British Land Company (BLND) H2 2025 earnings summary

Executive summary

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

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

• Capital recycling included over GBP 700 million invested in retail parks at 7% yield and significant asset sales, including Meadowhall and a 2 Finsbury Avenue stake.

• Balance sheet remains robust with GBP 1.8 billion undrawn facilities and no refinancing required until late 2028.

• 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 GBP 484 million; net rental income stable at GBP 439 million; NRI margin declined 170bps to 90.7%.

• Underlying profit up 4% to GBP 279 million; admin expenses reduced by GBP 5 million.

• EPRA NTA per share increased to GBP 5.67 (567p); total accounting return 5%.

• Net debt at year-end was GBP 3.6 billion; LTV at 38.1%; net debt to EBITDA at 8x.

• Weighted average interest rate at 3.6%; debt maturity 5 years.

Outlook and guidance

• FY26 underlying EPS expected to be broadly flat, with 2% underlying profit growth and 3-5% like-for-like rental growth.

• Forecasting c.10% fee income growth in FY26; admin costs targeted below GBP 80 million.

• 3-6% annual underlying profit growth expected in subsequent years, with c.4p EPS from developments in FY27.

• Capital allocation focused on retail parks and prime office developments, targeting 8-10% total accounting returns medium-term.