British Land’s portfolio fell in value by 2.8% from £14.6bn to £13.9bn in the half year to 30 September.
The company’s NAV also fell by 3%, with net assets down from £9.6bn to £9.2bn in the past six months.
However, underlying profit before tax increased by 16.4%, with like-for-like income growth up 3.4%. The half-year dividend rose by 3% to 14.6p.
Chris Grigg, chief executive of British Land, said the company benefited from having a small amount of space to let amid occupier caution. The company let 64,000 sq ft of space, including the vacant floors at the Leadenhall Building, EC3, at 4.9% above the estimated rental value in March.
Grigg said the company delivered a good set of results but would react cautiously to ongoing volatility.
He said: “We are mindful of future uncertainty but are confident that our secure income streams and strong finances will ensure our business remains resilient.
“As occupiers become more discerning we expect our high-quality portfolio to benefit from increasing polarisation. The evolving environment will be reflected in our tactical decisions, particularly on development where we expect to proceed more cautiously.”
Total property returns, as calculated by IPD, underpeformed the average with a loss of 0.8% in the six months to September compared to a rise of 0.2%.
The biggest loss came from offices, which saw a 3.4% fall in capital returns, compared to the IPD figure of 2.9%. Retail, however, outperformed with a rise of 0.1% compared to an average -0.5%.
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