British Land “well positioned” after retail park occupancy hit 99%
The chief executive of British Land Simon Carter has said the real estate investment trust (REIT) is well-positioned to capitalise”, as the group sees its retail park occupancy hit 99%.
In its final results for the 2025 financial year, the REIT recorded an underlying profit of £294m, a year-on-year increase of 5%.
In total, the group leased 3.8 million sq ft, 7.2% ahead of estimated rental value (ERV), with an additional 1.1 million sq ft under offer.
Across retail and the group’s London logistics portfolio, the group lease 2.1 million sq ft, completed at 8.4% ahead of ERV with an additional 0.8 million sq ft under offer, 10.3% ahead of ERV. Across British Land’s retail park portfolio, leasing was completed ahead of previous passing rent by 6.3% during the second half of the year.
The REIT also saw an increase in portfolio valuation of 2.7% across retail and London urban logistics.
Over the course of the year, British Land disposed of £106m of assets at an average of 4% above book value. Post year, the group has exchanged or is under offer on £176m of asset disposals. The REIT also acquired £94m of retail, principally across three retail parks.
Simon Carter said: “A record year of leasing has driven strong ERV growth, like-for-like net rental growth and an attractive earnings outlook. We are benefiting from our leading positions in campuses and retail parks, where demand is growing and supply remains constrained. Our offer is clearly resonating with customers: we have around a 5% share of the London office market, but accounted for 15% of reported leasing activity last year, rising to 33% in the fourth quarter.
“While the geopolitical and interest rate backdrop has become more uncertain, the occupational fundamentals underpinning our portfolio are as strong as I have seen them. Central London office net take-up is at its highest level in 20 years and our retail parks are 99% occupied.”