British Land Group (LON:BLND) reported good financial progress over the last quarter, but said that the retail environment remained “challenging”.
The group reduced its loan-to-value ratio to just 26 percent, adding that it would be increasing its first interim dividend by 3 percent to 7.75 pence.
Its offices division continues to perform well, with the group saying its portfolio was 98 percent occupied with 64 percent of its total development pipeline now let or under offer.
The company has now completed the sale of one of its biggest new developments, 5 Broadgate, for £1 billion and increased its share buybacks by £200 million.
However, the retail market continues to weigh with the company saying it had been “challenging”.
Several big retailers have entered administration of late, and the impact of that and CVAs since 1st April 2017 was 1.6 percent of total group contracted rent, up from 1 percent at the time of the company’s preliminary results in May and retail occupancy stood at 96.4 percent.
The first interim dividend payment for the quarter ended 30 June 2018 would be 7.75 pence per share.
Shares in British Land Group are currently down 1.01 percent at 645.20 (1054GMT).
