British Land's annual profits rise as demand increases

14th May 2014 07:08

- NAV per share up 15.4 per cent- PBT up 8.4 per cent- FY dividend up 2.5 per centBritish Land's annual underlying pre-tax profit rose 8.4 per cent to 297m pounds on the back of strong demand for London property. Net asset value per share increased 15.4% to 688p with total net assets at £7.1bn, up from £5.7bn a year earlier. Underlying earnings per share were 3% lower at 29.4p, primarily as the result of disposals last year. The London-based property investment company said the market environment has become "significantly more favourable" as economic confidence has improved in the UK and debt finance more broadly available.The valuation of the UK portfolio rose by 8.3% with retail up 4.4% and offices and residential property up 14.5%. During the period, the company saw increased returns on development. The group also completed 820,000 sq ft of developments in the West End. "Reflecting our confidence in the coming year, the board is proposing a quarterly dividend of 6.92 pence per share, or 27.68 pence per share for the full year, an increase of 2.5%," Chief Executive Chris Grigg said. He added the group was "well positioned to take advantage of London's continuing success and improving demand for the best retail space". RD