Home > News > Skyscraper News > London > United Kingdom > London Offices Lead British Land Results

London Offices Lead British Land Results

British Land has announced its half year results for the period up to the 30th of September 2011 showing that the company is once again growing despite an anemic British economy.

Leading the charge on the balance sheet is the fact that they are now developing all three of their major London office sites, and that the development values of these projects has gone up by an impressive 15.2%.

These include the Leadenhall Building which has attracted a rent from Aon of 56.60 per square foot, Regent's Place in the West End of London that has a 14,000 square metre let to Debenhams who have shelled out a rent of between 50 per square foot and 53.50 per square foot, and the new UBS building at Broadgate which is netting 54.50 per square foot on 700,000 square feet. These pre-lets have added an average 32 million to British Land's rent roll over a 20-year period.

Flush with cash the company has also made 332 million of acquisitions since the start of 2011 giving it another 21 million of long-term income, whilst they are spending 1.9 billion on their main developments, with 90% of that going into the central London area on projects such as the above. Once fully let these should give another 128 million of rent.

The increases between retail and office rents show just how the British economy is running right now, with low consumer spending having acted as a drag on shop leases. Across the board British Land has only had retail values go up by 0.7% compared to 5.3% for its offices.

In total the IFRS net assets that the company owns has increased in value from 4,433 million in the first half of 2010 to 5,064 million in the first half of 2011, equating to an increase of 12.6%, or a rise from 525 pence per share to 591 pence per share today. There is a total property return of 5.1%, which sounds impressive, but when compared to the current inflation rate is merely healthy.

The key underlying profits before tax haven't seen the same increases though going up from 127 million to 132 million which is only 3.9% and the underlying earnings per share are 14.6 pence instead of the prior 14.2 pence. Dividends will remain unchanged at 13 pence per share. Shares at close on the London FTSE 100 were trading at 497.40 pence each, down 1.21% on the day.

Article Related buildings:

The Leadenhall Building

The Leadenhall Building
North East Quadrant Office Building

North East Quadrant Office Building
5 Broadgate

5 Broadgate