Property giant British Land has upgraded its earnings forecasts for 2026 and 2027 citing a rising demand from AI companies. Shares in the FTSE 100 group climbed in early trading following the announcement.
The company said its campuses and retail parks operations have both contributed to increased rental income and overall earnings growth.
British Land expects to report underlying earnings per share of 28.9p for year ending in March, ahead of earlier guidance. It also estimates that it’s on track for underlying earnings per share of at least 30.5p for the new financial year. The group had previously given guidance of around 30.2p.
“We are seeing accelerating demand from a new wave of AI and innovation-led occupiers, driving strong rental growth in what remains a supply constrained market.”
Simon Carter, Chief Executive, British Land
The positive outlook follows stronger-than-expected net rental growth of 6% for the past year, including 12% growth in campuses. The campuses business, which includes Regents Place in London, have seen particular benefits from deals with new AI focused tenants, such as Anthropic.
“This has been an excellent year of leasing, reflecting our market-leading position in campuses and retail parks, where availability for high-quality space in the right locations is near record lows, and occupational fundamentals continue to strengthen, despite ongoing macroeconomic volatility.
“With continued momentum across the portfolio, including particularly strong Q4 leasing, and the earnings accretive acquisition of Life Science REIT completing yesterday, we are confident in our earnings growth outlook for full-year 2027 and beyond.”
Simon Carter, Chief Executive, British Land
British Land also praised stronger performance across its retail parks business, which includes Fort Kinnaird in Edinburgh and Whiteley in Hampshire. It mentions the retail parks are ‘virtually full’, with occupancy at 99% across its properties.
