Principal Risks and Uncertainties for the remaining six months of the financial year
The most significant risks to British Land’s business relate to either property or financing.
Over the remaining six months of this financial year, the most significant risk within the former category is the future value to be placed on property assets. Turbulent conditions in both the financial markets and the wider economy have affected our valuation at the half year, and the prevailing investment market sentiment will impact the independent valuer’s assessment of our property portfolio and our resultant net asset value for the third quarter and full year accordingly. The extreme illiquidity in the financial markets is threatening the availability of funding to many UK businesses and it remains uncertain how this will impact across the range of our customers. The high quality of British Land’s portfolio, our strong cash flow and the continuing demand for our product from the broad diversity of tenants should help to mitigate the effects of these conditions.
Financing within British Land is sound with substantial liquidity available under committed facilities, borrowings 100% fixed and a weighted average debt expiry of 12.9 years. Financial covenants are set out earlier in this report.
Directors’ Responsibility Statement
We confirm that to the best of our knowledge:
- the condensed set of financial statements has been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting”; and
- the interim management report includes a fair review of the information required by Sections DTR 4.2.7R and DTR 4.2.8R of the Disclosure and Transparency Rules of the United Kingdom’s Financial Services Authority.
By order of the Board, Graham Roberts, Finance Director
