British Land Company PLC (LSE:BLND) has upgraded its earnings outlook after like-for-like net rental growth of 6% across its campuses and retail parks.
Growth for the year to 31 March was ahead of previous guidance, helping drive underlying earnings per share of 28.9p, just ahead of the 28.5p from the year before and City analyst forecasts.
Demand for office space was supported by what the company says is a growing number of "AI and innovation-led" tenants, particularly in London campuses, where rental growth reached 12%.
Chief executive Simon Carter said leasing momentum had been strong, with availability of high-quality space at low levels despite wider economic uncertainty.
Retail parks also performed well, with occupancy at 99% and rents in the second half 6.3% ahead of previous levels.
British Land completed the acquisition of Life Science REIT PLC on 20 April, which is expected to boost earnings.
The group now expects underlying earnings per share of at least 30.5p in the 2027 financial year, up from prior guidance of 30.2p.
Total accounting return for the year was 8.1%, supported by stable property values and rental growth.