British Land Chairman to step down

20th Nov 2012 07:05

Real estate investment trust British Land saw a solid increase in underlying profits in the first half, as it continued to outperform its benchmark of property returns, the IPD (otherwise known as Investment Property Databank).Meanwhile, the firm announced that its Chairman of six years, Chris Gibson-Smith, would be stepping down at the end of 2012.Chief Executive Chris Grigg said: "Today we're reporting a good set of numbers in what continues to be a tough market. "Our income, profits and NAV are up on the same period last year and we have continued to outperform the UK property market on all key metrics - rental growth, capital returns and total returns. Our results underline the strength and resilience of British Land's business.Underlying profit before tax in the six months to September 30th was £137m, up 3.8% year-on-year. Underlying diluted earnings per share were up 4.1% at 15.2p.Meanwhile, net rental income rose 1.1% to £272m, with the impact of acquisitions adding £7m. The company said that total and capital returns were 170 basis points and 200 basis points ahead of the IPD benchmark, respectively. The half-year dividend was raised from 13.0p to 13.2p per share, an increase of 1.5%.Grigg said: "In a market where leasing activity has been generally slow and valuations have continued to weaken, our results underline the strength and resilience of our business and the actions we have taken in recent years to drive performance."The valuation of the group's portfolio was flat at £10.4bn, with a 0.2% increase in the UK portfolio offset by lower values in Europe.Chairman to say goodbyeGibson-Smith, who joined the board in January 2003, would be stepping down on December 31st after his second three-year term as Chairman. He will replaced by John Gildersleeve, who joined the board in 2008 and is currently serving as Senior Independent Director.Chris Gibson-Smith said: "I have had a fascinating 10-year journey with British Land, and the last six years as Chairman have been deeply rewarding. The company is in an excellent position with a first rate team, portfolio and strategy. We are delighted that he has agreed to deepen his connection with the company. His broad range of experience makes him an ideal Chairman for British Land."