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1. Company Snapshot

1.a. Company Description

Our portfolio of high quality UK commercial property is focused on London Offices and Retail around the UK.We own or manage a portfolio valued at £13.7bn (British Land share: £10.3bn) as at 30 September 2020 making us one of Europe's largest listed real estate investment companies.Our strategy is to provide places which meet the needs of our customers and respond to changing lifestyles - Places People Prefer.


We do this by creating great environments both inside and outside our buildings and use our scale and placemaking skills to enhance and enliven them.This expands their appeal to a broader range of occupiers, creating enduring demand and driving sustainable, long term performance.Our Offices portfolio comprises three office-led campuses in central London as well as high quality standalone buildings and accounts for 65% of our portfolio.


Our Retail portfolio is focused on retail parks and shopping centres, and accounts for 31% of our portfolio.Increasingly our focus is on providing a mix of uses and this is most evident at Canada Water, our 53 acre redevelopment opportunity where we have plans to create a new neighbourhood for London.Sustainability is embedded throughout our business.


Our places, which are designed to meet high sustainability standards, become part of local communities, provide opportunities for skills development and employment and promote wellbeing.In April 2016 British Land received the Queen's Award for Enterprise: Sustainable Development, the UK's highest accolade for business success for economic, social and environmental achievements over a period of five years.

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1.b. Last Insights on BLND

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1.c. Company Highlights

2. British Land's Half-Year Results: Strong Performance and Positive Outlook

British Land's half-year results show underlying profit up 8% to £155m, with underlying EPS at 15.4p, a 1% increase, in line with analyst estimates of 0.154. The dividend is also up 1%, in line with the policy of paying out 80% of underlying EPS. The company's portfolio is 90% focused on Campuses and Retail Parks, sectors with strong occupational fundamentals.

Publication Date: Nov -20

📋 Highlights
  • Underlying Profit Growth:: Up 8% to £155m, with underlying EPS at 15.4p (1% increase), and dividend up 1%, aligned to 80% payout policy.
  • Portfolio Focus & Rental Guidance:: 90% in Campuses/Retail Parks; 3-5% annual rental growth guidance, supported by £6bn+ London office transactions YTD.
  • Total Return Target:: 8-10% through the cycle, driven by 3-5% like-for-like rental growth and 10% fee income growth (FY guidance).
  • Valuation & Leasing Momentum:: NTA per share rose 2% to 579p; 2.4% rental growth (top of 3-5% range), with 88% EPRA occupancy (up 10% YoY).
  • Capital Efficiency & Asset Strength:: 39.1% LTV ratio, £1.7bn undrawn facilities; 12-14% IRR from Retail Park redevelopments (Biggleswade/Queen Drive).

Portfolio Performance

The company's portfolio is performing well, with like-for-like rental growth of 2.4% and a high-quality platform to capitalize on the compelling fundamentals of their core business. Valuations have increased by 1.2%, marking the third consecutive period of positive growth. The EPRA occupancy rate stands at 88%, up 5% this half and 10% for the year, driven by strong leasing activity in Campuses and Retail Parks.

Guidance and Outlook

The company guides for 3-5% rental growth in both Prime Offices and Retail Parks, and expects to deliver sustainable EPS growth of 3-6% over the medium term. For the full year, they expect 5% like-for-like growth across the portfolio and 10% fee income growth. The company provides guidance for FY '26 EPS of at least 28.5p and at least 6% EPS growth for FY '27.

Valuation

With a P/E Ratio of 11.12 and a Dividend Yield of 6.06%, the company's valuation appears reasonable. The P/B Ratio of 0.66 suggests that the company's net asset value is not fully reflected in its current market price. Analysts estimate next year's revenue growth at 5.3%, which is in line with the company's guidance.

Operational Highlights

The company's operational performance is strong, with Broadgate being practically full, and 1 Triton Square, a Campus within a Campus, seeing strong interest from tenants. The company's Retail Parks continue to see strong trading, with footfall growth 13.5% above the UK benchmark over the last five years.

Capital Management

The company's loan-to-value (LTV) ratio was 39.1%, with net debt of £3.8 billion and £1.7 billion of undrawn facilities. The net asset value (NTA) per share increased by 2% to 579p, and the total accounting return for the half-year was 4%, on track to meet the full-year target of 8-10%.

3. NewsRoom

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British Land promoted to FTSE 100 as WPP falls out after nearly three decades

Dec -04

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FTSE 100 LIVE: London underperforms against peers as latest US data confirms Fed rate cut expectations

Dec -04

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WPP Set to Drop Out of FTSE 100 Index After 27-Year Stint

Nov -26

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British Land Co PLC (BRLAF) (Q2 2026) Earnings Call Highlights: Strong Profit Growth and ...

Nov -19

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Looking at the Narrative for British Land After Analyst Concerns on Market and Earnings Outlook

Sep -20

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Taylor Wimpey (LSE:TW.): A Fresh Look at Valuation After a Year of Share Price Pressure

Sep -09

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Assessing Diageo (LSE:DGE) Shares: Is the Current Valuation a Missed Opportunity?

Sep -09

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Does Lloyds Offer More Value After Latest UK Interest Rate Decision?

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.39%)

6. Segments

Retail & London Urban Logistics

Expected Growth: 3%

British Land's Retail segment growth is driven by increasing footfall in prime shopping centers, while London Urban Logistics benefits from the e-commerce boom, last-mile delivery demand, and limited supply in the London market, resulting in a 3% growth rate.

Campuses

Expected Growth: 2%

Campuses from British Land Company Plc with 2% growth driven by increasing demand for flexible workspaces, proximity to transportation hubs, and amenities such as gyms, cafes, and childcare facilities, attracting a diverse range of tenants, including startups, scale-ups, and corporates, seeking collaborative and innovative environments.

Reconciling Items

Expected Growth: 1%

British Land Company Plc's 1% growth is driven by increasing demand for retail and office spaces, strategic acquisitions, and proactive asset management. Additionally, the company's focus on mixed-use developments, such as the regeneration of Canada Water, and its commitment to sustainability, have contributed to its growth.

7. Detailed Products

Retail

British Land Company Plc offers a diverse retail portfolio, comprising over 30 million sq ft of retail space across the UK, including shopping centers, retail parks, and superstores.

Offices

The company provides high-quality office spaces, totaling over 7 million sq ft, in prime locations across London and the UK, catering to a range of businesses and industries.

Residential

British Land Company Plc develops and manages residential properties, including apartments, houses, and mixed-use schemes, offering a range of tenures and amenities.

Leisure

The company's leisure portfolio includes cinemas, restaurants, and other entertainment venues, providing a range of experiences for visitors.

Mixed-Use Developments

British Land Company Plc creates mixed-use schemes, combining retail, office, residential, and leisure spaces, to create vibrant and sustainable communities.

8. British Land Company Plc's Porter Forces

Forces Ranking

Threat Of Substitutes

British Land Company Plc faces moderate threat from substitutes due to the availability of alternative properties and investment options for customers.

Bargaining Power Of Customers

The bargaining power of customers is low due to the limited availability of high-quality properties and the company's strong brand reputation.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the real estate industry and the company's established market position.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market and the company's need to continuously innovate and improve its offerings to stay competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.45%
Debt Cost 5.68%
Equity Weight 70.55%
Equity Cost 11.90%
WACC 10.07%
Leverage 41.74%

11. Quality Control: British Land Company Plc passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
MERLIN Properties

A-Score: 6.4/10

Value: 5.8

Growth: 4.0

Quality: 6.9

Yield: 6.9

Momentum: 6.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
LondonMetric Property

A-Score: 6.4/10

Value: 4.5

Growth: 5.7

Quality: 7.3

Yield: 8.8

Momentum: 3.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Covivio

A-Score: 5.7/10

Value: 4.0

Growth: 4.2

Quality: 3.9

Yield: 9.4

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
LandSec

A-Score: 5.7/10

Value: 4.5

Growth: 3.2

Quality: 6.2

Yield: 8.1

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Unite

A-Score: 5.6/10

Value: 4.5

Growth: 6.3

Quality: 6.2

Yield: 6.9

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
British Land

A-Score: 5.2/10

Value: 4.0

Growth: 2.8

Quality: 5.5

Yield: 8.8

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.01$

Current Price

4.01$

Potential

-0.00%

Expected Cash-Flows