Financial summary

• Underlying earnings per share¹ 14 pence for the quarter, up 8% on the quarter to March 2008 (Q1 2007:14 pence)
  • Dividend 9.375 pence per share for the quarter, up 7%, payable in November
  • IFRS loss per share 111 pence (Q1 2007: IFRS earnings per share 53 pence)
• Underlying pre-tax profit¹ £74 million for the quarter (Q1 2007: £76 million)
  • Underlying profits up 23% excluding the receipt of a Songbird dividend in Q1 2007
  • IFRS pre-tax loss on ordinary activities £572 million (Q1 2007: IFRS pre tax profit £266 million)
• Portfolio valuation down 5.0% this quarter
  • Portfolio net equivalent yield now 5.8% (true equivalent² yield 6.0%), 22 bps higher than March 2008
  • Gross (top-up)³ initial yield 5.7%
• Net Asset Value⁴ per share 1212 pence, down 10% for the quarter
  • "Triple Net Asset Value"⁵ per share 1352 pence (reflecting valuable debt structure: average interest rate 5.3%; maturity 12.9 years), down 6.0%
  • IFRS Net Assets £6.3 billion
  • Properties owned or managed £16.5 billion

Business resilient and activist customer-led strategy capturing value in tough markets:

• Like-for-like rental income growth 6.3% versus Q1 2007, IPD 3.3%
• Rental value (ERV) growth for Retail 0.5%, Offices -2.1%. Rent review settlements this quarter averaging 4% higher than applicable ERV
• Property portfolio 98% let⁶, with 352,000 sq ft new lettings in the quarter
• Lease lengths average 13.6 years with just 5% up for renewal in the next 3 years
• £669 million (gross) additional disposals since March 2008

Investment markets reflect challenging economic and market environment:

• Economic concerns and inflation tensions on long-term interest rates an important factor
• Prime property in long-term 'fair value' territory; however it is likely that markets overshoot
• Substantial capital waiting on the sidelines for 'cheap' opportunities
• Value apparent in sector share prices as many investors overreact to near-term news flow

Chris Gibson-Smith, Chairman comments:

"These first quarter results demonstrate British Land's resilience in the face of a weak economy and gloomy market sentiment. While values are marked down in a thin market, our prime assets – buildings and customer contracts – provide strength in difficult times and opportunity when the cycle turns."

¹ see note 1 to the accounts
² after notional purchaser's costs and based on rents received quarterly in advance (reflecting true cash flow profile)
³ yield to British Land (without notional purchaser's costs) adding back rent frees and contracted rental uplifts
⁴ EPRA (European Public Real Estate Association) basis - note 1 to the accounts
⁵ see Table A
⁶ includes accommodation subject to asset management initiatives and under offer