British Land suffers 0.4% drop in its retail assets’ value
British Land, one of the biggest property developers in the UK, has suffered a slight decline in the value of its retail assets.
British Land, which is the second-largest real estate investment trust by market value in the country, said the value of its portfolio of shopping centres and warehouses dropped 0.4 per cent in the final quarter of last year.
The drop was led by a 0.6 per cent fall in the property developer’s £2.7 billion retail warehouse portfolio.
British Land’s retail assets account for nearly 61 per cent of its total £10.28 billion property portfolio.
British Land chief executive Chris Grigg admitted uncertainty in the current economic outlook, but added that the business benefit with the return of economic growth.
Speaking on the topic, Grigg said, “Of course, the current economic outlook is uncertain, but overall our business is defensively positioned today and will benefit further as economic growth returns.”
However, Harm Meijer, a property analyst at JPMorgan, warned that the sector could continue to see further declines in valuations for the next three quarters.
Shares in British Land slipped 2.2 per cent, or 11 pence, to 497 pence in the after-hours trading in London.
