Overview
British Land recorded 567,000 square feet of leasing activity in the first quarter of fiscal 2027, with completed deals signed at 4.8% above estimated rental value (ERV) and 8.7% above previous passing rents. The company said a further 1.1 million square feet is currently under offer on comparable commercial terms.
Campus and specialised portfolios
Campus leasing accounted for 264,000 square feet of the quarter's activity, led by demand at Broadgate, One Triton Square and Canada Water. The recently integrated LABS REIT portfolio also began to contribute to leasing volumes following its acquisition and integration into the group's asset base.
Retail parks and logistics
British Land reported that leasing at its retail parks and London Urban Logistics properties occurred at terms above both ERV and previous rents. Management described occupancy in these segments as near full and noted ongoing rental tension, signalling tightness between tenant demand and available supply.
Transactions and portfolio moves
On the disposals front, the company completed £83 million of sales at a 3.2% net initial yield and has an additional £223 million of assets under offer. In acquisitions, British Land purchased Telford Bridge Retail Park at a topped-up net initial yield of 8.3%.
Guidance and outlook
The group reiterated its fiscal year 2027 underlying earnings per share guidance of at least 30.5 pence. British Land expects like-for-like rental growth to finish at the upper end of its 3% to 5% target range and anticipates estimated rental value growth of 3% to 5% across the portfolio.
Executive comments
Simon Carter, chief executive officer, said demand continues to exceed supply across campuses and retail parks, with leasing completed above previous passing rents.
Note: This article presents the company-reported leasing, transaction and guidance figures for British Land for the first quarter of fiscal 2027.