British Land admitted that future prospects are mixed because of the UK economy’s slow recovery, but said certain sectors remain profitable.
The REIT has about one-third of its expansive portfolio in London office space, and while the commercial property market elsewhere in the UK is suffering, London office space remains in high demand.
Chris Grigg, Chief Executive of British Land, said: “We’ve had an active and positive start to the year.
“The early decisions we made in undertaking our £1.1bn development programme are having a real impact, accounting for nearly a quarter of our valuation improvement.”
However, he added: “We do expect the British consumer to remain under pressure for some time”. He also said that the economic situation in the last couple of months “appears to have worsened”.
Because London remains the world’s premier financial centre, demand for office space in the capital has continued, driving rents higher.
British Land is currently planning projects which will eventually add approximately 2.2 million square feet of office space to the London market.
About two-thirds of British Land’s property portfolio is retail, and the company’s average lease length was 11.4 years.
“The pace of capital growth is abating, and onward momentum will depend more on the development program and asset management than market movements,” Alan Carter, an analyst at Evolution Securities, told Bloomberg.
One of British Land’s premier investments is the so-called Cheesegrater office development at 122 Leadenhall Street. Once completed, the building will be 737 feet tall and have 48 floors.
The REIT has about one-third of its expansive portfolio in London office space, and while the commercial property market elsewhere in the UK is suffering, London office space remains in high demand.
Editor’s notes: In June 2023, British Land released its latest annual report. It stated that campuses made up 63 per cent of its portfolio by values – these campuses include Broadgate, Regents Place, Paddington Central and Canada Water – all of these either being office-led or containing office space.
The other 37 per cent of the portfolio comprises retail parks, shopping centres and London Urban Logistics.
The report indicated £264 million in underlying profit in 2023, up from £247 million the previous year.
In May 2024, it was announced that the Broadgate Estate, owned by a 50:50 partnership of British Land and GIC, would welcome global hedge fund Citadel.
The pre-let deal involved the hedge fund committing to rent 250,000 square feet of office space at the scheme, which represents about one-third of the office space in the landmark two-tower development.
British Land had £15.8 billion in total assets under management, with its portfolio share valued at £10.1 billion as of March 31, 2026.
In July 2026, British Land announced new near- and long-term science-based emissions reduction targets, approved by the Science Based Targets initiative (SBTi), reinforcing the company’s commitment to achieving net zero and providing a clear pathway to 2050.