Real estate investment trust British Land Co Plc. (BLND.L,BTLCY.PK,BRLAF.PK) Tuesday said its business continued to perform well in the third quarter, despite challenging economic conditions.
In a trading update for the quarter, the company said it saw encouraging demand from existing and new occupiers. All West End projects of British Land are on track to reach practical completion this calendar year and the remaining two City offices will complete next year.
Chris Grigg, Chief Executive, said, “The business continues to perform well in markets which remain tough overall. We’ve continued to see good demand for our properties, which means our occupancy remains high and our developments are now significantly pre-let well ahead of completion.”
Occupancy across the UK estate was unchanged at 97.7 percent, despite subdued economic growth, weak consumer spending and an increased level of retailer administrations. Rents in administration were low at 0.8 percent of total rent.
In Retail, British Land saw good demand for space and successfully re-let 26 of the 58 units that were in administration at the end of September. The firm agreed 358,000 sq ft of lettings and renewals at 13.1 percent ahead of ERV. Retail occupancy in the UK was 98.1 percent, compared to 98.3 percent at the end of September 2012.
Environment remained difficult in Europe with consumer spending down and investor interest subdued, affecting European retail park portfolio. However, the Puerto Venecia Shopping Centre at Zaragoza, which opened on time in October, performed well, with strong footfall over the Christmas period.
In London, demand for high end residential properties remained robust despite the tax changes in the Budget.
The company noted that its committed developments are progressing well with additional pre-lets and encouraging occupier interest.
During the quarter, the lock-up term governing the firm’s Broadgate joint venture with Blackstone expired. The company plans to retain its 50 percent stake and work closely with Blackstone through any sale process.
Further, the firm said the third interim dividend payment for the current financial year will be 6.6 pence per share, a 1.5 percent increase from last year.
Grigg added that the firm remains cautious about the near-term environment, but is confident that British Land is not only defensive in today’s challenging markets but also well positioned to deliver future growth from existing and new investments.
The stock fell 0.2 percent to close at 563.50 pence on Monday.
To receive FREE breaking news email alerts for British Land Co PLC and others in your portfolio
by RTT Staff Writer
For comments and feedback: editorial@rttnews.comBusiness News