Property investor British Land (BLND) fell 1.4% to 512.6p as its full year results revealed the damage to the portfolio wrought by the Covid-19 pandemic.
For the 12 months ended 31 March 2021, pre-tax losses narrowed to £1,053 million from £1,116 million year-on-year, as net rental income fell from £478 million from £367 million.
The value of the portfolio was down 10.8%, with offices portfolio down 3.8%, retail down 24.7%, residential down 10.6% and Canada Water down 2.5%.
Underlying profit decreased by £105m, primarily ‘due to provisions for outstanding rent, service charge and rent deferrals made in light of Covid-19, as well as a reduction in like-for-like rents and the impact of disposals made during the period,’ the company said.
‘ENCOURAGING’ PERFORMANCE AS RESTRICTIONS LIFTED
A full year dividend of 15.04p was declared, down from 15.97p last year, but in line with its policy of paying out 80% of underlying earnings per share.
As at 18 May, 83% of rent due between 25 March 2020 and 24 March 2021, had been collected. The company also reported 'encouraging' performance since the easing of Covid-19 restrictions.
Numis analyst Robert Duncan commented: ‘British Land may have set out a clear strategic plan to invest in Campuses (London offices) and Retail & Fulfilment, but there remains substantial further work out and a period of mixed returns (at best) before the benefits of the revised strategy emerge.
‘As with Land Securities, the earnings (and thus dividend) outlook is not clear as both Covid and disposals will continue to cast a long shadow, there is little visibility on further value erosion potential in retail and developments will take time to deliver.’
