18% Rise Recorded in Net Asset Value of British Land

An increase of 18% in net asset value in its third quarter coupled with an 8.2% uplift in property valuation has been reported by the London British Land Co.

However, pretax profit fell to GBP58 million from GBP63 million.

Lack of financing limited the demand and caused asset values to fall some 45%.

New investments of GBP240 million were made and GBP128 million spent on development in the fiscal year.

JP Morgan analysts said that the criticism looked priced now, but the quality of its platform and potential positive actions did not look so.

The company declared a quarterly dividend of 6.5 pence. British Land shares closed at 438 pence, giving the company market capitalization of GBP3.78 billion.

CEO Chris Grigg said that the third quarter performance saw a continued recovery with strong valuation growth, the focus being on asset management.

He further told that over 250,000 sq ft of space was available under offer, including nearly 220,000 sq ft to Macquarie and over 650,000 sq ft of additional new space available from recent development activity.

"We are investing in high quality opportunities such as Surrey Quays, where we can add considerable value, and we expect further attractive assets to emerge over the next 18 months", he added.