British Land (AO) | Hold | FY 25/26 results: No big change from a month ago

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British Land (AO) | Hold | FY 25/26 results: No big change from a month ago

British Land Hold | Target Price: 425p

Company description Management

British Land is a large, long-established diversified UK REIT whose shares have a Simon Carter, Chief Executive

long trading history. It has largely owned London offices and UK retail properties David Walker, Chief Financial Officer

over that time, narrowing its focus primarily to Central London campuses and UK Kelly Cleveland, Head of Real Estate and Investment

Retail Parks more recently. British Land undertakes significant London office Key shareholders

development activity as part of its strategy to create "Places people prefer". The Free float 100.00%

use of financial gearing and recycling capital also form key aspects of its Blackrock 11.13%

business. APG Asset Management 5.53% abrdn Alternative Investments 5.53%

Investment case Valuation methodology

While market headlines remain positive, British Land has made We base 70% of our target price on a 10-year DCF model. We

slow progress letting its London office developments and believe this allows us to best capture our views of both the long-

bringing down its EPRA vacancy (10% at end March). term growth and risk profiles of British Land's business. Key in

Management guided for a third year of flat EPS for FY 2026. this respect are: 1) both operational and financial gearing, 2)

British Land's EPS growth appears likely to remain limited management's influence, and 3) long-term property sub-sector

relative to its risk profile (e.g. developments), reflecting limited market prospects.

reversionary potential currently, the impact of higher interest We base 30% of our TP on a multiple of our 3-yr fwd NAV

rates and limited balance capacity for significant net forecast.