British Land : Q1 2014/15 Interim Management Statement

THE BRITISH LAND COMPANY PLC INTERIM MANAGEMENT STATEMENT

British Land today publishes its Interim Management Statement for the quarter to 30 June 2014

Chris Grigg, Chief Executive said: "We've had a good start to our new financial year. The occupational and investment markets in London and retail continue to strengthen, while our own actions are also driving a strong performance. In Retail, we've signed a range of attractive leasing deals across our portfolio and the improving investment market has enabled us to continue to make selected retail sales at prices ahead of valuation. In Offices, our highly successful 2010 development programme is nearing completion with further lettings signed and very pleasing levels of ongoing interest. We're also moving forward with our new programme of developments and expect to commit to 4 Kingdom Street later this year."

Further improvement in occupational demand in Retail and Offices

• 334,000 sq ft of Retail lettings/renewals; investment lettings/renewals 3.2% ahead of ERV2
• Retail occupancy up 10 bps to 98.6%1; footfall +2.5% and continuing to outperform benchmark (down 0.8%)
• 112,000 sq ft of Offices lettings/renewals completed; investment lettings/renewals 5.6% ahead of ERV2; further 105,000 sq ft under offer with ongoing interest from a diverse range of occupiers
• Overall occupancy including recently completed developments up 50 bps at 96.6%1

Completing and letting-up 2010 developments: 78% of space let/under offer

• Further lettings completed/under offer at Marble Arch House; 6th floor recently let to Access Industries
• 35,100 sq ft recently let/under offer at 10 Portman Square; includes 18,500 sq ft to Arrowgrass
• 30 Brock Street at Regent's Place now fully let/under offer following 21,300 sq ft of further lettings
• 13,600 sq ft recently let at The Leadenhall Building with high levels of ongoing interest

Successfully progressing new development programme

• Demolition underway at Clarges Mayfair; construction expected to start in August
• Recently completed shopping centre in Hereford now 96% let and trading ahead of expectations
• Significant interest at Broadgate Circle; 50% pre-let/under offer ahead of early 2015 completion
• On track to commit to 4 Kingdom Street, Paddington Central by the end of the year

Taking advantage of investment market strength to continue reshaping our Retail portfolio

• £115 million of UK Retail disposals since the start of the financial year
• £57 million of superstore sales 7% ahead of valuation; 3 superstores sold at NIYs of between 4.4% and 5.0%
• Leamington Shopping Park sold for £72 million (BL share £22 million) at a 4.4% NIY, 12% ahead of valuation
• Over £150 million of additional Retail sales under offer/in the market

Financial position remains strong

• Proportionately consolidated net debt lower at £4.8 billion (compared to 31 March 2014); asset sales outweigh acquisitions and development spend
• Weighted average interest rate remains at 4.1% (proportionately consolidated)
• First quarter dividend confirmed at 6.92 pence3, 2.5% ahead of prior year

1. Change in occupancy vs 31 March 2014

2. Investment Leasing Activity

3. Dividend

The first interim dividend payment for the quarter ending 30 June 2014 will be 6.92 pence per share, a 2.5% increase on the comparable period last year. The first interim dividend will be paid on 7 November 2014 to shareholders on the register at close of business on 3 October 2014. The current issued share capital (excluding Treasury shares) is 1,012,814,374 ordinary shares of 25p each. An announcement on the availability of the split between PID and non-PID income along with the availability of any scrip dividend alternative will be made no later than 4 business days before the ex-dividend date of 1 October 2014.

Forward-Looking Statements
This release contains certain "forward-looking" statements reflecting, among other things, current views on our markets, activities and prospects. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur and which may be beyond British Land's ability to control or predict (such as changing political, economic or market circumstances). Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements. Any forward-looking statements made by or on behalf of British Land speak only as of the date they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Except to the extent required by law, British Land does not undertake to update or revise forward-looking statements to reflect any changes in British Land's expectations with regard thereto or any changes in information, events, conditions or circumstances on which any such statement is based.

About British Land
We are one of Europe's largest publicly listed real estate companies. We own, manage, develop and finance a portfolio of high quality commercial property, focused on retail locations around the UK and London Offices & Residential. We have total assets in the UK, owned or managed of £17.6 billion (British Land share of which is £11.9 billion), as valued at 31 March 2014. Our properties are home to over 1,000 different organisations and receive over 300 million visits each year. Our objective is to deliver long-term and sustainable total returns to our shareholders and we do this by focusing on Places People Prefer. People have a choice where they work, shop and live and we aim to create outstanding places which make a positive difference to people's everyday lives. Our customer orientation enables us to develop a deep understanding of the people who use our places. We employ a lean team of experts, who have the skills to translate this understanding into creating the right places, and we have an efficient capital structure which is able to effectively finance these places.

UK Retail assets account for 53% (pro forma for developments at estimated end value) of our portfolio. As the UK's largest listed owner and manager of retail space, our portfolio is well matched to the different ways people shop today, from major regional shopping centres to single occupier locations. We are focused on being the destination of choice for retailers and their customers by being the best provider of spaces and services. Comprising around 25 million sq ft of retail space across 63 retail parks, 82 superstores, 14 shopping centres, 12 department stores and 77 leisure assets, the retail portfolio is modern, flexible and adaptable to a wide range of formats.

Our Office and Residential portfolio, which accounts for 47% (pro forma for developments at estimated end value) of our portfolio is focused on London. We have an attractive mix of high-quality buildings in well-managed environments and a pipeline of development projects which will add significantly to our portfolio. Increasingly, our offices are in mixed-use environments which include retail and residential elements. Our 7.3 million sq ft of high quality office space includes Regent's Place and Paddington Central in the West End and Broadgate, the premier City office campus (50% share).

Our size and substance demands a responsible approach to business. We believe leadership on issues such as sustainability helps drive our performance and is core to the delivery of our overall objective of driving shareholder value and creating Places People Prefer.

Further details can be found on the British Land website at www.britishland.com

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