British Land earnings soar as competition heats up for work campuses
British Land, one of the UK’s largest property developers, has secured a £251m underlying profit for the last 12 months, as its earnings per share nearly doubles.
The FTSE 100 builder’s profit jumped 25 per cent in the period, the equivalent of £50m. Meanwhile, earnings per share have soared from 18.8p to 27.4p over the past year.
British Land’s portfolio has grown nearly seven per cent in the 12-month period, as work from home restrictions pushed Londoners to rethink their work spaces and turn towards multi-purpose campuses.
In a statement, CEO Simon Carter said: “Operationally, our leasing volumes across campuses and retail and fulfilment were the highest in ten years and were ahead of estimated recovery value.
“In London, demand continues to gravitate towards the best, most sustainable space.”
Warehouse and logistics spaces in London have particularly caught the eyes of developers, as businesses seek to bring their distribution hubs closer to home post-Brexit, while supply chains are still being hampered by the pandemic.
“The fundamentals of urban logistics in London are compelling given the chronic shortage of space,” added Carter. “We have made a good start to building our urban logistics business where we have assembled a c.£1.3bn development pipeline in 12 months.”
British Land’s London campuses, across Canada Water, as well as logistics hubs are expected to pull in around £2bn in profit, Carter continued.
“We are mindful of current elevated economic and geo-political uncertainties, but our strategic advantage in sectors with pricing power means we can look ahead with confidence,” he said.