British Land has posted stronger than expected profit figures.
The UK’s second largest commercial property company posts profit figures of £256 million and confirms London office rents are on the rise.
The UK’s second largest commercial property company British Land has surprised industry analysts by posting stronger than expected underlying profit figures.
Figures out this week show that the firm’s pre-tax figures fell 24% in the year to 31st March to £830 million but their underlying profit figures rose 2.8% to £256 million. The firm said the figures show that despite the country’s sluggish economy, “consumers are still shopping and good businesses are looking to grow.”
British Land saw a 12.5% rise in the net value of its assets which was believed to be driven by a 6.9% increase in the value of properties. The firm confirmed that they would continue to invest and develop in the London office space market in a bid to meet the expected imminent shortfall.
The results come as British Land confirmed that office space rents in the capital are continuing to rise, sparking increased optimism in the sector. The firm said rents had increased steadily in the last 3 quarters and confirmed that “underlying demand dynamics” in the market were set to continue.
While Panmure Gordon analyst Mark Hughes said that British Land had had a “year of strong performance”, many other industry analysts were quick to compare the group’s figures with the impressive full year figures released by Land Securities last week.