British Land making progress in tough conditions

Real estate giant British Land said it continued to perform well in the third quarter and saw 'encouraging' levels of demand in spite of tough market conditions.

Real estate giant British Land said it continued to perform well in the third quarter and saw 'encouraging' levels of demand in spite of tough market conditions.

The company said that in the face of subdued economic growth, weak consumer spending and an increased leave of retailer bankruptcies, occupancy across its UK estate remained high at 97.7% in the three months to December 31st 2012.

Meanwhile, administrations were low at 0.8% of total income (up 20 basis points), though this rose to 1.2% after the end of the period.

British Land also said that it has made "good progress" on its committed office development programme with 62% now pre-let/under offer, 76% in the City.

The company said: "All of our West End projects are on track to reach practical completion this calendar year and our remaining two City offices will complete next year. The success of our West End investment programme means that we are close to achieving a balance between our City and West End offices, a key objective in recent years."

The company has raised its quarterly dividend payment by 1.5% to 6.6p per share.

Cash and committed unused bank facilities totalled £1.6bn at the end of the quarter, slightly lower than the £1.7bn recorded in September.

"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," said Chief Executive Chris Grigg.

"While we remain cautious about the near-term environment, we are 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."

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Investors are shunning UK stocks – but they might regret that in a year’s time
UK stockmarkets

Investors are shunning UK stocks – but they might regret that in a year’s time

There are a number of reasons why investors aren't buying UK stocks, says John Stepek. But they may want to rethink that strategy.
29 Sep 2020
Are we really in a stockmarket bubble?
US stockmarkets

Are we really in a stockmarket bubble?

The rise of “cash shell” companies, sky-high valuations – everything seems to point to a stockmarket bubble. But all may not quite be as it appears, s…
28 Sep 2020
Two commodities that could lie at the heart of the next resources bubble
Energy

Two commodities that could lie at the heart of the next resources bubble

Commodities tend to move in cycles. And if you can identify early on which ones are about to surge in demand, you can profit handsomely. Dominic Frisb…
30 Sep 2020