British Land (LSE:BLND) has made a strong start to its new financial year, with solid leasing activity across its London campuses, retail parks and urban logistics portfolio reinforcing confidence in its outlook for FY27. During the period, the company completed leases covering 567,000 square feet at rental levels above both previous rents and estimated rental values, while a further 1.1 million square feet remains under offer.
The property group said demand continues to outstrip supply across its core markets, supporting rental growth and occupancy levels. It also highlighted progress at major development projects, including Broadgate Tower and Canada Water, alongside the successful integration of its recently acquired life sciences portfolio. Retail parks continue to perform strongly, with occupancy remaining close to full capacity.
British Land has also continued to reshape its portfolio through active capital recycling. During the period, the company completed £83 million of property disposals while acquiring the Telford Bridge retail park as part of its ongoing investment strategy.
The company reiterated its guidance for underlying earnings per share of at least 30.5p for FY27. Management expects performance to be supported by like-for-like rental growth at the upper end of previous guidance and estimated rental value (ERV) growth of between 3% and 5%, reflecting continued strength across its prime UK real estate assets.
British Land’s outlook is supported by an attractive valuation, including a relatively low price-to-earnings ratio and a strong dividend yield, together with an improving cash flow profile and positive share price momentum. However, earnings remain subject to the valuation movements typical of real estate investment trusts (REITs), while higher financing costs and the execution of development projects continue to present potential challenges.
About British Land Company plc
British Land Company plc is one of the UK’s largest commercial property owners and developers, with a portfolio focused on London campuses and retail parks. The company owns or manages property valued at £15.8 billion, with British Land’s share amounting to £10.1 billion. Its strategy centres on development, repositioning and active asset management to create high-quality, sustainable destinations for occupiers and investors.
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