British Land Company PLC (LSE:BLND) increased annual profit and lifted its earnings outlook after a record year for leasing activity across its London 'campuses' and retail parks portfolio.
The FTSE 100 property developer reported underlying profit of £294 million for the year to 31 March, up 5% on the prior year, while underlying earnings per share increased 1% to 28.9p.
This led to the full-year dividend being lifted 1% to 23.12p per share.
Leasings reached a record 3.8 million square feet during the year, with deals agreed 7.2% ahead of estimated rental values (ERV). A further 1.1 million sq ft is under offer at 12.9% ahead of ERV.
The company said demand for office space in central London remained strong, with campus leasing reaching a record 1.7 million sq ft. Retail parks were 99% occupied.
Simon Carter, chief executive, said: “A record year of leasing has driven strong ERV growth, like-for-like net rental growth and an attractive earnings outlook.”
He added: “We are benefiting from our leading positions in campuses and retail parks, where demand is growing and supply remains constrained.”
Portfolio values rose 2.3% over the year, while like-for-like net rental growth was 6%, including 12% growth in campuses.
For the new financial year, Carter and the board expect earnings per share to grow at least 5.5% to 30.5p, supported by rental growth at the top end of its 3-5% guidance range.
The group also reiterated its target for annual EPS growth of 3-6% in subsequent years.