British Land Co. has reported a robust operational and strategic performance in the first quarter of fiscal 2024, despite prevailing macroeconomic uncertainty. The company’s leasing activity has been impressive, surpassing estimated rental values.
Leasing Activity
In the three months ending June, British Land completed leasing for 552,000 square feet across its portfolio. This achievement represents an average increase of 11% ahead of previously estimated rental values. The company also has an additional 1.2 million square feet under offer, surpassing estimated rental values by 15.5%.
Campuses Division
British Land’s campuses division has experienced consistently high occupancy rates at 96%. It successfully leased 164,000 square feet of space during this period. Moreover, negotiations for another 1 million square feet are underway. The company has observed a significant surge in viewings recently, indicating a growing demand for premium spaces.
Retail Leasing
The retail leasing sector has also witnessed satisfactory progress. British Land completed leasing for 387,000 square feet, including 227,000 square feet across retail parks. Retail parks have emerged as strong performers with an impressive 99% occupancy rate. Additionally, footfall has seen a 1% increase compared to the previous year, while sales have surged by 6%.
Strong Liquidity
The company enjoys considerable liquidity, with £1.7 billion ($2.19 billion) of undrawn lines-of-credit and cash reserves. British Land’s financial position is solid, as it does not need to refinance until early 2026.