British Land Company (BLND) H1 2025 earnings summary

Executive summary

• Underlying profit rose 1% year-over-year to £143m for the half year ended 30 September 2024, with underlying EPS and dividend per share also up 1% each.

• Portfolio value increased 0.2% to £8.87bn, driven by strong retail park performance (+5.1%) offsetting campus and logistics declines.

• High operational momentum: 98% occupancy, 1.7m sq ft leased at 8% above ERV, and like-for-like rental growth of 3%.

• Capital activity included £456m of non-core disposals and £711m invested in retail parks, including a £441m acquisition post period end funded by a £301m equity placing.

• Dividend per share up 1% to 12.24p; total accounting return for the period was 2.8%.

Financial highlights

• Underlying profit for the half-year was £143 million, up 1% year-over-year; underlying EPS: 15.3p (+1%).

• EPRA NTA per share increased 1% to 567p since March 2024; pro forma NTA per share: 556p.

• Loan to value (LTV) at 37.8% pro forma; group net debt to EBITDA at 7.4x.

• Gross rental income fell 3% year-over-year to £238m, mainly due to disposals, offset by accretive retail park acquisitions.

• Net rental income margin strong at 91.6%; EPRA cost ratio improved to 15.3%.

• Total accounting return for the period was 2.8%.

Outlook and guidance

• FY2025 underlying EPS guidance raised from 27.9p to 28.1p, reflecting equity placing and retail park acquisition.

• Rental growth guidance maintained at 3%-5% across the portfolio.

• Targeting 8%-10% total accounting returns through the cycle.

• Confident in continued strong performance, supported by supply-demand fundamentals and improving investment markets.