British Land forecasts 166 million pounds underlying profit for H1 FY27

UK real estate business British Land has released a trading update for the six-month period ended September 30, 2026, reporting strong occupational demand across its retail parks and London campuses.

The company expects to deliver an underlying profit of 166 million pounds for the first half of the financial year 2027, up from 155 million pounds recorded in the same period last year. Underlying earnings per share (EPS) are expected to reach 16.1 pence, representing a 5 percent increase year-over-year (YoY).

Following her appointment in mid-September 2026, British Land chief executive officer Jo McNamara highlighted the resilience of the portfolio despite broader macroeconomic volatility. The business reiterated its full-year EPS guidance of at least 30.5 pence, pointing to sustained like-for-like (LFL) net rental growth and cost efficiencies across operations.

Strong retail park occupancy drives growth

Demand for retail space remained high during the period. Retail park leasing totalled 438,000 square feet, with rental agreements signed 6.8 percent ahead of estimated rental value (ERV) and 9.6 percent above previous passing rents. Occupancy across the retail park portfolio stood at 99 percent, with an additional 533,000 square feet currently under offer.

Across the wider portfolio, which includes retail, London urban logistics, and campuses, total LFL net rental growth rose 12 percent. Overall portfolio valuations increased 1.5 percent during the six-month period, supported by ERV growth of 3 percent.

Active capital recycling and future outlook

British Land continued its strategy of capital recycling, completing 247 million pounds in asset sales at a net initial yield of 4.7 percent, roughly aligned with book value. A further 202 million pounds worth of sales remains under offer. Acquisitions included the Telford Bridge Retail Park for 30 million pounds at a topped-up net initial yield of 8.3 percent.

The group maintains its medium-term outlook of 3% to 6% annual EPS growth and expects future ERV growth of 3 percent to 5 percent per year across its holdings. British Land is scheduled to announce its full half-year financial results on November 18, 2026.