British Land sees value of retail portfolio slip

British Land posted a broadly flat third-quarter net asset value per share on the back of a moderate decline in the value of its shopping centres.

The UK's second-largest real estate investment trust reported a net asset value of 593 pence a share in the three months to December 31, versus 591 pence three months earlier.

British Land's overal retail assets, which account for 61% of its portfolio, reported a decline of 0.4% in Q3, led by a 0.6% decline in the retail warehouse portfolio, while the value of its shopping centres slipped 0.3%. Offices appreciated by 1.1%, with the company being able to pre-let 50% of its London office development programme.

'We have made further progress on our office development programme. In total, we have now locked in future annual rent of £32 mln through a series of binding pre-lets. These pre-lets mean that our office development programme is already 50% pre-let even though it mainly reaches practical completion between 2013 and 2014,' said CEO Chris Grigg. 'Of course,' he added, 'the current economic outlook is uncertain, but overall our business is defensively positioned today and will benefit further as economic growth returns.'

In the three months to December 31, underlying profits rose 6.3% to £68 mln year-on-year.