Numis reiterates 'add' rating for British Land

Numis reiterated an ‘add’ rating and target price of 770p for British Land after the company reported its full year results.

British Land said underlying profits rose to £363m from £313m driven by successful leasing activity and lower financing costs, while net asset value (NAV) jumped to 919p from 829p.

“We remain confident in the underlying strength of the business despite continued global macro uncertainty and the potentially adverse impact of a vote for the UK to leave the European Union,” the group said.

Numis said NAV missed its estimates of 927p but earnings per share of 34.1p beat its forecasts of 32.9p and the dividend of 28.4p per share was in line. Management has guided to a full year dividend of 29.2p in 2017, the broker hightlighted.

British Land expects occupational take-up and investment demand to slow further in the short term ahead of the 23 June EU referendum but for London’s global position to endure in the longer term.

“Interestingly, British Land commented that, since the start of the year, ‘consumer confidence has fallen and retail sales have dipped…likely reflecting concerns about the impending EU referendum and wider global economic and political uncertainty’,” Numis noted.

Shares fell 1.60% to 708.50p at 1043 BST.