British Land Company (BLND) H2 2025 earnings summary

Executive summary

• Underlying profit rose 4% to £279 million, with underlying EPS flat at 28.5p and dividend per share unchanged at 22.8p.

• Portfolio values increased 1.6%, driven by 4.9% above-inflation rental growth and strong leasing, especially in retail parks and campuses.

• Strong leasing activity: 1.5 million sq ft of office deals (7.5% ahead of ERV) and 1.1 million sq ft of retail park leasing (9.6% ahead of ERV).

• Active capital recycling included the sale of Meadowhall, a major JV at 2 Finsbury Avenue, and £738m invested in retail parks at 7% yield.

• Sustainability progress: 68% of portfolio EPC rated A/B by ERV and retained five-star GRESB rating.

Financial highlights

• Gross rental income up 2% to £484m; net rental income stable at £439m; NRI margin declined 170bps to 90.7%.

• Like-for-like rental growth of 3% overall, with retail parks at 5% and campuses at 2%.

• Net finance costs reduced by £5 million; EPRA cost ratio at 17.5%.

• NTA per share increased to £5.67, with a total accounting return of 5%.

• £1.8 billion of undrawn facilities and cash; net debt at £3.6 billion, LTV at 38.1%, and net debt to EBITDA at 8x.

Outlook and guidance

• FY26 underlying EPS expected to be broadly flat, with underlying profit growth of ~2%.

• Medium-term guidance: 3-5% rental growth and 3-6% earnings growth, with upside in FY27 as developments contribute.

• Forecasting c.10% fee income growth in FY26 and admin costs targeted below £80m.

• Financing costs expected to rise due to lower capitalised interest.

• Focus on five levers: like-for-like rental growth, leasing developments, cost control, capital recycling, and fee income growth.