British Land : Annual Financial Report

Annual Financial Report and Annual General Meeting

The British Land Company PLC (the Company) announces that in accordance with Listing Rule 9.6.1, copies of the following documents have been submitted to the National Storage Mechanism and will shortly be available for inspection atwww.morningstar.co.uk/uk/NSM

1. Annual Report and Accounts 2016 (the Annual Report);

2. Notice of 2016 Annual General Meeting (the AGM Notice);

3. Form of proxy;

4. Form of direction for participants in The British Land Share Incentive Plan; and

5. Notification of availability of the Annual Report and the AGM Notice on the Company's website.

The above documents have been posted or otherwise made available to shareholders. In accordance with DTR 6.3.5R(3), the Annual Report and the AGM Notice will also be available on the Company's website atwww.britishland.comshortly.

The Company's AGM will be held at 11.00 am on Tuesday 19 July 2016 at The Montcalm London Marble Arch, 34-40 Great Cumberland Place, London, W1H 7TW.

The information below, which is extracted from the Annual Report, is provided in compliance with DTR 6.3.5R. It should be read in conjunction with the Company's Final Results announcement issued on 16 May 2016. The Annual Report and the Final Results announcement are available atwww.britishland.com. This announcement and the Final Results announcement together constitute the material required by DTR 6.3.5R to be communicated to the media in unedited full text through a Regulatory Information Service. This material is not a substitute for reading the Annual Report. Page numbers and cross-references in the extracted information below refer to sections in the Annual Report.

Chairman's statement

We have had a strong year reflecting the work we have done repositioning our portfolio to mirror the changing way people live their lives.

Buildings are most successful when they reflect the needs of those who occupy and use them. Getting closer to our customers continues to be a key theme for us and an understanding of how modern lifestyles increasingly merge work and leisure time informs not only how we manage and develop our assets but also the allocation of our capital.

Our delivery of Places People Prefer is evidenced once again by our near fully let portfolio and the growth we have generated across our business.

Underlying Profit for the year was £363 million, up 16%. The valuation of our portfolio also increased by 6.7% to £14.6 billion and NAV was up 10.9% to 919 pence per share. The Board has recommended a fourth quarter dividend of 7.09 pence per share making a total of 28.36 pence for the year. We have proposed a first quarter dividend of 7.30 pence per share for 2017, an increase of 3.0%. The total accounting return was 14.2%.

Across the global markets equities have had a difficult year; the FTSE 100 was down 11.6% over the last 12 months (year to 16 May 2016), reflecting heightened concerns about macro-economic and political risks. Closer to home, our shares along with the REIT sector have underperformed the FTSE principally reflecting concerns about the impact an exit from Europe would have on the property sector, particularly in London. While we are mindful of this uncertainty, we are confident that our business is both resilient and well placed for the long term.

A highlight for me this year was the official opening of The Leadenhall Building last October. I was delighted to welcome the Duke of Cambridge and Prince Harry as guests of honour as the building officially opened for business. The Cheesegrater, as it is affectionately known, is a great example of what British Land does best - financing, developing and managing exceptional buildings.

From its innovative construction technique and distinctive design to its immediate recognition on the London skyline, The Leadenhall Building has been an outstanding success story. Voted The City of London Building of the Year in 2015, it has attracted the highest rents ever achieved in the City of London. It's no surprise that it is now 98% let/under offer.

During the year, we were once again also recognised as sustainability leaders in global indices and awards. Since launching our 2020 sustainability strategy in 2015, we have made strong progress embedding sustainability across our business. We are achieving results by setting high standards, delivering training, providing support and sharing best practice, working closely with our development partners and property management subsidiary, Broadgate Estates Ltd. I am pleased that we support RE100 - committed to purchasing electricity from renewable power. We also invest in renewable energy sources at our assets, with photovoltaic panels installed at St Stephen's in Hull during the year. By promoting wellbeing, supporting communities, operating efficient buildings, developing people's skills and growing economies, we are creating places that attract occupiers, workers, shoppers and residents, and so gain value over time - Places People Prefer.

Our high quality portfolio, the optionality within our development programme and our strong finances positions us well for the future.

Related party transactions

The Group had provided a development loan of up to £320m to the Broadgate joint venture, secured against the 5 Broadgate development. The loan was fully repaid during the year. Interest and commitment fees earned on the loan during the year were £4m (2014/15: £8m).

Details of transactions with joint ventures and funds are given in notes 3, 6 and 11. During the year the Group recognised joint venture management fees of £8m (2014/15: £7m).

Details of Directors' remuneration are given in the Remuneration Report on pages 86 to 110. Details of transactions with key management personnel are provided in note 8.

Details of transactions with The British Land Group of Companies Pension Scheme, and other smaller pension schemes, are given in note 9.

The purchases by related parties of Simon Borrows of two flats in London for a total of £4m from a British Land Group company, as approved at last year's Annual General Meeting, completed during the year.

Directors' responsibility statement

The Directors are responsible for preparing the Annual Report, the Directors' Remuneration Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have prepared the Group financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union, and the parent Company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under Company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group for that period. In preparing these financial statements, the Directors are required to:

· select suitable accounting policies and then apply them consistently;

· make judgements and accounting estimates that are reasonable and prudent;

· state whether IFRSs as adopted by the European Union and applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the Group and parent Company financial statements respectively; and

· prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and enable them to ensure that the financial statements and the Directors' Remuneration Report comply with the Companies Act 2006 and, as regards the Group financial statements, Article 4 of the IAS Regulation. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Directors consider that the Annual Report and Accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's position and performance, business model and strategy.

Each of the Directors, whose names and functions are listed in the governance and remuneration section, confirm that, to the best of their knowledge:

· the Group financial statements, which have been prepared in accordance with IFRSs as adopted by the EU, give a true and fair view of the assets, liabilities, financial position and profit of the Group; and

· the Strategic Report and the Directors' Report include a fair review of the development and performance of the business and the position of the Group, together with a description of the principal risks and uncertainties that it faces.

By order of the Board.

Lucinda Bell

Chief Financial Officer

16 May 2015