REG - British Land Co PLC - Q4 Trading Update

British LandAnnouncement

21/04/2026 07:00

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RNS Number : 2051B  British Land Co PLC  21 April 2026

The British Land Company PLC ("British Land")

British Land trading update

Market-leading position in campuses and retail parks driving like-for-like net
rental and earnings growth

21 April 2026

British Land issues an unaudited trading update for the financial year ended
31 March 2026 (FY26), ahead of its preliminary results announcement scheduled
for 20 May 2026.

Simon Carter, Chief Executive, said: "This has been an excellent year of
leasing, reflecting our market-leading position in campuses and retail parks,
where availability for high-quality space in the right locations is near
record lows, and occupational fundamentals continue to strengthen, despite
ongoing macroeconomic volatility.

In campuses, we are seeing accelerating demand from a new wave of AI and
innovation-led occupiers, driving strong rental growth in what remains a
supply constrained market. Our virtually full retail park portfolio delivered
positive leasing against previous passing rents of 6.3% in the second half of
the year. The dynamics in both markets have translated into strong
like-for-like rental growth of 6% which, combined with development leasing and
disciplined cost control, has more than offset higher funding costs. This is
expected to deliver Underlying EPS of 28.9p for FY26 and together with stable
yields and ERV growth, drive an 8.1% total accounting return.

With continued momentum across the portfolio, including particularly strong Q4
leasing, and the earnings accretive acquisition of Life Science REIT
completing yesterday, we are confident in our earnings growth outlook for FY27
and beyond."

Strategic delivery driving total accounting returns and upgraded guidance

·      Expect FY26 Underlying EPS of 28.9p, ahead of guidance

·      FY26 like-for-like net rental growth of 6%, ahead of guidance,
including 12% in campuses

·      FY26 total accounting return of 8.1%, within our 8-10% through
the cycle target

·      Acquisition of Life Science REIT completed on 20 April 2026

·      Upgrading FY27 Underlying EPS guidance to at least 30.5p
(previously 30.2p)

In London campuses, leasing momentum has been strong over the year, with 215
deals covering 1,692,000 sq ft and accelerated in Q4 with 834,000 sq ft of
deals (c.50% of the total by floor area). This included in February Herbert
Smith Freehills Kramer signing at Broadgate's latest development, 1 Appold
Street, setting record rents for the campus. Across the wider portfolio,
vacancy has continued to be leased up and occupancy is now 95%, up from 92% at
September with the remaining vacancy weighted towards newly delivered, best in
class space where demand is strongest.

Take up of space from AI and innovation-led businesses is increasing across
London, particularly so in the Knowledge Quarter where Regent's Place is
uniquely positioned to support these high‑growth businesses. This is
reflected at One Triton Square where leasing velocity has exceeded
expectations since its launch in October, and is now 78% let and 16% under
offer, including all of the lab space. We have recently signed one of the
world's leading AI companies, Anthropic, for 158,000 sq ft. This is the sixth
deal we have done with the business, as our campus proposition supports their
UK growth. They join occupiers such as Gilead Sciences alongside other leading
global pharmaceutical, robotics, AI and technology companies at the campus.

Our retail park portfolio remains virtually full at 99% occupancy. Retail
parks remain the format of choice for retailers and our parks have continued
to see new entrants this year, which contributed in part to leasing ahead of
previous passing rents at 3.4% (H2: 6.3%).

For the year ended 31 March 2026, subject to external audit, the Group
expects:

Earnings

−    Underlying Profit of £294m (FY25: £279m) and Underlying EPS of
28.9p (FY25: 28.5p).

Portfolio valuation and balance sheet

−    Full year values +2.3%, with campuses +2.0% and retail parks +3.3%.

−    ERV growth of +4.9%, with campuses +6.5% and retail parks +4.4%.

−    NEY down 4 bps at 6.0%.

−    EPRA Net Tangible Assets of 590p (FY25: 567p) and TAR of 8.1%.

−    Loan to value 39.2% (FY25: 38.1%) and Group Net Debt to EBITDA
c.7.7x (FY25: 8.0x).

Operational update

−    3.8m sq ft of leasing across the portfolio, 7.2% ahead of ERV and
7.6% ahead of previous passing rent, with a further 1.1m sq ft under offer,
12.9% ahead of ERV.

−    Like-for-like net rental growth of 6%.

Campuses

−    1.7m sq ft of leasing, 6.3% ahead of ERV and 20.0% ahead of previous
passing rent, with a further 295k sq ft under offer, 17.0% ahead of ERV.

−    Occupancy of 95%(1), and 91% occupancy on an EPRA basis.

−    Like-for-like net rental growth of 12%, reflecting strong
occupational fundamentals.

Retail and London urban logistics

−    2.1m sq ft of leasing, 8.4% ahead of ERV and 1.2% ahead of previous
passing rent, with deals in the second half of the year 5.2% ahead of previous
passing rent.

−    Further 838k sq ft under offer, 10.3% ahead of ERV and 8.5% ahead of
previous passing rent.

−    Occupancy of 99%(1), and 96% occupancy on an EPRA basis.

−    Like-for-like net rental growth of 2%, reflecting retail park
virtually full occupancy and final overrent burn off.

 

Outlook

−   Now expect FY27 Underlying EPS of at least 30.5p, ahead of previous
guidance of at least 30.2p, following the acquisition of Life Science REIT
(c.1% EPS accretion in FY27, with further to come in future years from the
lease up of newly delivered space and capturing reversion).

−    Reiterate expectation for 3-6% p.a. EPS growth over the medium term.

−    Reiterate guidance for future ERV growth of 3-5% p.a. across our
portfolio.

 

¹ Excluding developments completed in the previous 12 months.

 

- ENDS -

Investors:

David Walker / Jonty McNuff, British
Land
0207 486 4466

Media:

Charlotte Whitley, British Land
                                  07887 802 535

Notes to editors

About British Land

British Land is a UK commercial property company focused on real estate
sectors with the strongest operational fundamentals: London campuses and
retail parks. We own or manage a portfolio valued at £15.2bn (British Land
share: £9.8bn) as at 30 September 2025.

Our purpose is to create and manage places people prefer - outstanding places
that deliver positive outcomes for all our stakeholders on a long term,
sustainable basis. We do this by leveraging our best in class platform and
proven expertise in development, repositioning and active asset management.

We have both a responsibility and an opportunity to manage our business in an
environmentally and socially responsible manner. Our approach to
sustainability is focused on three pillars: greener spaces, thriving places
and responsible choices.

Read more about us at www.britishland.com (http://www.britishland.com) .

Forward-looking statements

Nothing in this announcement should be construed as either an offer or
invitation to sell or any offering of securities or any invitation or
inducement to any person to underwrite, subscribe for or otherwise acquire
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