British Land’s asset value up as retail drags
BRITISH LAND said yesterday there was little rise in its net asset value in the fourth quarter of the year after weak consumer sentiment caused the value of its retail portfolio to drop.
The UK’s second largest property company posted a net asset value of 595p, up from 593p in the three months to 31 December after gains in office developments offset a slight fall in retail values.
The group said retailers in administration, which reflected 0.6 per cent of rent at year-end, were set to rise to one per cent as a result of Clinton Cards’ collapse earlier this month.
Chief executive Chris Grigg said the Eurozone crisis and a faltering UK economy had hit both the rental and the investment markets in the UK, particularly in retail.
Grigg, however, said the group had continued to perform well, with underlying pre-tax profits up a solid 5.1 per cent to £269m in the year to 31 March, helped by a 5.4 per cent rise in rental income to £28m. Its portfolio also rose 2.6 per cent to £10.3bn.
The firm said 50 per cent of office developments under construction were now pre-let. It upped its quarterly dividend by 1.5 per cent, bringing the full year dividend to 26.1p.