British Land Company PLC (LSE:BLND) reported a stable overall portfolio valuation in the first half of 2024, supported by strong performance in retail parks, which offset declines in other segments.
Retail parks experienced a 5.1% uplift in value, contributing to an overall portfolio increase of 0.2%. British Land’s campuses portfolio value declined by 1.7% in the period and London urban logistics by 0.3%.
The company has invested £711 million into retail parks since April, bringing this segment to 32% of its total portfolio.
This strategic allocation aligns with robust demand for out-of-town spaces, which retailers are increasingly using to support online operations.
The group is deploying its income more efficiently- the cost ratio (measuring operating costs as a proportion of gross rental income) of 15.3% in the first half was an improvement from 16.4% in the first half of 2023.
British Land nudged its interim dividend up by 1% year on year to 12.24p.
Chief executive Simon Carter stated: "We are pleased the operational and financial momentum in our business continues.
“Strong levels of leasing ahead of ERV (estimated rental value) and sustained cost discipline enabled us to grow profits again, despite significant development activity, which will be a key driver of future profit growth.
“Our values were up 0.2%, with a particularly strong performance in retail parks offsetting residual yield movement in campuses.”