Retail gloom takes toll on British Land
BRITISH LAND has seen growth of its net asset value stall in the third quarter as the ongoing consumer downturn led to a slight dip in value across its retail portfolio.
The landlord – whose tenants include Tesco, Sainsbury’s and Debenhams – said its retail estate, which accounts for 61 per cent of its property portfolio, depreciated by 0.4 per cent during the three months to the end of December to £6.3bn.
Peel Hunt analyst James Carswell said the fall didn’t come as a surprise as struggling retailers put pressure on landlords to lower rents and look to exit poorer performing stores.
British Land said half of its London office development programme was pre-let, after a recent agreement with insurer Aon at its Cheesegrater skyscraper, securing £32m of annual income.
Profit rose 6.3 per cent to £68m year-on-year while the value of its portfolio increased 0.1 per cent.
Chief executive Chris Grigg said: “The current economic outlook is uncertain, but overall our business is defensively positioned today and will benefit further as economic growth returns.”