British Land prepares to ride out downturn

UK REIT British Land has announced a decrease in portfolio value of 10% in 2007 along with a 20% drop in net asset value per share. On the plus side the company's underlying earnings per share were up 23%, driven by strong demand, high occupancy, rising rents and controlled costs. As of 31 March, 2008 assets owned or under management stand at £17.9bn (EUR 22.48bn).

While the current market turmoil has had a broad effect on UK property values the company's strategy continues to aim for long-term success. An example cited in British Land's preliminary results is the gradual reduction in weighing of offices in its portfolio from 50% in 2002 to the current 41% through £2.7bn of asset sales from 2005-2008.

Stephen Hester, chief executive of British Land, commented: 'In 2007-8 British Land's portfolio outperformed the property market indices, benefiting from attractive rental growth. Nevertheless values fell, driven by broader market turbulence. We remain in a stressed economic and market environment. However, British Land has never been in better shape to weather the downturn and emerge with growth prospects intact or even enhanced. The anchor of our business -strong, secure cash flow, exceptional balance sheet security - is firmly in place.'