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British Land Company (BLND) investor relations material
British Land Company Investor Update summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.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.
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