British Land Company (BLND) H2 2026 earnings summary

Executive summary

• Record leasing year in campuses and retail parks, driven by tight supply and robust demand, providing strong visibility for FY 2027 earnings.

• Market-leading positions in campuses and retail parks, now 90% of the business.

• Active asset management and sector focus drive outperformance and attractive returns.

• Science and tech, especially AI, are key growth drivers, with 35% of campus footprint now in this sector.

• Completed the acquisition of Life Science REIT, expanding presence in science and technology with immediate EPS accretion.

Financial highlights

• Underlying profit up 5% to £294m and underlying EPS up 1% to 28.9p year-over-year.

• Like-for-like net rents grew 6%; campus rents up 12%, retail up 2%.

• Gross rental income grew 14% to £551m; net rental income up 8% to £476m.

• Portfolio values increased 2.3%, EPRA NTA per share up 4% to 590p.

• Total accounting return of 8.1%, within 8%-10% target range.

Outlook and guidance

• Confident in delivering at least 30.5p EPS for FY 2027, representing 6% growth.

• Sustainable earnings growth expected at 3%-6% per annum from FY 2028.

• Like-for-like growth guided at top end of 3%-5% range for FY 2027.

• ERV growth expected to outperform inflation, guided at 3%-5%.

• Financing costs projected to rise to £155-165m due to higher average interest rates.