British Land hails ‘notable improvement’ as restrictions ease
British Land said that it had collected 99 per cent of the rent due for its offices in June as the FTSE 100 firm welcomed a “notable improvement in activity” across its markets.
The property developer also said that in the seven weeks since the first lifting of restrictions, it had seen footfall and sales 86 per cent and 94 per cent across its retail destinations.
In total, the firm said that it had collected 85 per cent of rent for the June quarter so far.
Encouragingly for British Land, retail rent collection was at 71 per cent, 17 per cent ahead of the same point for the March quarter, suggesting an improved retail situation.
In terms of performance, it pointed to the impressive combination of footfall and sales at its retail parks, which have outperformed the rest of its estate.
In the first quarter, it said that footfall and sales from such venues were at 96 per cent and 99 per cent of pre pandemic levels.
British Land added that there were signs that retail park values are rising, with those assets valued every quarter up 0.7 per cent for the three months to June.
Simon Carter, chief executive of British Land said:
“With lockdown restrictions lifting, we have seen a notable improvement in activity across our markets and our business is performing well.
“On our retail parks, footfall and sales are close to pre pandemic levels, rents are stabilising with recent deals in line with March ERV and there are indications that retail park values are starting to rise as more investors target the market.”
Sophie Lund-Yates, senior equity analyst at Hargreaves Lansdown commented: “We’re seeing a retail resurgence, with sales reaching 94% of pre-pandemic levels across British Land’s retail portfolio. The outlook is especially bright in retail parks.
“This is a shift that’s been triggered by the pandemic, as retail park shops tend to be roomier, making social distancing an easier task. It’s possible that, even as conditions relax, customers who found they prefer getting away from the hustle and bustle of town centres, will continue favouring retail parks.
“This change in consumer preferences is also nudging the value of retail park asset values up. This is a welcome step change for British Land, who saw the pandemic wipe huge chunks of value off rents and asset values.”
Shares in British Land rose 0.1 per cent this morning.