Half Year 2025 British Land Company PLC Earnings Call Transcript
Key Points
- British Land Co PLC (BRLAF) reported a 1% increase in underlying profit to GBP143 million, demonstrating resilience despite significant development activity.
- The company achieved a high occupancy rate of 99% in retail parks, driving ERV growth of 3.7% in the first half.
- British Land Co PLC (BRLAF) has successfully reshaped its portfolio, with 93% now in preferred sectors, following GBP3.7 billion of capital activity over the last four years.
- The company has a strong development pipeline, with GBP1.8 million square feet of best-in-class workspace set to deliver over the next three years.
- British Land Co PLC (BRLAF) maintains a robust balance sheet with GBP1.6 billion of undrawn facilities and cash, ensuring no refinancing is needed until early 2027.
- Gross rental income decreased by 3% due to the disposal of Meadowhall and the surrender of a lease at Triton Square.
- Pro Forma LTV increased by 50 basis points to 37.8%, indicating a rise in leverage.
- Property operating expenses increased by GBP5 million compared to the previous year.
- The company faces potential covenant risks in retail, as highlighted by the administration of Carpetright.
- Despite positive earnings growth, the total accounting return was 2.8%, below the target range of 8% to 10%.
Well, good morning, everyone. Thank you for joining us for the half year results. Covers quite a busy period for the company. Started back in April with the prelet to Citadel. We then had the sale of a stake in Meadowhall or our stake in Meadowhall, a series of retail park acquisition and wrapped up in October with the placing so a busy period.
But before we get into that, I did just want to say a thank you to Bhavesh, who's here today. He steps down as our CFO today. He's made a very significant contribution to the business over the last 3.5 years, I think in particular, there's three areas where he's really excelled, cost control, balance sheet management and capital allocation.
Bhavesh, I've really enjoyed working with you and I know the rest of the team have and we wish you all the best at Kingfisher. As you know, David Walker becomes our new CFO today. David's here in the front row. He's very well equipped to pick up the reins from Bhavesh.
Many of you know, him from his time as interim
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