposed, +3.0%; first quarter 7.52 pence

• Total accounting return of +2.7% (2015/16: +14.2%)

Outlook

Looking forward, the picture is a mixed one. The Brexit process has begun but uncertainty will continue for some considerable time. Though the UK economy has performed well since the vote, we can expect more inflation and increasing pressure on disposable incomes. This will impact consumer behaviour and retailer profitability. London occupiers, particularly financial institutions, are making contingency plans but there is a wide range of possible outcomes here. Our conversations with occupiers tell us that a large majority continue to value London and believe in its place as a global centre, as we do.

Although we are seeing businesses taking longer to commit and being more thorough in assessing options, we see polarisation of both occupier and investor demand accelerating with an increasing focus on the best quality space. Our results show that our space continues to be attractive to occupiers and investors alike, with strong leasing across the portfolio, profitable disposals and material outperformance on our Retail operating metrics. This reflects the continuing execution of our strategy, providing space that responds to changing lifestyles and really fulfils customers' needs.

In this uncertain environment, we expect to benefit from the resilience of our business, the quality of our portfolio and the strength of our finances. We also look forward with cautious optimism as we believe that we can generate incremental returns by allocating capital to development opportunities we have created, whilst keeping risk at an appropriate level and flexibility to respond to changes in our markets.

As of 07:08 BST, Wednesday, 17 May, The British Land Company plc share price is 665.75p.

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