Real estate giant British Land has revealed stronger-than-expected profits amid growing demand for office space from the booming AI and technology sectors.
Shares in the company ticked higher in early trading as a result.
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.
It reported that earnings per share was also up 1% to 28.9p for the past year.
The group said it has been buoyed by strong take-up for offices in central London, which has risen to its highest level in 20 years.
British Land also said it has seen a strong performance across its retail parks, which includes Fort Kinnaird in Edinburgh and Whiteley in Hampshire, with occupancy of 99%.
Simon Carter, chief executive, said: “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.”
