British Land provided investors with an upbeat assessment despite the strong macroeconomic headwinds for property stemming from inflation and higher rates.
Leasing activity across London and strength shown by some of its retail sites were two factors the REIT pointed to as reasons for optimism.
In an update ahead of its AGM, the property trust said it had secured 552,000 square feet of leasing across the portfolio in the first quarter, which is 11.% ahead of expectations. It also has 1.2m square feet under offer, 15.5% ahead of the expected level.
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The firm’s business campuses, mainly in the London area, were a performance highlight. Occupancy remains high at 96% and 164,000 square feet of leasing was completed.
Shares in British Land responded well to the news, rising 2.5% to 310p on Tuesday morning (11 July).
CEO Simon Carter, CEO, said: “We continue to see strong operational momentum in the business, despite ongoing macroeconomic uncertainty, with good leasing activity reflecting our focus on execution and the exceptional quality of our portfolio.
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“Campuses are benefiting from the trend towards best in class space, while retail parks continue to be the winning retail format given their affordability, omni-channel compatibility and low capex requirements. We have also made strategic progress in life sciences and innovation, with one of the largest lab lettings in the market and the launch of modular lab space at Canada Water.”
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