Highlights

  • British Land has received buy ratings from both Berenberg and Panmure Liberum.
  • Berenberg has set a target price of GBX 506, while Panmure Liberum has set a target price of GBX 490.
  • The company recently reported its first half with rising profits, strong leasing activity and continued balance sheet resilience.

The British Land Company plc (LSE:BLND) has entered the final quarter of 2025 with strengthened support from equity analysts, following the issuance of two buy ratings from leading institutions. Berenberg has set a target price of GBX 506, complemented by Panmure Liberum’s GBX 490 target.

The dual buy ratings come at a pivotal moment for British Land as it reports its half-year results for the six months ended 30 September 2025. Investors have been closely watching the company’s performance amid shifting commercial real estate dynamics, and the latest analyst views indicate reinforced market conviction in the company’s strategy and earnings expectations.

Financial Performance in First Half of FY26

British Land delivered underlying profit of GBP 155 million, an increase of 8% year on year. Underlying earnings per share rose to 15.4p, alongside a modest uptick in dividend per share to 12.32p. The company reported a total property return of 3.8% and a total accounting return of 4.0%.

The EPRA cost ratio increased to 17.4%, while EPRA Net Tangible Assets per share rose 2% to 579p. Leverage remains stable, with loan-to-value at 39.1%, supported by strong liquidity of GBP 1.7 billion in undrawn facilities and cash. The group also completed GBP 1.9 billion in financing activity during the period, including a GBP 450 million Green Loan secured against 1 Broadgate.

Leasing Momentum and Portfolio

Portfolio occupancy stands at 95%, with Retail and London Urban Logistics maintaining particularly strong levels at 98%.

Leasing performance reached 1.4 million sq ft, transacted at 5.3% ahead of estimated rental value. Campuses recorded 486,000 sq ft of deals, while Retail and London Urban Logistics delivered 901,000 sq ft at terms meaningfully ahead of ERV. Post-period activity has accelerated, with additional space progressing under offer and in negotiation.

Like-for-like net rental growth reached 4%, supported by 7% growth in Campuses and 2% across Retail and London Urban Logistics. Portfolio valuation increased 1.2%, with positive movements in both of the company’s major segments.

Continued Investment and Capital Recycling

British Land advanced its capital activity programme with GBP 59 million of asset disposals at prices above book value and GBP 52 million in acquisitions, predominantly retail parks. Its committed development pipeline of 1.7 million sq ft is progressing on a de-risked and capital-efficient basis.

The group continues to strengthen its sustainability profile, securing 5-star GRESB ratings for both standing investments and developments. Energy performance improved across the portfolio, with 72% now rated EPC A or B.

Forward Outlook Aligns With Analyst Sentiment

British Land has reiterated its guidance for 3–5% annual ERV growth across the portfolio and expects like-for-like net rental growth of around 5% for FY26. Underlying EPS is anticipated to reach at least 28.5p in FY26, with further growth forecast for FY27 and beyond.