British Land Company PLC (BLND)

[Dod101]

British Land sells 75% stake in the majority of its Paddington Central assets to GIC for £694m.

British Land is pleased to announce we have exchanged on the sale of a 75% interest in the majority of our Paddington Central assets to GIC. This transaction establishes a new joint venture (the "Joint Venture") with ownership split 75:25 for GIC and British Land respectively. Completion is unconditional and will be within three months. The total consideration of £694m, is 1% below September 2021 book value and represents a NIY of 4.5%.

This transaction delivers against one of our key strategic priorities of proactively recycling capital out of mature assets where we have created considerable value. Proceeds from the transaction will be invested into value accretive development opportunities we own across our portfolio as well as growth areas including development-led urban logistics in London and innovation campuses.

This latest partnership is another example of how we identify opportunities to drive value from our best-in-class operational platform. We will continue to act as asset manager for the campus and development manager for future opportunities including 5 Kingdom Street for which we will earn fees.

https://www.investegate.co.uk/british-l ... 00071283J/

Not sure what to think of this. Positive I think depending how they recycle the capital.

A property company with a NAV per share of close to £7 selling assets at 99% of NAV should be a reminder to the market a share price of £5 is too low. Of course if it is only selling the best bits and the remainder is worth a lot less than NAV the market might have a point. I can't see any evidence of that kind of portfolio though.

Maybe the right strategy is to fully liquidate everything and distribute the cash. Can't see any Director in a listed entity taking that approach and effectively making themselves redundant though, despite the uplift to all the shares they own.

Your comments suggest that you are accepting that the current NAV equals the book value in the accounts, 6 months ago. That need not necessarily be the case as you must know. What they are doing is selling a smallish asset at 99% of their book value and that of course will incur a modest charge for the difference. The NAV is what they could sell their entire portfolio for and I do not think we are in a position to judge that. This transaction reflects the price for a small and specific asset in the entire portfolio.

Dod

[idpickering]

British Land sells 75% stake in the majority of its Paddington Central assets to GIC for £694m.

British Land is pleased to announce we have exchanged on the sale of a 75% interest in the majority of our Paddington Central assets to GIC. This transaction establishes a new joint venture (the "Joint Venture") with ownership split 75:25 for GIC and British Land respectively. Completion is unconditional and will be within three months. The total consideration of £694m, is 1% below September 2021 book value and represents a NIY of 4.5%.

This transaction delivers against one of our key strategic priorities of proactively recycling capital out of mature assets where we have created considerable value. Proceeds from the transaction will be invested into value accretive development opportunities we own across our portfolio as well as growth areas including development-led urban logistics in London and innovation campuses.

This latest partnership is another example of how we identify opportunities to drive value from our best-in-class operational platform. We will continue to act as asset manager for the campus and development manager for future opportunities including 5 Kingdom Street for which we will earn fees.

https://www.investegate.co.uk/british-l ... 00071283J/

Not sure what to think of this. Positive I think depending how they recycle the capital.

A property company with a NAV per share of close to £7 selling assets at 99% of NAV should be a reminder to the market a share price of £5 is too low. Of course if it is only selling the best bits and the remainder is worth a lot less than NAV the market might have a point. I can't see any evidence of that kind of portfolio though.

Maybe the right strategy is to fully liquidate everything and distribute the cash. Can't see any Director in a listed entity taking that approach and effectively making themselves redundant though, despite the uplift to all the shares they own.

I must admit that I thought they’d at least return the cash to shareholders. Maybe a special dividend?

I don’t hold BLND.

Ian.

[Arborbridge]

British Land sells 75% stake in the majority of its Paddington Central assets to GIC for £694m.

British Land is pleased to announce we have exchanged on the sale of a 75% interest in the majority of our Paddington Central assets to GIC. This transaction establishes a new joint venture (the "Joint Venture") with ownership split 75:25 for GIC and British Land respectively. Completion is unconditional and will be within three months. The total consideration of £694m, is 1% below September 2021 book value and represents a NIY of 4.5%.

This transaction delivers against one of our key strategic priorities of proactively recycling capital out of mature assets where we have created considerable value. Proceeds from the transaction will be invested into value accretive development opportunities we own across our portfolio as well as growth areas including development-led urban logistics in London and innovation campuses.

This latest partnership is another example of how we identify opportunities to drive value from our best-in-class operational platform. We will continue to act as asset manager for the campus and development manager for future opportunities including 5 Kingdom Street for which we will earn fees.

https://www.investegate.co.uk/british-l ... 00071283J/

Not sure what to think of this. Positive I think depending how they recycle the capital.

A property company with a NAV per share of close to £7 selling assets at 99% of NAV should be a reminder to the market a share price of £5 is too low. Of course if it is only selling the best bits and the remainder is worth a lot less than NAV the market might have a point. I can't see any evidence of that kind of portfolio though.

Maybe the right strategy is to fully liquidate everything and distribute the cash. Can't see any Director in a listed entity taking that approach and effectively making themselves redundant though, despite the uplift to all the shares they own.

Your comments suggest that you are accepting that the current NAV equals the book value in the accounts, 6 months ago. That need not necessarily be the case as you must know. What they are doing is selling a smallish asset at 99% of their book value and that of course will incur a modest charge for the difference. The NAV is what they could sell their entire portfolio for and I do not think we are in a position to judge that. This transaction reflects the price for a small and specific asset in the entire portfolio.

Dod

And further... isn't this how operates? From time to time it will sell something in order to find something else to build/develop and to bring on to a profit.
As for liquidating the assets, I'm not sure what dealtn was driving at there. Presumably we wouldn't have a company in that case, so he's just saying he doesn't like this company (and the value given to it by the market) and wants to take the nuclear option. Not the way I would prefer to go as I'm not particularly bothered about the market value for the forseeable future.

Arb.

[Dod101]

British Land sells 75% stake in the majority of its Paddington Central assets to GIC for £694m.

British Land is pleased to announce we have exchanged on the sale of a 75% interest in the majority of our Paddington Central assets to GIC. This transaction establishes a new joint venture (the "Joint Venture") with ownership split 75:25 for GIC and British Land respectively. Completion is unconditional and will be within three months. The total consideration of £694m, is 1% below September 2021 book value and represents a NIY of 4.5%.

This transaction delivers against one of our key strategic priorities of proactively recycling capital out of mature assets where we have created considerable value. Proceeds from the transaction will be invested into value accretive development opportunities we own across our portfolio as well as growth areas including development-led urban logistics in London and innovation campuses.

This latest partnership is another example of how we identify opportunities to drive value from our best-in-class operational platform. We will continue to act as asset manager for the campus and development manager for future opportunities including 5 Kingdom Street for which we will earn fees.

https://www.investegate.co.uk/british-l ... 00071283J/

Not sure what to think of this. Positive I think depending how they recycle the capital.

A property company with a NAV per share of close to £7 selling assets at 99% of NAV should be a reminder to the market a share price of £5 is too low. Of course if it is only selling the best bits and the remainder is worth a lot less than NAV the market might have a point. I can't see any evidence of that kind of portfolio though.

Maybe the right strategy is to fully liquidate everything and distribute the cash. Can't see any Director in a listed entity taking that approach and effectively making themselves redundant though, despite the uplift to all the shares they own.

Your comments suggest that you are accepting that the current NAV equals the book value in the accounts, 6 months ago. That need not necessarily be the case as you must know. What they are doing is selling a smallish asset at 99% of their book value and that of course will incur a modest charge for the difference. The NAV is what they could sell their entire portfolio for and I do not think we are in a position to judge that. This transaction reflects the price for a small and specific asset in the entire portfolio.

Dod

And further... isn't this how operates? From time to time it will sell something in order to find something else to build/develop and to bring on to a profit.
As for liquidating the assets, I'm not sure what dealtn was driving at there. Presumably we wouldn't have a company in that case, so he's just saying he doesn't like this company (and the value given to it by the market) and wants to take the nuclear option. Not the way I would prefer to go as I'm not particularly bothered about the market value for the forseeable future.

Arb.

I do not hold B Land but this seems to me to be simply a move by them to modestly recycle assets into what they presumably see as more attractive opportunities. Property companies usually do that as part of their business.

Dod

[dealtn]

As for liquidating the assets, I'm not sure what dealtn was driving at there. Presumably we wouldn't have a company in that case, so he's just saying he doesn't like this company (and the value given to it by the market) and wants to take the nuclear option. Not the way I would prefer to go as I'm not particularly bothered about the market value for the forseeable future.

Arb.

I'm not saying that at all. Unclear how you get that idea I don't like the company. I'm certainly not impressed by the value given to it by the market though.

[Arborbridge]

As for liquidating the assets, I'm not sure what dealtn was driving at there. Presumably we wouldn't have a company in that case, so he's just saying he doesn't like this company (and the value given to it by the market) and wants to take the nuclear option. Not the way I would prefer to go as I'm not particularly bothered about the market value for the forseeable future.

Arb.

I'm not saying that at all. Unclear how you get that idea I don't like the company. I'm certainly not impressed by the value given to it by the market though.

That's the feeling I got: you are proposing selling off the assets and taking the cash. That suggests your strategy is to wind up the company. Doesn't that imply you don't like the company and would rather have the cash? How else can one interpret that?

Arb.

[Arborbridge]

I do not hold B Land but this seems to me to be simply a move by them to modestly recycle assets into what they presumably see as more attractive opportunities. Property companies usually do that as part of their business.

Dod

Agreed: it's normal. They improve or develop, sell off then look for another opportunity. Rinse and repeat!

[dealtn]

As for liquidating the assets, I'm not sure what dealtn was driving at there. Presumably we wouldn't have a company in that case, so he's just saying he doesn't like this company (and the value given to it by the market) and wants to take the nuclear option. Not the way I would prefer to go as I'm not particularly bothered about the market value for the forseeable future.

Arb.

I'm not saying that at all. Unclear how you get that idea I don't like the company. I'm certainly not impressed by the value given to it by the market though.

That's the feeling I got: you are proposing selling off the assets and taking the cash. That suggests your strategy is to wind up the company. Doesn't that imply you don't like the company and would rather have the cash? How else can one interpret that?

Arb.

No I'm not I merely suggested it might be the right way to extract the inherent value of the assets that isn't reflected in the share price. I'm not making that proposal (some of its major shareholders might be having that conversation though - and this disposal might be part of that - as initial steps to outing that value).

[Arborbridge]

No I'm not I merely suggested it might be the right way to extract the inherent value of the assets that isn't reflected in the share price. I'm not making that proposal (some of its major shareholders might be having that conversation though - and this disposal might be part of that - as initial steps to outing that value).

OK. So you "merely" suggested that destroying the company by selling off all its assets was a good way of solving the price difference between the intrinsic value and the stock market value.
Not surprisingly, as a HYPer who is interested in the income, I have to disagree.

God help us if that's what capitalism has come to, if that's all a company amounts to. If you believe that, then there is nothing more to talk about.

[dealtn]

No I'm not I merely suggested it might be the right way to extract the inherent value of the assets that isn't reflected in the share price. I'm not making that proposal (some of its major shareholders might be having that conversation though - and this disposal might be part of that - as initial steps to outing that value).

OK. So you "merely" suggested that destroying the company by selling off all its assets was a good way of solving the price difference between the intrinsic value and the stock market value.
Not surprisingly, as a HYPer who is interested in the income, I have to disagree.

God help us if that's what capitalism has come to, if that's all a company amounts to. If you believe that, then there is nothing more to talk about.

Well I think you have now taken this off topic for this Board which is about Company News. There is legitimate company news here about assets being disposed of, and I have merely taken that to the stage of the Directors, or shareholders, perhaps being concerned about the disparity between the NAV of the company, and the market valuation afforded it by the market. That is a very normal conversation for a property company.

What relevance that is to the HYP strategy I can't fathom so suggest you take that to an appropriate place for discussion if that is what you want. I won't be joining you.

Selling assets doesn't destroy either the asset or the company. How you believe that is a mystery to me. I doubt anyone would be propagating a corporate strategy of destroying its assets, but liquidating assets and harvesting cash and thence distributing such is not novel nor destructive. Companies sell assets all the time. I really can't see a full liquidation happening at BLND (it won't be in the employment interests of the Directors for a start) but further sales are not just possible but likely. The Directors have said as much. Furthermore they have a legal duty to act in the best interests of shareholders. Allowing a continuous discount to NAV hardly constitutes acting in their best interests. It is also possible an outsider makes an approach to extract the value in disparity between the two valuations.

[Arborbridge]

No I'm not I merely suggested it might be the right way to extract the inherent value of the assets that isn't reflected in the share price. I'm not making that proposal (some of its major shareholders might be having that conversation though - and this disposal might be part of that - as initial steps to outing that value).

OK. So you "merely" suggested that destroying the company by selling off all its assets was a good way of solving the price difference between the intrinsic value and the stock market value.
Not surprisingly, as a HYPer who is interested in the income, I have to disagree.

God help us if that's what capitalism has come to, if that's all a company amounts to. If you believe that, then there is nothing more to talk about.

Well I think you have now taken this off topic for this Board which is about Company News. There is legitimate company news here about assets being disposed of, and I have merely taken that to the stage of the Directors, or shareholders, perhaps being concerned about the disparity between the NAV of the company, and the market valuation afforded it by the market. That is a very normal conversation for a property company.

What relevance that is to the HYP strategy I can't fathom so suggest you take that to an appropriate place for discussion if that is what you want. I won't be joining you.

Selling assets doesn't destroy either the asset or the company. How you believe that is a mystery to me. I doubt anyone would be propagating a corporate strategy of destroying its assets, but liquidating assets and harvesting cash and thence distributing such is not novel nor destructive. Companies sell assets all the time. I really can't see a full liquidation happening at BLND (it won't be in the employment interests of the Directors for a start) but further sales are not just possible but likely. The Directors have said as much. Furthermore they have a legal duty to act in the best interests of shareholders. Allowing a continuous discount to NAV hardly constitutes acting in their best interests. It is also possible an outsider makes an approach to extract the value in disparity between the two valuations.

I think you will find you took the thread off topic, since you were speculating about what you would prefer from your particular point of view. That wasn't company news either - but you will not doubt rationalise that.

Realising assets does not destroy a company, and as I've already written, this is what BLND has done over the years - it's normal. But what you wrote wasn't - you were arguing as follows:-

Maybe the right strategy is to fully liquidate everything and distribute the cash.

That isn't some assets, and you were of that as, in your final clause, you pointed out the Director's wouldn't vote for it. You may have revised your position now, but what you said initially was to liquidate everything i.e. destroy the company.

Nuff said.
Arb.

[MDW1954]

Moderator Message:
Personally, as a BLND shareholder, I viewed today's announcement as a considerable positive. I can, however, see why dealtn said what he (or she) said. Significant and lingering discounts to NAV are annoying, especially when contrasted to BBOX, PHP etc etc. However, further discussion of it would be taking the thread even further off-topic. No more, please. --MDW1954

[daveh]

Final Results
https://www.investegate.co.uk/british-l ... 00108554L/

Simon Carter, CEO said: "Over the past year we have delivered a strong performance across all parts of our business as we continue to execute against our strategy. Our total accounting return for the year was 14.8% driven by a 6.8% increase in the valuation of our portfolio and Underlying Profit is up 24.9%. Our balance sheet remains strong with pro forma loan to value of 28.4%. Operationally, our leasing volumes across Campuses and Retail & Fulfilment were the highest in ten years and were ahead of ERV. In London, demand continues to gravitate towards the best, most sustainable space where our Campuses are at a distinct advantage. Retail Parks are an attractive, cost-effective format for our retail customers reflected in our very low vacancy of 2.6%, so we are particularly pleased with our decision to allocate capital to this segment, where valuations have increased 20.7%. The fundamentals of Urban Logistics in London are compelling given the chronic shortage of space. We have made a good start to building our Urban Logistics business where we have assembled a c.£1.3bn development pipeline in 12 months.

We are active recyclers of capital, releasing over £1bn since April 2021 to invest into higher value-creating opportunities in development and growth segments of the market. We have a wealth of development opportunities across our London Campuses, including Canada Water and in Urban Logistics which altogether we expect will generate around £2bn of future profit.

We are mindful of current elevated economic and geo-political uncertainties, but our strategic advantage in sectors with pricing power means we can look ahead with confidence."

Performance summary
£2.2bn capital activity - actively recycling capital into areas of growth and value
- £694m from the sale of 75% of majority of assets at Paddington Central to GIC post year end, crystallising 9% p.a. total property returns

- £290m from the sale of 50% of our share in the Canada Water Masterplan to AustralianSuper, enabling us to accelerate delivery and returns from the scheme

- On site with 1.7m sq ft of net zero carbon developments across our Campuses; 91% of costs fixed

- £102m of acquisitions in Cambridge and Guildford, building exposure to innovation sectors; on site with first lab enabled scheme

- £350m investment into Retail Parks in the year with a further £49m in FY21, exploiting the value opportunity

- Assembled an urban logistics development pipeline with a gross development value of £1.3bn, focused on London where the supply-demand imbalance is most acute

Strong operational performance - key themes playing out

- Portfolio value up 6.8% with Campuses up 5.4% and Retail & Fulfilment up 9.9% driven by Retail Parks up 20.7%

- 42bps yield contraction overall; 11 bps yield contraction in Campuses; 151bps yield contraction in Retail Parks

- 1.7m sq ft of Campus leasing, highest volume in 10 years; 5.4% ahead of ERV; average lease length over 12 years

- 2.2m sq ft Retail & Fulfilment leasing, highest volume in 10 years, 2.8% ahead of ERV; Retail Park vacancy down to 2.6%

- Footfall and sales on our Retail Parks portfolio 99.5% and 100.2% of FY20, respectively

- Strong rent collection: 97% for the year, nearing pre-pandemic levels, significantly reducing provisions

Excellent financial performance and strong balance sheet

- 14.8% Total Accounting Return, underpinned by our strategic activity

- Underlying Profit up 24.9% reflecting a significant reduction in provisions

- EPRA Net Tangible Assets (NTA) up 12.2% to 727p

- FY22 dividend of 21.92p per share

- Pro forma LTV at 28.4% adjusting for the Paddington Central transaction

- £1.3bn undrawn facilities and cash. Interest rate on our debt fully hedged on a spot basis with no requirement to refinance until late 2025 following the Paddington transaction

- Fitch affirmed senior unsecured credit rating at 'A'

Further good progress against 2030 Sustainability strategy

- Awarded GRESB 5* rating and AAA rating from MSCI

- Delivered our second net zero carbon development at 1 Triton Square, fully let to Meta (previously Facebook)

- Further accolades for 100 Liverpool Street including Green Building Project of the Year by BusinessGreen, Project of the Year at the Building Awards, a Civic Trust Award and Financing Deal of the Year: UK by Real Estate Capital Europe for 2021.

- Completed net zero audits at our major assets; 70% portfolio now EPC A-C rated

- First UK REIT to achieve the Disability Smart Standard accreditation from the Business Disability Forum

and

Dividends
In October 2020, we announced our new dividend policy, setting the dividend as semi-annual and calculated at 80% of Underlying EPS based on the most recently completed six-month period. Applying this policy, the Board are proposing a final dividend for the year ended 31 March 2022 of 11.60p per share. Payment will be made on Friday 29 July 2022 to shareholders on the register at close of business on Friday 24 June 2022. The dividend will be a Property Income Distribution and no SCRIP alternative will be offered.

[dealtn]

NAVP 727p Share Price 520p

Mmmm.

[idpickering]

Half Year Report.

Performance summary.

Good underlying performance and a strong balance sheet.

- Underlying Profit growth of 13.3% driven by strong rental growth and cost control; EPRA cost ratio improved 650 bps to 19.7%

- HY23 EPS of 14.5p and dividend of 11.6p per share, both up 12.4%

- Portfolio value down 3.0% with Campuses down 2.7% and Retail & Fulfilment down 3.6%

- +17 bps yield expansion overall; +18 bps in Campuses; +17 bps in Retail & Fulfilment

- ERV growth up 1.2%, Campuses +1.6%, Retail Parks +0.8%, Urban Logistics +16.7%

- EPRA Net Tangible Assets (NTA) down 4.4% to 695p, with Total Accounting Return at -2.8%

- Raised £765m of new finance on good terms including £515m loan in Paddington Central Joint Venture

- LTV at 30.7% (32.9%: March 2022); £2bn of undrawn facilities and cash

- No requirement to refinance until late 2025

- Interest costs fully hedged for the next year and 77% of projected debt is hedged on average over the next 5 years

- Fitch affirmed our senior unsecured credit rating at "A"

Strong operational delivery: 1.5m sq ft leased, 14.7% ahead of ERV and 1.1m sq ft under offer, 11.4% ahead of ERV
- 494,000 sq ft of Campus leasing in the period, 18.4% ahead of ERV; further 310,000 sq ft under offer

- 1m sq ft Retail & Fulfilment leasing, 10.3% ahead of ERV; further 772,000 sq ft under offer

- Delivering 140,000 sq ft of lab space across our Campuses, with over 80,000 sq ft let or in negotiations

- Storey occupancy up 10ppt to 96% since March 2022

- Delivering net zero carbon initiatives; EPC A-B rated properties increased to 52% by ERV for our Campus portfolio

£0.9bn of gross capital activity
- £694m from sale of 75% of majority of Paddington Central completed in July 2022, crystallising 9% p.a. total property returns

- £25m acquisition of Peterhouse Western Expansion, 90,000 sq ft consented scheme in Cambridge

- £22m investment in an urban logistics development site on Mandela Way in Southwark, London

Progressing attractive development pipeline
- On site with 1.7m sq ft of net zero carbon developments across our Campuses; 92% of costs fixed for committed developments

- 10m sq ft development pipeline, targeting IRRs of 10-12%

Expect good underlying performance underpinned by rental growth, set against upward pressure on property yields
- Upward pressure on property yields dependent on where medium term interest rates settle

- ERV guidance, next 12 months: 2-4% growth in Campuses, 1-3% growth in Retail Parks and 4-5% in Urban Logistics

And later;

Dividends
Our dividend is semi-annual and calculated at 80% of Underlying EPS based on the most recently completed six-month period. Applying this policy, the Board are proposing an interim dividend for the six months ended 30 September 2022 of 11.60p per share. Payment will be made on Friday 6 January 2023 to shareholders on the register at close of business on Friday 25 November 2022. The dividend will be a Property Income Distribution and no SCRIP alternative will be offered.

https://www.investegate.co.uk/british-l ... 00065291G/

Ian.

[idpickering]

Final Results.

Simon Carter, CEO said: "I'm pleased we have delivered a good operational performance despite the challenging macroeconomic backdrop. We leased 3.4m sq ft of space, 15% ahead of ERV and portfolio occupancy is now 96.7%. Our focus on sectors with strong occupational fundamentals drove like-for-like net rental growth of 6% which, combined with a firm grip on costs, increased Underlying Profit by 7%.

In line with our strategy, we continue to actively recycle capital. We made disposals totalling £746m mainly at Paddington Central which crystallised total property returns of 9% p.a. Recently, we acquired over £200m of high quality retail park, life sciences and London Urban Logistics assets at attractive prices.

Higher interest rates have inevitably had an impact on property market yields and, as a result, the value of our portfolio declined by 12.3%. Whilst we remain mindful of ongoing macroeconomic challenges, the upward yield pressure appears to be easing and there are early signs of yield compression for retail parks.

Ultimately, value in real estate is created over the medium to long term. We like to invest in supply constrained segments with pricing power, where we can be market leaders and leverage our competitive strengths to generate attractive returns. We already lead in campuses, where we continue to see strong demand for best in class space and are increasing our focus on life sciences and innovation sectors. We are consolidating our position as the largest owner and operator of retail parks where scale is an advantage, and we are building a unique portfolio of centrally located and highly sustainable urban logistics schemes in London.

We have high quality assets, a best in class platform, a strong balance sheet, and we continue to see significant opportunities for future value creation through both development and capital recycling."

Financial
- Underlying Profit growth of 6.9%

- Excellent cost control: administrative costs flat year on year and EPRA cost ratio 19.5% significantly lower than 25.6% in FY22

- Underlying EPS of 28.3p up 4.8% and full year dividend of 22.64p per share up 3.3%1, final dividend to be paid on 28 July 2023

Lettings
- Strong leasing with 3.4m sq ft leased, 15.1% ahead of ERV and 914,000 sq ft under offer, 18.4% ahead of ERV

- 1.0m sq ft of Campus leasing, 11.0% ahead of ERV; further 106,000 sq ft under offer, 8.6% ahead of ERV

- 2.4m sq ft Retail & London Urban Logistics leasing, 18.8% ahead of ERV; further 808,000 sq ft under offer, 19.5% ahead of ERV

Portfolio
- ERV growth of 2.8%: Campuses +2.6%, Retail Parks +2.8% and London Urban Logistics +29.4%

- Yields +71 bps to 5.8% NEY: Campuses +70 bps to 5.0%, Retail and London Urban Logistics +72 bps to 6.8%

- Values down 12.3% with Campuses down 13.1% and Retail & London Urban Logistics down 10.9%; outperformed MSCI by 310 bps

- EPRA Net Tangible Assets (NTA) down 19.5% to 588p and Total Accounting Return of -16.3%

Developments
- High quality development pipeline to deliver 11.8m sq ft with £1.7bn of profit to come

- On site with 1.8m sq ft of net zero carbon developments across our Campuses; 94% of costs fixed for committed developments

And later;

Dividends.

The final dividend payment for the six-month period ended 31 March 2023 will be 11.04p. Payment will be made on 28 July 2023 to shareholders on the register at close of business on 23 June 2023. The final dividend will be a Property Income Distribution and no SCRIP alternative will be offered.

PID dividends are paid, as required by REIT legislation, after deduction of withholding tax at the basic rate (currently 20%), where appropriate. Certain classes of shareholders may be able to elect to receive dividends gross. Please refer to our website britishland.com/dividends for details.

https://www.investegate.co.uk/announcement/7530052

Ian (I hold).

[Arborbridge]

Down 4.8% on the same time last year, I believe.

Not great but we are in interesting times for income investors.

[tjh290633]

From the RNS:

Operational performance continued to improve driven by strong like-for-like rental growth and our focus on cost control. Underlying Profit was up 6.9% at £264m, while Underlying earnings per share (EPS) was up 4.8% at 28.3p. Based on our policy of setting the dividend at 80% of Underlying EPS, the Board has proposed a final dividend of 11.04p per share, resulting in a full year dividend of 22.64p, up 3.3%. The growth in the dividend is lower than Underlying EPS growth due to the impact of the rental concession restatement in the prior year.

The annual dividend is up 3.3%.

TJH

[daveh]

From the RNS:

Operational performance continued to improve driven by strong like-for-like rental growth and our focus on cost control. Underlying Profit was up 6.9% at £264m, while Underlying earnings per share (EPS) was up 4.8% at 28.3p. Based on our policy of setting the dividend at 80% of Underlying EPS, the Board has proposed a final dividend of 11.04p per share, resulting in a full year dividend of 22.64p, up 3.3%. The growth in the dividend is lower than Underlying EPS growth due to the impact of the rental concession restatement in the prior year.

The annual dividend is up 3.3%.

TJH

Last year they paid 10.32 as an interim and 11.6 as a final. This year the interim was 11.6, but the final has dropped slightly to 11.04. So overall slightly ahead. However the final might well have been expected to be the same or increased from last year. If I run HYPTUSS share price is down 4.5% compared to when I ran it yesterday, so not liked by the markets.

[idpickering]

AGM Trading Update.

Simon Carter, CEO, said:

"We continue to see strong operational momentum in the business, despite ongoing macroeconomic uncertainty, with good leasing activity reflecting our focus on execution and the exceptional quality of our portfolio. Campuses are benefiting from the trend towards best in class space, while retail parks continue to be the winning retail format given their affordability, omni-channel compatibility and low capex requirements. We have also made strategic progress in life sciences and innovation, with one of the largest lab lettings in the market and the launch of modular lab space at Canada Water."

Operational performance

- 552,000 sq ft of leasing across the portfolio in the first quarter, 11.0% ahead of ERV, with a further 1.2m sq ft under offer, 15.5% ahead of ERV.

Campuses

- Occupancy remains high at 96% with 164,000 sq ft of leasing completed, 11.4% ahead of ERV and a further 102,000 sq ft under offer, 5.7% ahead of ERV. We have c.1m sq ft in negotiations and have seen a noticeable uptick in viewings in the last few months as demand continues to gravitate to best in class space.

- Secured first pre-let at The Priestley Centre, Guildford with leading global life sciences tools company LGC, for 48,000 sq ft of lab and office space. It is one of the largest life sciences deals in the UK this year and takes the building to 58% pre-let, ahead of practical completion in Q4 2023.

- 19,000 sq ft of Storey leasing, including 7,200 sq ft of renewals with HMD Global and Masdar Offshore Wind at 2 and 4 Kingdom Street respectively.

Retail

- 387,000 sq ft of Retail leasing completed. This includes 227,000 sq ft of deals across Retail Parks,13.5% ahead of ERV, with a further 738,000 sq ft under offer, 17.7% ahead of ERV.

- 109,000 sq ft of renewals and extensions completed on our Retail Parks, including 14,700 sq ft and 15,000 sq ft with DFS and Sofology at Teeside Park, and 24,000 sq ft and 20,000 sq ft with Asda at Crown Wharf Shopping Park, Walsall and Prospect Place Retail Park, Dartford.

- The Retail Park format continues to perform strongly, with occupancy at 99%. Footfall is up 1% YOY and sales are up 6% YOY.

https://www.investegate.co.uk/announcem ... te/7624342

Ian.