British Land’s (LON:BLND) share price has risen over one percent so far today, after the UK’s second-largest real estate investment trust (REIT) reported improved performance in the first half of its financial year.
The company behind London’s “Cheesegrater” skyscraper, posted a 7.5 percent rise in half-year net asset value to 891p, with underlying pre-tax profits up 10.3 percent at £171 million, "driven both by our successful leasing activity and our lower financing costs". British Land added that it had generated total property returns of 6.9 percent for the six months to end of September, outperforming All Property IPD market benchmarks on both a capital and a total returns basis.
The REIT noted that its office and residential portfolio had contributed an increase of 8.5 percent to total portfolio valuation but the retail and leisure segment had showed a lower rise at 1.8 percent, dragged down by weakening valuations on superstores.
CEO Chris Grigg said that British Land retained a positive outlook on occupational demand, supported by economic growth. "Looking forward, we remain positive about occupational demand in our markets which is supported by UK economic performance. We are, of course, mindful of increased volatility in a number of capital markets which could adversely impact our investment markets,” Grigg stated.
Investors have hailed the group’s update. By 13:09 GMT, British Land’s share price had gained 1.52 percent to 832.50p. The broader UK stock market was also up, with the FTSE 100 index standing 1.70 percent higher at 6,251.11 points.