British Land Company (BLND) Investor Update summary

Strategic focus and market positioning

• Campuses and retail parks now comprise 90% of the business, targeting sectors with strong demand, constrained supply, and affordable rents.

• Prime London offices are experiencing a supply crunch, driving strong rental growth and high midweek utilisation above pre-pandemic levels.

• Innovation and tech sector demand is rising, with a doubling of innovation customers since 2022 and significant new requirements tracked.

• Retail parks benefit from virtually no new supply, strong retailer demand, and efficient, adaptable formats.

• Active asset management and deep retailer relationships drive above-benchmark footfall and strong rental growth.

Financial performance and guidance

• Underlying profit rose 8% to £155 million, with underlying EPS up 1% and dividend also up 1%.

• Like-for-like rental growth was 4%, with campuses up 7% and retail parks at near full occupancy.

• Admin costs reduced by £5 million (12%), supporting EPS growth.

• NTA per share increased 2% to £5.79, with a total accounting return of 4% for the half, on track for 8%-10% full-year target.

• Guidance for at least £0.285 EPS in FY2026 and at least 6% EPS growth for FY2027.

Capital allocation and balance sheet

• LTV at 39.1% and net debt to EBITDA at 7.2x, with £1.7 billion undrawn facilities and £3.8 billion net debt.

• Capital recycling focuses on selling mature assets and reinvesting in higher-returning retail parks and campus developments.

• New investments require higher hurdle rates (12%-14% IRR) due to increased finance costs.

• Capital allocation decisions balance developments, share buybacks, and leverage reduction based on relative returns.