Property share prices received a boost this morning after British Land revealed a strong set of quarterly results

Property share prices received a boost this morning after British Land revealed a strong set of quarterly results.

British Land’s 7.1% rise in net asset value in the three months to 30 June helped Hammerson’s shares increase 1.4%, Land Securities’ 0.3% and Liberty International 0.8%.

The NAV rise to 1592p was driven by a 3.5% increase in the value of the company’s £19.4bn property portfolio in line with Investment Property Data of 3.6%.

Best performances were City offices which rose 4.8%, individually Broadgate by 4.2% and Regent’s Place by 3%. West End offices which rose 4%.

Retail warehouses – 22% of the company’s overall portfolio – increased by 3.6%. BL’s shopping centres rose by 2.8% - Meadowhall rose in value by 2.6%. Department stores rose by 2.3% and high street retail by 1.2%.


British Land chief executive Stephen Hester said: ‘Greater sectoral differentiation is evident this quarter as office yields – particularly in London – continue their sharp downward movement in anticipation of cyclical acceleration of rental growth. Retail property returns, while still strong, are slowing after their outperformance of recent years.’