British Land '˜robust' despite uncertainty

The UK’s second-largest listed property developer said it was too early to assess the impact of the referendum vote, but its business is resilient and that quarterly activity had been strong in the lead-up to the referendum vote.

Since the vote on June 23, British Land has managed to secure 17 long-term retail leases ahead of the estimated rental value, it said.

Chief executive Chris Grigg said: “We had a good quarter of activity in the lead-up to the referendum.

“In the short period since, we are pleased to have exchanged on the sale of Debenhams, Oxford Street and completed further lettings across the office and retail portfolios. It is too early to properly assess the impact of the referendum result on the markets in which we operate but we do expect some occupiers and investors to take a more cautious approach.”

He said that British Land has entered this period of post-referendum uncertainty in a robust position.

“We have a strong, resilient business with a clear strategy,” he added.

Analyst David Brockton at Liberum said: “First quarter trading was robust, with lettings agreed ahead of the estimated rental value and disposals reducing the risk profile.

“Unsurprisingly, occupiers and investors are now expected to take a more cautious approach, albeit positive progress continues to be made on lettings activity.

“While the shares trade at a 23 per cent discount to net asset value, risk attached to asset values is now higher following the EU referendum, particularly given British Land has a higher proportionate exposure to city offices and single let retail.”