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British Land: Q3 results
British Land reported that net asset value per share (NAV) rose 23.2% to 1390p in the nine months to December 2005. The company’s quarterly report, the first by any UK listed property company, noted that NAV rose 10.7% in Q3 while pre-tax profits for the quarter reached £672m. Pre-tax profits for the nine months were £1.4bn. Dividend income and fund performance fees helped boost profitability.
Gross rental and related income for the quarter was £180m (£520m for 9 months) while other income (fund management fees, investment income) rose to £25m in Q3 (£34m for the nine months).
The company has actively shuffled its portfolio, disposing £1.3bn worth of property in the nine months, with promises of more to come. The company acquired £1.3bn of gross assets in 2004/5 and a further £1.8bn in the first half of 2005/6.
Total properties at end December stood at £14.8bn - £18.7bn including assets under management.
The company is extremely bullish in its outlook, but with 58% of the company’s property in retail, it could be vulnerable if there is further slowing in retail spending.
The share trades at 1197.2p, at a 14% discount to NAV, with a yield of 1.5%.
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