UK REIT British Land has announced that it intends to allocate up to £300 mln (€338 mln) of capital to a share buyback during the current financial year.
'This rolling buyback programme reflects our commitment to seeking the best long-term returns for shareholders,' commented chief executive Chris Grigg.
'We continue to see strong demand in the investment market, which makes opportunities to acquire new standing assets, at attractive returns, more limited than usual. With our shares trading at a substantial discount to NAV and providing a 5% dividend yield, allocating capital into a share buy-back represents a clear value opportunity,' he added.
Since the start of the financial year, the company has reported a number of disposals and changes to the development pipeline. These include the sale of The Leadenhall Building for £575 mln (€648 mln) (British Land's share), plus the disposal of another £135 mln (€152 mln) of assets, with a further £88 mln (€99 mln) under offer.
At 1 Finsbury Avenue, part of the Broadgate Campus, work will start on the £35 mln (British Land's share) refurbishment next month, adding retail, a new cinema and roof terrace to the building.
'With substantial proceeds being realised from our disposals programme, we do not expect any material change in our loan to value ratio as a result of the share buy-back. We retain significant resources to develop the pipeline of development opportunities we have created and the flexibility to respond to any changes in market conditions,' concluded Grigg.
