Retail parks bolster British Land’s portfolio valuation boost
British Land has recorded a 1.6% year-on-year increase to its portfolio valuation, driven by growth of 7.1% for its retail parks.
This comes as the real estate investment trust (REIT) releases its final results for the 2025 financial year, during which its acquired £738m worth of retail park assets.
These acquisitions included portfolios sold by M7 Real Estate in August and Brookfield in October.
During the period – which covered the 12 months to 31 March 2025 – British Land also completed £597m of disposals, including its stake in Sheffield’s Meadowhall.
At the end of the year, the REIT recorded a portfolio occupancy rate of 98%, with retail and London urban logistics reaching 99%.
British Land’s underlying profit was £279m for the period, a year-on-year increase of 4%.
Simon Carter, chief executive officer of British Land, said: “I am pleased with our strong operational and financial performance this year. We continue to lease space at rents significantly ahead of valuers’ expectations which, combined with good cost control and successful asset management, means we have maintained our underlying earnings per share, despite significant development activity which will be a key driver of future earnings growth. Values increased 1.6%, with a particularly strong performance from retail parks, up 7.1% and campuses returned to growth in the second half of the year, increasing by 0.8%.”
“The continued occupational strength of our key markets and the resulting above inflation rental growth gives us confidence for the future and in our strategy, despite ongoing macro volatility. Return to the office is in full swing, with mid-week occupancy back to pre-pandemic levels, and value and multi-channel retailers are competing aggressively for space on our retail parks. This, combined with the acute lack of supply in both these markets is resulting in strong rental tension, which will translate into future earnings growth and underpins our guidance of 3-5% per annum rental growth across the portfolio.”