Real estate giant British Land has revealed stronger-than-expected profits amid growing demand for office space from the booming AI and technology sectors. The company's shares ticked higher in early trading following the announcement.
AI-Linked Tenants Boost Office Campuses
British Land's office campuses business has benefited from deals with new AI-linked tenants, such as Claude parent firm Anthropic. The FTSE 100 firm said underlying profits grew by 5% to £294 million for the year to the end of March, surpassing analyst forecasts. Earnings per share also rose by 1% to 28.9p over the past year.
Central London Office Demand at 20-Year High
The group reported strong take-up for offices in central London, which has reached its highest level in 20 years. Additionally, British Land's retail parks, including Fort Kinnaird in Edinburgh and Whiteley in Hampshire, performed well with occupancy at 99%.
Simon Carter, chief executive, commented: "We are benefiting from our leading positions in campuses and retail parks, where demand is growing and supply remains constrained. Our offer is clearly resonating with customers: we have around a 5% share of the London office market, but accounted for 15% of reported leasing activity last year, rising to 33% in the fourth quarter. While the geopolitical and interest rate backdrop has become more uncertain, the occupational fundamentals underpinning our portfolio are as strong as I have seen them."
