British Land outperforms the market despite weak economy

The Share Centre continues to recommend British Land as a ‘buy' for growth and income seeking investors.

Nick Raynor, investment adviser at The Share Centre, explains what British Land's full year results mean for investors.

"Commercial property group, British Land, reported full year results that will start to put the confidence back in the property market. Outperforming the market for another year, the company announced a 9.9% rise in pre-tax profits from last year despite economic weakness.

"British Land has focused on building a quality, sustainable portfolio with good locations. This resulted in continuing strong demand and a 6.9% increase in the portfolio valuation, lifting the net asset value per share to 567p - a 12.5% increase from last year.

"Income-seeking investors may be slightly disheartened as the full year dividend has remained unchanged despite these positive figures. However, the momentum in the businesses is attractive for those seeking growth. The company invested £2.1bn in development and acquisitions, with £1.6bn spent on a London project alone.

"Although the recovery of the UK economy remains weak, British Land has had a strong year, particularly in lettings, adding £14.2m in annual rent. The company has captured the growing rental values through its exposure to London markets. Offices in the capital account for 32% of its sound portfolio, which is expected to rise to 37% after current developments are completed.

"This contributes to why we currently prefer British Land to others in the sector and continue to recommend it to both growth and income seeking investors alike."

For more information, visit share.co.uk.