British Land (BLND) has released an upbeat set of annual results, with record leasing activity across its campuses portfolio and continued momentum in retail parks helping to drive rental growth, higher earnings and a more confident outlook from management.

Underlying profit for the year to 31 March 2026 rose 5% to £294m, while underlying EPS edged up 1% to 28.9p. EPRA NTA per share increased 4% to 590p and the group generated a total accounting return of 8.1%, within its stated through-the-cycle target range of 8-10%. The dividend was lifted 1% to 23.12p.

Chief executive Simon Carter said the company was benefiting from its concentration on “campuses and retail parks, where demand is growing and supply remains constrained”. He pointed to central London office take-up running at its highest level in two decades, while British Land’s retail parks are effectively full at 99% occupancy.

The company leased 3.8m sq ft during the year, with deals struck 7.2% ahead of ERV. Activity was particularly strong in the campuses portfolio, where British Land completed a record £143m of leasing and signed 1.7m sq ft of deals, half of them in the final quarter. Space under offer in campuses was running 17% ahead of ERV at the year end, with further activity since then.

BLND is increasingly positioning itself as a landlord to technology, AI and science-led occupiers. The company noted that science and technology tenants now account for 35% of campus rent roll, up from 23% two years ago, helped by demand around Regent’s Place and the Knowledge Quarter. Management said London continues to benefit from expansion by US technology firms and AI-related businesses seeking international growth opportunities.

The recently completed acquisition of Life Science REIT forms part of that strategy. BLND said the deal should be immediately earnings accretive through cost synergies alone, while also offering medium-term upside from leasing and rental reversion across the portfolio.

Retail parks also continued to perform. The portfolio is now 99% occupied and leasing spreads are showing positive momentum – second-half deals completed 6.3% ahead of previous passing rents. British Land said structurally constrained supply, changing retailer requirements and growing demand for omnichannel retail formats were all supporting rental growth.

Valuation gains were seen across most of the portfolio. Overall portfolio values rose 2.3%, driven by 4.9% ERV growth and modest yield compression. Retail parks were among the strongest contributors, with values up 3.3% over the year.

Management acknowledged that geopolitical uncertainty and higher bond yields could slow the pace of investment market recovery in the near term, but argued that occupational fundamentals remain exceptionally strong. The company reiterated guidance for 3-5% annual ERV growth and said it expects FY27 EPS of at least 30.5p, with medium-term annual EPS growth of 3-6%.

Our view

Matthew Read, senior analyst at QuotedData, said: “British Land’s results reinforce the idea that the bifurcation within property markets is becoming more pronounced. The company has concentrated capital in areas where occupational markets are genuinely tight – prime London campuses and dominant retail parks – and that is now feeding through into rental growth and valuation gains. The scale of leasing activity is notable, given the still-muted investment market backdrop.

“The emphasis on AI, technology and life sciences appears to be well timed. British Land is effectively pitching its campuses as infrastructure for the knowledge economy, and the acquisition of Life Science REIT looks more logical in that context than it might have done a year ago. Meanwhile, retail parks continue to surprise on the upside, with structurally constrained supply and evolving retailer demand finally translating into positive leasing spreads.

“The key question is whether valuation recovery can continue if bond yields remain elevated. For now though, British Land looks increasingly like a beneficiary of improving occupational fundamentals in UK real estate.”