British Land reports improved leasing activity

24th Jul 2013 07:50

British Land said it experienced encouraging levels of leasing activity in the quarter to June 30th, driven by demand for high quality space. The group achieved 462,000 sq ft of lettings and renewals and investment lettings, 4.0% ahead of estimated rental value (ERV).UK occupancy was at 96.6%, pro-forma including recent acquisitions and completions, up 20 basis points on a like-for-like basis.The company has made £512m of acquisitions since the start of the year, notably £470m purchase of a major interest in Paddington Central. It brings the investment of placing capacity to £758m with 0.7p of annualised earnings accretion.Chris Grigg, Chief Executive said: "We have had a good start to our financial year and our business continues to perform. The economy as a whole is showing some signs of returning confidence, London remains strong and while retail is still challenging, we continue to see encouraging levels of demand for our space. "Our purchase of Paddington Central plays to our strengths in the management and development of major London estates: it is in line with our strategy of increasing our exposure to London and the West End and helps replenish our development pipeline. This transaction strengthens our ability to deliver income and capital value growth. Our decision to increase the dividend reflects our confidence in the business." The firm increased its dividend by 2.3% to 6.75p for the quarter and 27.0 pence for the full year reflecting confidence in future cashflows.Shares were up 0.08% to 617.50p at 08:55 on Wednesday.RD