ANNUAL REPORT
AND ACCOUNTS
2026
PREFER
PL ACE S
PEOPLE
Presentation of financial information
The financial statements for the year ended 31 March 2026
havebeen prepared on the historical cost basis, except for the
revaluation of properties, investments classified as fair value
through profit or loss and derivatives. The financial statements
have been prepared in accordance with UK-adopted International
Accounting Standards and with the requirements of the Companies
Act 2006 as applicable to companies reporting under those
standards. As outlined in Note 1 of the financial statements,
nonewstandards or amendments have been applied to the
financial statements for the first time for the year ended 31 March
2026. Assuch, the accounting policies used are consistent with
those contained in the Group’s previous Annual Report and
Accounts for the year ended 31 March 2025.
Management considers the business principally on a proportionally
consolidated basis when setting the strategy, determining annual
priorities, making investment and financing decisions and reviewing
performance. This includes the Group’s share of joint ventures on a
line-by-line basis. The financial key performance indicators are also
presented on this basis. Further analysis of the IFRS results has
been disclosed in the Financial Review. We supplement our IFRS
figures with non-GAAP measures, which management uses
internally. IFRS measures are labelled as such. See our
supplementary disclosures which start on page 191 for
reconciliations, in addition to Note 2 of the financial statements
andthe glossary found at www.britishland.com/glossary
Integrated reporting
We integrate environmental and social information throughout
thisReport in line with the International Integrated Reporting
Framework. This reflects how sustainability is integrated
throughout our business. Our approach is focused on three
keypillars: Greener Spaces, Thriving Places and Responsible
Choices. For detailed social and environmental case studies
anddata, see our Sustainability Progress Report found at
www.britishland.com/SPR
170
YEARS
This year British Land celebrates:
since incorporation in 1856
READ MORE
about our approach to sustainability on
our website at www.britishland.com
11
British Land
Annual Report and Accounts 2026
WHAT’S INSIDE
THIS REPORT
Strategic Report
2 Highlights and key performance
indicators (KPIs)
4 British Land at a glance
6 Chair’s statement
7 Chief Executive’s review
12 Our portfolio
14 Business model
16 Stakeholder engagement and
Section 172 statement
18 Business review
30 Financial review
36 Sustainability review
44 Financial policies and principles
47 Risk management
51 Principal risks
59 Viability statement
60 Non-financial and sustainability
information statement
62 Streamlined Energy and Carbon
Reporting (SECR)
64 Task Force on Climate-related
Financial Disclosures (TCFD)
Corporate Governance
74 Code compliance statement
75 Reporting against Code principles
76 Chair’s introduction
77 Governance framework
78 Our approach to governance
81 Board of Directors
84 Report of the Environmental
Social GovernanceCommittee
88 Report of the Nomination
Committee
93 Report of the Audit Committee
100 Directors’ Remuneration Report
115 Directors’ Report and additional
disclosures
118 Statement of Directors’
Responsibilities
Financial Statements
120 Independent auditors’ report
127 Primary statements and notes
179 Company balance sheet
191 Supplementary disclosures
198 Other information (unaudited)
204 EPRA best practice
recommendations
on sustainability reporting
205 10-year record
206 Shareholder information
CAMPUSES
One Triton Square
RETAIL & LONDON
URBAN LOGISTICS
Teesside Park
since incorporation in 1856
STRATEGIC REPORT
2
British Land
Annual Report and Accounts 2026
HIGHLIGHTS
AND KPIS
Paddington
Central
FINANCIAL HIGHLIGHTS
OPERATIONAL
HIGHLIGHTS
Underlying EPS
(diluted)
28.9p
2025: 28.5p
Dividend
per share
23.12p
2025: 22.80p
IFRS EPS
(diluted)
45.3p
2025: 35.0p
IFRS profit
after tax
£454m
2025: £338m
EPR A NTA
per share
590p
2025: 567p
Refinance
date
2029
2025: 2028
Senior unsecured
creditrating
A
2025: A
IFRS
net assets
£5,932m
2025: £5,710m
1. Occupancy excludes space under
offer or subject to asset
management initiatives and
recently completed developments.
Leasing activity
3.8m sq ft
2025: 3.3m sq ft
ERV growth
4.9%
2025: 4.9%
Gross capital activity
£0.5bn
2025: £1.7bn
Occupancy
1
97%
2025: 98%
33
British Land
Annual Report and Accounts 2026
Underlying Profit
£294m
2025: £279m
Total property return
7.4%
2025: 6.9%
FINANCIAL KPIs
NON-FINANCIAL KPIs
Net Debt to EBITDA
(Group)
7.7x
2025: 8.0x
Total accounting return
8.1%
2025: 5.0%
Total shareholder return
1.8%
2025: (1.0)%
Loan to value
(proportionally consolidated)
39.2%
2025: 38.1%
GREENER
SPACES
THRIVING
PLACES
RESPONSIBLE
CHOICES
GRESB rating
5*
GRESB for Development and Standing
Investments 2025: 5*
Direct social value
generated
£8.8m
2025: £11.3m
Staff engagement
64%
2025: 79%
Total portfolio EPC rated
A or B
1
75%
2025: 68%
Number of social impact
beneficiaries
12,999
2025: 18,500
Ethnicity pay gap
17.4%
2025: 20.0%
Reduction in whole building
operational energy intensity
2
24%
2025: 19%
Value of affordable
space provided
£1.5m
2025: £1.2m
Gender pay gap
6.9%
2025: 13.6%
READ MORE
on page 37 and at
www.britishland.com/SPR
READ MORE
on page 40 and at
www.britishland.com/SPR
READ MORE
on page 42 and at
www.britishland.com/SPR
1. Measured by ERV.
2. Managed portfolio since FY19.
Links to remuneration:
Long Term Incentive Plan Annual Incentive Plan
STRATEGIC REPORT
42%
58%
Campuses
Retail & London Urban Logistics
£5.9
bn
£4.2
bn
4
British Land
Annual Report and Accounts 2026
Our purpose of Places People Prefer is delivered by creating
and managing outstanding places that deliver positive outcomes
for all our stakeholders on a long term, sustainable basis.
We do this by understanding the evolving needs of the people
and the organisations who use our places as well as the
communities who live around them. The deep connections
we create between our customers, communities, partners
and people help our places and businesses thrive.
AT A
GLANCE
OUR PORTFOLIO
Our portfolio of high quality UK commercial
property is focused on office-led campuses in
Central London and retail parks across the UK.
Weown or manage a portfolio valued at £15.8bn
(British Land share: £10.1bn).
BRITISH
LAND
BUSINESS REVIEW
from page 18
R
E
C
Y
C
L
E
C
A
P
I
T
A
L
S
O
U
R
C
E
V
A
L
U
E
-
A
D
D
O
P
P
O
R
T
U
N
I
T
I
E
S
D
E
V
E
L
O
P
A
N
D
A
C
T
I
V
E
L
Y
M
A
N
A
G
E
INCOME
FOCUSED
8-10%
TOTAL ACCOUNTING
RETURN THROUGH
THE CYCLE
1.8%
1 year
10.2%
3 years
(7.9)%
5 years
Total shareholder return
(as at 31 March 2026)
55
British Land
Annual Report and Accounts 2026
CHIEF EXECUTIVE’S REVIEW
from page 7
BUSINESS MODEL
from page 14
WHAT WE DO
We are a diversified real estate business and
invest in subsectors with strong occupational
fundamentals, where we can leverage our
strengths to generate an income focused 8-10%
total accounting return (TAR) through the cycle.
HOW WE DO IT RESPONSIBLY
Sustainability is embedded throughout the
business. Our approach is focused on three key
pillars where British Land can create the most
benefit: Greener Spaces, Thriving Places and
Responsible Choices.
SUSTAINABILITY REVIEW
from page 36
STRATEGIC REPORT
6
British Land
Annual Report and Accounts 2026
CHAI R ’ S
STATEMENT
Dear shareholders,
In what has been an active year and strong
occupational market, your Board has
continued to support the disciplined delivery
of our strategy, as the market leader in London
campuses and retail parks around the UK.
This year in particular, occupational markets have
continued to move our way, and I’m pleased that our
focus on two core sectors with strong occupational
fundamentals has delivered income focused total
accounting returns within our target 8-10% range.
Itis clear to me that our subsector focus, clear equity
story, and attractive returns outlook, underpinned by
sustainable earnings growth, is resonating with investors.
Whilst we remain cognisant of the volatile geopolitical
environment, the business is well placed with quality
assets, an experienced team and a value-add mindset.
As your company celebrates its 170th anniversary, having
been founded in 1856, I am struck by how it has continued
to evolve. As part of this, I have once again enjoyed
engaging with shareholders throughout the year and
ensured that their views and thoughts are brought into the
boardroom. As we deliver against our plan, the Board also
continues to consider how best the business can grow in a
disciplined and value-accretive way, ensuring we remain
relevant to customers, investors and partners. The
acquisition of Life Science REIT plc, completed in April
2026, is a clear example of this. While modest in scale
relative to the Group’s overall portfolio, the transaction
was both strategically and financially compelling, and we
expect it to generate excellent relative value for
shareholders over the coming years.
During the year, Simon Carter notified the Board of his
intention to step down as CEO to take up the same role at
P3 Logistics Parks, a major European developer backed by
Singaporean wealth fund GIC. I would like to thank him for
the significant contribution made during his tenure of over
18 years, with the last five years as CEO. Under his
leadership, British Land has successfully repositioned its
portfolio and strategy, leaving the business well placed for
its next phase of growth. The Board is well progressed in a
comprehensive search for a successor and is focused on
appointing a leader with the experience and strategic
capability to continue to deliver our strategy and long term
value for shareholders. Meanwhile, Simon and the
Executive team have continued to operate effectively and
with momentum, as set out in this Report.
At the Board level, I was delighted to welcome Raj Shah as
Non-Executive Director in January 2026. Raj brings
extensive investment experience in science focused
companies through his private equity background, which
will be invaluable as we develop exceptional spaces at the
intersection of technology, AI and medicine, as exemplified
by our Regent’s Place campus, and particularly One Triton
Square which has performed so well for us this year. On
related matters, following 11 years on the Board, Lynn
Gladden has decided to step down from the end of the
2026 annual general meeting (AGM), and we will miss her
strategic counsel, humour and impeccable judgement.
You can read more about our Board’s skills, committees
and activity in the year on pages 76 to 83.
Our performance is a result of the hard work and
dedication of the British Land team, and the ongoing
support of shareholders and partners. On behalf of the
Board, I would like to express gratitude to both. With
strong momentum in our core sectors, a focused strategy
and an experienced team, we enter the year ahead with
confidence in our ability to deliver sustainable shareholder
value.
William Rucker
Chair
William Rucker
Chair
“Whilst we remain cognisant of the
volatile geopolitical environment, the
business is well placed with quality
assets, an experienced team and a
value-add mindset.
The Board continues to assess how
best the business can continue to scale
and grow, in a disciplined way.”
77
British Land
Annual Report and Accounts 2026
Simon Carter
Chief Executive
“We are well positioned in these
tightening markets, with the scale,
quality and a value-add mindset to
deliver sustainable EPS growth of
3-6% per annum and 8-10% total
returns across the cycle.”
CH I E F
EXECUTIVE’S
REVIEW
Supply remains highly constrained and rents remain
affordable in both markets, supporting further rental
growth. ERV growth for the year was 4.9%, at the top end
of our 3-5% guidance range. Alongside stable yields,
portfolio values grew 2.3%, with growth evenly distributed
across both sectors. This, alongside earnings performance
ahead of guidance, resulted in a total accounting return
of8.1%.
Across the portfolio leasing performance reflects the
strength of the occupational fundamentals, completing
3.8m sq ft of deals, 7.2% ahead of ERV. We have continued
to lease up vacancy across our London campuses, much of
which is newly delivered space, whilst maintaining high
levels of occupancy on standing investments across our
three core London assets. At Broadgate we have set new
rents for the campus and signed Herbert Smith Freehills
Kramer at Broadgate’s newest development, 1 Appold
Street. Across London there is new demand from AI and
innovation-led businesses from which our Regent’s Place
campus, in the heart of London’s Knowledge Quarter, is
well-placed to benefit. One Triton Square is a prime
example of this, where lease up of the building has been
accelerated by this new incremental demand taking the
building to 94% let within seven months of launch.
In retail parks, our portfolio remains virtually full, with 99%
occupancy across our c.1,200 unit portfolio and we have
seen an acceleration of leasing ahead of previous passing
rents in the second half of the year, with deals on average
6.3% ahead of previous passing in H2.
We delivered Underlying earnings per share (EPS) of 28.9p
with like-for-like net rental growth of 6%. This, coupled
with development leasing, and a reduction in
administrative costs, more than offset higher finance costs.
In our trading update on 21 April 2026 we increased
Underlying EPS guidance for FY27 from at least 30.2p to
at least 30.5p, reflecting the completion of the acquisition
of Life Science REIT.
With inflation likely to increase in the near term, we have
looked back on how the British Land portfolio has
performed since the invasion of Ukraine in 2022. Over this
period, reflecting our focus on well-located, high-quality
assets in supply-constrained markets ERV growth has
tracked inflation and we have delivered total shareholder
returns in the top-quartile of the FTSE 350 Real Estate
Index. Importantly, conditions in our markets are tighter
today than they were in 2022 with vacancy c.300 bps
lower for prime London offices and retail parks. Against
this backdrop, we expect to outperform inflation over the
medium term, supported by ERV growth of 3-5%
perannum.
Whilst geopolitical and macroeconomic uncertainty
remains, our market leading positions in sectors with the
strongest occupational fundamentals, combined with our
value-add approach and expert team, gives us confidence
in our ability to deliver 8-10% total accounting return
through the cycle, underpinned by sustainable EPS growth
of 3-6% per annum.
Overview
Our London campuses and retail park portfolio across the
UK are market leading in both scale and quality. These are
markets seeing strong net absorption with constrained
supply which translated into a record year of leasing and
delivery of strong ERV growth, like-for-like net rental
growth and an attractive earnings outlook.
Across London the return to the office debate is over and
occupiers continue to expand. There is a new wave of
demand from high growth AI and innovation-led
businesses for whom our campus offering particularly
resonates. On retail parks, existing and new retailers are
expanding into this preferred out-of-town format, attracted
by their lower occupational costs, good accessibility, and
growing footfall.
STRATEGIC REPORT
8
British Land
Annual Report and Accounts 2026
Operational update
Operationally the business performed very well over the
year, with leasing activity building to a particularly active
fourth quarter, which accounted for approximately half of
total campus leasing for the year.
Across the campuses, we completed 1.7m sq ft of leasing
at 6.3% ahead of ERV and 20.0% ahead of previous
passing rent. 1.1m sq ft of new deals were completed with
renewals and regears accounting for the balance. Activity
was concentrated at Broadgate and Regent’s Place where
newly delivered and good existing space attracted strong
demand. Norton Folgate also leased well and is now 94%
let or under offer. Campus occupancy ended the year at
95%, with EPRA occupancy at 91%. Market conditions
remain favourable, with limited availability of high-quality
space and sustained occupier demand supporting rental
growth and we finished the year with a further c.0.3m sq ft
under offer, 17.0% ahead of ERV. Activity continued to be
strong in the six weeks post year end with a further 228k
sq ft going under offer and viewing levels remain elevated.
Our retail parks are virtually full at 99% occupancy, being
the format of choice for many retailers. We completed
c.1.5m sq ft of leasing in the year, 9.0% ahead of ERV.
Leasing spreads strengthened through the year and, with
the portfolio now largely re-based to market rents, future
ERV growth is expected to translate more directly into
income progression. Deals were 3.4% ahead of previous
passing rent for the year, with an acceleration in H2 with
deals 6.3% ahead. Occupier demand remains good with a
further c.0.5m sq ft under offer at 10.4% ahead of ERV and
12.5% ahead of previous passing rent.
Strategy
In 2021 we set out a value-add strategy focused on
segments with the strongest occupational fundamentals.
Our strategy is delivering because it is built on two core
strengths:
– Market leading positions, both in scale and quality, in
sectors with the strongest occupational fundamentals,
namely London campuses and retail parks; and
– Active, hands-on asset management, enabling us to
capture reversion and drive income growth.
We believe performance is driven by great execution and,
in this vein, our platform, expertise and focus on asset
management position us well to outperform.
Campuses
Resetting the office debate
The outlook for office demand continues to be debated,
particularly in the context of rapid advances in AI. Much
has been written about the impact of AI on white-collar
jobs. There are different schools of thought. On the one
hand, will this be like previous waves of technological
change, the computer, the smartphone, where new jobs
were created faster than old ones disappeared, with
associated productivity gains? Or will it be different
this time? The reality is that nobody knows for sure,
but as ever we will stay very close to our customers
to be the first to understand what is happening. In the
meantime, I think we can say that soft skills will be at a
premium, and a new generation of companies will want
the best physical environments for those skills to flourish
– the type of space we provide on our campuses.
Looking at the facts as they are today, net absorption
of space (one of the best indicators of the health of
demand) is at its strongest level since records began,
while in 2025 four times as many businesses across
London were expanding as downsizing.
1
Looking forward,
despite ongoing macroeconomic and political volatility,
a clear return-to-office trend has driven demand to
57% above the long-term average
2
and under offers
as at March 2026 are 50% higher year on year.
3
Professional and financial services occupiers also continue
to expand in London, reinforcing London’s position as
the leading financial centre in Europe. Firms including
Citadel, Jane Street and JPMorgan have all committed
to significant new office space, with financial services
occupiers continuing to drive prime rental growth
across London submarkets. Alongside demand from AI
and innovation-led businesses, this supports a broad-
based and resilient market for high-quality space.
Demand from AI and innovation-led companies is
particularly strong: we have seen this build through
the year and we are tracking 2.5m sq ft of active
requirements. These occupiers are looking to establish or
expand their presence in London, with its attractive and
dynamic workforce, often following significant leasing
activity in the US, particularly in the San Francisco Bay
Area, which recently reported 3.8m sq ft of leasing in
Q1 2026, its highest quarter of leasing since 2014.
2
CHIEF EXECUTIVE’S REVIEW CONTINUED
Glasgow Fort
1. Cushman & Wakefield
2. Savills
3. Knight Frank
99
British Land
Annual Report and Accounts 2026
We are seeing this first-hand across our campuses.
Anthropic, for example, has continued to expand at
Regent’s Place. It has now signed its sixth deal with
British Land, taking 158,000 sq ft at One Triton Square,
expanding its space in London more than 20x in less
than 12 months. Science and Technology occupiers now
represent 35% of our campus rent roll (pro forma for the
Life Science REIT acquisition), up from 23% in 2024.
London is facing a supply crunch
This demand is meeting a supply crunch. Development
starts have reduced across London driven by sentiment
around hybrid working, higher construction costs, higher
yields and more demanding return requirements. Across
London it is estimated that there is a 10.4m sq ft shortfall
of new or substantially refurbished space to 2030.
1
This is
particularly acute in the City, where vacancy for new and
refurbished space is forecast to fall below 2% and remain
there for the next four years.
1
Historically, such conditions
have supported strong rental growth at around 10% per
annum.
2
Why our campuses win
The scale and flexibility of the campus model allows
businesses to expand over time, access adjacent space,
and benefit from a dense cluster of like-minded occupiers,
amenities and transport connectivity, all of which are
critical for successful businesses. All of our campuses are
well placed to benefit from the innovation demand in
London, particularly Regent’s Place given its location in the
Knowledge Quarter, surrounded by leading institutions like
The Francis Crick Institute, University College London,
University College London Hospital and The Alan Turing
Institute.
Our campuses provide high-quality real estate in prime
London locations, with a wide range of amenity and public
spaces. Rents remain affordable relative to salary levels,
and the offer continues to resonate with occupiers. We
estimate we are capturing a disproportionate share of
what is a strong market. We represent around 5% of the
London office market but accounted for 15% of total
leasing recorded last year, and 33% of the last quarter.
1
Our differentiated product offering also enables us to
capture growth while actively managing covenant risk. We
offer a range of space, from flexible, fitted and work-ready
through to traditional HQ, allowing us to support occupiers
at every stage of their growth. This is particularly
important when targeting high-growth businesses.
Through our Storey platform, which we have operated for
almost nine years, we provide fitted space on short leases,
with minimal incentives, supported by rental deposits. This
structure allows us to manage risk effectively, while
retaining the upside from fast-growing occupiers.
Although we have seen very few failures, when they have
occurred generic fitouts have enabled rapid re-letting,
minimising downtime, often to the period covered by rent
deposits. By combining flexibility with discipline, we are
able to attract a broad range of occupiers, capture a
disproportionate share of demand and translate this into
sustainable rental growth.
Retail Parks
Our decision in 2021 to increase our exposure to
retail parks is continuing to deliver. Since then, we
have increased the portfolio from 15% of the Group
to 32% today and in that time retail parks have been
the best performing subsector in UK real estate.
Our portfolio has delivered a total property return
of 12.3% per annum, outperforming the wider retail
park sector by 410 bps over the last five years.
Three “A’s” continue to drive demand
Affordability: The affordability proposition of parks
remains compelling. The occupancy cost ratio (rent,
rates and service charge as a share of sales) has halved
from 18% in 2016 to around 9% today and at these
rental levels a very broad range of retailers can trade
profitably. With footfall and sales continuing to grow,
this supports further rental growth. We have also seen
a c.5% decline in business rates across our parks since
1 April 2026. While rateable values have increased, this
has been offset in many areas by a reduction in the
multiplier, providing a small benefit for our retailers.
Accessibility: Parks are highly accessible, located on
major arterial routes on the edges of towns and cities.
With generous free parking, they are well suited for
click-and-collect, returns, and ship from store.
Adaptability: Finally, the adaptability of a retail park
unit, which is essentially a simple steel framed “box”,
offers flexibility to retailers at comparatively low
cost, especially when contrasted with the difficulty
and expense of reworking high street or shopping
centre units. This also enables click and collect and
in-store fulfilment as the retailers are able to easily
adapt these boxes to provide more back of house
space to be used as a local distribution centre.
Demand remains robust, with retailers continuing to
expand on parks as well as several new entrants coming
into the retail park format. The result is low market
vacancy on retail parks at 3% in contrast to shopping
centres at 9% and the high street at 13%.
3
Looking back
over time there is a strong correlation between market
vacancy and rental growth, with rents growing when
vacancy falls below 5%.
4
Today our retail parks have just
1% vacancy, and delivered 4.4% ERV growth in the year.
Limited new supply of retail parks expected
We can currently acquire retail parks significantly below
their replacement cost, and therefore any material new
supply is unlikely to make economic sense. Only 1%
of new supply has been added to the market over the
past five years
5
and planning constraints, particularly as
local authorities seek to protect high streets, provide an
additional barrier to development. Consequently, with
demand and affordability remaining strong and the supply
picture constrained, we expect strong rental growth.
1. Knight Frank
2. Cushman & Wakefield
3. Trevor Wood / MSCI
4. MSCI
5. Trevor Wood
STRATEGIC REPORT
10
British Land
Annual Report and Accounts 2026
CHIEF EXECUTIVE’S REVIEW CONTINUED
Market leadership driving performance
We are one of the UK’s leading owner and operator of
retail parks, with a portfolio of scale serving catchments
covering around half of the UK population within a
30-minute drive.
Our market leading position, combined with deep retailer
relationships and operational expertise, enables us to
capture rental growth and source attractive investment
opportunities. Our occupancy is now 99%, and we
delivered 4.4% rental growth over the last 12 months.
Importantly the over rent that emerged post Covid has
largely burned off through market rental growth, and in
the second half we leased space 6.3% ahead of previous
passing rents.
Investment market
The strength of the London office and retail park
occupational markets led to increased investor interest in
these sectors as the year progressed. However, the
macroeconomic backdrop has become more uncertain
since March, with elevated interest rates and heightened
geopolitical tensions, which will likely impact sentiment in
the near term.
Investment activity in London’s office market strengthened
over 2025, with volumes increasing materially to
approximately £9bn, up 52% on 2024.
1
Larger lot size
transactions returned, with over 57% of transactions above
£100m in 2025 compared to 29% in 2024,
1
reflecting
confidence in occupational fundamentals. Encouragingly,
core and institutional capital was also returning to the
market, supported by stabilising yields and improved debt
market conditions. The impacts of recent events in the
Middle East are likely to result in a pause in the recovery
asinvestors seek more visibility on cost of capital,
however, ultimately it will be occupational fundamentals
that determine investor appetite and liquidity for prime
London offices.
Retail parks continue to attract a broad range of investors,
underpinned by their strong income characteristics,
affordability and low capital expenditure requirements.
In2025 c.£2.7bn of UK retail parks transacted across 90
deals, broadly in line with the 10-year average.
2
Investor
demand remains supported by a diverse mix of UK and
international capital. Many institutional investors are
looking for high quality parks with limited asset
management and a strong covenant backed cash flow.
These parks are attracting tight yields. However, given our
active approach to asset management and strong retailer
relationships we tend to focus on higher-yielding
opportunities with more occupational risk on entry. We
then utilise our expertise to deliver the asset management
required and drive future returns.
Capital allocation
Active recycling of capital is an important way we create
value and one of the levers of future earnings growth
within the business. We dispose of mature assets where we
have completed our asset and development management
activities and redeploy capital into opportunities with
higher returns, ahead of our cost of capital. Today, we see
the strongest fundamentals and most attractive returns in
retail parks and best-in-class developments on our
campuses. Such deployment is tested against the returns
and EPS accretion available from other uses of capital such
as share buybacks. We will continue to be rigorous in our
assessment of the use of any surplus proceeds.
Strong occupational fundamentals, low capital expenditure
requirements, pricing below replacement cost, 7%+
day-one cash yields and growing rents continue to make
retail parks an attractive investment. Our leading scalable
platform means that when we acquire retail parks, minimal
additional overheads are required to operate more assets.
Retail parks now make up 32% of our portfolio, up from
15% when we set out our strategy in 2021.
Development on our campuses remains a key driver of
long term value creation but requires discipline in the
current environment. While higher build and funding costs
limit viability in many locations, opportunities remain
compelling in core markets where supply is extremely
constrained. We are advancing developments on a
de-risked and capital-light basis, securing major pre-lets,
achieving a high degree of cost certainty at commitment,
and partnering with others to accelerate delivery and
enhance returns.
We are also opportunistic in seeking inorganic growth
where it enhances earnings. The acquisition of Life Science
REIT, which completed on 20 April 2026, is a clear
example, providing access to quality assets in key
innovation clusters at an attractive valuation. The
transaction is immediately earnings accretive and is
expected to deliver 0.3p of EPS accretion in FY27, with
further upside to come from leasing newly delivered space
and capturing reversion in future years, while importantly
being NTA per share neutral. We have made good initial
progress since the acquisition, including repaying the
legacy debt with cheaper British Land facilities, integrating
the five assets into our portfolio with minimal incremental
cost, and have 56k sq ft of leasing under offer on newly
delivered space at Oxford Technology Park.
Our resilient balance sheet, alongside the diversity and
duration of sources of finance underpins this approach,
providing flexibility to invest through the cycle. Loan to
value (LTV) on a proportionally consolidated basis was
39.2% at 31 March 2026 (38.1% at 31 March 2025) and
Group Net Debt to EBITDA was 7.7x (8.0x at 31 March
2025). We consider these metrics through the cycle and
are comfortable with their level at this point; they will
reduce over time through valuation and earnings growth,
and recycling capital from mature assets. Post year end we
have exchanged or are under offer on £176m of asset sales
and are in active negotiations on a number of
otherdisposals.
Based on our policy of setting the dividend at 80% of
Underlying EPS, the Board have proposed a final dividend
of 10.80p, bringing the total dividend for the year
to23.12p.
1. Knight Frank
2. CBRE
1111
British Land
Annual Report and Accounts 2026
Attractive total return profile and outlook
Our market leading position in sectors where demand is
healthy, supply is constrained, and rents are affordable,
combined with the quality of our assets, our experienced
team and our value-add approach, provides for an
attractive total return profile. We target total accounting
returns of 8-10% through the cycle and we achieved an
8.1% return this year.
Our total return profile is underpinned by a sustainable
annual EPS growth of 3-6%. This is driven by our five levers
of earnings growth, and the indicative building blocks are:
– Like-for-like rental growth, where delivering in the
middle of our guided range of 3-5% translates through to
c.5% EPS growth p.a. when applied to our gross
standingassets
– Growing fee income by 10% p.a. delivers c.1% EPS p.a.
– Our continued focus on cost control means that we
expect to deliver further administrative cost savings to
fully offset inflationary pressures over the medium term
– We expect a continued gradual increase in finance costs
towards market rates, at c.10-20 bps p.a., which reduces
EPS by c.2% p.a. over the next few years
Taking these items together, this delivers an indicative core
EPS growth rate of c.4%. Further upside to deliver at the
top end of the range at 6% then comes from capital
activity, be that via developments or recycling capital, and
whilst the timing and phasing will vary year to year:
– Future development commitments, for example £200m
of completions p.a. at a c.2% spread to funding costs,
delivers c.1% EPS growth
– And £300m of capital recycled at a c.1% spread
(i.e. sales at c.6% yield, purchases at c.7% yield),
woulddeliver a further c.1% EPS growth
Looking ahead to FY27, while macroeconomic and
geopolitical uncertainty remains, given the occupational
strengths of our markets we expect to deliver at the top
end of our like-for-like net rental growth range of 3-5%.
This, alongside continued focus on cost control, near term
visibility into development lease up, and the acquisition of
Life Science REIT, means we expect Underlying EPS of at
least 30.5p (previously at least 30.2p).
2 Finsbury Avenue development
STRATEGIC REPORT
CANADA
WATER
LIVERPOOL ST.
FARRINGDON
KING’S CROSS
EUSTON
WARREN ST.
PIMLICO
REGENT’S PARK
BOND ST.
PADDINGTON
WHITECHAPEL
SURREY
QUAY S
CANARY
WHARF
WATERLOO
LONDON
BRIDGE
TOTTENHAM
COURT RD.
ELIZABETH LINE
EUSTON SQUARE
WEST END
MAYFAIR
KNOWLEDGE
QUARTER
THE CITY
CAMBRIDGE
GUILDFORD
EALING
BROADWAY
HOXTON &
SHOREDITCH
SOHO
SOUTH BANK
OXFORD
O U R
PORTFOLIO
Our portfolio of high quality UK commercial
property is focused on office-led campuses
inCentral London and retail parks across the
UK. We own or manage a portfolio valued
at£15.8bn (British Land share: £10.1bn).
Regent’s Place
Located in London’s Knowledge Quarter,
close to academic and research institutions,
including University College London,
TheWellcome Trust and The Francis Crick
Institute. It has excellent transport links with
Euston and King’s Cross stations nearby and
is one of London’s leading science,
technology and AI clusters.
Size: 13 acres
Ownership: 100% (except One Triton Square
50:50 JV with Royal London Asset
Management)
Broadgate
The City of London’s premier campus, with
excellent connectivity, next to Liverpool
Street Station and the Elizabeth Line. Its
proximity also to Shoreditch attracts a
breadth of customers from financial services,
law firms, fintech, media and other growth
sectors.
Size: 32 acres
Ownership: 50:50 JV with GIC (except
2Finsbury Avenue 25:25:50 JV with
BritishLand, GIC and Modon Holding)
Paddington Central
Located in London’s West End, next to
Paddington Station with access to the
Elizabeth Line and Heathrow Express.
Itscentral location and accessibility attracts
a range of corporates in financial services,
telecommunications and technology.
Size: 11 acres
Ownership: 25:75 JV with GIC owning 75%
OFFICE-LED CAMPUSES IN CENTRAL LONDON
(58% OF TOTAL PORTFOLIO BY VALUE)
Science & Technology, including AI, is our
largest occupier sector and represents
35%
of our campuses’ rent roll (pro forma for
the acquisition of Life Science REIT)
% of total portfolio by value
Broadgate 25%
Regent’s Place 17%
Paddington Central 3%
Other 13%
12
British Land
Annual Report and Accounts 2026
NORTH
CIRCULAR
SOUTH
CIRCU LAR
NORTH
CIRCULAR
A10
A10
A12
A2
A2
A2
A1
A41
A40
A20
A20
FINSBURY SQUARE
THE CITY
HANNAH CLOSE
WEMBLEY
VERNEY ROAD
SOUTHWARK
HERITAGE HOUSE
ENFIELD
SOUTHWARK
URBAN LOGISTICS
THE BOX
PADDINGTON
WEMBLEY
RETAIL AND LONDON URBAN LOGISTICS INCLUDING 56 RETAIL PARKS
(42% OF TOTAL PORTFOLIO BY VALUE)
Retail Parks
We are one of the UK’s largest owners and
operators of retail parks with a total of 56
parks representing c.10% of the retail park
market. Parks are the preferred format for
many retailers due to their affordability,
adaptability and accessibility.
Shopping Centres and other retail
We own a small, non-core portfolio of
shopping centres, high street retail and
other small standalone retail assets,
which generate good income.
London Urban Logistics
We own six development-led urban logistics
sites in Zone 1 of London and within the M25.
Our pipeline has the potential to deliver
best-in-class logistics space in a highly
constrained market. In the meantime,
theportfolio continues to generate good
rentalincome.
% of total portfolio by value
Retail Parks 32%
Shopping Centres
and other retail 7%
London Urban Logistics 3%
STRATEGIC REPORT
1313
British Land
Annual Report and Accounts 2026
We are a diversified real estate business and
invest in subsectors with strong occupational
fundamentals, and therefore rental growth
prospects. We leverage our strengths in
development and asset management, with
the aim of generating an income focused
total accounting return (TAR) of 8-10%
through the cycle.
OUR STRENGTHS ARE: OUR LEVERS OF EARNINGS GROWTH:
Portfolio of high quality assets
Our office-led campuses in London appeal to a
broad range of businesses looking for high quality
space in core locations. We are one of the largest
owners and operators of retail parks in the UK.
Best-in-class platform
We leverage our experience across the real estate
life cycle from design, planning, development
and construction through to asset and property
management to drive returns. We also have industry
leading specialists in investment and finance.
Partnerships with investors
Our strong relationships with sovereign wealth
funds and large pension funds give us the ability
tostretch our equity and crystallise value through
asset sales and joint ventures.
Financial strength
We have a strong balance sheet and we use
leverage appropriately. We aim to deliver returns
through the property cycle by having a disciplined
approach to risk and capital allocation.
Leadership in sustainability
Sustainability is embedded throughout the
business. Our approach is focused on three key
pillars where British Land can create the most
value: Greener Spaces, Thriving Places and
Responsible Choices.
LIKE-
FOR-LIKE
GROWTH
COST CONTROL
CAPITAL RECYCLING
FEE INCOME
DEVELOPMENTS
SUPPORTED BY
OUR VALUES:
DELIVER
AT PACE
BE SMARTER
TOGETHER
BUSINESS
MODEL
14
British Land
Annual Report and Accounts 2026
R
E
C
Y
C
L
E
C
A
P
I
T
A
L
S
O
U
R
C
E
V
A
L
U
E
-
A
D
D
O
P
P
O
R
T
U
N
I
T
I
E
S
D
E
V
E
L
O
P
A
N
D
A
C
T
I
V
E
L
Y
M
A
N
A
G
E
INCOME
FOCUSED
8-10%
TOTAL ACCOUNTING
RETURN THROUGH
THE CYCLE
OUR LEVERS OF EARNINGS GROWTH: THIS FEEDS INTO HOW WE MANAGE THE BUSINESS TO
CREATE VALUE FOR ALL OUR STAKEHOLDERS:
READ MORE
About how we create value for
our stakeholders on page 16
READ MORE
About how our approach to
risk underpins our strategy on
pages 47 to 58
READ MORE
About how our approach to
remuneration aligns with our
strategy on pages 100 to 114
We create and manage
modern, high quality
and sustainable spaces
that our customers
want to lease and that
direct investors such
as sovereign wealth
funds and pension funds
want to own.
We actively sell mature
assets to crystallise
returns and reinvest
capital into
opportunities where we
can drive stronger
returns through
development or asset
management.
We target acquisitions
inour chosen subsectors
as well as development
opportunities.
BRING YOUR
WHOLE SELF
BUILD FOR
THE FUTURE
LISTEN AND
UNDERSTAND
STRATEGIC REPORT
1515
British Land
Annual Report and Accounts 2026
STAKEHOLDER
ENGAGEMENT
Our joint venture partners
Institutions we partner with,
usually where we share ownership,
returns and risk
What matters to them?
– Financial performance and returns
– Clear strategy and business model
– Asset management and
development expertise
– Long term, trusted relationships
– Aligned objectives and values
– Best-in-class assets
How we engage
– Agreed business plan
– Regular meetings and working
groups
– Assess performance, progress and
agree future objectives
– Regular joint venture reporting
Priorities for 2026/27
– Leverage our strong joint venture
relationships
– Generate fee income growth
– Bring in further partners to
accelerate development delivery
in a capital-light way
11
key joint venture partners, including with
sovereign wealth and large pension funds
£3.7bn
value of assets in joint ventures
Outcomes:
Our customers
The users of our buildings
and spaces
Outcomes:
80%
of customers stated BL are ‘the best’
or ‘better than most’ other providers
3.8m sq ft
of space leased in the year
including 1.8m sq ft of regears
What matters to them?
– High quality, well-connected,
sustainable and safe space that
fulfils their needs
– Fair and appropriate lease terms
– Property management and
maintenance
– Affordability, adaptability and
accessibility
How we engage
– Regular dialogue with customers
– Annual customer satisfaction
surveys to gain insight
– Customer networks across our
campuses
Priorities for 2026/27
– Partner of choice for headquarter
office space
– High levels of customer retention
– Upgrade buildings to meet shared
environmental objectives with
customers
Our investors
The people and institutions
who own British Land shares
or debt holders
What matters to them?
– Financial performance and returns
– Strong balance sheet and
disciplined capital allocation
– Clear strategy and business model
– Leading ESG performance
– Risk management
– Strong leadership
How we engage
– Meetings and video calls
– Roadshows, conferences, investor
seminars, asset tours, capital
markets days and debt investors
presentations
– Regulatory reporting
Priorities for 2026/27
– Incoming CEO engagement with
key investors
– Continued open and engaged
dialogue with investors
– Delivering against our strategy
– Strong balance sheet and
disciplined approach to capital
allocation
Outcomes:
10.2%
3-year total shareholder return
45%
of share register met and 188
investormeetings completed
16
British Land
Annual Report and Accounts 2026
Section 172 statement:
Understanding our stakeholders is critical to the long term success
of our business. Regular engagement helps to shape our strategy
and ultimately informs our decisions so that we can deliver
outstanding places and positive outcomes for our stakeholders.
The nature of our business means that we have a continuous
dialogue with a wide group of stakeholders before proposals are
put to the Board for a decision. Our Section 172(1) statement for
the purposes of the Companies Act 2006 (the Act), describing
how the Directors have had regard to the matters set out in
section 172(1) (a) to (f) of the Act when performing their duty to
promote the success of the Company under Section 172, can be
found within our Governance section on pages 78 to 79.
Our people
Everyone employed
by British Land
Outcomes:
81%
employees proud to work
at British Land
64%
employee engagement score
What matters to them?
– Diverse and inclusive culture with
strong leadership
– Career progression and
development opportunities
– Fair pay and reward
– Flexible working arrangements
– Ethical business
How we engage
– Internal communications channel
– Regular team meetings and half
yearly appraisals
– Annual employee engagement
survey
– Regular workforce culture/
engagement sessions with NEDs
– Biennial Company Conference
– Employee networks
Priorities for 2026/27
– Leadership and management
training
– Ongoing professional
development
– Enhance digital skills
– Further evolve a performance-
orientated culture
Our communities and
localauthorities
People who live in and around
our places; local organisations
and enterprises
Outcomes:
12,999
people benefitting from social impact
partnerships
£28.1m
direct social and economic value
generated in the year
What matters to them?
– Collaboration and engagement on
local initiatives
– Long term and trusted
relationships
– Places that foster social
connections and enhance
wellbeing
– Providing a relevant mix of
services such as education,
jobsand space
How we engage
– Local Charter
– Social Impact Fund and Customer
Community Funds
– Local programmes such as
employment opportunities
– Local networks
– Expert volunteering
Priorities for 2026/27
– Impactful use of our spaces by
small local businesses and
community organisations
– Educational initiatives for local
people
– Supporting local talent essential
to the UK’s growth industries
Our suppliers and partners
Those who have a direct contractual
relationship with us to provide
goods and services
Outcomes:
Achieved Living Wage
Employer accreditation
100%
of suppliers signed up to the
SupplierCode of Conduct
What matters to them?
– Long term, collaborative, trusted
relationships
– New business opportunities
– Fair commercial and payment
terms
– Aligned objectives and values
How we engage
– Rigorous onboarding and
tendering process
– Supplier Code of Conduct
Priorities for 2026/27
– Work with suppliers who align
with our values and ESG targets
– Commitment to creating social
value through SME classified
suppliers
– Widen Scope 3* capture beyond
construction-related emissions
* (Scope 3 covers indirect emissions across our
value chain).
STRATEGIC REPORT
1717
British Land
Annual Report and Accounts 2026
BUSINESS
REVIEW
Thisoutperformance relative to ERV guidance reflects the
strength of leasing activity during the year, supported by
very tight supply in prime London locations. Across both
our City and West End portfolios, values increased,
supported by healthy ERV growth of 7.5% and 6.2%
respectively. Campus valuations were partially offset by
weaker performance at Canada Water and our residential
development in Aldgate, reflecting softer yields in the
London residential market offset by progress on leasing.
Retail values performed well with values up across retail
parks and shopping centres. The value of our retail park
portfolio was up 3.3%, continuing the momentum from
FY25 where values rose 7.1%. Yields remained broadly
stable, tightening by 4 bps, with values driven by further
ERV growth of 4.4%, reflecting sustained occupier demand
and the portfolio now being largely rack rented.
The value of our shopping centres increased by 4.2%,
asyields tightened 19 bps following increasing investor
demand for the sub-sector, and ERVs grew 2.7%. In other
retail, values were flat as ERV growth of 1.7% was offset by
outwards yield shift of 24 bps as a result of yield
movement at Woolwich, both on the high street and
residential elements held.
The retail portfolio outperformed the MSCI All Retail
benchmark by 210 bps on a total return basis for the year
to 31 March 2026, whilst our campuses outperformed the
MSCI benchmark for All Offices by 90 bps. Overall, our
portfolio outperformed the MSCI All Property total return
index by over 180 bps.
London urban logistics values were down 3.2% as the ERVs
were adjusted to reflect recent deals closed and softer
market-wide occupier sentiment.
Key metrics
As at
31 March
2026
31 March
2025
Portfolio valuation m m
Occupancy
1,2
Weighted average lease length to first break yrs yrs
Total property return
– Yield shift - bps - bps
– ERV movement
– Valuation movement
Lettings/renewals (sq ft) over 1 year m m
Lettings/renewals over 1 year vs ERV
Gross capital activity m m
– Acquisitions m m
– Disposals ()m ()m
– Capital investment m m
Net investment/(divestment) m m
On a proportionally consolidated basis including the Group’s share of joint ventures.
1. Where occupiers have entered CVA or administration but are still liable for rates, these are treated as occupied. If units in administration are treated as vacant,
thenthe occupancy rate would reduce from 96.9% to 96.5%.
2. Occupancy excludes completed developments in the previous 12 months.
The value of the portfolio was up 2.3%, as yields remained
stable and positive valuation performance was driven by
strong ERV growth of 4.9%, at the upper end of our
guidance range.
Campus valuations increased by 2.0% for the year,
withyields broadly stable and ERV growth of 6.5%.
Kelly Cleveland
Head of Real Estate and Investment
18
British Land
Annual Report and Accounts 2026
Regent’s Place
Capital activity
From 1 April 2025
Campuses
£m
Retail &
London
Urban
Logistics
£m
Total
£m
Purchases –
Sales () () ()
Development Spend
Capital Spend
Net Investment
Gross Capital Activity
On a proportionally consolidated basis including the Group’s share of joint ventures.
In line with the strategy to recycle capital from mature
assets into higher-returning opportunities, we acquired
£94m of retail assets, at a topped-up net initial yield of
7.2% and disposed of £106m of assets at a 2.9% net
initialyield.
Acquisitions included three fully let high-quality retail
parks, two fully let retail units adjacent to our SouthGate
scheme in Bath and our JV partner’s 50% stake in
EdenWalk.
£106m of disposals were achieved at 4% ahead of March
2025 book value. Key sales included the non-income
producing development opportunity at International
House, Ealing and residential sales proceeds at Canada
Water following completion of the site in early 2026.
Wealso sold Newport Harlech Retail Park at the end of the
year following the completion of its business plan, with the
regear of the superstore anchor on the site.
£292m was invested into our best-in-class development
pipeline and asset management initiatives on the standing
portfolio at a blended gross yield on cost of c.7%.
Post year end we have exchanged or are under offer on
£176m of asset sales and are in active negotiations on a
number of other disposals.
Also post year end we completed the immediately
earnings accretive acquisition of Life Science REIT,
comprising five assets located within the Golden Triangle,
which we expect to generate FY27 net rental income of
£18m, rising to a stabilised annual £25m of net rental
income through the lease up of newly delivered space and
capturing reversion. The acquisition was funded through
the issue of 24.5m new shares and £49m in cash.
Portfolio performance
At 31 March 2026
Valuation
£m
Valuation movement %
ERV
movement
%
Yield shift
bps
Total
property
return
%
Net
equivalent
yield
%H1 H2 FY
Campuses -
City -
West End () -
Canada Water & other
Campuses (incl. resi) () () () ()
Retail & London Urban Logistics -
Retail Parks -
Shopping Centres -
Other Retail () ()
London Urban Logistics – () () () -
Total -
READ MORE
in the supplementary tables for detailed breakdown
which start on page 198
STRATEGIC REPORT
1919
British Land
Annual Report and Accounts 2026
CAMPUSES
Portfolio valuation
£5,852m
Leasing
1.7m sq ft
Of deals signed
20
British Land
Annual Report and Accounts 2026
Key metrics
As at
31 March
2026
31 March
2025
Portfolio valuation m m
Occupancy
1
Weighted average lease length
to first break yrs yrs
Total property return
– Yield shift - bps bps
– ERV growth
– Valuation movement ()
Total lettings/renewals (sq ft)
Lettings/renewals (sq ft)
over 1 year
Lettings/renewals
over 1 year vs ERV
Like-for-like rental growth
2
On a proportionally consolidated basis including the Group’s share of joint ventures.
1. Occupancy excludes recently completed developments.
2. Like-for-like rental growth excludes the impact of surrender premia, CVAs &
admins, provisions for debtors and tenant incentives, and Storey. Including
Storey, campus like-for-like growth would be +12% (FY25: +1%).
Campuses operational review
Leasing volumes across our campuses are the highest in
over a decade as occupiers continue to expand their
footprint across London with activity focused at Broadgate
and Regent’s Place. Lettings and renewals (including
Storey) totalled 1,692,000 sq ft, 6.3% ahead of ERV.
Campus leasing was elevated in the year as we filled
vacancy in the standing portfolio, progressed the lease up
of recently completed developments and secured
significant pre-lets on committed developments. The
weighted average lease length to break is 6.3 years and
the weighted average lease length of deals in the year is
8.6 years.
As at 31 March 2026, we had a further 295,000 sq ft under
offer, 17.0% ahead of ERV. In the six weeks post year end
we have gone under offer on a further 228,000 sq ft and
viewing levels continue to be strong.
Take-up of space from AI and innovation-led businesses is
increasing across London and particularly so in the
Knowledge Quarter around Regent’s Place. These
businesses are scaling at pace in London similar to the
expansion seen on the West coast of the US. Leasing at
One Triton Square, owned jointly with Royal London Asset
Management, reflects this, with leasing velocity ahead of
initial expectations since launching in October 2025, and
the building is now 94% let. Occupiers include Anthropic,
Gilead Sciences and Humanoid alongside other leading
global pharmaceutical, AI and tech companies.
Occupancy on our campuses is 95%, down 180 bps since
31 March 2025, which excludes refurbishments and new
developments, following inclusion of Dock Shed. EPRA
occupancy has increased 8 ppts to 91% as we have leased
newly delivered and refurbished space such as Norton
Folgate which is now 94% let or under offer. Virtually all
remaining vacant office space is new or recently
refurbished and given robust demand, shortage of supply
and ongoing negotiations, we expect to make further
progress on letting vacancy in FY27.
Overall, leasing was 20.0% ahead of previous passing rent.
This, combined with the improvement in our EPRA
vacancy, delivered strong like-for-like rental growth of
+12%, with 2 ppts of this delivered through the lease up of
Norton Folgate.
Campuses were valued at £5.9bn at 31 March 2026, up
2.0%, driven by continued ERV growth of 6.5%, ahead of
our guided range of 3-5%.
Broadgate
Broadgate’s prime location next to Liverpool Street station
and on the Elizabeth line, combined with best-in-class
workspace, high-quality amenities and a vibrant public
realm, continues to attract strong occupier demand. The
campus has seen significant leasing volumes in the year,
reflecting sustained demand for prime, well-located product
and is virtually full with occupancy at 99%. The newly
developed top floor at 1 Broadgate was the only vacant
office space at 31 March 2026 and subsequently moved
under offer post year end.
Leasing activity (excluding Storey) covered 907,000 sq ft,
ofwhich 866,000 sq ft were long term deals, 5.8% ahead
ofERV, including:
– A 21-year lease agreement with global law firm Herbert
Smith Freehills Kramer for 268,000 sq ft of office space at
1 Appold Street, with options to take a minimum of
238,000 sq ft or expand up to 360,000 sq ft. The deal
takes the building to 60% pre-let at a minimum.
– 222,000 sq ft of deals at 201 Bishopsgate, extending the
leases of Janus Henderson and Mayer Brown to 2033,
highlighting the limited supply of larger floor plates in the
City and the attraction of remaining on the Broadgate
campus.
– 50,000 sq ft letting at Exchange House, securing a new
letting to MSCI whilst taking a surrender premium from
Columbia Threadneedle Investments. MSCI will occupy the
surrendered floor alongside previously vacant space with
rents increasing by £35 psf.
– 70,000 sq ft of new deals completed at Broadgate Tower
including deals to Sigma Computing, Oxera Consulting
and ClearBank, on a mix of traditional and fitted (“Work
Ready”) space.
– 41,000 sq ft regear with Sumitomo Mitsui Trust Bank at
155 Bishopsgate, underscoring demand from the core
financial services sector.
– 40,000 sq ft rent review at 100 Liverpool Street, as the
leases in the building reached their first review. Following
the strong rental growth seen across the campus since
2020 these leases are being agreed significantly ahead of
previous rents.
– 27,000 sq ft of retail and F&B deals, including deals under
offer, at 1 Broadgate (Broadgate Central). New stores
include Boots Fragrance, Molton Brown, The Salad Project
and Sandwich Sandwich. Broadgate Central is now 93% let
or under offer.
Reflecting this strong activity, Broadgate saw a valuation
increase of 4.2%, driven by ERV growth of 9.2% and yield
compression of 2 bps.
BUSINESS REVIEW CONTINUED
STRATEGIC REPORT
2121
British Land
Annual Report and Accounts 2026
BUSINESS REVIEW CONTINUED
Regent’s Place
Activity at Regent’s Place has been concentrated at One
Triton Square following the delivery of the scheme in
October 2025. The building has reinforced the campus’
position as a science and technology hub, with strong
demand from innovation businesses seeking to capitalise
on its location within London’s Knowledge Quarter. The
campus benefits from proximity to world-leading
academic and research institutions, including University
College London, The Wellcome Trust, The Alan Turing
Institute and The Francis Crick Institute.
Leasing activity (excluding Storey) covered 329,000 sq ft,
of which 324,000 sq ft were long term deals, 11.9% ahead
of ERV, including:
– 208,000 sq ft of space let at One Triton Square
(excluding Storey space) to leading science and
technology occupiers, including 158,000 sq ft let to
Anthropic, who currently occupy 30,000 sq ft at 338
Euston Road, and 50,000 sq ft to global
biopharmaceutical company Gilead Sciences.
– 32,000 sq ft lease renewal with Elexon at 350 Euston
Road as they extend their stay at the campus to 2038.
– Relation Therapeutics, an end-to-end biotech business
developing transformational medicines, doubling its
space at 338 Euston Road to 14,000 sq ft after initially
taking 6,000 sq ft in 2022.
– 11,000 sq ft letting to Sierra Technologies at 20 Triton
Street, joining other AI-led occupiers in the building
including Synthesia AI.
Values at Regent’s Place were down 0.1% as ERV growth of
6.9% and inward yield shift of 11 bps were offset by a
negative movement in H1 due to revised cost assumptions
on future development opportunities at the campus.
Occupancy at the campus is 93%.
Paddington Central
Paddington Central’s location next to Paddington station
with connectivity across London via the Elizabeth line and
Heathrow Express, continues to attract and retain global
occupiers looking for London HQ space. Occupancy
remains high at 99%.
Given the high occupancy, leasing activity was primarily
focused on our Storey product in 2 and 4 Kingdom Street.
The key non-Storey deal in the year was a 15-year,
10,000sq ft letting to PureGym at 3 Sheldon Square.
Paddington Central saw valuations decline 1.5%, as ERV
growth of 4.6% was offset by outward yield shift of 7 bps
reflecting latest market transactional evidence. 1 Sheldon
Square saw the biggest decline as the asset moves
towards a vacant possession value as we near Visa
vacating the building at the end of 2028 following 26 years
in occupation.
Storey: flexible office space
Storey remains an important component of the campus
offer and provides the flexibility for customers to expand
and contract quickly and cost-efficiently. The quality of the
space, central location and access to campus amenities
make the space appealing to scale up and overseas
businesses looking to open a UK Headquarters.
One Triton Square is a strong example of how we
deploy our development, investment and leasing
expertise to create a best-in-class Science and
Technology scheme that unlocks value and drives
earnings growth.
In 2023, many viewed the decision to agree a
£149m surrender payment from Meta as a signal
that London office demand was weakening and
that remote working was becoming the norm.
Based on the demand data we were seeing, and
conversations with business leaders about the
desire to return to the office, we disagreed.
Following the surrender, we established plans for
c.£120m of capital expenditure to reposition the
building as a Science and Technology hub at
Regent’s Place campus. The scheme was expected
to deliver rents significantly in excess of those
payable under the Meta lease. Other investors also
recognised the building’s potential and, in March
2024, we agreed a joint venture with Royal London
Asset Management. This transaction saw us
receive £192.5m for a 50% stake in the asset,
allowing us to share expertise while further
de-risking the project for BritishLand.
The building was officially launched in October
2025 and today is 94% let, supported by strong
and growing demand from Science and
Technology occupiers. Based on progress to date,
we expect to deliver an overall IRR in excess of
20% from the point of surrender to full lease-up,
unlocking both earnings and value growth for
shareholders.
One Triton Square
UNLOCKING VALUE
T H R O U G H
REPOSITIONING
22
British Land
Annual Report and Accounts 2026
Storey is currently operational across 374,000 sq ft (5% of
our campuses portfolio) and leasing activity covered
152,000 sq ft across 47 deals. Occupancy is at 94%,
including space recently delivered at Norton Folgate and
Broadgate Tower, above our target of 90%, with premiums
of 20%+ ahead of traditional net effective rents.
Canada Water
The first phase of the Masterplan is now complete and
includes 245,000 sq ft of offices at Dock Shed and Three
Deal Porters, 186 new homes at The Founding and 79
affordable homes at 7 Roberts Close. It also includes new
restaurants, a leisure centre for Southwark Council, and
significant enhancements to the public realm such as the
revitalised Canada Dock.
Office space at the campus is seeing enquiries from a
range of businesses seeking new workspace at a more
competitive price point than the traditional core markets of
the City and West End. We currently have 3,000 sq ft
under offer and 50,000 sq ft in active negotiations on the
space. At The Founding, 57 residential apartments have
been sold to date at an average price of c.£1,200 psf.
One of the key advantages of a British Land campus is
the ability for customers to evolve over time. Our
leasing teams work closely with occupiers to ensure
they have the right space for their current needs, while
retaining flexibility to accommodate future growth or
contraction.
By controlling a cluster of buildings with a range of
floorplates, we can offer space that suits businesses at
every stage of their journey. This may include smaller
companies taking their first flexible or fitted space,
with longer-term ambitions to move into a dedicated
20,000 sq ft floorplate, confident that British Land can
support their future requirements. Equally, it may
involve a large organisation seeking a London
headquarters of more than 100,000 sq ft.
We are seeing this flexibility and ability to scale in
action across our campuses. At Regent’s Place,
Anthropic has continued to expand its presence,
signing its sixth deal with British Land during the year
and taking 158,000 sq ft at One Triton Square. In less
than 12 months, the business has increased its London
footprint with us by more than 20x, demonstrating
how the campus model can support rapid growth by
providing access to adjacent, high-quality space within
a well-connected innovation cluster. Regent’s Place is
particularly well positioned to benefit from this
demand given its location within the Knowledge
Quarter, surrounded by leading academic and research
institutions.
This flexibility alongside the work of our leasing and
asset management teams, enabled us to retain this
exciting growth occupier at our campus, whilst
reinforcing the position of Regent’s Place as a science
and technology hub.
ANTICIPATING
C U S T O M E R
NEEDS
Regent’s Place
In March 2026 a Section 73 application, which was
submitted in response to major regulatory changes and
sector-wide cost and viability challenges, was approved by
the Mayor of London’s office. The approval sees an
increase in height and massing of the residential buildings,
the introduction of alternative living uses, increased
flexibility across plots and changes to the delivery of
affordable housing. The revised Masterplan commits to
providing 20% affordable housing in the next phase of
development (minimum 9% overall across the Masterplan).
The valuation of Canada Water declined 6.9% in the year,
reflecting market conditions, the latest leasing and sales
progress at the site, and the revised development
programme.
Looking ahead, the next phases of the Masterplan are likely
to have a higher living uses component and be more
capital light for British Land. This will likely include
partnering with or selling plots to residential and student
developers to accelerate returns. A key advantage of the
Canada Water planning consent is its flexibility, which
allows us to adapt our plans in line with changing market
conditions. We intend to leverage this flexibility as we
progress the scheme.
STRATEGIC REPORT
2323
British Land
Annual Report and Accounts 2026
RETAIL AND
LONDON URBAN
LOGISTICS
Portfolio valuation
£4,210m
Retail park leasing ahead
ofpreviouspassing rents
3.4%
24
British Land
Annual Report and Accounts 2026
Key metrics
As at
31 March
2026
31 March
2025
Portfolio valuation m m
– Of which Retail Parks m m
– Of which Shopping Centres m m
– Of which London Urban
Logistics m m
Occupancy
1
Weighted average lease length
to first break yrs yrs
Total property return
– Yield shift - bps - bps
– ERV growth
– Valuation movement
Total lettings/renewals (sq ft)
Lettings/renewals (sq ft) over
1year
Lettings/renewals over 1 year
vs ERV
Like-for-like rental growth
2
On a proportionally consolidated basis including the Group’s share of joint ventures.
1. Where occupiers have entered CVA or administration but are still liable for
rates, these are treated as occupied. If units in administration are treated as
vacant, then the occupancy rate for retail would reduce from 99.0% to 98.3%.
2. Like-for-like rental growth excludes the impact of surrender premia, CVAs &
admins and provisions for debtors and tenant incentives.
Retail & London Urban Logistics
operational review
Leasing momentum continued into the second half of the
year and total volumes by area were c.20% ahead of the
prior year. 2,100,000 sq ft of lettings and renewals were
signed in the year, 8.4% ahead of March 2025 ERV, with a
further 838,000 sq ft under offer, 10.3% ahead of ERV.
Weighted average lease length of new deals is 6.9 years.
Occupancy was maintained at 99% and like-for-like rental
growth was 2% for the year supported by a near-full and
largely rack-rented retail park portfolio that is well
positioned to capture future reversion.
Values increased by 2.7%, with retail parks up 3.3%,
shopping centres up 4.2%, other retail flat and London
urban logistics values down 3.2%. ERV growth was 3.6%
driven by continued growth in retail parks, which delivered
4.4% rental growth, towards the top end of our ERV
growth guidance of 3-5%.
Retail Parks
Retail parks continue to be the format of choice for many
retailers and demand remains robust. We signed
1,544,000 sq ft of deals in the year, 9.0% above ERV and
importantly 3.4% ahead of previous passing rents. Leasing
against previous passing rent accelerated in the second
half of the year, at 6.3%, as we have now worked through
the previous overrent in the portfolio.
I N S I G H T- L E D
RETAIL PARK
INVESTMENTS
We continued to be acquisitive in the retail park
market this year, with the team actively screening
awide range of opportunities.
Our investment team works closely with our retail
park leasing and asset management teams,
leveraging long-standing retailer relationships to
identify where value can be unlocked. This
includes detailed analysis of trading performance
and the overall attractiveness of each park to
occupiers. Our scale and depth of retailer insight
allow us to take on greater occupational risk than
many other investors, who typically seek assets
with limited asset management requirements.
In November 2025, we acquired Turbury Retail
Park for £27m, representing a net initial yield of
7.4%. While some investors were deterred by the
relatively high tenant covenant risk profile, we
identified an opportunity to actively manage the
asset. Within the first month of ownership, we
increased rents through lease renegotiations with
an existing occupier, improving the yield to 7.7%.
We were also able to assess additional covenant
risk given the confidence we had in future demand
for space at the park, supported by discussions
with potential occupiers.
These retailer relationships enable us to underwrite
opportunities more competitively than peers who
lack the same level of insight and conviction
around occupational risk.
Turbury Retail Park
STRATEGIC REPORT
2525
British Land
Annual Report and Accounts 2026
BUSINESS REVIEW CONTINUED
Our parks remain virtually full with occupancy at 99%, and
a 89% retention rate for those with breaks or expiries in the
year. Key leasing activity in the year included:
– 85,000 sq ft with Tesco, securing an extension of the key
grocery anchor at Newport Harlech Retail Park, ahead
ofdisposal.
– UK omni-channel retailers continue to see the benefit of
a significant and growing retail park footprint and we
completed 79,000 sq ft across four deals with Marks &
Spencer, two of which are new stores. We also had a
further 96,000 sq ft let or under offer to Next across
nine parks, including two new stores.
– 29,000 sq ft of renewals with Boots and 36,000 sq ft of
deals with Superdrug, underscoring continued demand
from leading health and beauty retailers. We also have a
further 10 deals under offer with these retailers as they
continue to trade well on our parks.
– Six new lettings with Wingstop covering 22,000 sq ft as
the popular eatery opens on our parks for the first time.
– 17,000 sq ft across three deals with Skechers, as the
brand expands its UK retail park footprint.
– Established seven new EV charging stations across our
parks generating income on previously non-income-
producing parking spaces.
Shopping Centres
Our remaining shopping centres have continued to
perform well, as we have maintained a high level of
occupancy at 99% whilst improving the retailer line up.
Wehave completed 315,000 sq ft of deals, 22.7% ahead of
ERV and 4.4% below previous passing rents.
One of our largest shopping centre exposures is now
BathSouthgate, an uncovered mall, where the cash flow
characteristics are closer to that of a retail park than a
traditional, covered shopping centre, due to lower
maintenance costs. During the year M&S successfully
opened a new store at the asset, which saw a significant
increase in footfall post the launch.
London Urban Logistics
Our urban logistics strategy is development led, focused
on densification and repurposing opportunities in London.
In the year we delivered our first development scheme,
Southwark Urban Logistics (Mandela Way), building a
144,000 sq ft urban logistics scheme in London’s Zone 2.
The development completed on time and on budget and
this multi-storey logistics facility is the first of its kind in
Central London. It is set across four floors, serviced by five
heavy goods lifts and three separate cargo bike lifts, with
ample loading space at ground level. Post year end we are
pleased to have put 29,000 sq ft in the building under
offer to a technology-led manufacturing business.
Despite being development led, many of the assets are
income producing today and we continue to ensure the
schemes are well-let and completed 92,000 sq ft of
leasing with a further 90,000 sq ft under offer at year end.
Deals included the letting of a vacant unit at Heritage
House Enfield to AIT Home Delivery following Waitrose
vacating the unit last year.
Our London urban logistics portfolio has embedded
development optionality, and we remain positive about the
long term supply demand dynamics of the sub-sector.
Wecan progress those schemes when the time is right,
butgiven the sub-sector is cyclically weaker today, we are
currently prioritising capital allocation towards retail park
acquisitions and best-in-class office developments.
26
British Land
Annual Report and Accounts 2026
British Land
Annual Report and Accounts 2026
DEVELOPMENTS
Committed pipeline
1.6m sq ft
Committed development ERV
£64m
STRATEGIC REPORT
2727
Developments
At 31 March 2026
Sq ft
‘000
Current
Value
£m
Cost to
Complete
£m
ERV
£m
ERV
Let &
Under
Offer
1
£m
Committed
Near term – – –
Medium term –
Total pipeline
On a proportionally consolidated basis including the Group’s share of joint
ventures (except area which is shown at 100%).
1. Pre-let & under offer excludes space under option and includes deals
upto15 May 2026.
Developments remain a key driver of long term value
creation, with development profit providing additional
upside to reach the top end of our total accounting return
targets. We approach developments with discipline,
ensuring schemes are suitably de-risked via pre-lets, fixed
priced construction contracts and bringing in joint venture
partners where appropriate to stretch the balance sheet
and enhance returns. New schemes must meet the
required risk-adjusted return hurdles, set against our
weighted average cost of capital. These hurdles are IRRs of
12–14% for campuses and mid-teens for London urban
logistics, with gross yield on cost targets above 7%. As we
continue to operate in supply-constrained markets, we are
securing higher rents, and our new developments are
exceeding these hurdles.
Following the recent commitment to 1 Appold Street and
West One we are currently on site with 1.6m sq ft of space,
delivering £64m of ERV, of which 45% is already let or
under offer. Total development exposure is now 3.3% of
portfolio gross asset value. Speculative exposure, which is
based on ERV and includes space under offer is 5.0% and
is within our internal risk parameter of 12.5%.
Completed Developments
We completed four developments totalling 1.3m sq ft in
the last 12 months. 1 Broadgate reached practical
completion in July 2025 and offers 547,000 sq ft of the
highest quality, sustainable mixed use space in London,
including best-in-class workspace and 48,000 sq ft of
retail and leisure space. The office space was largely
pre-let to JLL and A&O Shearman and we are under offer
on the remaining top floor. The retail and leisure space on
the ground and lower ground floor opened in November
2025 with a range of retailers in occupation including Luca
Faloni, Ralph Lauren and Vagabond.
At Regent’s Place, One Triton Square was pivoted to focus
on the AI and innovation-led demand we have seen
accelerate across London. The building, owned jointly with
Royal London Asset Management, is in London’s
Knowledge Quarter and leasing velocity has exceeded
expectations since its launch. Anthropic, one of the world’s
leading AI companies, have let 158,000 sq ft, with the
building now 94% let.
Our first logistics scheme completed in Southwark in
September, offering 144,000 sq ft of space across four
storeys. 29,000 sq ft is currently under offer to a
technology-led manufacturing business, and we are having
encouraging conversations on the remaining space.
The final buildings of Phase 1 of the Canada Water
Masterplan completed in Q1 2026 and comprise of
TheFounding and Three Deal Porters. The Founding is a
35-storey building offering 186 luxury apartments of which
57 are currently sold. Three Deal Porters is a mixed use
building comprising of ground-floor retail and five floors of
workspace. The market has been subdued for space
outside of core locations. However, given the lack of
supply in the core, this is now increasing and we are seeing
higher viewing numbers at the site.
Committed Developments
Our committed pipeline stands at 1.6m sq ft and is
gradually decreasing as we deliver schemes into a
supply-constrained office market.
At Broadgate, the joint venture is progressing three
best-in-class office developments, well positioned to
capitalise on the highly favourable supply and demand
dynamics in the City. Broadgate Tower is due to complete
at the start of 2027, 2 Finsbury Avenue in mid-2027 and
1Appold Street in early 2029. All three schemes are
scheduled to deliver into a period of exceptionally limited
supply of new and refurbished space, supporting strong
rental growth prospects and attractive returns.
Completed Developments
As at 31 March 2026 Sector
BL Share
%
100% sq ft
‘000
PC
Calendar Year
ERV
£m
1 Broadgate Office Q
Southwark Urban Logistics London Urban Logistics Q
One Triton Square Science & Technology Q
Canada Water: Plot A1
1
Mixed use Q
Total completed
1. Canada Water Plot A1 includes Three Deal Porters and The Founding.
David Lockyer
Head of Development
28
British Land
Annual Report and Accounts 2026
Broadgate Tower is a major refurbishment rather than
anew build, enhancing the building through significant
investment in amenity, including a new pavilion. The
scheme is designed to appeal to occupiers seeking high
quality space at a more accessible price point than new-
build developments. Leasing progress has been strong,
with 59% already let or under offer.
At 2 Finsbury Avenue, our flagship new development,
weare delivering a best-in-class tower with large, flexible
floorplates, particularly across the lower podium. The
scheme is c.50% let or under option and we are targeting
further pre-letting activity at higher rents during FY27,
with leasing of the upper tower floors expected closer to
completion.
During the year, the Broadgate joint venture committed to
1 Appold Street on a largely de-risked basis. The scheme is
fully pre-let or under option for the office space to Herbert
Smith Freehills Kramer, alongside a pre-let to a gym
operator for the 48,000 sq ft leisure offer. Construction is
well underway, with completion targeted for 2029.
Wewould expect to bring in an additional partner to
further de-risk the scheme and accelerate returns, like at
our 2 Finsbury Avenue development.
Committed Developments
As at 31 March 2026 Sector
BL Share
%
100% sq ft
‘000
PC
Calendar Year
ERV
£m
1
Gross Yield
on Cost%
2
2 Finsbury Avenue Office Q
Broadgate Tower Office Q
1 Appold Street Office Q
West One Office Q
Total committed
1. Estimated headline rental value net of rent payable under head leases (excluding tenant incentives).
2. Gross yield on cost is the estimated annual rent of a completed development divided by the total cost of development including the site value at the point of
commitment and any actual or estimated capitalisation of interest, expressed as a percentage return.
In February, the Broadgate joint venture committed
to the redevelopment of 1 Appold Street (to be known
as 8 Exchange Square). Alongside this commitment,
a pre-let was agreed with Herbert Smith Freehills
Kramer for a minimum of 60% of the building, with
an option to take up to 100% of the office space.
Aconstruction contract was also signed with Skanska.
This commitment demonstrates our disciplined, de-
risked approach to London development. Our leasing
team secured a significant pre-let, establishing a new
rental tone for the Broadgate campus. At the same
time, our development team leveraged long-standing
relationships and worked closely with Skanska to
agree a design-and-build contract for the base
build, delivering a high degree of cost certainty.
This approach provides greater certainty over future
returns, with the scheme expected to generate a
gross yield on cost above 7.5% and a mid-teen IRR.
1 Appold Street
Alongside our partner Norges, we committed to the
development of West One in March 2026. The scheme is
mixed-use and located directly above Bond Street station
on Oxford Street. It will deliver best-in-class office space
on the upper levels of the building with new high quality
ground level retail facades.
Near Term Pipeline
Our near term pipeline totals 0.1m sq ft of affordable
housing at Canada Water that was agreed with the Greater
London Authority for phase 2 of the scheme as part of the
wider Section 73 application, which was approved in March
2026. This will be a capital commitment of £17m and
reflects a significant reduction in overall affordable
housing to be delivered at the scheme, unlocking
opportunities to release further capital from the scheme.
Medium Term Pipeline
Our medium term pipeline covers 6.3m sq ft. It includes
Euston Tower, where we have planning consent for a
568,000 sq ft office and innovation tower in London’s
Knowledge Quarter; three urban logistics developments
totalling 1.0m sq ft, such as Verney Way (close to our
recently completed Southwark scheme) and The Box at
Paddington Central; and the future phases of the Canada
Water Masterplan.
DEVELOPMENT
WITH
DISCIPLINE
STRATEGIC REPORT
2929
British Land
Annual Report and Accounts 2026
David Walker
Chief Financial Officer
“Our financial performance this year
demonstrates the benefit of our model
– focused on sectors with strong
occupational fundamentals.”
FINANCIAL
REVIEW
Overview: A good financial performance
Our financial performance this year demonstrates the
benefit of our model – focused on sectors with strong
occupational fundamentals. 90% of our portfolio is in
campuses and retail parks, where demand was strong
through the year, while supply remained tight.
In our best-in-class, office-focused campuses these
positive market fundamentals were compounded by
increased demand from AI and innovation businesses.
Asaresult, we leased well across the portfolio including
standing assets, which are largely fully occupied, and filled
vacant space at Norton Folgate (now 94% let or under
offer) and One Triton Square (now 94% let). In retail parks,
we are effectively fully occupied, with only 1% vacancy.
Here, we signed 1,544,000 sq ft of deals, 3.4% ahead of
previous passing rents, which in turn supports like-for-like
rental growth.
This strong leasing performance across the business,
supported by a 4% increase in fee income, a rigorous focus
on administrative costs, which were down 9%, and actions
taken to mitigate increases in finance costs, delivered
Underlying Profit of £294m, up 5%. Underlying EPS was
28.9p, up 1% and ahead of guidance. The growth in
Underlying EPS was lower than the growth in Underlying
Profit due to the increased share count following the
October 2024 equity placing. In line with our policy of
setting the dividend at 80% of Underlying EPS, the Board
has proposed a final dividend of 10.80p, bringing the total
for the year to 23.12p, 1% ahead of the prior year.
ERV growth was 4.9% for the year which, combined with
stable yields, results in portfolio valuation growth of 2.3%
and an IFRS profit after tax of £454m. EPRA NTA per
share increased 4% to 590p, which taken together with our
increased earnings, delivered a total accounting return of
8.1%. Pleasingly, this is within our target range of 8-10% for
the first time since 2022.
A stable balance sheet provides a platform for growth
Our focus on preserving balance sheet strength through
duration and diversity of financing provides the business
with a flexible platform to grow and remain front footed.
Loan to value (LTV) on a proportionally consolidated basis
was 39.2% at 31 March 2026 (38.1% at 31 March 2025) and
Group Net Debt to EBITDA was 7.7x (8.0x at 31 March
2025). Both metrics remain within our internal risk ranges,
reflecting the point of the property cycle and will reduce
over time through valuation and earnings growth and
recycling capital from mature assets. Post year end we
have exchanged or are under offer on £176m of asset sales
and are in active negotiations on a number of other
disposals.
Despite macro and geopolitical uncertainty creating
volatility in debt markets, we have remained active in
a range of ways throughout the year. Total financing
activity since 31 March 2025 was £3.1bn. Our ongoing
engagement with debt providers further increased
our finance capacity and diversity on attractive terms
and margins, while extending the maturity profile. In
British Land, five of our unsecured Term Loans were
renewed and increased to a total of £500m, each
for five years at reduced pricing. New bilateral bank
facilities of £250m were completed and extensions
were agreed on £1.1bn of revolving credit facilities. In
February 2026 we launched our Euro Commercial Paper
Year ended
31 March
2026
31 March
2025
Underlying Profit
1,2
m m
Underlying earnings per share
1,2
p p
IFRS profit after tax m m
Dividend per share p p
Total accounting return
1
EPRA Net Tangible Assets (NTA)
pershare
1,2
p p
IFRS net assets m m
Loan to value
3,4
Net Debt to EBITDA (Group)
3,5
x x
Weighted average interest rate
4
Senior Unsecured credit rating A A
1. See Note 2 to the financial statements for definition and calculation.
2. See Table B within the supplementary disclosures for reconciliations to IFRS
metrics.
3. See Note 16 to the financial statements for definition, calculation and
reference to IFRS metrics.
4. On a proportionally consolidated basis including the Group’s share of joint
ventures.
5. Net Debt to EBITDA on a Group basis excludes joint venture borrowings and
includes distributions and other receivables from joint ventures.
30
British Land
Annual Report and Accounts 2026
(ECP) programme, under which £274m was issued at
31 March 2026. For companies in the Broadgate joint
venture, we raised new Green Loans of £450m secured
on 1 Broadgate, signed shortly after completion of the
development in summer 2025, and £475m secured on
100 Liverpool Street, signed post year end in April 2026.
We have £1.6bn of undrawn facilities and cash and,
based on these facilities and our current commitments,
no requirement to refinance until early2029.
In February 2026, Fitch Ratings assigned our short term
rating of F1 to the ECP programme, and affirmed all our
credit ratings with stable outlook, including Senior
Unsecured rating at ‘A’.
A consistent, focused approach to capital allocation
We take a disciplined approach to capital allocation,
recycling capital from more mature, lower-returning
assets into higher-returning opportunities. This includes
selling longer-let London offices, acquiring earnings
accretive retail parks and investing in best-in-class
campus developments on a de-risked, capital-light basis.
We achieve the latter by signing pre-lets at rental levels
that support returns, securing build cost certainty within
main construction contracts at the point of commitment
and, atthe right time, bringing in partners to free up
capital, reduce risk and drive fee income. Investment
market activity remained below average during the year,
reflecting slower transaction volumes, with £106m of
disposals and £94m of retail acquisitions completed.
Opportunities to deploy further capital into our chosen
segments remain attractive, although additional
disposals will be required to fund this in the near term.
Income statement
1.1 Underlying profit
Underlying Profit is the measure that we use to assess
income performance and is presented below on a
proportionally consolidated basis. No company
adjustments were made in the year to 31 March 2026
or31 March 2025.
Year ended Section
31 March
2026
£m
31 March
2025
£m
Gross rental income
Property operating
expenses () ()
Net rental income
Net fees and other income
Administrative expenses () ()
Net financing costs () ()
Underlying Profit
Underlying tax () ()
EPRA and Company
adjustments
IFRS profit after tax
Underlying EPS p p
IFRS basic EPS p p
Dividend per share p p
Norton Folgate
STRATEGIC REPORT
3131
British Land
Annual Report and Accounts 2026
1.2 Net rental income
£m
Net rental income for the year ended
31 March 2025
Like-for-like net rent
Developments
Surrender premia
Provisions for debtors and tenant incentives ()
Disposals ()
Acquisitions
Net rental income for the year ended
31 March 2026
Like-for-like net rents were up 6% or £21m in the year.
Campuses delivered their strongest performance in over a
decade, delivering 12% like-for-like growth, driven by
leasing well ahead of previous passing rents and a
reduction in EPRA vacancy which improved by over 8 ppts
in the year, reflecting successful leasing of previously
vacant space. Norton Folgate’s inclusion within the
standing portfolio, one full year post completion, added
around 2 ppts to like-for-like growth and a strong
performance at Broadgate contributed 4.5 ppts.
In Retail & London urban logistics, like-for-like growth was
2%. We are at near-full occupancy with a largely rack-
rented retail park portfolio and expect future market rental
growth to translate into cash flow growth as we lease
space ahead of previous passing rent. New store openings,
including M&S in Swindon, Orpington and Bath SouthGate,
as well as positive leasing momentum at Teesside all
contributed to like-for-like performance.
We have made good progress through the year leasing
developments, especially in the second half, which added
£14m of additional net rents from buildings including 1
Broadgate, The Optic and our build to rent residential
scheme at Aldgate.
Movements in provisions, partially offset by one-off
surrender premia receipts reduced net rental income by
£8m. Surrender premium receipts, which are excluded
from like-for-like growth, increased by £13m year-on-year,
to £33m. These surrenders are an example of active asset
management, allowing us to secure premiums and relet
space to new occupiers, capturing the benefit of growing
rents. We expect surrender premia of around £10-15m in
FY27. Provisions for debtors and tenant incentives had a
negative £21m impact versus the prior year. This reflected
provision releases in the prior year related to legacy
arrears, with provisions now having normalised across the
portfolio. This was a key driver of the increase in property
operating expenses, alongside higher void related costs as
our developments completed and entered their lease
upphase.
Capital recycling contributed an additional £10m to net
rents in the year, with £27m of net rents generated from
acquisitions offset by £17m of rents lost through disposals.
Sales proceeds from non-core or mature assets were
reinvested into retail parks and our best-in-class campus
office development pipeline. Over the year, we acquired
£94m of retail assets including £73m of retail parks,
inaddition to the £738m purchased in FY25.
FINANCIAL REVIEW CONTINUED
Bath Southgate
32
British Land
Annual Report and Accounts 2026
1.3 Administrative expenses
Ensuring the business operates as efficiently as possible is
central to how we run British Land. Over recent years, we
have retained a consistent focus on reducing
administrative expenses and mitigating inflationary
pressures, while ensuring we retain the quality of platform
required to drive growth. In doing so, we aim to maximise
the conversion rate of top line rental growth into profits,
and cash. We are pleased to have delivered a 9% (or £7m)
reduction in administrative expenses this year to £75m as
we have continued to rigorously challenge the cost base.
In addition, we continue to explore opportunities to
leverage the scale and opportunity within the existing
British Land platform by onboarding property acquisitions,
such as the five Life Science REIT assets post year end,
and new developments like 1 Appold Street, and manage
them with minimal incremental cost. We also seek
opportunities to drive fee income through asset and
development management agreements with existing or
new partners.
After considering fee income and property operating
expenses, the Group’s EPRA cost ratio was 18.9% (FY25:
17.5%). As expected, the ratio temporarily increased in the
year, driven by higher property operating expenses from
movements in provisions, specifically bad debt provision
releases in the prior year, and increased void costs from
our newly delivered development projects. We expect our
EPRA cost ratio to reduce to the mid-teens over time, and
based on our current expectations for FY27, expect a ratio
of c.17.5% .
1.4 Net financing costs
£m
Net financing costs for the year ended
31 March 2025 ()
Net divestment
Developments ()
Financing activity and other movements
Net financing costs for the year ended
31 March 2026 ()
Net financing costs increased by £30m to £133m in the
year. Disposals over the last 24 months, which included the
Meadowhall joint venture sale and the new 2 Finsbury
Avenue joint venture, reduced finance costs in the year by
£13m. This reduction was offset by the £10m impact from
acquisitions, predominantly retail parks, made over the
same period.
Funding our committed development pipeline and other
maintenance capex increased financing costs by £34m. As
developments complete, we cease capitalising interest on
the relevant project costs. The impact of this from recently
completed developments was £24m in the year. Also,
incremental debt to fund development activity was at
higher market rates, contributing to the 30 bps increase in
our weighted average interest rate to 3.9%.
2. IFRS profit after tax
IFRS profit after tax includes the valuation movements on
investment properties, fair value movements on financial
instruments and associated deferred tax, Capital financing
costs and any company adjustments. These items are not
included in Underlying Profit. In addition, the Group’s
investments in joint ventures are equity accounted in the
IFRS income statement but are included on a
proportionally consolidated basis within Underlying Profit.
The IFRS profit after tax for the year ended 31 March 2026
was £454m, compared with £338m in the prior year, with
IFRS basic EPS at 45.4p, compared to 35.1p in the prior
year. IFRS profit after tax for the year reflects Underlying
Profit of £294m, the increase in value of the Group’s
properties of £107m, Capital and other gains from joint
ventures of £112m, £32m capital and other finance costs
being the fair value movement on derivatives and hedge
accounted debt, a £28m loss on disposal of investment
properties, joint ventures and revaluation of investments
(largely staff costs and interest capitalised on joint venture
developments) and taxation for the year.
The basic weighted average number of shares in issue
during the year was 1,002m (31 March 2025: 965m), an
increase on the prior year largely due to the issuance of a
further 71m ordinary shares via the £301m share placing in
October 2024.
3. Dividends
Our dividend is semi-annual, and in line with our dividend
policy, is calculated at 80% of Underlying EPS based on
the most recently completed six-month period. Applying
this policy, the Board are proposing a final dividend
for the year ended 31 March 2026 of 10.80p per share,
bringing the total dividend to 23.12p per share for the
year. Payment will be made on Friday 24 July 2026 to
shareholders on the register at close of business on
Friday 19 June 2026. 9.34p will be payable as a Property
Income Distribution and 1.46p will be payable as a non-
Property Income Distribution. A Dividend Reinvestment
Plan (DRIP) is provided by Equiniti Financial Services
Limited, which enables the Company’s shareholders
to elect to have their cash dividend payments used
to purchase the Company’s shares. More information
can be found at www.shareview.co.uk/info/drip.
STRATEGIC REPORT
3333
British Land
Annual Report and Accounts 2026
Balance sheet
As at Section
31 March
2026
£m
31 March
2025
£m
Property assets
Other non-current assets
Other net current liabilities () ()
Adjusted net debt () ()
EPRA Net Tangible Assets
EPRA NTA per share
1
p p
Other EPRA adjustments
1
IFRS net assets
On a proportionally consolidated basis.
1. See Note 2 to the financial statements for definition and calculation.
4. EPRA Net Tangible Assets per share
pence
EPRA NTA per share at 31 March 2025
Valuation performance
Underlying Profit
Dividend ()
Other ()
EPRA NTA per share at 31 March 2026
EPRA Net Tangible Assets (NTA) per share increased by
4% over the year, reflecting a 2.3% uplift in portfolio
valuations, retained earnings, and other non-material
balance sheet movements.
5. IFRS net assets
IFRS net assets at 31 March 2026 were £5,932m, an
increase of £222m from 31 March 2025. This was primarily
due to the IFRS profit after tax of £454m, partially offset
by dividends paid in the year of £229m.
Cash flow, net debt and financing
6. Adjusted net debt
1
£m
Adjusted net debt at 31 March 2025 ()
Disposals
Acquisitions ()
Development & asset management initiatives ()
Net cash from operations
Dividend ()
Other
2
()
Adjusted net debt at 31 March 2026 ()
1. Adjusted net debt is a proportionally consolidated measure including our
share of joint ventures. It represents the principal amount of gross debt, less
cash, short term deposits and liquid investments and is used in the calculation
of proportionally consolidated LTV and Net Debt to EBITDA. A reconciliation
between the Group net debt as disclosed in Note 16 to the financial statements
and adjusted net debt is included in Table A within the supplementary
disclosures.
2. Other includes financing activity, working capital and other cash movements.
7. Financing
Group
Proportionally
consolidated
31 March
2026
31 March
2025
31 March
2026
31 March
2026
Net debt /
adjusted net
debt
1,2
m m m m
Principal
amount of
gross debt m m m m
Loan to value
2
Net Debt to
EBITDA
2,3
x x x x
Weighted
average interest
rate
Interest cover x x x x
Weighted
average
maturity of
drawn debt years years years years
1. Group data as presented in Note 16 to the financial statements.
Theproportionally consolidated figures include the Group’s share of joint
ventures’ net debt and represents the principal amount of gross debt, less
cash, short term deposits and liquid investments.
2. Note 16 to the financial statements sets out the calculation of the Group and
proportionally consolidated LTV and Net Debt to EBITDA.
3. Net Debt to EBITDA on a Group basis excludes joint venture borrowings and
includes distributions and other receivables from joint ventures.
FINANCIAL REVIEW CONTINUED
34
British Land
Annual Report and Accounts 2026
Our total financing activity since 31 March 2025 was
£3.1bn: £1bn new finance in British Land, £1.1bn extensions
of existing revolving credit facilities (RCFs), and £1bn of
finance in joint ventures. The transactions outlined below
have been achieved with a range of debt providers through
variable market conditions; we have been pleased with the
terms and appreciate the engagement and support of all
the lenders.
For British Land, with our usual unsecured financial
covenants:
– £500m across five bilateral bank Term Loans (increased
from £475m), each renewed for five years at reduced
pricing;
– £100m bilateral bank RCF and Term Loan for five years
with a new bank to the Group;
– £150m new bilateral bank RCF with five years maturity;
and
– £1.1bn total RCFs extended by a year to 2030/31.
British Land launched a £1bn ECP programme in February
2026, with £274m outstanding at 31 March 2026. This
commercial paper is issued for shorter terms at lower cost
than drawing on RCFs.
For companies in the Broadgate joint venture, new
‘covenant light’ Green loans (with no LTV or ICR default
covenants):
– £450m provided by two banks secured on 1 Broadgate,
in August 2025 following completion of the development
in July; and
– £475m provided by four banks secured on 100 Liverpool
Street, Broadgate Circle and 3 Broadgate, in early April
2026 ahead of the maturity of the existing £420m 100
Liverpool Street loan.
The 1 Broadgate loan and 100 Liverpool Street loan are
designated Green Loans due to the relevant buildings’
sustainability credentials. Sustainability KPIs are included
in £2.3bn of our RCFs and Term Loans, aligned with our
Sustainability Strategy. In British Land and our joint
ventures, there is a total of £3.3bn (£2.8bn British Land
share) of Green and Sustainability or ESG linked loans
andfacilities.
As a result of this activity, we have £1.6bn of undrawn
facilities and cash. Based on these facilities and our current
commitments we have no requirement to refinance until
early 2029. In keeping with our usual practice, we expect
to refinance or replace debt facilities ahead of maturities
and to continue to be active in a range of debt markets.
Our weighted average interest rate at 31 March 2026 was
3.9%, up 30 bps from 31 March 2025. The interest rate on
our debt is 94% hedged to 31 March 2027 and 71% hedged
on average over the next five years. Interest rate hedging
continues to limit the level and speed of impact of higher
market rates. Over time, as existing hedging at lower rates
expires and we replace this with new hedging, the
weighted average interest rate will gradually adjust to
reflect marketrates.
Group Net Debt to EBITDA decreased to 7.7x at 31 March
2026 (8.0x at March 2025), largely due to the new Green
Loan secured against 1 Broadgate, where the British Land
share of proceeds was used to repay Group facilities.
At 31 March 2026, our proportionally consolidated LTV was
39.2%, up from 38.1% at 31 March 2025, driven mainly by
development spend (+190 bps), offset by property
revaluations (-90 bps). We remain disciplined in our
management of leverage and whilst LTV is currently at the
upper end of our internal range, we remain comfortable at
this point in the cycle.
Our advantageous debt structure gives access to diverse
sources of finance through debt raised by British Land and
in our joint ventures. For British Land our focus is on
unsecured debt based on our two consistent financial
covenants (with no interest cover covenants) which apply
to Bank finance, Bond Issuance and Private Placements.
AtMarch 2026, we retain significant headroom to our debt
covenants, meaning the Group could withstand a fall in
asset values across the portfolio of 34%, prior to taking
any mitigating actions. In joint ventures, debt is arranged
as required by the business of each relevant entity and
secured on its assets, non-recourse to British Land, and the
majority is ‘covenant light’ with no LTV default limits.
Fitch Ratings, as part of its annual review in July 2025, and
alongside the ECP programme launch in February 2026,
affirmed all our credit ratings, with stable outlook: Senior
Unsecured ‘A’, long term IDR ‘A-’ and short term IDR ‘F1’.
These ratings have been held since 2018/19.
Our strong balance sheet, market leading unsecured and
secured platforms, access to different sources of flexible
finance and liquidity, with established lender relationships,
provide substantial capacity for us to deliver on our
strategy.
David Walker
Chief Financial Officer
STRATEGIC REPORT
3535
British Land
Annual Report and Accounts 2026
Target
Target
Target
Target
Target Target achieved
Target
Target
Target
PROGRESS ON OUR
SUSTAINABILITY TARGETS
READ MORE
about our Greener Spaces pillar
on page 37
READ MORE
about our Thriving Places pillar on
page40
READ MORE
about our Responsible Choices pillar
on page 42
READ MORE
in our 2026 Sustainability Progress Report: www.britishland.com/SPR
47%
reduction in operational carbon
intensity in FY26, vs FY19
24%
reduction in whole building operational
energy intensity in FY26, vs FY19
41%
reduction in upfront embodied carbon
intensity across office developments in
FY26, vs FY19
£17.6m
Social Impact Fund cash and space
invested since FY21, including £2.5m
in FY26
2030 target: £25m
2030 target: 90,000
beneficiaries
2030 target: £200m
Target: at least 40%
2030 target: at least 20%
Target: 100%
2030 target: 75% reduction
2030 target: 25% reduction
2030 target: 50% reduction
£148m
direct social and economic value
generated since FY21, including
£28minFY26
74,310
education and employment beneficiaries
since FY21, including 7,554 in FY26
36%
female representation at senior
management levels at year end FY26
100%
of people working regularly on our
behalf at our places paid at least the real
Living Wage in FY26
18%
overall minoritised ethnic representation
in FY26
GREENER
SPACES
THRIVING
PLACES
RESPONSIBLE
CHOICES
SUSTAINABILITY LEADERSHIP
1. Managed portfolio performance.
2. We have revised our target, as we met our overall minoritised ethnic representation target of 17.5% in FY25.
36
British Land
Annual Report and Accounts 2026
GREENER
SPACES
SUSTAINABILITY REVIEW
ADDITIONAL HIGHLIGHTS
Decarbonisation
75%
Total portfolio rated EPC
A or B (by ERV)
FY25: 68%
Renewables
93%
Of energy procured came from
certified renewable sources
FY25: 97%
Decarbonisation
£34m
Spend on carbon efficient
interventions since FY19
FY25: £26m
Nature
86%
Of managed portfolio covered
by Nature Action Plans
FY25: 54%
Regent’s Place, Plaza
STRATEGIC REPORT
3737
British Land
Annual Report and Accounts 2026
W
H OLE B U I LDI N G E N E RGY I NTE N S IT Y
(across our managed portfolio)
207 kWhe per sqm
171 kWhe per sqm
169 kWhe per sqm
167 kWhe per sqm
155 kWhe per sqm
157 kWhe per sqm
2019 baseline
FY23
FY24
FY25
2030 target
FY26
SUSTAINABILITY REVIEW CONTINUED
Our customers increasingly demand space
with excellent environmental sustainability
credentials. We have a strong track record of
decarbonising our portfolio and enhancing
climate resilience to create places where
people, businesses and nature flourish.
Decarbonisation
This year, we made strong progress on our 2030
decarbonisation targets, as outlined on page 36. Wehave
submitted new, long term science-based targets to the
Science Based Transition initiative (SBTi) for validation,
aligned with a 1.5°C climate scenario. These commit us to
reducing operational carbon intensity by 97% by 2040 and
absolute corporate emissions (including embodied carbon
and supply chain) by 90% by 2050, against our FY24
baseline.
These commitments align with the SBTi Buildings Criteria
and Corporate Net-Zero Standard, as well as the Carbon
Risk Real Estate Monitor (CRREM) net zero pathways.
Once validated, they will replace our current SBTi-
validated target to 2030. We plan to report progress
against the new targets from FY27.
Long term target setting is an important part of transition
planning, which covers a range of areas including
decarbonisation, skills growth, climate resilience, nature
and governance. Our Transition Vehicle, launched in April
2020, is a key mechanism for decarbonising our portfolio,
with £26m
1
committed. To advance essential change
across the supply chain, we actively engage with the Real
Estate:UK and Better Buildings Partnership to support
industry initiatives.
Reducing operational emissions with customers
Operational carbon intensity across our managed
portfolio has reduced 47% since FY19, as a result
of our energy efficiency programme and grid
decarbonisation, to 36kg COe per sqm. This year, we
reduced whole building operational energy intensity by
24% against our FY19 baseline, to 157kWhe per sqm.
We partner with customers to deliver innovations
that advance their climate goals, supported by whole
building energy data coverage of 99%. Green leases lay
the foundations for good engagement. All new major
leases in FY26 included mutually beneficial clauses to
share energy data and improve efficiency. We have
rolled out our smart platform, MyBuilding, across 14
buildings, following a successful pilot at 100 Liverpool
Street. We are now trialling opportunities to extend our
digital platform and expertise into occupier areas, giving
customers enhanced insights to improve performance.
We also test energy saving interventions in our Head
Office and Storey spaces, using MyBuilding to share
verified energy and cost savings with customers.
Optimising efficiency
To optimise building performance for energy efficiency,
86% of our portfolio (by ERV) is equipped with smart
energy metering and management systems.
In offices, where we have been monitoring whole building
energy data and collaborating with customers for more
than a decade, we continued to achieve significant savings
through free and low-cost interventions, such as demand-
based heating and cooling enabled by CO
2
sensors.
In retail, where we have less influence over customer
energy procurement and consumption, our focus remains
on improving efficiency in landlord areas and deepening
engagement with customers to manage their consumption
in shops and restaurants. Where we have control, we
continue to make good progress. 94% of retail parks now
have no gas in landlord areas and 77% are 100% LED in
landlord areas.
Retrofitting for efficiency
To provide customers with all-electric buildings, we have
retrofitted 101 heat pump units across our portfolio since
FY14, with 55% of managed offices (by ERV) almost fully
electric in FY26, only using gas for top-up. Fully electric
design is being adopted across office developments.
This year, 87%
2
of our managed portfolio (by ERV) is
covered by decarbonisation pathways that identify the
interventions needed to align each asset with CRREM net
zero trajectories and proposed Minimum Energy Efficiency
Standard (MEES) requirements for non-domestic buildings
to be rated EPC A or B by 2030. 75% of our portfolio is
now rated EPC A or B (by ERV), up from 68% in FY25.
The total estimated cost to implement our decarbonisation
pathways and to achieve our EPC target is £100m since
FY19, much of which is recoverable through the service
charge as part of standard life cycle replacement. Since
FY19, £34m has been spent, including £8m in FY26.
3
To enhance the customer offer and support the
transition to low carbon transport, we exchanged
or completed deals for ultra-rapid electric vehicle
charging across 21 retail assets in FY26, with a further
27 sites in the pipeline. When complete, this will cover
73% of our retail portfolio. This will potentially unlock
valuation uplifts and new income opportunities for
British Land, with no forecasted capital outlay.
Designing for efficiency
This year, our office developments are on track to deliver
base building energy efficiency in operation of 56kWhe
per sqm on average. This is on the trajectory for our 2030
target of 55kWhe per sqm. To meet our targets for whole
1. Includes capital expenditure and recoverable service charge forward funding
at British Land share.
2. Excludes recently completed developments.
3. Comprises capital expenditure, service charge and occupier spend, including
commitments from the Transition Vehicle.
38
British Land
Annual Report and Accounts 2026
building performance of 90kWhe per sqm by 2030, we are
collaborating with our customers to optimise their
operational energy use.
NABERS UK Design for Performance is being adopted
across office developments to accurately predict
operational energy performance. To date, three
developments have received target ratings, including
1Broadgate, the first UK building to achieve a 5-star target
rating. A further four developments are undertaking
Independent Design Reviews.
Prioritising renewables
To drive grid decarbonisation and support customers’
climate goals, 93% of energy we procured in FY26 came
from certified renewable sources, working towards 100%
as a signatory to RE100
1
. We continue to pilot hourly
matching of our consumption with production profiles,
typically achieving over 75%
2
matching annually.
This year, we generated 1,273MWh of renewable electricity
across 11 assets. We are highly supportive of occupiers
retrofitting solar arrays. In FY26, we supported retail
occupiers to install rooftop solar arrays at two assets, with
a further five assets in the pipeline.
Reducing embodied carbon with partners
This year, we reduced upfront embodied carbon intensity
by 41% across office developments, to 587kg COe per
sqm, and by 19% across retail and residential
developments, to 729kg COe per sqm, relative to FY19
industry benchmarks.
All the innovations we deliver in this space are done in
collaboration with our design and construction partners.
Our Sustainability Brief for our Places provides clear
guidance on our environmental, social and governance
requirements throughout the property life cycle.
Once we have taken all reasonably viable steps to reduce
carbon on developments, we use certified carbon credits
to offset remaining embodied emissions.
Sustainable office fit out
Our analysis shows that office fit outs account for 60–80%
of a commercial building’s whole life embodied carbon
3
,
adding significant carbon and costs. Our fit outs
consistently outperform industry benchmarks. This year,
we published our Sustainability Brief: Office Fit Out,
building on extensive data analysis and industry
engagement, to provide clear guidance for suppliers and
useful insights for customers.
At Broadgate Tower, we delivered our lowest embodied
carbon fit out to date at 44kgCOe per sqm through the
extensive reuse of materials from earlier customer fit outs,
including ceiling tiles, flooring, high-level services and
furniture.
Climate resilience
As a long term business, we plan and design for weather
and climate patterns decades into the future. This extends
asset lifespans and protects long term value. Climate
resilience is also integrated into our risk management
processes.
Portfolio-wide modelling shows that flooding is our most
material climate-related physical risk. 100% of managed
assets and major developments were covered by flood risk
assessments in FY26. Of the 3% identified as high risk
(byBritish Land share of ownership of total insured value),
100% have comprehensive management plans. This year,
we also reviewed our flood readiness approach for
medium and high risk assets to ensure resilience.
Nature
We recognise the intrinsic value of nature and its
importance for the health and wellbeing of our customers
and communities, as well as the resilience of our assets.
This year, 88% of developments are on track to achieve at
least 15% biodiversity net gain and 86%
4
of standing assets
have implemented Nature Action Plans. At Canada Water,
we have created revitalised wetlands with London Wildlife
Trust, the popular Rafter Walk across the docks, waterside
spaces, a discovery pond, 15,000 sqm of living roofs and
Dock Office Gardens.
In FY26, we refreshed our Nature Strategy, setting out new
commitments to trial embodied ecological assessments
and enhance access and enjoyment of green space on our
assets. Furthermore, we report against Taskforce on
Nature-related Financial Disclosures (TNFD)
recommendations for the first time in our 2026
Sustainability Progress Report see page 17.
READ MORE
in our 2026 Sustainability Progress Report:
www.britishland.com/SPR on pages 7 to 18
1. Global initiative of companies committed to using 100% renewable electricity,
led by Climate Group.
2. Settled full year data not available at time of publication.
3. Analysis of British Land projects, using RICS whole life carbon methodology.
4. Scope now include smaller assets.
Circular economy
Keeping materials in use for as long as possible is crucial
to the future of real estate, safeguarding resource
availability long term and meeting decarbonisation
targets.
Our developments and refurbishments use
pre-deconstruction audits to maximise retention and
reuse, alongside materials passports to unlock future
opportunities. We are also working towards our
stretching 2030 target of 50% reused materials or
recycled content.
At 1 Appold Street, we are retaining 75% of existing
structure and have harvested 4,608 tonnes of strip-out
materials for reuse. We aim to recover over 80% of the
glazing, with suitable glass recycled into new
architectural glass. At One Triton Square, we pioneered
our first material passports on a fit out, incorporated
reclaimed steel, sourced remanufactured chairs and
trialled a bio-based alternative to plasterboard.
We have experience building responsible waste
management into developments and operations,
reusing and recycling 84% of waste in FY26 and
diverting 100% from landfill.
1 Broadgate, Broadgate
STRATEGIC REPORT
3939
British Land
Annual Report and Accounts 2026
SUSTAINABILITY REVIEW CONTINUED
THRIVING
PLACES
ADDITIONAL HIGHLIGHTS
Benefitting our
communities
12,999
Local beneficiaries, including
schoolchildren, students and
jobseekers
FY25: 18,531
Benefitting our
colleagues
74%
Colleagues engaged in
volunteering, including expert
opportunities
FY25: 71%
Benefitting our
customers
All
central London campuses
havecustomer Campus
Community Funds
FY25: All
Supporting local
employment
262
Local people supported into
employment
FY25: 457
Young Readers Programme,
Regent’s Place
40
British Land
Annual Report and Accounts 2026
Our places succeed when the communities
living in and around them thrive. We have a
strong track record of creating a long-lasting,
positive social impact through the use of our
spaces, employment and education
programmes. This creates clear commercial
value, differentiating our places, supporting
faster planning outcomes and enabling
successful developments.
Social and commercial impact
Good community relationships help us shape proposals
that align with local priorities, enhancing social impact and
improving the likelihood of positive planning outcomes,
including more viable Section 106 Agreements, ultimately
reducing risk and costs, supporting our licence to operate
and enabling development.
Occupiers who rate our social contribution highly are also
more likely to recommend British Land, with 29% higher
Net Promoter Scores on average
1
. In addition, visitors who
rate our social contribution highly stay longer at our
places, spend more in shops and restaurants, and are more
likely to recommend our places
2
.
This year, we invested £981,000 in cash and provided
£1.5m of space through our Social Impact Fund,
benefitting 12,999 local people and creating opportunities
for customers and colleagues.
Through our Campus Community Funds, we partner with
customers to co-fund local projects. This grows our
positive impact, builds campus networks, supports
customers’ social goals and offers meaningful volunteering
opportunities for their teams. As part of our Broadgate
Community Fund, in FY26, alongside eight Broadgate
businesses, we collectively invested £73,000 in four
community projects set to benefit 1,220 local people.
Affordable space
To benefit local communities, differentiate our places and
attract footfall, we provided over 14,000 sqm of space and
expert support to small businesses, social enterprises,
community organisations and charities through our Social
Impact Fund this year.
In FY26, 21 organisations benefitted, including through our
Really Local Stores initiative which hosted six local
independent retailers, supporting entrepreneurs while
activating temporarily available space, enhancing the retail
mix and supporting strong footfall performance.
Counting what matters
Focusing on meaningful impacts, we only count
affordable space sustained for at least three months and
people benefitting from life-enhancing employment
support or achieving defined educational outcomes.
Many more people benefit through pop-ups, job fairs,
school events, site visits and other activities.
Employment
Our skills and employment programme, Bright Lights,
helps secure the talent our business, customers and
communities need to thrive. This year, 872 people
benefitted from pre-employment training, mentoring,
graduate schemes, internships, apprenticeships and other
meaningful initiatives. During FY26, 262 people progressed
into employment through Bright Lights, bringing the total
since FY21 to 2,373. At Fort Kinnaird, 128 people benefitted
from employment support through our long-standing
collaboration with Capital City Partnership, and 78 filled
retailer vacancies, generating nearly £400,000 of social
value and saving customers an estimated £59,000 to
£70,000 in recruitment costs. We also piloted a new green
skills programme, building capability for a more equitable,
low carbon future.
At Canada Water, 167 formerly unemployed Southwark
residents have moved into jobs with suppliers and
customers since we launched Canada Water Connect with
charity ELBA in FY23, including 34 in FY26. By linking
businesses with local talent, we met the first employment
target in our planning agreement one year early.
Education
Our education partnerships develop skills vital to our
business, customers and communities, as well as attracting
future talent to our sector with 6,683 people benefitted
this year.
Literacy is essential for business success and underpins life
chances. Our partnership with the National Literacy Trust
is the UK’s largest and longest running corporate literacy
programme. In FY26, we inspired 4,565 schoolchildren
to discover the power of reading, collaborating with 21
customers and on site partners to host fun, literacy-themed
events in shops, offices and restaurants at our places.
To create attractive, inclusive places for customers and
communities, we support initiatives to attract talent from a
range of backgrounds to our sector. In FY26, 84 students
from state schools took part in UrbanPlan UK supported
by our funding and volunteers. Of all UrbanPlan UK
participants 98% are now considering careers in property,
up from 23% before. We also actively support Pathways to
Property, Accelerate with Open City and Shaping
Southwark’s Future with Construction Youth Trust.
Social value
Our social impact activity makes a difference to people’s
lives. To quantify this financially, we use the international
Impact Evaluation Standard framework.
Our Social Impact Fund generated £8.8m direct social
value in FY26. We also generated £19.3m direct economic
value through spend with small and medium-sized
enterprises (SMEs). We generated a further £48.7m
indirect social and economic value through local
employment and SME spend on developments, fundraising
and volunteering with suppliers and customers.
1. British Land surveys of 700 retail store managers and 70 office facilities
managers in FY26.
2. British Land surveys of 1,700 visitors in FY25.
Bright Lights, Teesside Park
READ MORE
in our 2026 Sustainability Progress Report:
www.britishland.com/SPR on pages 19 to 25
STRATEGIC REPORT
4141
British Land
Annual Report and Accounts 2026
SUSTAINABILITY REVIEW CONTINUED
RESPONSIBLE
CHOICES
ADDITIONAL HIGHLIGHTS
Engagement
81%
Of staff are proud to work
at British Land
FY25: 93%
Engagement
64%
Employee engagement
score
FY25: 79%
Development
74
Number of internal
moves or promotions
FY25: 71
Development
6,129
Hours spent on
employeetraining
FY25: 8,055
Dock Shed, Canada Water
42
British Land
Annual Report and Accounts 2026
293
All employees*
25
Senior management*
6
Board
268
14
5
Workforce gender diversity at March 2026
*(excludes Non-Executive Directors)
FemaleMale
We are committed to making responsible
choices across all areas of our business and
we encourage our customers, partners and
suppliers to do the same.
Our people strategy
We want to build a diverse, inclusive and ambitious culture,
enabling us to attract, develop and inspire the best people
to deliver our strategy.
Performance leadership and talent development
This year we have put even more focus on performance,
results and efficient delivery. We worked on further
developing leadership capability for all managers, new and
old, with our mandatory management training and support
programme.
Key areas of focus included:
– Learning and development: 6,129 hours of learning
completed, with emphasis on leadership, management
and professional skills most appropriate to delivery of
the strategy. In addition, we introduced new technical
skills training to enable colleagues to make use of our
existing suite of tools and help them drive process
efficiencies in their own areas. We also introduced a
newtechnology skills/AI apprenticeship programme.
– Internal mobility: 74 internal moves, including
promotions and secondments, as we seek to stretch our
people with exposure in different areas of the business
or new responsibilities. This is the same number as FY25,
despite our overall headcount having reduced in
theperiod.
– Coaching and mentoring: continued investment in
coaching and mentoring, leveraging the expertise of
colleagues to support and develop those earlier on in
their careers.
Diversity, equality and inclusion
Diversity, equality and inclusion underpin our culture and
decision making. We remain focused on creating an
inclusive workplace where everyone can perform at
theirbest.
Progress
– We have already met our 2025 overall minoritised ethnic
representation target of 17.5%, which we set in 2021, so
we have revised our target upwards to 20% by 2030.
28% of our new hires in the year were from a minoritised
ethnic background and our disclosure rates are 92%.
– Our Board is 45% female and our senior leadership
population is 36% female.
– Our gender pay gap reduced in the year to 6.9%.
– We continue to implement our 2030 DE&I Strategy. The
foundational work takes time to yield results and we are
committed to continuing to build on progress so far.
Employee engagement
Employee engagement scores are an important source of
organisational feedback. We saw a dip in our overall
engagement scores this year from very high scores
previously. While our scores were in line with relevant
benchmarks, we did expect a reduction from last year due
to some decisions we have taken. A continued rigorous
focus on cost discipline meant that a number of roles
within the business were restructured and headcount was
reduced. We believe these changes set the business up for
future success, but there is a natural period of adjustment
which is reflected in the engagement score.
Highlights included:
– Employee engagement score of 64%.
– We had a participation rate of 90%, the same as the last
two years.
– Scores for team management improved in the year
reflecting the ongoing management training and how
well managers led their teams through change.
– 87% of colleagues said they know what they need to do
to be successful in their role, reflecting our continuous
focus on clear expectations and deliverables.
Investment in our people
We continue to invest in our people, with targeted and
relevant learning development and wellbeing initiatives to
support performance and long term capability.
Looking ahead
Our focus remains on driving a high-performing, engaged
and inclusive workforce delivering at pace. Priorities
include continued leadership development, progress
against DE&I ambitions and further enhancement and
engagement at all levels with digital skills.
Responsible procurement
Strong supplier partnerships are essential to delivering our
strategy. These are underpinned by our mandatory
Supplier Code of Conduct, which sets clear social, ethical
and environmental standards and promotes safe, fair
working conditions across our supply chain.
Against modern slavery
We take a proactive approach to protecting human rights
across our business and supply chain. We provide anti-
modern slavery training to all our employees, and we
carried out eight supplier audits to support compliance
and promote responsible practices. Our annual Modern
Slavery Statement, available on our website, provides a
detailed account of our processes, progress and priorities.
Real Living Wages
We are committed to paying at least the real Living Wage
to British Land employees and those working across our
assets. This commitment is a key part of our Sustainability
Strategy, and we were reaccredited as a Living Wage
Employer in 2025. We also embed this expectation in our
Supplier Code of Conduct, requiring suppliers to pay their
employees who work on our assets at or above the real
Living Wage.
Mandating prompt payment
We are committed to paying all suppliers within 30 days.
In FY26, we settled Group invoices within 19 days
onaverage.
READ MORE
in our 2026 Sustainability Progress Report:
www.britishland.com/SPR and pages 26 to 31
STRATEGIC REPORT
4343
British Land
Annual Report and Accounts 2026
FINANCIAL POLICIES
AND PRINCIPLES
A consistent approach to financing, with good access to debt
markets, provides flexibility and capacity to deliver our strategy.
Leverage
Our use of debt and equity finance balances the benefits
of leverage against the risks, including impact on property
returns. A loan to value (LTV) ratio measures our balance
sheet leverage, on a proportionally consolidated basis
(including our share of joint ventures) and for the Group
(British Land and its subsidiaries). At 31 March 2026,
proportionally consolidated LTV was 39.2% and for the
Group was 32.1%. The ratio of Net Debt to EBITDA is a
measure of leverage as a multiple of earnings (rather than
asset valuations) which we consider primarily on a Group
basis. At 31 March 2026, our Group Net Debt to EBITDA
was 7.7x and the proportionally consolidated measure was
9.2x. The calculations of these ratios are set out in the
Notes to the Accounts.
Our leverage is monitored in the context of wider decisions
made by the business. We manage our LTV through the
property cycle such that our financial position remains
robust in the event of a significant fall in property values.
This means that, alongside consideration of new
commitments, we do not adjust our approach to leverage
based only on changes in property market yields.
Consequently, our LTV may be higher at the low point in
the cycle and will trend downwards as market yields
tighten.
Debt finance
The scale of our business, combined with the quality of our
assets and rental income, means that we are able to
approach a diverse range of debt providers to arrange
finance on attractive terms. Good access to the capital and
debt markets allows us to take advantage of opportunities
when they arise. Our approach to debt financing for British
Land is to raise funds on an unsecured basis with our
standard financial covenants, as described on page 46,
with the calculations set out in the Notes to the Accounts.
This provides flexibility and low operational cost.
Since March 2025 we completed £3.1bn of financing
activity, with £1bn new finance in British Land, plus £1.1bn
extensions of existing RCFs by one year to 2030/31, and
£1bn finance in joint ventures. New finance for British Land
includes a Euro Commercial Paper (ECP) programme
launched in early 2026, under which notes are issued at
lower cost than drawn RCFs, with £274m outstanding at
31 March 2026.
Our joint ventures that choose to have external debt are
each financed in ‘ring-fenced’ structures without recourse
to British Land for repayment and secured on their
relevant assets. Recent activity included companies in the
Broadgate Joint Venture signing two ‘covenant light’
Green loans: £450m secured on 1 Broadgate
(August2025) and £475m secured on 100 Liverpool Street
(April2026).
We monitor our overall debt requirement by reviewing
current and projected borrowing levels, available facilities,
debt maturity and interest rate exposure. We undertake
sensitivity analysis to assess the impact of proposed
transactions, movements in interest rates and changes in
property values on key balance sheet, liquidity and
profitability metrics. We also consider the risks of a
reduction in the availability of finance, including a
temporary disruption of the financing markets. British
Land’s undrawn facilities and cash amounted to £1.6bn
at31 March 2026. Based on our commitments and these
available facilities, the Group has liquidity (no requirement
to refinance) until early 2029.
Presented on the following page are the five principles that
guide the way we structure and managedebt.
Interest rate exposure
We manage our interest rate profile separately from our
debt, considering the sensitivity of underlying earnings to
movements in market rates of interest primarily over a
five-year period. As debt finance is raised at both fixed and
variable rates, derivatives (including interest rate swaps
and caps) are used to achieve the desired hedging profile
across proportionally consolidated net debt. As at
31 March 2026, the interest rate on our debt is 94% hedged
for the year ending 31 March 2027. On average over the
next five years we have interest rate hedging on 71% of our
debt, with a decreasing profile over that period.
Accordingly, we have a higher degree of protection on
interest costs in the short to medium term. The hedging
required and use of derivatives is regularly reviewed and
managed by a Derivatives Committee. The interest rate
management of joint ventures is considered separately by
each entity’s board, taking into account appropriate
factors for its business.
Counterparties
We monitor the credit standing of our counterparties to
minimise risk exposure in placing cash deposits and
arranging derivatives. Regular reviews are made of the
external credit ratings of the counterparties.
Foreign currency
Our policy is to have no material unhedged net assets or
liabilities denominated in foreign currencies. When
attractive terms are available, we may choose to borrow
incurrencies other than Sterling, and will fully hedge the
foreign currency exposure.
44
British Land
Annual Report and Accounts 2026
OUR FIVE GUIDING PRINCIPLES
1. Diversify our sources of finance
We monitor finance markets and seek to access different sources of finance when the
relevant market conditions are favourable. We aim to avoid reliance on any particular
source of funds and have arranged unsecured and secured, recourse and non-recourse
debt to meet the business requirements of the Group and joint ventures.
We develop and maintain long term relationships with banks and debt investors from
different sectors and geographical areas, with around 30 debt providers in our bank
facilities and private placements alone. Our reporting and disclosures enable lenders to
evaluate their exposure within the overall context of the Group.
A European Medium Term Note programme is maintained to enable us to access the
Sterling/Euro unsecured bond markets, where we have two outstanding Sterling bonds.
The Euro Commercial Paper programme allows us to issue short term notes at lower cost
than drawn RCFs. Our Sustainable Finance Framework enables us to issue Sustainable,
Green, and/or Social finance, when it is appropriate for our business. We have £3.3bn
(British Land share £2.8bn) of Green and Sustainable/ESG linked financing.
Total drawn debt
(proportionally
consolidated)
£4.2bn
Bank RCFs (Unsecured)
Bank Term Loans (Unsecured)
Commercial Paper (Unsecured)
Debentures (Secured)
Sterling Bonds (Unsecured)
US Private Placements (Unsecured)
Joint Venture Bank Loans (Secured)
Joint Venture Securitisation (Secured)
2. Phase maturity of debt portfolio
The maturity profile of our debt is managed with a spread of repayment dates,
currentlybetween one and 10 years, reducing our refinancing risk in regard to timing
andmarket conditions.
At 31 March 2026, as a result of our financing and capital activity, based on our
commitments and available facilities we have liquidity (no requirement to refinance)
untilearly 2029, longer than our preferred period of not less than two years. In order
tomaintain the position and in accordance with our usual practice, we expect to extend
or refinance debt in advance of relevant maturities.
Average drawn debt
maturity
(proportionally
consolidated)
5.1 yrs
3. Maintain liquidity
In addition to our drawn debt, we aim always to have a good level of undrawn, committed,
unsecured revolving bank facilities. These facilities provide financial liquidity, reduce the
need to hold resources in cash and deposits, and minimise costs arising from the
difference between borrowing and deposit rates, while limiting credit exposure. We
arrange these revolving credit facilities in excess of our committed and expected
requirements to ensure we have adequate financing availability to support business
activity and new opportunities.
Undrawn facilities
and cash
£1.6bn
4. Maintain flexibility
Our facilities are structured to provide valuable flexibility for investment activity
execution, whether sales, purchases, developments or asset management initiatives.
Unsecured revolving credit facilities (‘RCFs’) provide full operational flexibility of drawing
and repayment (and cancellation if we require) at short notice without additional cost.
These facilities generally have initial maturities of five years (with extension options for a
further two years). Alongside this, our secured term debt in long-standing debentures has
good asset security substitution rights, where we have the ability to move assets in and
out of the security pool, as required for the business.
Total RCFs
£2.3bn
5. Maintain strong metrics
Fitch affirmed all our credit ratings in the year with stable outlook, including Senior
Unsecured A, long term Issuer Default Rating A-, short term F1. Fitch also affirmed our
ratings and assigned F1 rating to our ECP programme in February 2026.
We manage leverage on a through the cycle basis, considering LTV and Net Debt to
EBITDA. We maintain good access to debt markets, providing flexibility and capacity for
our business requirements.
Overall, this provides a strong platform for our business strategy.
LTV (proportionally
consolidated)
39.2%
Net Debt to EBITDA
(Group)
7.7x
Senior unsecured
credit rating
A
STRATEGIC REPORT
4545
British Land
Annual Report and Accounts 2026
FINANCIAL POLICIES AND PRINCIPLES CONTINUED
Group borrowings
Unsecured financing for the Group includes Commercial
Paper, bilateral and syndicated bank revolving credit
facilities and term loans (with initial maturities usually of
five years, often extendable for a further two years); US
Private Placements with maturities up to 2034; and
Sterling unsecured bonds maturing in 2029 and 2032.
Secured debt for the Group comprises British Land
debentures with maturities up to 2035.
£2.3bn of the Group’s RCFs and term loans are sustainably
linked and include two KPIs referring to developments and
assets under management, aligned with our Sustainability
Strategy. There is provision for an adjustment to the
interest margin payable, based on our performance
relative to these KPIs, which is published in our
Sustainability Progress Report.
Unsecured borrowing covenants
Two financial covenants apply across all of the Group’s
unsecured debt. These covenants, which have been
consistently agreed with all unsecured lenders since
2003,are:
– Net Borrowings not to exceed 175% of Adjusted Capital
and Reserves
– Net Unsecured Borrowings not to exceed 70% of
Unencumbered Assets
There are no income or interest cover covenants on any
ofthe unsecured debt of the Group.
The Unencumbered Assets of the Group, not subject to
any security, stood at £5.4bn as at 31 March 2026.
Although secured assets are excluded from
Unencumbered Assets for the covenant calculations,
unsecured lenders benefit from the surplus value of these
assets above the related debt and the free cash flow from
them. During the year ended 31 March 2026, these assets
generated £34m of surplus cash after payment of interest.
In addition, while investments in joint ventures also do not
form part of Unencumbered Assets for the covenant
calculations, our share of free cash flows generated by
these ventures is regularly passed up to theGroup.
Financial covenants
As at 31 March
2026
%
2025
%
2024
%
2023
%
2022
%
Net Borrowings to
Adjusted Capital
and Reserves
Net Unsecured
Borrowings to
Unencumbered
Assets
Secured borrowings
Secured debt with recourse to British Land is provided
bylong standing debentures with limited amortisation.
Theseare secured against a combined pool of assets
withcommon covenants: the value of the assets is required
to cover the amount of the debentures by a minimum of
1.5times and net rental income must cover the interest at
least once. We use our rights under the debentures to
actively manage the assets in the security pool, in line
withthese cover ratios.
We continue to focus on unsecured finance at a Grouplevel.
Borrowings in our joint ventures
External debt for our joint ventures has been arranged
through long-dated securitisations or secured bank loans,
according to the requirements of the business of each
entity. The majority are ‘covenant light’ with no LTV default
limits (cash trap only), summarised below.
Joint venture Debt type Covenants summary
Broadgate Securitisation bonds Meet interest and
scheduled
amortisation
Covenant light No LTV covenant
Secured Green bank
loans
Covenant light
Interest cover ratios
LTV ratios
Cash trap only
Paddington Secured bank loan Interest cover ratio
LTV ratio
Covenant light Cash trap only
Canada Water Secured Green
development loan
facility
Loan to
development cost
ratio
LTV ratio
West End
Offices
Secured bank loan Interest cover ratio
LTV ratio
There is no obligation for British Land to remedy any
breach of these covenants or ratios in the debt
arrangement of joint ventures.
46
British Land
Annual Report and Accounts 2026
RISK MANAGEMENT
MANAGING RISK
IN DELIVERING
OUR STRATEGY
Risk management is central to our strategy, enabling us to identify and manage principal and
emerging risks to support long term value and sustainable positive outcomes for stakeholders.
Risk Management Framework
British Land operates a Group-wide risk management and
internal control framework to identify, assess and manage
principal and emerging risks. The framework is supported
by a clear risk appetite, defined accountabilities and
embedded controls.
The framework, shown in the diagram below, combines
top-down Board-driven strategic oversight with
bottom-up business-led risk identification and control
activities. This integrated approach enables us to manage
key financial and non-financial risks within appetite, adapt
to change, and support the delivery of our strategy.
Governance
The Board has overall responsibility for the risk
management and internal control framework. It sets risk
appetite, oversees principal risks and reviews the
effectiveness of the framework. The Audit Committee
supports the Board by reviewing the effectiveness of the
risk management and internal control environment as well
as related assurance processes.
The Risk Committee – comprising members of the
Executive Committee and senior leaders from across the
business, and chaired by the Chief Financial Officer –
oversees the monitoring and management of principal
risks. This ensures a consolidated view of key risks and
supports effective escalation, prioritisation and decision
making across the Group.
At the operational level, risk management is embedded
across business units and core activities. This bottom-up
approach facilitates early identification, monitoring and
management of operational risks, as well as timely
escalation. Each business unit has designated risk
representatives and risk owners responsible for managing
risks at source and implementing appropriate mitigations,
including internal controls. They maintain detailed risk
registers, which are regularly reviewed by the internal
riskteam.
The internal risk team plays a central role in coordinating
risk management activities across the Group, embedding
the framework into operations, culture and decision-
making processes. Internal Audit provides independent
assurance over risk management and internal controls.
READ MORE
about the Board and Audit Committee’s risk oversight, and
changes to our Governance structure with effect from the
conclusion of our 2026 AGM, see pages 76 and 99
Our integrated risk management approach
Set risk appetite and oversee principal risks
Review effectiveness of the risk and control framework
Oversee risk governance, culture and accountability
Board / Audit Committee / ESG Committee
Role: Strategic Direction & Oversight
Independent assurance on risk and controls
Internal Audit (Third Line)
Role: Independent Assurance
Oversee principal and emerging risks and set supporting risk policies
Ensure strategic decisions align with risk appetite
Aggregate, monitor and report risk exposure
Challenge and oversight of ongoing risk management
Risk Committee / Executive Committee / Risk Team (Second Line)
Role: Oversee Risk Framework & Challenge
Identify, assess and escalate risks
Operate controls and address remediation actions
Maintain risk registers and report key risk indicators
Operational Management (First Line)
Role: Risk Ownership & Control Execution
Governance & Strategic Direction
Risk Identification & Escalation
The framework operates
through three lines of
defence:
1. First line: operational
management owns
day-to-day risk
identification, control
operation and
remediation.
2. Second line: the Risk
Committee and internal
risk team oversee the
framework, provide
challenge to the first
line and monitor control
effectiveness.
3. Third line: Internal
Audit provides
independent assurance
on the effectiveness of
the risk management
and internal control
processes.
STRATEGIC REPORT
4747
British Land
Annual Report and Accounts 2026
RISK MANAGEMENT CONTINUED
Progress With Our Risk Priorities in the Year
Navigating External Market Volatility
We continue to respond proactively to a challenging
external environment shaped by inflationary pressures,
interest rate volatility and geopolitical instability. We are
mitigating risk through disciplined capital allocation,
financial resilience and scenario planning.
Enhancing Technology Controls and Cyber Resilience
We have achieved ISO 27001 certification, strengthening
our IT general control framework. Our cyber resilience
continues to mature through stronger controls, improved
monitoring capabilities and ongoing training.
Technology Transformation
Robust governance framework in place to support the
delivery of our Enterprise Resource Planning (ERP) finance
transformation scheduled for implementation in 2027.
This includes the planned automation of key financial
control processes, enhancing efficiency and risk controls.
Strengthening Controls and Governance: Provision 29
We are well positioned to meet the requirements of
Provision 29 in the next financial year. This is underpinned
by the identification and documentation of our material
controls, alongside the refinement of our structured and
robust assurance framework (as outlined below).
Preparedness for UK Corporate Governance
Code Changes (Provision 29)
Provision 29 is applicable for the Group’s year ending
31 March 2027. It requires the Board to describe how it
monitored and reviewed the risk and control framework,
declare whether material controls were effective at the
balance sheet date, and explain any material control
weaknesses and remediation.
In readiness for these requirements, we developed a
roadmap during the year to support compliance and
remain on track to meet the requirements. As part of
this work, we have created a detailed risk and controls
matrix covering material financial, operational, reporting
and compliance controls across key areas of the
business. This was developed using a top-down
mapping of controls to principal risks and risk appetite,
complemented by bottom-up workshops and focused
reviews.
We have identified the material entity-level, cluster-level
and standalone controls, undertaken an initial
assessment and identified the control evidence required
for subsequent testing, as well as mapping assurance
coverage across the lines of defence (see framework
overleaf). This work has been reviewed through the Risk
and Audit Committees.
Our Priorities for 2026/27
1. Provision 29 Compliance: Fully embed material
controls and assurance into business-as-usual.
Enhance governance and reporting to support full
Provision 29 compliance.
2. ERP Transformation Delivery & AI Automation:
Oversee the successful delivery of the ERP finance
transformation, scheduled for implementation in
2027, with a focus on robust control design,
automation and data integrity. Ensure strong
programme governance and change control for a
smooth transition. Identify opportunities to use AI
and automation to streamline processes, enhance
controls and strengthen risk management within a
responsible well-governed framework.
3. Operational Efficiency & Control Optimisation:
Continue the simplification and standardisation of
key business processes, using digital tools, including
AI, to enhance efficiency and reinforce the control
and risk management environment.
4. Embed Risk-Aware Culture: Continue strengthening
clear risk ownership across the business and enhance
the quality and consistency of risk reporting. Foster a
culture where risk awareness is embedded in
day-to-day decision making. Consider leveraging the
global risk tool within the new ERP system to improve
risk visibility and enable automated control testing.
5. Enhancing Cyber Resilience: With significant
progress already achieved across corporate
technology, continued efforts will prioritise property
technology, focused on security controls, threat
detection and response capabilities in response to
the evolving threat landscape.
48
British Land
Annual Report and Accounts 2026
Risk Appetite
Our risk appetite underpins our entire risk management
approach, guiding planning, decision making and strategy
execution. It is reviewed annually by the Board and
supported by KRIs and tolerances for each principal risk
and embedded across our policies, procedures
andcontrols.
While our appetite may adjust through the property cycle,
our overall appetite is balanced: low for financial and
compliance risks, and balanced for property and
operational risks. This supports our value-add strategy and
target of income-focused total accounting returns of 8-10%
through the cycle.
Risk tolerance statements for each principal risk are
categorised into three levels:
– Risk Averse: A cautious approach, prioritising risk
avoidance and mitigation.
– Balanced: A moderate risk approach, accepting a
controlled level of risk with appropriate mitigation to
pursue strategic objectives.
– Risk Taking: A proactive approach, willing to take
greater risks when the potential benefits justify the
pursuit of strategic objectives, but remains within
acceptable tolerance levels.
READ MORE
to see our risk appetite levels for each internal principal risk,
see pages 55 to 58
Our balanced risk appetite is underpinned by:
– A diversified business model centred around a
high-quality portfolio of London campuses and UK
retail parks, supported by strong occupational
fundamentals.
– Leveraging our strengths in development and asset
management to deliver income-generating, total
return focused growth.
– A disciplined development approach with phased
delivery, pre-lets, cost control and strategic joint
ventures.
– Robust financial discipline underpinned by a resilient
balance sheet and strong liquidity.
– A broad, high quality occupier base with strong
covenant strength and resilient income.
– Experienced leadership and governance oversight
across the Board, management team and Risk
Committee.
Integrated Internal Control Framework
Internal controls are embedded within our wider risk
management framework and support effective
governance, reporting and decision making. They include
policies, procedures and day-to-day controls across
financial, operational, reporting and compliance activities.
During the year, we have further strengthened our internal
control framework in preparation for the requirements of
Provision 29 of the UK Corporate Governance Code, as
outlined on the previous page and shown in the
diagrambelow.
Accountable for overall internal control framework
Review and report on effectiveness of controls
Board
Oversee integrity of control environment and reporting
Monitor internal audit performance and outcomes
Support Board assurance and disclosures
Oversees design and
effectiveness of internal
controls
Monitors management
of key risks
Reviews and challenges
assurance reports and
control performance
Performs independent,
risk-based audits
Assesses controls and
risk management
Own and operate controls
Identify and report control issues
Audit Committee
Risk Committee Internal AuditRisk Team Third Parties
Operational Management / Business Units
Reviews, challenges and
improves controls
Tests key controls annually
Validates self-assessments
Tracks and reports
remediation actions
Independent external audit
of financial reporting
Certification and regulatory
compliance reviews
Biannual independent
property valuations
Reviews of specialised
or high risk areas
Internal control framework
Governance
OversightAssuranceExecution
STRATEGIC REPORT
4949
British Land
Annual Report and Accounts 2026
RISK MANAGEMENT CONTINUED
Risk Focus
We have continued to operate in a heightened risk
environment shaped by macroeconomic pressures
and geopolitical uncertainty, including recent conflicts
in the Middle East. Persistent inflation, elevated
interest rates and shifting trade dynamics continued
to influence investor sentiment and occupational
markets. Any escalation or prolonged period of
geopolitical instability could further impact global
economic conditions, financial markets, energy prices
and supply chains, which may indirectly affect the
Group’s operating environment and access to capital.
The Board and its Committees maintained active
oversight,with a continued focus on capital allocation,
financial resilience and the management of development
and financing risks. Further detail is set out in the
principalrisks table.
During the year, the Risk Committee focused on:
– Strengthening financial reporting, operational and
compliance controls.
– Health, safety and environmental risk management,
including ISO 45001 re-certification.
– Occupier covenant strength and income resilience.
– Environmental risk and opportunity, including EPC-
related exposure.
– Development risk, including construction cost inflation
and contractor resilience.
– Procurement and supply chain resilience.
– Information security controls and processes.
– Delivery of Internal Audit actions.
Principal Risks
Our risk management framework identifies the principal
risks facing British Land. Using a risk-scoring matrix, we
assess each risk based on likelihood, potential financial
impact and reputational effect to identify those most likely
to have a material effect on the business.
We categorise our 11 principal risks into two groups:
– External risks – four risks shaped mainly by market
factors such as macroeconomic conditions, political
developments and property markets.
– Internal risks – seven risks linked to how we manage the
business, including capital allocation, operations, people
and compliance.
The Board, Audit Committee, Executive Committee and
Risk Committee regularly review external and internal
principal risks. External risks are assessed to understand
risk exposures, shape strategic decision making and
determine mitigating responses, while internal risks are
managed through established governance, processes
andcontrols.
Emerging Risks
Risks that are not currently principal, or are still evolving,
may become more significant over time. Management,
Board Committees and annual horizon scanning are used
to identify and monitor these risks and assess whether
they should be reclassified as principal risks.
Certain emerging trends are already reflected within
ourprincipal risks and remain under close review.
Keyareas include:
a
Elevated geopolitical instability
b
Advances in AI and automation
c
Shifting occupier demand patterns
d
Evolving cybersecurity threats
e
Long term climate change impacts
f
Heightened supply chain vulnerabilities
g
Energy security and market volatility
Relevant emerging trends are referenced within the
principal risks table. Set out below are two trends under
particularly close review and our current response.
Elevated Geopolitical Instability
Heightened geopolitical tensions, conflicts and trade
tariffs may weaken the economic conditions, including
the trajectory for inflation and interest rates, energy
prices, disrupt supply chains and affect occupier
demand, investment activity and financing availability.
We mitigate this through a resilient and diversified
portfolio, strong liquidity, close customer engagement,
supply chain resilience and ongoing macroeconomic
monitoring in our strategic planning.
Advances in AI and Automation
AI and automation presents both opportunities and
risks. As customers adopt these technologies, business
models, employment patterns and space use may
evolve, potentially influencing occupier demand and
location preferences, particularly at our campuses. At
the same time, emerging technologies may also create
opportunities for growth, supporting occupiers who are
looking to expand their space. We continue to closely
monitor developments in AI and automation, integrating
relevant trends into our strategic planning and risk
management processes.
50
British Land
Annual Report and Accounts 2026
PRINCIPAL RISKS
Principal Risk Assessment
The Board has undertaken a robust annual assessment of
the principal and emerging risks that could affect the
Group’s business model, performance, solvency, liquidity
and strategy. While the overall risk profile remains broadly
unchanged, external conditions continue to present
heightened risk, with the macroeconomic and geopolitical
outlook remaining the most significant external influences
on the Group.
During the year, the Operational & Compliance risk
category has been updated to include IT and cyber risk
and renamed Operational Delivery, Systems and
Compliance.
There have been no material changes to the Group’s
internal principal risks, aside from a slight increase in
Operational Delivery, Systems and Compliance, reflecting
the operational risks associated with our ERP finance
transformation programme scheduled for implementation
in 2027, alongside an elevated cyber threat landscape.
The People and Culture risk has risen slightly, reflecting a
reduction in engagement scores, albeit from high levels.
This followed planned restructuring and headcount
reductions. While the actions have had a short term
impact on staff engagement, as anticipated, they were
implemented to drive efficiency, increase accountability
and support stronger collaboration, to promote the long
term success of the business. Also, the CEO transition
introduces some uncertainty, however it is progressing
through a structured search and recruitment process that
supports continuity and long term leadership stability.
Our assessment of the 11 principal risks is summarised in
the heat map below. Further detail on risk assessment,
mitigations and key risk indicators is provided on pages 52
to 58.
9
1
2
3a
10
5
8
4
6
7
3b
11
HighMedium to highLow to medium
High
HighLow
Likelihood
Impact
Low
Risk he
at map
External
Internal
No change (external)
No change (internal)
Increase from last year
Decrease since last year
Note: The above illustrates principal risks which by their nature are those which have the potential to significantly impact
theGroup’s strategic objectives, financial position or reputation. The heat map highlights net risk, after taking account of
principal mitigations. The arrow shows the movement from 31 March 2025.
Key
Principal risks
External
1 Macroeconomic
2 Political, Legal and
Regulatory
3 Property Market
a Campuses
b Retail
4 Major Events/Business
Disruption
Internal
5 Portfolio Strategy
6 Development
7 Financing
8 Environmental and Social
Sustainability
9 People and Culture
10 Customer
11 Operation Delivery, Systems
and Compliance
STRATEGIC REPORT
5151
British Land
Annual Report and Accounts 2026
PRINCIPAL RISKS CONTINUED
External Principal Risks
1
Macroeconomic
Changes in macroeconomic, fiscal, and monetary policy may impact property values, financing markets and customer
demand, with consequent effects on our strategy and financial performance.
2
Political, Legal and Regulatory
Political, legal, regulatory and geopolitical developments may affect investor sentiment, occupier demand,
financingconditions and the UK’s attractiveness for investment.
Risk mitigation
– Board and Committees Oversight:
Active Board and Committee
oversight of strategy, capital
allocation and risk appetite.
– Monitoring and Stress Testing:
Ongoing monitoring of key
indicators and regular stress testing
to maintain resilience, supported by
external reports and advisor insights
on the macroeconomic outlook as
key inputs.
– Business Model: Focus on a prime
portfolio and active capital
recycling to support financial
strength and mitigate downside risk.
Risk assessment
UK macroeconomic risk remains
elevated amid ongoing uncertainty,
despite modest GDP growth and
some easing in inflation this year.
However, the recent conflict in the
Risk mitigation
– Strategic Risk Consideration:
Integration of political and
geopolitical considerations into
strategy, investment and financing
decisions.
– Policy & Regulatory Monitoring:
Ongoing monitoring of policy and
regulatory developments,
supported by external insight.
– Industry Engagement: Active
engagement with government and
industry bodies to inform and
influence policy.
Middle East has increased the risk of
subdued economic growth and
associated employment, alongside
sustained inflation and elevated
interest rates.
Emerging risk trends:
a
Elevated geopolitical instability
b
Advances in AI and
automation
Opportunity/approach
Our diversified business model, strong
financial position and experienced
leadership team enable us to
navigate ongoing market challenges
and capitalise on opportunities.
The Board and key Committees
continue to closely monitor impacts
on our portfolio and financing
strategy, maintaining disciplined
capital allocation and resilience.
Risk assessment
Risk remains heightened by
geopolitical tensions, trade
tariffs, political uncertainty in
the UK and regulatory change,
including government intervention
in lease structures, all of which
may adversely affect the wider
macroeconomic environment and
our operating environment.
Emerging risk trends:
a
Elevated geopolitical instability
Opportunity/approach
We actively monitor political and
regulatory developments to anticipate
potential impacts, engaging with
government and industry bodies to
stay ahead of change and ensure
compliance.
Impact:
Medium to high
Likelihood (post-mitigation):
Medium to high
Change in risk assessment in year:
KRIs:
– Projected Economic Metrics: including
GDP growth, inflation and interest
rateforecasts
– Consumer Sentiment and Labour Market
Indicators: including consumer
confidence levels and unemployment
rates
– Market Resilience Assessment:
conducting stress testing for downside
scenarios to assess the impact of
differing market conditions and inform
our portfolio strategy
Overseen by:
Executive Committee, CEO
Impact:
Medium to high
Likelihood (post-mitigation):
Medium to high
Change in risk assessment in year:
KRIs:
– Monitor changes within the geopolitical
landscape, UK policies, tax or
regulations
Overseen by:
Executive Committee, CEO
Link to strategy:
A
B
C
D
Link to strategy:
A
B
C
D
52
British Land
Annual Report and Accounts 2026
3
Property Markets
Shifts in investor and occupier demand, together with long term structural changes – including hybrid working, evolving
workforce trends, technological advancements and continued growth in online retail – may reshape business models and
space requirements, negatively affecting rental income, yields and asset values.
Risk mitigation
– Market Outlook Assessment:
Regular Board and Committee
review of property market
conditions to guide strategic
decisions and capital allocation.
– Market Insights: Ongoing tracking
of investment and occupier demand
trends using market insights and
dashboards supported by agent
research.
– Business Model & Stress Testing:
Focus on prime portfolio in resilient
submarkets. Stress testing is
conducted to evaluate the impact of
changes in demand, rental growth
and property yields.
– Stakeholder Engagement: Active
engagement with occupiers, agents
and investors to anticipate and
respond to market trends.
Risk assessment
Campuses
The campus property market outlook
remains stable, with London’s prime
office sector supported by strong
occupational fundamentals. While AI
presents longer-term structural
change, demand for best-in-class
space is expected to persist,
supported by growing interest from AI
and innovation-led businesses.
Investment volumes have risen from a
low base, though elevated interest
rates and geopolitical risks may
temper near-term sentiment and
liquidity for larger transactions.
Opportunity/approach
Our campus model is built around
well-connected, high quality
buildings with leading sustainability
and design credentials, surrounded
by attractive public spaces and
amenities. This enhances our offer
as occupiers focus on the best-in-
class space for their business.
Retail
The retail property market has
remained resilient, especially within
retail parks where occupational
demand and investor sentiment
remains positive. Both existing and
new retailers continue to expand into
this favoured out-of-town format,
attracted by lower occupational
costs, strong accessibility and rising
footfall. However, macroeconomic
uncertainty, rising employment
costs and regulatory risks
present ongoing challenges.
Opportunity/approach
Our retail portfolio is strategically
focused on retail parks, aligned
to convenience-led and omni-
channel retail. We continue to
target acquisition opportunities
in retail parks, where we can
leverage our scale and asset
management expertise.
Emerging risk trends:
a
Elevated geopolitical instability
b
Advances in AI and automation
c
Shifting occupier demand
patterns
Campuses
Impact:
Medium
Likelihood (post-mitigation):
Medium
Change in risk assessment in year:
Retail
Impact:
Medium
Likelihood (post-mitigation):
Low to medium
Change in risk assessment in year:
KRIs:
– Occupier and investor demand
indicators within our sectors
– Spread between property yields
andborrowing costs
– Online sales market trends to provide
insight into consumer behaviour
– Monitor office occupational trends
andcampus occupancy patterns to
understand occupier requirements
andvisitor patterns
Overseen by:
Executive Committee, CEO
Link to strategy:
A
B
C
D
STRATEGIC REPORT
5353
British Land
Annual Report and Accounts 2026
PRINCIPAL RISKS CONTINUEDPRINCIPAL RISKS CONTINUED
4
Major Events/Business Disruption
Major events or business disruption, including cyber incidents, extreme weather, pandemics, environmental events or
geopolitical shocks, may affect operations, assets, customers, people and supply chains. Such events could lead to income
disruption, asset value impairment, liquidity constraints, business continuity challenges and increased market volatility.
Risk mitigation
– Crisis & Business Continuity
Planning: Established crisis
management and business
continuity plans, regularly tested at
both corporate and assets levels.
– Asset Emergency Preparedness:
Ongoing asset-level emergency
preparedness including scenario
testing and security risk
assessments.
– Cyber Resilience: Continuous 24x7
managed detection and response;
external specialists support cyber-
attack testing, alongside ongoing
employee training.
– Robust IT Security & Disaster
Recovery: ISO 27001-certified IT
controls with annual disaster
recovery testing and continuity
plans to protect data and
operations.
– Comprehensive Insurance:
Comprehensive insurance for
property damage and business
interruption.
Risk assessment
Global political and economic
uncertainties remain elevated, posing
potential risks to the Group’s
operations and stakeholders. Potential
disruptions include geopolitical
conflicts, terrorism, cyber security
threats and supply chain instability.
During the year, we ran a simulated
Executive Committee crisis exercise
and a red-team cyber attack to test
and strengthen our incident response
capabilities.
Significant progress has been made in
strengthening cyber security across
corporate technology, supported by
improved controls, mandatory training
and regular phishing testing to
enhance staff awareness and reduce
cyber risk.
Emerging risk trends:
a
Elevated geopolitical instability
d
Evolving cybersecurity threats
e
Long term climate change
impacts
f
Heightened supply chain
vulnerabilities
Opportunity/approach
We continue to strengthen resilience
across our operations and assets,
drawing on established crisis response
capabilities and ongoing monitoring
of external risks.
Impact:
Medium
Likelihood (post-mitigation):
Medium
Change in risk assessment in year:
KRIs:
– Home Office terrorism threat level and
accessing security threat information
services inform our security measures
– Security risk assessments conducted for
our assets
– Cyber security breaches
– Information Security risk register
– Flood risk vulnerability
Overseen by:
Executive Committee, CEO
Link to strategy:
B
C
D
Key
Increase
No change
Decrease
A
Source value-add opportunities
B
Develop and actively manage
C
Recycle capital
D
Leadership in sustainability
54
British Land
Annual Report and Accounts 2026
Internal Principal Risks
5
Portfolio Strategy
An inappropriate portfolio strategy or poor execution could lead to income and capital underperformance. This could
result from sub-optimal sector allocation, timing of investment and divestment decisions, development exposure, asset
mix, occupiers and region concentration, inadequate due diligence, or inappropriate co-investment arrangements.
Risk mitigation
– Portfolio Strategy Oversight &
Monitoring: Annual Board review of
strategy; regular monitoring by
Executive and Risk Committees.
– Capital Allocation Discipline:
Portfolio decisions aligned with risk
appetite and market conditions.
– Rigorous Investment Evaluation:
Investment Committee evaluates
risk-adjusted returns; major deals
require Board approval.
– Asset Performance Review:
Detailed asset business plans to
manage asset risks and optimise
performance.
– Joint Venture Governance: Clear
defined governance frameworks
and contractual arrangements to
ensure alignment of interests.
Risk assessment
Portfolio risk remains broadly stable.
Strong occupier markets in our core
sectors have supported improved
investor interest in London offices and
retail parks, although geopolitical and
macroeconomic uncertainty,
alongside elevated interest rates
continue to weigh on near-term
sentiment. Investment activity has
been below target reflecting subdued
London market conditions for larger
lot sizes.
Emerging risk trends:
a
Elevated geopolitical instability
b
Advances in AI and
automation
c
Shifting occupier demand
patterns
Opportunity/approach
Our diversified portfolio strategy
targets subsectors with strong rental
growth, supported by disciplined
capital allocation and active recycling
into higher-returning retail parks and
best-in-class campus developments.
Impact:
Medium
Likelihood (post-mitigation):
Medium
Change in risk assessment in year:
Risk appetite:
Balanced
KRIs:
– Execution of targeted acquisitions and
disposals in line with capital allocation
plan (overseen by the Investment
Committee)
– Annual IRR process which forecasts
prospective returns of each asset
– Portfolio liquidity including percentage
of our portfolio in joint ventures
Overseen by:
Executive Committee, Investment
Committee and Head of Real Estate
andInvestments
Link to strategy:
A
B
C
D
6
Development
Development offers opportunity for outperformance but carries elevated risks, including leasing exposure, construction
cost and timing pressures, contractor performance, planning decisions, and changes in occupier or investment demand.
Risk mitigation
– Controlled Development Strategy:
Exposure managed within defined
risk thresholds, supporting by pre
letting and fixed price contracts.
– Robust Appraisal Process: Investment
Committee evaluates returns
against risk-adjusted hurdle rates.
– Contractor Oversight: Rigorous
selection and active monitoring of
contractors.
– Experienced Team: In-house
expertise overseeing design,
construction and delivery.
– Planning & Stakeholder
Engagement: Early engagement
with authorities and communities
tomitigate planning risks.
– Sustainable Approach: ESG risks
embedded in decision making.
Risk assessment
Development risk remains stable and
within risk appetite, with progress
across the committed programme and
a continued disciplined approach to
new developments.
Emerging risk trends:
a
Elevated geopolitical instability
c
Shifting occupier demand
patterns
f
Heightened supply chain
vulnerabilities
g
Energy security and market
volatility
Opportunity/approach
We are advancing developments on
ade-risked and capital-light basis,
securing major pre-lets, entering into
fixed priced construction contracts,
and partnering with others to
accelerate delivery and lock in returns.
Return and yield targets have been
adjusted to reflect higher exit yields
and finance costs and future
developments will be assessed
against these criteria and our
balancesheet capacity.
Impact:
Medium
Likelihood (post-mitigation):
Medium
Change in risk assessment in year:
Risk appetite:
Balanced
KRIs:
– Total development exposure (<12.5% of
portfolio value); Speculative development
exposure (<12.5% of portfolio ERV)
– Progress on execution of key
development projects against plan
(including evaluating yield on cost)
– Non-income producing pipeline
– Development spend covered by fixed
priced contracts
Overseen by:
Executive Committee, Investment
Committee and Head of Development
Link to strategy:
A
B
C
D
STRATEGIC REPORT
5555
British Land
Annual Report and Accounts 2026
PRINCIPAL RISKS CONTINUED
7
Financing
Failure to effectively manage financing risks could result in a shortage of funds to sustain operations or debt repayments.
This risk includes reduced debt availability, higher borrowing costs, leverage impacts and covenant breaches.
Risk mitigation
– Proactive Review of Funding
Requirements: Regular assessment
of funding requirements and active
monitoring of debt and capital
markets.
– Lender Relationships: Maintain
strong, long term relationships with
finance providers.
– Interest Rate Hedging: Appropriate
ranges of hedging on the interest
rates on our debt with a focus on
shorter term protection.
– Disciplined Leverage Management:
Balance debt and equity to optimise
returns while mitigating property
valuation risks. Maintain resilience
through cycles, considering LTV and
Net Debt to EBITDA.
– Covenant Monitoring: Ongoing
monitoring to ensure sufficient
headroom.
– Joint Ventures: Spread risk through
JVs, including non-recourse debt.
Risk assessment
Financing risk is stable. While
geopolitical events have driven
volatility in interest rates and credit
markets, financing conditions remain
supportive. Since 31 March 2025, we
have completed £3.1bn of financing
activity. Liquidity remains strong, with
£1.6bn of undrawn facilities and cash,
and no requirement to refinance until
early 2029. Exposure to higher finance
costs is mitigated by our hedging
strategy, with 71% of debt hedged on
average over the next five years.
Emerging risk trends:
a
Elevated geopolitical instability
Opportunity/approach
The current external environment
reinforces the importance of a strong
balance sheet. Fitch reaffirmed our ‘A’
Senior unsecured credit rating with
stable outlook. We retain strong
liquidity and continued access to a
range of debt markets.
Impact:
Medium
Likelihood (post-mitigation):
Low to medium
Change in risk assessment in year:
Risk appetite:
Risk averse
KRIs:
– Period until refinancing is required
(liquidity)
– Net Debt to EBITDA (Group)
– LTV (proportionally consolidated)
– Financial covenant headroom
– Percentage of debt with interest rate
hedging (spot and average over next
five years)
Overseen by:
Derivatives Committee, CFO
8
Environmental and Social Sustainability
Environmental and social sustainability risks may affect performance, reputation, assets and progress against our 2030
goals, including climate-related physical and transition risks, regulation, customer demand and social impacts on
communities and nature.
Risk mitigation
– ESG Oversight: Regular reviews of
the ESG programme and targets by
the Board, Executive and ESG
Committees.
– TCFD & Scenario Analysis:
Overseen by Risk and ESG
Committees.
– Performance Monitoring: Guided by
SBTi targets, Net Zero Pathway,
Local Charter and Sustainability
Brief.
– Environmental Management: ISO
14001 and 50001 certified.
– Integrated Strategy: Sustainability
embedded in investment and
development decisions.
– Building Standards: Targeting
BREEAM Outstanding (offices),
Excellent (retail), HMQ3*
(residential), and NABERS UK (new
offices).
– Data Assurance: Independent
verification supports transparency
and credibility.
Risk assessment
Environmental and social sustainability
risk remains stable, supported by
continued delivery of the 2030
Sustainability Strategy. Portfolio
sustainability performance continues to
improve, with 75% now EPC-rated A or
B, alongside strong progress against our
2030 decarbonisation targets. We remain
proactive in responding to regulatory
and climate-related developments.
Emerging risk trends:
e
Long term climate change
impacts
f
Heightened supply chain
vulnerabilities
g
Energy security and market
volatility
Opportunity/approach
We view sustainability as both a
responsibility and an opportunity, guided
by our three pillars – Greener Spaces,
Thriving Places, and Responsible Choices
– to address our core ESG priorities.
Impact:
Medium
Likelihood (post-mitigation):
Medium
Change in risk assessment in year:
Risk appetite:
Balanced
KRIs:
– Embodied and operational carbon emissions
– Energy efficiency, including energy
performance certificates (EPCs)
– Future cost of carbon credits to meet
our net zero carbon transition
– Developments target BREEAM and
NABERS UK standards
– Flood risk vulnerability
Overseen by:
ESG Committee, Sustainability
Committee, Risk Committee and COO
Link to strategy:
A
B
C
D
Link to strategy:
A
B
C
D
56
British Land
Annual Report and Accounts 2026
9
People and Culture
Failure to attract, retain and develop talent with the right skills and mindset could impact our ability to deliver our
strategy and drive performance. A thriving, inclusive culture is essential to effective decision making and maintaining our
competitive advantage, to allow us to achieve our performance driven goals. This risk includes employee engagement,
talent retention, diversity and inclusion, manager effectiveness and alignment of corporate values.
Risk mitigation
– Targeted Recruitment: Direct and
trusted third party hiring.
– Talent & Performance Management:
Succession planning and outcome
focused reviews.
– Pay & Benefits: Competitive,
benchmarked, performance-linked
remuneration.
– Employee Development: Training
and mandatory learning
programmes.
– Leadership: Focus on leadership
that enhances team performance
whilst promoting wellbeing.
– Flexible Working: Clear hybrid and
flexible policies which sets out our
expectations.
– Diversity & Inclusion: Embedded
within our 2030 Sustainability
strategy.
Risk assessment
The People and Culture risk has
risen slightly, reflecting a reduction
in engagement scores, albeit from
high levels. This followed planned
restructuring and headcount
reductions. While the actions
have had a short-term impact on
staff engagement, as anticipated,
they were implemented to drive
efficiency, increase accountability
and support stronger collaboration,
to promote the long-term success of
the business. Also, the CEO transition
introduces some uncertainty,
however it is progressing through a
structured search and recruitment
process that supports continuity
and long term leadership stability.
Emerging risk trends:
b
Advances in AI and automation
Opportunity/approach
Our focus is on having the right
people to deliver strategic priorities
while promoting our employee value
proposition to attract and retain
talent, recognising people and culture
as key drivers of long-term success.
Impact:
Medium
Likelihood (post-mitigation):
Medium
Change in risk assessment in year:
Risk appetite:
Balanced
KRIs
– Voluntary employee turnover and
reasons cited
– Employee engagement levels
– Gender and ethnicity representation
atall levels, including job applications
– Gender and ethnicity pay gaps
– Employee wellbeing indicators
– Internal job moves and promotion rates
Overseen by:
Remuneration Committee, ESG
Committee, Executive Committee, CEO
and HR Director
10
Customer
The Group’s primary source of income is rent received from our customers. This could be adversely affected by non-payment,
occupier failure, evolving customer needs, leasing challenges, poor customer service and potential changes in lease structures.
Risk mitigation
– Diversified Customer Base: High
quality, diversified occupier base to
mitigate individual occupier risks.
– Strong Occupier Oversight:
Thorough covenant checks and
ongoing monitoring, supported by a
risk watchlist to limit exposure to
higher risk occupiers.
– Occupier Engagement and Market
Knowledge: Close collaboration to
understand and respond to evolving
customer needs.
– Active Asset Management:
Proactive management of lease
events to maintain high occupancy
and minimise vacancies.
– Customer Satisfaction: Regular
surveys to track occupier
experience and service levels.
Risk assessment
Customer risk remains broadly stable,
supported by strong rent collection
and leasing progress. While retailer
administrations and restructurings
have increased, their financial impact
has been proactively managed and
limited. Macroeconomic pressures
persist, and over the longer term
AI-driven structural change may
influence certain occupier business
models and space requirements, while
also presenting new opportunities,
that we continue to monitor closely.
Emerging risk trends:
a
Elevated geopolitical instability
b
Advances in AI and automation
c
Shifting occupier demand
patterns
Opportunity/approach
Our strategic positioning across
campuses and retail parks, along with
strong collaborative relationships
(in particular with major retailers),
is focused on providing high
quality spaces, while maintaining
sustainable occupancy costs.
Impact:
Medium
Likelihood (post-mitigation):
Medium
Change in risk assessment in year:
Risk appetite:
Balanced
KRIs
– Market letting risk, including vacancies,
upcoming expiries and breaks and
speculative development
– Occupier covenant strength and
concentration (including percentage
ofrent classified as ‘High Risk’ and
affected by insolvencies)
– Occupancy and weighted average
unexpired lease term
– Rent collection
Overseen by:
Risk Committee, Head of Real Estate and
Investments and CFO
Link to strategy:
A
B
C
D
Link to strategy:
A
B
C
D
STRATEGIC REPORT
5757
British Land
Annual Report and Accounts 2026
PRINCIPAL RISKS CONTINUED
11
Operational Delivery, Systems and Compliance
Failure to manage operational, systems and compliance risks, including technology, cyber incidents, health and safety,
supply chain and internal controls, could damage reputation, earnings and asset values or lead to compliance breaches.
Risk mitigation
– Executive Oversight: Executive
and Risk Committees oversee
operational, systems and
compliance risks.
– Technology and Cyber Security:
The Information Security Steering
Committee, led by the CFO,
oversees cyber and technology risk,
reporting into the Risk and Audit
Committees. Cyber risks are
managed through our ISO 27001
framework, supported by robust
tools, policies, third party testing
and mandatory training.
– Health & Safety: The Health &
Safety Committee, chaired by the
Director of Operations, governs
KPIs and policies and reports to the
Risk, Audit and ESG Committees.
Annual independent property risk
assessments (including fire) drive
prioritised actions. All employees
receive annual, role-specific
training. Our Health & Safety
Management System is certified to
ISO 45001.
– Third Party Relationships: Robust
supplier selection process, contracts
with clear service levels and
ongoing monitoring; approved
supplier base to support supply
chain resilience; joint ventures
managed through strong partner
selection, robust governance, clear
contracts and oversight.
– Key Controls (covering both
material and supporting controls):
Multi-line assurance framework,
biannual management attestations,
ongoing control testing, exception
reporting with defined remediation
actions, and independent review by
internal audit.
Risk assessment
No material operational, systems or
compliance issues were identified
during the year. Operational risk has
increased slightly, reflecting the
planned launch of the ERP finance
transformation in 2027 and a
heightened cyber-security threat
environment. The Group continues to
strengthen its IT security,
infrastructure and internal control
framework and remains on track to
meet the requirements of Provision 29
of the revised UK Corporate
Governance Code for FY27.
Also, in the year we updated our
Fraud Assessment Framework and
risk assessment to align with the
requirements of the Failure to Prevent
Fraud legislation.
Emerging risk trends:
b
Advances in AI and automation
d
Evolving cyber security threats
f
Heightened supply chain
vulnerabilities
Opportunity/approach
The Risk Committee provides
oversight of our core operational
and compliance risks, ensuring we
continue to strengthen operational
capability and efficiency across our
people, processes and technology.
Bycontinuing to invest in our systems,
we enhance our resilience and
agility, positioning the organisation
to effectively manage risk and
capitalise on future opportunities.
Impact:
Medium
Likelihood (post-mitigation):
Low to medium
Change in risk assessment in year:
Risk appetite:
Risk averse
KRIs
– Information systems vulnerability score
– Cyber security breaches
– Information Security risk register
– Health and safety risk assessments
– Health and safety incidents
– Risk and control exceptions
Overseen by:
Audit Committee, Risk Committee, Health
& Safety Committee, Information Security
Steering Committee, General Counsel and
Company Secretary, andCFO
Link to strategy:
A
B
C
D
Key
Increase
No change
Decrease
A
Source value-add opportunities
B
Develop and actively manage
C
Recycle capital
D
Leadership in sustainability
58
British Land
Annual Report and Accounts 2026
VIABILITY STATEMENT
The most severe but plausible downside scenario (the
‘severe downside scenario’), reflecting a severe economic
downturn, incorporated the following assumptions:
– Structural changes to the Property Market and Customer
risk; reflected by an ERV decline, occupancy decline,
increased void periods, development delays, no new
lettings during FY27 and the impact of a proportion of
our high risk and medium risk occupiers entering
administration.
– A reduction in investment property demand to the level
seen in the last severe downturn in 2008/09, with
outward yield shift to c.9% net equivalent yield.
As at 31 March 2026, the Group’s debt covenant headroom
is 34%, being the level by which portfolio property values
could fall before a financial breach occurs. Over the
five-year base case forecast period the lowest headroom is
30% on current commitments. Under the ‘severe downside
scenario’ this reduces to 13%, prior to any mitigating
actions such as asset sales, indicating that financial
covenants on existing facilities would not be breached.
Based on the Group’s current commitments and available
facilities there is no requirement to refinance until early
2029. In the normal course of business, financing is
arranged in advance of expected requirements and the
Directors have reasonable confidence that additional or
replacement debt facilities will be put in place prior to
thisdate.
In the ‘severe downside scenario’ the refinancing date is
brought forward to mid-2028. However, in the event new
finance could not be raised, mitigating actions are
available to enable the Group to meet its future liabilities at
the refinancing date, principally asset sales, which would
allow the Group to continue to meet its liabilities over the
assessment period.
Viability statement
Having considered the forecast cash flows and covenant
compliance and the impact of the sensitivities in
combination with the ‘severe downside scenario’, the
Directors confirm that they have a reasonable expectation
that the Group will be able to continue in operation and
meet its liabilities as they fall due over the period ending
31 March 2031.
Going concern
The Directors also considered it appropriate to prepare the
financial statements on the going concern basis. Further
details on the underlying assessment can be found in Note
1 of the consolidated financial statements.
Assessment of prospects
The Directors have worked consistently over several years
to ensure that British Land has a robust financial position
from which the Group now benefits.
– The Group has access to £1.6bn undrawn facilities and
cash. Before factoring in any income receivable, the
facilities and cash would be sufficient to cover forecast
capital expenditure, property operating costs,
administrative expenses, maturing debt and interest over
the next 12 months.
– The Group retains significant headroom to debt
covenants, has no income or interest cover covenants on
unsecured debt and has no requirement to refinance
until early 2029.
– In the year, British Land raised £1bn new unsecured
finance and agreed extensions by one year of existing
revolving credit facilities of £1.1bn.
The strategy and risk appetite drive the Group’s forecasts.
These cover a five-year period and consist of a base case
forecast which includes committed transactions only, and
a forecast which also includes non-committed transactions
the Board expects the Group to make. A five-year forecast
is considered to be the optimum balance between the long
term nature of property investment and the Group’s long
term business model to create and manage outstanding
places, with our weighted average lease lengths and drawn
debt maturities of around five years (5.4 and 5.1 years
respectively at 31 March 2026). Forecasting greater than
five years becomes increasingly unreliable, particularly
given the historically cyclical UK property industry.
Assessment of viability
For the reasons outlined above, the period over which the
Directors consider it feasible and appropriate to report on
the Group’s viability remains five years, to 31 March 2031.
The assumptions underpinning the forecast cash flows and
financial covenant compliance forecasts were sensitised to
explore the resilience of the Group to the potential impact
of the Group’s significant risks.
The principal risks table on pages 52 to 58 summarises
those matters that could prevent the Group from
delivering on its strategy. A number of these principal risks,
because of their nature or potential impact, could also
threaten the Group’s ability to continue in business in its
current form if they were to occur.
The Directors paid particular attention to the risk of a
deterioration in economic outlook which would adversely
impact property fundamentals, including investor and
occupier demand, which would have a negative impact on
valuations, cash flows and a reduction in the availability of
finance. In addition, we have sensitised for the potential
implications of a major business event and/or business
disruption. The remaining principal risks, whilst having an
impact on the Group’s business model, are not considered
by the Directors to have a reasonable likelihood of
impacting the Group’s viability over the five-year period to
31 March 2031.
STRATEGIC REPORT
5959
British Land
Annual Report and Accounts 2026
NON-FINANCIAL AND SUSTAINABILITY INFORMATION STATEMENT
Non-financial area
Risk
areas
1
Policies Purpose and scope Operation and outcome
Financial crime
We operate a
zero-tolerance
approach to
bribery, corruption
and fraud. More
information is
available in the
Audit Committee
report on pages 93
to 99.
11 Anti-Bribery
and Corruption
Policy and Gifts,
Hospitality and
Entertainment
Policy
– Details the expected conduct of all British
Land staff with respect to relationships with
suppliers, agents, public officials and
charitable and political organisations
– Outlines staff responsibilities regarding the
reporting of any breaches and details
consequences of breaches for staff and the
Group as a whole
– Provides for staff training and
communication around the policy as well as
monitoring and review by management
These policies reflect our zero-tolerance
approach to such activity both in and around
the business. They provide education and
monitoring in addition to deterrence and
prevention. The policies are accessible by all
employees via the intranet and mandatory
training is required for all staff in relation to
them. Our whistleblowing service can be
accessed by all employees should they
prefer to raise a concern anonymously
instead of with their line manager. This is an
independent and confidential telephone
service and web portal. British Land carries
out due diligence on counterparties to
comply with legislation on money laundering
and to enable it to consider how a
transaction with the counterparty may
reflect on British Land’s reputation. In
addition to sanctions screening, we also
screen and monitor on an ongoing basis our
occupiers and suppliers for adverse media
which might indicate a fraud or bribery/
corruption risk. This is taken into account
when deciding whether we engage or renew
with an occupier or supplier. Fraud, AML and
Anti-Bribery and Corruption risk
assessments are also routinely conducted.
The HR Director, General Counsel and
Company Secretary has overall responsibility
for all four policies which are regularly
reviewed and approved by the Audit
Committee. Any matters raised under these
policies are subject to investigation by
theCompany.
Anti-Fraud
Policy
– Provides for fraud prevention training for all
British Land staff and requires staff
participation in any fraud risk assessments
undertaken by the Group where relevant
– Outlines protocol for the reporting of
suspected fraud with reference to the
Group’s Whistleblowing Policy
Whistleblowing
Policy
– Provides contact details for the Group’s
third party whistleblowing service
– Outlines the types of concerns that can
be reported to the whistleblowing service
– Details safeguarding measures in place for
staff and outlines how the Group will
respond in cases of whistleblowing
Anti-Money
Laundering
Policy
– Lists ‘red flags’ detailing the kind of
suspicious activity that may indicate an
attempt to launder money
– Details monitoring and review procedures
under the policy
Environmental
matters
Our long term
commitment to
sustainability
and minimising our
environmental
impact is one of
British Land’s key
differentiators.
As occupiers focus
on minimising their
carbon footprint,
our ability to deliver
more sustainable
space is a key
advantage. See
pages 37 to 39 and
64 to 73 for our
climate-related
financial
disclosures.
4, 5, 6,
8
Sustainability
Policy
– Provides for sustainable decisions to be our
‘business as usual’ approach
– Outlines our 2030 Sustainability Strategy:
our goal of decarbonising our portfolio as
well as growing social value and wellbeing
in the communities in which we operate
In 2024, we updated our Sustainability Policy
and Brief to ensure all decisions are
environmentally, socially, and financially
sound.
Our internal carbon levy (reviewed annually)
integrates environmental costs directly into
development budgets. For projects
committed after 1 April 2024, the rate is £90
per tonne of embodied carbon. These funds
support our Transition Vehicle, which
finances carbon credit purchases following
rigorous due diligence.
To remain transparent, we participate in ESG
indices and publish annual performance
data.
Accountability:
– Sustainability Policy: Chief Operating
Officer
– Sustainability Brief: Head of Developments
For details on our KPIs, see pages 3 and 36
or our 2026 Sustainability Progress Report
found at www.britishland.com/SPR
Sustainability
Brief
– Aligns with our 2030 Sustainability Strategy
– Gives effect to our Sustainability Policy
– Sets out our sustainability ambitions, the
KPIs and standards required to
achievethem
READ MORE
For a description of our business model, see pages 14 and 15
60
British Land
Annual Report and Accounts 2026
Non-financial area
Risk
areas
1
Policies Purpose and scope Operation and outcome
Employees
British Land
requires our
employees to act in
ways that promote
fairness, inclusion
and respect in their
dealings with
colleagues,
customers,
suppliers and
business partners.
9 Conduct and
People Policies
– Sets out minimum standards required of all
employees in all their dealings in and on
behalf of the Group
– Gives effect to our core values of bring your
whole self; listen and understand; be
smarter together; build for the future; and
deliver at pace
– Comprises a number of separate policies
including but not limited to our Equal
Opportunities Policy; our Disabled Workers
Policy; and our Bereavement,
Compassionate and Emergency
Leave Policy
British Land is committed to fairness,
inclusion, and respect. Our corporate values
and DE&I Strategy ensure our workforce
reflects the communities we serve, helping
us create welcoming spaces for everyone.
You can find our progress on pages 42
and43.
The HR Director, General Counsel, and
Company Secretary oversees all
employment policies.
Social matters
British Land has
long recognised
that a commitment
to good social
practices is
essential to the way
we operate; as
occupiers
increasingly
consider the
contribution they
make to society, our
ability to support
them is an
advantage. See
pages 40 to 41.
6, 8, 9 Sustainability
Policy
See previous page We value our relationships with communities,
suppliers, and partners. Communication is
key to meeting our social obligations;
listening to the needs and concerns of our
staff and communities improves our ability
to provide a safe, inclusive and welcoming
environment. Overall responsibility sits with
our Chief Operating Officer (Local Charter
and Supplier Code of Conduct) and Head of
Development (Health and Safety Policy).
Both report to the ESG Committee, with
health and safety data reviewed by the Risk
Committee.
Read more about our social impact
commitments and KPIs on pages 3 and 36
and in our 2026 Sustainability Progress
Report www.britishland.com/SPR
Sustainability
Brief
See previous page
Local Charter Outlines key focus areas where we are active
in local communities: supporting educational
initiatives for local people; supporting local
training and jobs; and providing affordable
space
Supplier Code
of Conduct
Outlines standards required of our suppliers in
a number of areas, including but not limited to
health and safety; working hours; responsible
sourcing; community engagement; and
environmental impact
Details our zero-tolerance approach to: child
labour; forced labour; discrimination; and
bribery, fraud and corruption
Provides for monitoring, corrective action and
reporting under the policy. Work practice
audits are carried out on our high risk
suppliers
Health and
Safety Policy
Details how British Land will meet the
requirements of the Health and Safety at Work
Act 1974
Outlines how health and safety matters are
managed for staff, colleagues, service
providers and others affected by the
Company’s undertakings
Human rights
British Land
recognises the
importance of
respecting human
rights and was a
signatory to the UN
Global Compact in
FY26. We are
committed to the
responsible
management of
social, ethical and
environmental
issues across our
supply chain. For
further information
about our activities
in this area, see our
2026 Sustainability
Progress Report at
www.britishland.
com/SPR
6, 9, 11 Supplier
Code of
Conduct
See above British Land maintains a zero-tolerance
policy regarding human rights infringements
across all operations and partnerships. We
conduct rigorous due diligence to ensure all
parties adhere to our ethical standards.
During the past year, we audited eight
high-risk suppliers. Only one scored below
the 80% threshold, and a formal
improvement plan is now active for that
partner. Our annual Slavery and Human
Trafficking Statement is available at www.
britishland.com/modern-slavery-statement
Slavery and
Human
Trafficking
Statement
Indicates higher risk areas, including the
procurement of specific materials and fair
treatment of workers on construction sites and
in the properties we manage
Outlines strategy for reduction of risk in our
supply chains with regard to social,
environmental and ethical issues
Our anti-modern slavery training is mandatory
for all directly employed staff
1. Linkages to our principal risks can be found on pages 52 to 58.
STRATEGIC REPORT
6161
British Land
Annual Report and Accounts 2026
18,846
18,199
19,764
20,186
19,098
22,318
5,508
7,615
2,121
3,080
1,186
17,098
3,454
2026
2024
2025
2023
2022
2021
2020
Absolute emissions scope 1 and 2 (tonnes)
K
ey
Location-based methodology
Market-based methodology
3,588
STREAMLINED ENERGY AND CARBON REPORTING (SECR)
GREENHOUSE GAS
REPORTING
FY26 in review
Context Funding the low carbon transition
During FY26, we made strong progress against all of our
2030 decarbonisation targets (see page 36), while
advancing our longer term pathway: new targets have
been submitted for Science Based Target initiative (SBTi)
validation, aligned to a 1.5°C scenario and requiring an
ambitious 90% emissions reduction by 2050 under the
Corporate Net-Zero Standard and Buildings Criteria, with
reporting from FY27. We continued reductions in
operational carbon intensity across our managed portfolio,
down 47% since FY19 driven by energy efficiency and grid
decarbonisation, alongside a whole building energy
intensity reduction of 24%. We continued our focus on
performance in use, adopting NABERS UK Design for
Performance across all office developments and securing
target ratings.
Our Transition Vehicle, launched in April 2020, remains a
key mechanism to decarbonise our portfolio, with £26m
1
committed to high-impact interventions. The total estimated cost
to deliver our decarbonisation pathways is £100m, much of
which is recoverable through the service charge as part of
standard life cycle replacement; since FY19, we have invested
£34m
2
, including £8m in FY26. We have prioritised electrification
and efficiency across our portfolio, installing 101 heat pump units
across our portfolio since FY14, with55% of managed
offices (by ERV) almost fully electric in FY26, only using
gas for top-up. Fully electric design is being adopted
across office developments. To drive grid decarbonisation,
93% of energy we procured in FY26 came from certified
renewable
sources in line with RE100 ambition. We continue to
pilot hourly matching of our consumption with production
profiles, typically achieving over 75% matching annually.
3
1. Includes capital expenditure and recoverable service charge forward funding
at British Land share.
2. Includes capital expenditure, service charge and occupier spend.
3. Settled full year data not available at time of publication.
Operational performance RE100 and procuring renewable energy
We continued to strengthen the operation of our energy
management system across the portfolio, building on ISO 50001
accreditation in our commercial offices and extending smart
metering and performance monitoring across assets. This year,
operational carbon intensity fell by 47% from the FY19 baseline
to 36kgCOe per sqm, with whole building operations energy
intensity reducing by 24% to 157kWhe per sqm, despite
increased activity across retail and office campuses. Targeted
efficiency measures, including the installation of an air source
heat pump, at MarbleArch House improved the building’s EPC
rating C to B, supporting progress towards our MEES aligned
decarbonisation pathway. Through our development pipeline,
we are designing for best-practice performance, with new office
buildings on track to achieve average base-building energy use
of 72kWhe per sqm, ahead of our 2030 trajectory.
British Land has been a signatory to RE100
1
since 2016,
which commits us to procuring 100% renewable electricity.
This year, 93% of landlord procured energy was from
renewable sources. Our proportion of renewable gas was
95% this year, whilst renewable electricity was 93%.
We have also we generated 1,273MWh onsite across 11
managed assets.
1. Global initiative of companies committed to using 100% renewable electricity,
led by Climate Group.
Greenhouse gas emissions – intensity
Year ended 31March 2026 2025 2024
Total
portfolio
tCO
2
e per sqm
1
Offices tCO
2
e persqm
1
Shopping
Centres
tCO
2
e per sqm
Retail
Parks
tCO
2
e per sqm
Total
portfolio
tCO
2
e per gross rental
income (£m)
2
1
1. Restated scope 1 emissions for increased accuracy.
2. This intensity only incorporates scope 1 and 2 emissions.
For scope 1 and 2 emissions calculation, see our 2026
Sustainability Progress Report at britishland.com/SPR
62
British Land
Annual Report and Accounts 2026
Scope 1 and 2 emissions and associated energy use
Year ended 31 March
Tonnes CO
2
e MWh
2026 2025 2024 2026 2025 2024
Scope 1 (fuel combustion):
Scope 1 (refrigerant loss): – – –
Scope 2 (purchased electricity):
Location-based
Market-based – – –
Total scope 1 and 2 emissions
andassociated energy use
Location-based
Market-based – – –
Proportion of scope 1 and 2
emissions assured by an
independent third party
1
Proportion that is UK based
1. Our external assurance covers the total energy consumption; for more details on energy and assurance see our 2026 Sustainability Progress Report
at www.britishland.com/SPR
Scope 3 emissions
Year ended 31 March
Tonnes CO
2
e
2026 2025 2024
Purchased goods and services
1
Capital goods
2
3
Fuel and energy related activities (upstream)
3
3
Waste generated in operations
Business travel
Employee commuting and working from home
Downstream leased assets Location-based
3
Proportion of scope 3 emissions assured by a third party
Total scope 1-3 emissions Location-based
3
1. The increase in operational embodied carbon (in-use) emissions is primarily due to improved data availability from landlord-managed assets, including fit outs and retrofit
projects valued over £1m and M&E replacements. In previous years, these emissions were estimated using benchmark assumptions rather than actual project data.
2. This only includes completed development and refurbishment projects during the reporting year. In 2026, multiple major projects completed, which is why this value
increased significantly. See page 39 for our embodied carbon intensity approach and targets.
3. Restated for increased accuracy.
– Scope 1 and 2 emissions cover 84% of our standing
portfolio by value. We have used purchased energy
consumption data, the GHG Protocol Corporate
Accounting and Reporting Standard (revised edition)
and emission factors from the UK Department for
Business, Energy & Industrial Strategy’s (BEIS) 2025
guidelines.
– Omissions and estimations: for landlord procured
utilities, where asset energy and water data were
partially unavailable, we used data from adjacent or
equivalent periods to estimate this missing data. In FY26,
this accounts for <0.22% of total reported energy
consumption and <1.51% of total reported water
consumption.
– Gross Rental Income (GRI) from the managed portfolio
comprises Group GRI of £403m (FY25: £338m), plus
100% of the GRI generated by joint ventures and funds
of £410m (FY25: £387m), less GRI generated assets
outside the managed portfolio of £150m (FY25: £118m).
– For full details on our reporting criteria and the
calculation of scope 3 value chain emissions, see the
methodology in our 2026 Sustainability Progress Report
at www.britishland.com/SPR
– For details of our GHG emissions boundaries, see the
Pathway to Net Zero at www.britishland.com/pathway-
to-net-zero
Accounting treatment of biogas
To reflect our procurement of renewable gas, we report a
scope 1 (market-based) figure to reflect the life cycle
benefits of biogas.
In this market-based calculation, we use the UK
Government’s biogas factor, which includes CH and NO
emissions but zero-rates CO
2
emissions due to CO
2
absorption that occurs during the growth of biogas
feedstock. However, as noted below, bioenergy feedstocks
do produce CO
2
emissions during combustion, so the
‘combustion emissions’ are provided below for full
transparency.
Biogas
UK factor
(kg CO
2
e
perkWh)
2026 total
(tonnes
CO
2
e)
2025 total
(tonnes
CO
2
e)
Net emissions (excl CO
2
e)
Combustion emissions
(incl CO
2
e)
Our methodology
We have reported on all greenhouse gas (GHG) emission
sources required under the Companies Act 2006
(Strategic Report and Directors’ Reports) Regulations 2013
and the Companies (Directors’ Report) and Limited
Liability Partnerships (Energy and Carbon Report)
Regulations 2018 (‘the 2018 Regulations’). These sources
fall within our consolidated financial statements and relate
to head office activities and controlled emissions from our
standing portfolio.
STRATEGIC REPORT
6363
British Land
Annual Report and Accounts 2026
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)
CLIMATE-RELATED
FINANCIAL DISCLOSURES
This statement aligns with the TCFD framework, as
required under FCA UK Listing Rule 6.6.6R(8). It is
consistent with the TCFD recommendations and relevant
recommended disclosures. In addition, we have considered
the sector-specific guidance and recommended
disclosures for Materials and Buildings Group.
TCFD Pillar TCFD Recommended Disclosure Page
Governance a) Describe the Board’s oversight
of climate-related risks and
opportunities.
b) Describe management’s role in
assessing and managing climate-
related risks and opportunities.
Strategy a) Describe the climate-related
risks and opportunities the
organisation has identified over
the short, medium and long term.
b) Describe the impact of climate-
related risks and opportunities on
the organisation’s businesses,
strategy, and financial planning.
c) Describe the resilience of the
organisation’s strategy, taking into
consideration different climate-
related scenarios, including a 2°C
or lower scenario.
Risk
Management
a) Describe the organisation’s
processes for identifying and
assessing climate-related risks.
b) Describe the organisation’s
processes for managing climate-
related risks.
c) Describe how processes for
identifying, assessing, and
managing climate-related risks
are integrated into the
organisation’s overall risk
management.
and
Metrics and
Targets
a) Disclose the metrics used by
the organisation to assess
climate-related risks and
opportunities in line with its
strategy and risk management
process.
b) Disclose scope 1, scope 2, and,
if appropriate, scope 3
greenhouse gas (GHG) emissions,
and the related risks.
c) Describe the targets used by
the organisation to manage
climate-related risks and
opportunities and performance
against targets.
Introduction
We consider climate change within our principal risk
‘Environmental and Social Sustainability’ see pages 60 and
61. Sustainability is embedded throughout our business
and for more than a decade we have been recognised for
this approach. We understand our responsibility and
opportunity to support an equitable transition to a low
carbon economy and to create resilient places for our
customers. In addition, we believe that delivering on these
sustainability targets will create value for our business as
demand from occupiers and investors gravitates towards
the best, most sustainable space.
Through our TCFD-aligned disclosures, we aim to provide
transparent, decision-useful insights into how
climate-related risks and opportunities inform our strategic
direction, operational planning and long term value
creation. These disclosures are intended to help investors,
customers and wider stakeholders understand the
resilience of our business in a changing climate, as well as
the actions we are taking to support a just and orderly
transition to a low carbon economy.
In FY26, we continued to make good progress against our
2030 Sustainability Strategy. To remain aligned with the
latest climate science and evolving definitions of net zero,
we reviewed our Science Based Target initiative (SBTi)
targets in line with forthcoming Buildings Guidance, while
maintaining our 2030 goals as consistent markers of
ambition. We have submitted our targets and awaiting
SBTi validation, and will report progress from FY27.
This year, we refreshed our Nature Strategy, setting out
new commitments to trial embodied carbon ecological
assessments and enhance access and enjoyment of green
space at our places. Furthermore, we report against
Taskforce on Nature-related Financial Disclosures (TNFD)
recommendations for the first time in the 2026
Sustainability Progress Report.
We have progressively taken action to prepare for future
reporting developments. This includes monitoring the
introduction of the UK Sustainability Reporting Standards
(UK SRS S1 and S2). We are also continuing work to align
with emerging guidance from the Transition Plan Taskforce
as expectations around transition planning evolve. These
steps ensure we remain well prepared as disclosure
standards continue to develop.
READ MORE
about our approach to decarbonisation and nature climate
resilience in our 2026 Sustainability Progress Report on
pages7 to 18 www.britishland.com/SPR
64
British Land
Annual Report and Accounts 2026
Governance
(a) Board oversight
The Board has ultimate accountability for the Group’s
strategy and risk management, which includes oversight
ofclimate-related risks and opportunities. Oversight is
exercised through direct Board engagement, the work
ofits Committees and delegation to the Chief Executive.
TheBoard receives an update on climate-related issues
and progress against our targets several times per year.
The Board monitors principal risks, including
‘Environmental and Social Sustainability’, to ensure
appropriate controls and processes are in place for
effective management as recommended by the Audit
Committee. The Board approves our TCFD disclosure
asrecommended by the Audit Committee.
The ESG Committee oversaw the delivery of our
Sustainability Strategy. The Remuneration Committee is
responsible for setting ESG targets for executive
remuneration and receives progress updates against these
targets three times a year. The Long Term Incentive Plan
for Executive Directors includes targets linked to the
reduction of operational carbon and operational energy,
and the Annual Incentive Plan includes targets linked to
our progress on portfolio EPC ratings and our performance
in GRESB. These targets are set out in the summary of the
Remuneration Policy (see page 102). The Audit Committee
reviews and approves the effectiveness of risk
management and internal control processes for climate-
related risks throughout the year. In addition, itassesses
principal and emerging climate-related risks following
recommendation by the Risk Committee twice ayear.
(b) Management’s role
The Board provides oversight of climate-related risks and
opportunities and delegates day-to-day responsibility for
implementation of the Group’s strategy to the Chief
Executive, supported by the Executive Committee, with
management responsible for operating the systems,
processes and controls through which climate
considerations are integrated into business activities.
Executive responsibility
The Chief Financial Officer is the Board Director with
responsibility for climate-related matters and chairs the
Risk Committee, while the Chief Operating Officer leads
delivery of the Sustainability Strategy and chairs the
Sustainability Committee. Climate-related considerations
are embedded within investment and development
decision making and are reviewed by the Investment
Committee, chaired by the Head of Real Estate and
Investment. The Risk Committee oversees management’s
approach to identifying, assessing and managing material
climate-related risks, escalating significant and emerging
risks to the Audit Committee to support effective Board
oversight.
Sustainability team responsibility
The Sustainability team is responsible for the day-to-day
monitoring and management of climate-related issues and
works with business functions to identify risks and
opportunities through horizon scanning and stakeholder
engagement.
READ MORE
further information on our approach to Governance and
changes to our Governance structure with the effect from the
conclusion of our 2026 AGM can be found on page 76
FY26 Governance in action:
– COO sustainability training: our COO was previously
Joint Head of Canada Water, and so is knowledgeable on
our Sustainability Strategy and climate-related issues,
and has completed the Business & Sustainability
Programme course at Cambridge Institute for
Sustainability Leadership (CISL).
– CFO sustainability training: previously as the COO, our
CFO led the delivery of the Sustainability Strategy so has
extensive knowledge of our climate-related issues and
has also completed formal sustainability training by
completing the Business & Sustainability Programme
course at CISL.
– ESG Committee activities: outlined on pages 84 to 87
including the sustainability-related updates provided to
the Board by the ESG Committee Chair.
Strategy
(a) Our identified climate-related risks and opportunities
over our short, medium and long term time horizons.
Material risk and opportunities identification
TCFD divides climate-related risks into two categories – (1)
Risks associated with the transition to a low carbon
economy (e.g., policy and legal risks); and (2) The risks
related to the physical impacts of climate change – both
acute (event-driven e.g., floods: river, flash, coastal;
windstorm, extratropical cyclone) and chronic (longer term
shifts in climate patterns e.g., heat stress, precipitation,
drought, sea level rise).
We work with Willis Towers Watson (WTW) to identify and
assess our exposure to climate-related issues including
existing and emerging regulatory requirements. Where
relevant, this modelling has included input from key
internal business areas. In FY24, we updated our physical
issues modelling and in FY25 we updated our transition
issues modelling.
We used the climate exposure diagnostic metric and value
at risk (VaR) to assess our portfolio’s risk from
climate-related physical impacts. The climate exposure
diagnostic metric assesses an asset’s exposure based on
its location and the severity and intensity of potential
impacts. VaR is the financial impact quantification of asset
damage and business interruption from acute physical
risks. The VaR analysis considers both exposure to physical
risks and evaluates potential vulnerabilities and
consequences in terms of financial impact. These results
are considered a ‘residual’ measure, as risk adaptation
measures could mitigate potential financial impacts.
STRATEGIC REPORT
6565
British Land
Annual Report and Accounts 2026
Time horizons and scenarios
Transition risks were modelled in two climate scenarios
across two time horizons – short term (<12 months) and
medium term (5-10 years, up to 2030). When quantifying
transition risks beyond a 10-year timeframe, the underlying
assumptions become increasingly significant to the
resulting values. These assumptions have significant levels
of uncertainty so we have only presented transition risks in
the short and medium term.
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)
CONTINUED
Transition risk scenarios and parameters
Time
horizon
Scenario
name
IPCC
scenarios
IEA
scenarios
NGFS
scenarios
Temperature
rise
1
2030 UK
carbon price
Global
net zero
achieved by
Up to
2035
Net Zero World
(1.5 °C) scenario
Orderly RCP1.9
SSP1
NEZ2050 Net Zero
2050
<1.5°C $118 to $263 2050
Paris Consistent
(2°C) scenario
Orderly RCP2.6
SSP1
Sustainable
Development
Scenario
Below 2°C <2°C $53 to $82 2070
Disorderly Delayed
Transition
$0 to $25
1. Temperature rise in 2100 compared to pre-industrial levels
Physical risk scenarios and parameters
1
Time
horizon
Scenario
name
IPCC
scenarios
Atmospheric
CO
2
Temperature
rise
2
Sea level rise River flood modelling
sources
Coastal flood
modelling sources
Up to
2030
Current climate 410ppm 1.1°C 0.20m Munich Re
NATHAN
3
based
on JBA flood maps
WTW proprietary
coastal flood
exposure model
Post-
2050
Paris Consistent
(2°C) scenario
RCP2.6
SSP1
450ppm 1.6°C >0.55m Munich Re climate
hazard conditioned
based JBA flood
maps & Coupled
Model
Intercomparison
Project Phase 5.
Munich Re
climate hazard
sea level rise data
combined with
storm surge
Hothouse world
>4°C scenario
RCP8.5
SSP5
>1,000ppm 4.3°C >0.78m
1. These scenarios assess the risk of increasing frequency and severity of acute weather events as recommended in the Section E Materials and Buildings group
sector-specific guidance.
2. Temperature rise in 2100 compared to pre-industrial levels.
3. Munich Re NATHAN is a tool for assessing physical risks based on hazard zones.
For physical risks we modelled risks in the current climate
and in potential future climates across the short term (<12
months), medium term (5-10 years, up to 2030) and long
term (post-2050). Physical risks are shown in the short
term time horizon, both to align with our annual financial
planning and to outline potential acute risks. Post-2050
was chosen for the long term time horizon as this is when
future climate scenarios start to differentiate from the
current climate when we can expect more frequent and
severe climate-related impacts. This aligns with the
portfolio’s standard 60-year building life.
66
British Land
Annual Report and Accounts 2026
Identified climate risks and opportunities
Continue to monitor
Our ‘Continue to monitor’ risks and opportunities are not
currently material but have the potential to be in the
coming years, so we review them on an ongoing quarterly
basis. We believe that some of these risks, such as the
‘Increased costs of raw materials’, may provide opportunity
for further exploration in the realm of innovative low
carbon materials that minimise our environmental impact.
Risks Opportunities
Customer demand for
sustainable space results in
a ‘brown discount’ to rents
at less sustainable assets
Premium pricing for
sustainable space results in
‘green’ premium
Occupier business model
impacted by transition
Increased access to capital
for sustainable businesses
Increased costs of
rawmaterials
Increased costs of capital
Potential carbon taxes
andlevies
Flash flooding
HighMediumLow
Potential financial Impact
Likelihood
Low
Material risk and opportunities heat map
Low High
High
Cost of MEES
compliance
(long term risk)
Mean flood risk
vulnerability
(short & long term risk)
Increasing price of
carbon credits
(long term risk)
Increasing customer demand
for greenlow carbon buildings
(long term opportunity)
Risk
Opportunity
Defining a material risk and/or opportunity
We define a ‘material’ risk or opportunity in line with the
combination of its potential impact, both financial and/ or
reputational, and its likelihood. This approach is used
across the business to assess all types of risk, and so
climate risk is embedded into our broader risk framework.
We generally deem a climate-related risk or opportunity as
material if it would have at least a medium financial and/or
reputational impact.
Low Medium High
Financial
impact
thresholds
(£)
Less than
£10m
£10m to
£100m
Greater than
£100m
Likelihood
thresholds
(chance of
occurrence
in a given
year)
Unlikely to
occur and/or
there are
limited
instances of
occurrence
observed in
the past 5+
years
Could happen
and/or a few
instances of
occurrence
observed
in past 3-4
years
Likely to
occur and/or
there is a
recent history
of occurrence
of this threat
within the last
2 years
Reputational
impact
thresholds
Limited
reputational
impact
Significant
temporary
or limited
sustained
impact
Significant
sustained
impact
Material risk and opportunities heat map
The most material risks and opportunities are shown
intheheat map to the right, with these issues detailed in
the nextsection.
The Likelihood of mean flood risk increased in FY24
following a change to our risk management Likelihood
categories. The change meant that low financial impact
regularly occurring flooding events now fall within the High
Likelihood category. The potential financial impact also
slightly increased as we combined river flooding and flash
flooding. The increasing customer demand for green, low
carbon buildings is an ongoing opportunity as it is
occurring now and should continue for the
foreseeablefuture.
In FY26 we downgraded the potential financial impact of
MEES compliance from high to medium high risk. This is
because we have made excellent progress towards MEES
compliance. We have spent £34m
1
out of an expected
£100m and 75% of our portfolio, by ERV, is now rated EPC
B or above.
1. Comprises capital expenditure, service charge and occupier spend, including
commitments from the Transition Vehicle.
STRATEGIC REPORT
6767
British Land
Annual Report and Accounts 2026
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)
CONTINUED
Material risks and opportunities
The following section considers the impact of the
identified material climate-related risks and opportunities
on our business, strategy and financial planning over the
short, medium and long term. It considers the resilience of
our strategy and seeks to quantify impacts where possible.
We do not anticipate any of these material climate-related
risks to have a major impact on our financial position,
financial performance and/or cash flows.
Material climate-related risks
Short term risks (<12 months to five years up to 2030)
Climate
scenario
Likelihood Description
of impact
Potential
financialimpact
Explanation and mitigation
#1 Current physical damage to assets from river and flash flooding (Extreme weather events)
Current
climate
Low to High This is the physical
damage to assets from
river and flash flooding.
Potential loss of
revenue from business
interruption (closure of
operations).
Increased capital
expenditure (cost) to
repair damaged assets.
Potential increased
insurance costs.
Mean loss: <£1.5 m
(pre-insurance).
Since 2007,
our (insured) actual
annual mean loss is
below the modelled
value of £1.5m.
WTW performed climate risk modelling for our portfolio,
simulating many thousands of events based on current and
future climate scenarios using the assets’ total insured value
(British Land share of ownership). Mean losses are the average
loss of modelled events weighted by the probability of their
occurrence. These losses are fully insured and potential losses
are shown before the impact of insurance. Since 2007, our
(insured) actual annual mean loss is below the modelled value
of£1.5m. Since 2011, we have commissioned periodic portfolio-
wide flood risk assessments and issued flood management plans
to high risk assets. In the future we plan to build on these plans
by creating detailed flood mitigation plans for our high
riskassets.
Medium term risks (five to fifteen years 2030 to 2040)
Climate
scenario
Likelihood Description
of impact
Potential
financialimpact
Explanation and mitigation
#2 Increasing price of carbon credits (carbon pricing mechanisms)
Current
climate
High Increased capital
expenditure as
net zero commitments
by global corporates
lead to increased
demand for carbon
credits, resulting
in higher and/or
volatile carbon
creditprices.
£0.75m for every
100% increase in the
price of carbon.
We have committed to offsetting the embodied carbon of all
new developments and major refurbishments. In FY22, when our
transition risk modelling was conducted, we estimated this to be
c.300,000 tCO
2
e by 2030 across the committed and near term
development pipeline. We estimated the annual additional cost of
carbon credits between FY22 and FY30 to be £0.75m if the price
rose by 100% from our FY22-FY24 price of £20 per tonne.
Atour new price of £30 per tonne, a 100% rise in price would
increase this annual additional cost to £1.1m. To mitigate this risk
we pre purchase carbon credits for our developments at the
point of commitment. We have now purchased sufficient carbon
credits to offset the embodied carbon in 67% of our committed
development pipeline. In addition, our internal carbon levy would
cover a carbon credit price increase of up to £90 per tonne.
#3 Cost of complying with minimum EPC standards (changes to national legislation)
Current
climate
High Increased capital
expenditures based on
the cost of upgrading
assets to comply with
the proposed MEES
legislation.
Potential loss of
revenue as we are
unable to lease space
with an EPC rating
below a ‘B’. We do not
anticipate this to be a
risk as we will ensure
that all space complies
with the MEES
legislation.
£12.5m per
year (significant
proportion service
charge recoverable).
Proposed Minimum Energy Efficiency Standard (MEES)
legislation is expected to require all commercial property to be a
minimum EPC B. While earlier proposals referenced 2030, the
government has not yet confirmed the final target date. The
estimated cost across our managed portfolio to implement our
existing decarbonisation and to be MEES compliant is £100m,
implying an annual cost of £12.5m excluding assets in our near
and medium term development pipeline. Our Transition Vehicle
(see page 38) was established to finance the retrofitting of our
portfolio, which aligns (but goes beyond) proposed MEES
requirements. To date £34m
1
has been spent on carbon efficient
interventions, of which approx. 60% is recovered through the
service charge and 75% of our portfolio by ERV is now EPC A or
B. We expect to derive energy efficiency benefits and related
cost savings from these upgrades. In addition, in line with
Opportunity #1, we could gain increased revenue from price
premiums for greenspace.
1. Comprises capital expenditure, service charge and occupier send, including commitments from the Transition Vehicle.
68
British Land
Annual Report and Accounts 2026
Material climate-related risks continued
Long term risks (post-2050)
Climate
scenario
Likelihood Description
of impact
Potential
financialimpact
Explanation and mitigation
#4 Future flood risk vulnerability of assets (extreme weather events)
RCP2.6 (2C)
RCP8.5
(>4C)
Low to High This is the physical
damage to assets from
river and flash
flooding.
Potential loss of
revenue from business
interruption (closure of
operations).
Increased capital
expenditure (cost) to
repair damaged assets.
Potential increased
insurance costs.
RCP2.6 (2°C)
Meanloss: £2m
(pre-insurance).
Losses in a bad
representative
year:£61.5m
(pre-insurance).
RCP8.5 (4°C)
Meanloss: £3.3m
(pre-insurance).
Losses in a bad
representative
year:£93.1m
(pre-insurance).
WTW performed climate risk modelling for our portfolio
(simulating many thousands of events) based on current and
future climate scenarios using the assets’ total insured value
(byBritish Land share of ownership). Modelling was completed
in FY24, and as such it does not include our newly purchased
assets. Mean losses are the average loss of modelled events
weighted by the probability of their occurrence. For the
‘representative bad year’, the losses are based on low likelihood
flood events for a ‘bad’ year, which is assumed to be a 1/100
annual likelihood across the simulations, post-2050. Under
current market conditions these losses are insured against and
would not be suffered by the Company under normal
circumstances, although we recognise that in the long term
specific assets could face cost increases or difficulty
obtaininginsurance.
Material climate-related opportunities
Climate
scenario
Likelihood Description
of impact
Potential
financialimpact
Explanation and mitigation
#1 Increasing customer demand for green, low carbon buildings (changing customer behaviour and
shifts in consumer preferences)
Current
climate
High Increased revenue
resulting from price
premiums.
An increasing number
of our customers have
announced net zero
commitments. As our
portfolio decarbonises,
the most efficient,
highly rated green
buildings may let
quicker and at a
premium to
marketrents.
£7m. Our scenario analysis considered market research such as a
Knight Frank study in FY22 which indicated that there was a
>10% rental premium above prime Central London office rents
for BREEAM Outstanding space. More recent research by JLL
has reached similar conclusions. This enhanced financial impact
estimates British Land’s share of the increased rental income if
20% of our offices (by ERV) transition to BREEAM Outstanding.
The portfolio’s environmental credentials will be further
strengthened as we deliver against our 2030 ambitions to
enhance the portfolio’s energy and carbon performance.
STRATEGIC REPORT
6969
British Land
Annual Report and Accounts 2026
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)
CONTINUED
(b) The impact of climate-related risks and opportunities
on our business, strategy and financial planning
We do not anticipate any of the identified material climate-
related risks to have a major impact on our financial
position, financial performance and/or cash flows in the
current climate and/or any of the future climate scenarios.
We prioritise the mitigation and management of the
identified material climate-related risks, which are
monitored as key risk indicators within our Environmental
and Social Sustainability risk (see page 56). In the short
term, we anticipate that the transition risks will be more
material to us through increasing climate-related policy
and legislation and enhanced sustainability requirements
from investors and customers. We recognise that we are
dependent on operating in a tolerable and safe climate
that we also have an impact on climate-related risks and
opportunities. We recognise our role in supporting the
equitable transition to a low carbon economy, and have
embedded sustainability throughout our business. Material
climate-related risks and opportunities have affected the
delivery of our corporate strategy (see pages 5 and 14 to
15), and financial planning including:
Area Theme Impact on strategy Impact on financial planning
Products and
services
Adaptation
and mitigation
activities
Operations
Upgrading the
standing portfolio
(Risk #3 &
Opportunity #1)
– Environmental audits completed
across our standing portfolio.
– Asset and campus-level business
plans incorporate energy savings
interventions and climate resilience
actions. These plans gain approval
from our senior leaders including the
CEO, CFO and joint venture partners
where relevant.
– Progress against our 2030 energy
efficiency and carbon reduction
targets are monitored quarterly.
– 2030 energy efficiency and carbon
reduction targets are included within
executive remuneration, see
page103.
– Annual asset-level business plans
include capex requirements for
energy savings interventions.
– Medium term forecasting
incorporates initiatives which support
our 2030 energy efficiency and
carbon reduction targets.
– Development decisions incorporate
the environmental impacts of
alternative schemes, including
refurbishment and redevelopment.
– Transition Vehicle enable carbon
efficient interventions.
Products and
services
Adaptation
and mitigation
activities
Investment in
research and
development
Access to
capital
Developing
sustainable
buildings
(Risks #1, 2, 3 &
Opportunity #1)
– Our Sustainability Brief for our
Places
1
and Sustainability Brief: Office
Fit Out sets stretching targets for our
major developments, refurbishments
and fit outs.
– Low Carbon Materials Working Group
established to identify innovative
materials and technology to lower
embodied carbon.
– Adopting NABERS UK for all new
office developments.
– Established our Transition Vehicle in
2020 to incentivise reduction in
embodied carbon and to enable the
decarbonisation of our portfolio.
– Sustainable building certifications
can provide access to green finance.
– Our portfolio of green buildings is
reviewed regularly by our Treasury
team when considering options to
issue green debt and establish
ESG-linked revolving credit facilities.
Value chain
Capital
expenditure
Internal price of
carbon
(Risk #2)
– Internal levy of £90 per tonne of
embodied carbon on developments
incentivising low carbon
development.
– Pre purchase carbon credits for our
developments at the point of
commitment to provide greater
certainty over costs.
– Funding generated by the levy is
available pay for the carbon credits
to offset residual embodied carbon in
developments and decarbonisation
interventions on the standing
portfolio, managed by our Transition
Vehicle, see page 38.
Acquisitions or
divestments
Operations
ESG criteria
assessed as part of
acquisitions
(Risks #1, 3, 4 &
Opportunity #1)
– ESG criteria are integrated into our
due diligence procedure for new
acquisitions, including flood risk
exposure, presence of gas and EPC
rating.
– British Land would only buy low rated
assets if they offered significant
redevelopment potential at attractive
returns. The cost of delivering a
higher rated product is integrated
within our appraisals.
– To manage specific risks like flood,
formal flood risk assessments are
funded as part of the acquisition’s
due diligence where necessary.
1. Read our Sustainability Brief for our Places at www.britishland.com/sustainability-brief
70
British Land
Annual Report and Accounts 2026
(c) Resilience of our strategy in the different climate-
related scenarios and alignment with the just transition
to a low carbon economy
We believe that our strategy is resilient to climate-related
risks and opportunities and is supportive of the transition
to a low carbon economy consistent with a 2°C or lower
scenario. Therefore, our strategy has evolved to ensure
that we mitigate climate-related risks whilst benefitting
from climate-related opportunities.
Physical risk:
In the current climate, based on the VaR analysis, our
portfolio’s exposure to high river flood risk (1/100-year
flood risk) is limited to 3% (by British Land share of
ownership of total insured value). Any potential losses from
flooding at our assets in high river flood risk areas are
fullyinsured.
In the two post-2050 scenarios assessed, only river flood
risk (1/100-year flood risk) was classified as ‘material’. In
the 2°C scenario, 4% are exposed to high river flood risk
(by British Land share of ownership of total insured value).
In the 4°C scenario, the high-emissions scenario where no
additional action is taken to protect assets or London,
exposure to high river flood risk could be 6% (by British
Land share of ownership of total insured value).
1
Under
current market conditions potential losses from flooding at
these assets in high river flood risk areas are insured
against and would not be suffered by the Company under
normal circumstances, although we recognise that in the
long term specific assets could face cost increases or
difficulty obtaining insurance.
We consider resilience to long term flood risk through the
requirements of the Climate Resilience section of our
Sustainability Brief for our Places. At our high flood risk
assets, we plan to implement flood mitigation interventions
to reduce the risk and impact of any flooding. To align with
our wider Sustainability Strategy, we will seek to prioritise
nature-based solutions. The joining of decarbonisation
pathways with adaptation plans is key for achieving
resilient places and so far, we have completed climate
resilience studies at three of our London campuses. These
studies identify future climate-related physical risks,
asset-level vulnerability to the risks and potential
adaptation measures. The campuses and associated assets
were found to not be at significant threat from climate-
related risks or are already appropriately resilient to them.
We plan to roll out these studies across our portfolio and
implement adaptation measures where needed.
Transition risk:
Through our Pathway to Net Zero Carbon and our 2030
targets we have a clear plan to improve the energy
efficiency of our portfolio which will result in the upgrading
of EPCs in line with the proposed MEES legislation.
Our internal carbon levy, coupled with our Transition
Vehicle, provides us with a formal price for carbon and
introduces a governance structure which supports our
focus on procuring high quality carbon credits while
managing cost risk. Our internal carbon price is £90 per
tonne. We have now pre purchased carbon credits
equivalent to 95% of the embodied carbon in our
committed development pipeline.
Transition opportunities:
Our customers increasingly want space that is energy
efficient, to reduce operational costs and assist with their
own targets. As a response, our use of NABERS energy
star ratings and the upgrading of standing assets as part of
our Pathway to Net Zero Carbon will support our ability to
generate higher rents, as occupiers are prepared to pay a
premium for more sustainable space. Our assets’
sustainability credentials will be further evidenced by the
forecasted BREEAM ratings of our development pipeline
and our programme for upgrading the ratings of our
standing portfolio, driven in part by our Sustainable
Finance Framework.
Risk management
a) Processes of identifying and assessing climate-related
risks
We consider climate change within our principal risk
‘Environmental and Social Sustainability’, with the external
aspects of climate-related risks being incorporated within
our ‘Major Events/Business Disruption’ and ‘Political, Legal
and Regulatory’ principal risks. Therefore climate-related
risks are fully integrated in our internal risk identification,
assessment and management process, see pages 47 to 50.
We determine the materiality of potential risks (including
climate-related) using the corporate risk thresholds noted
on page 67.
Our risk register tracks:
– Description of the risk (identification)
– Impact-likelihood rating (evaluation enabling
prioritisation)
– Mitigants (mitigation)
– Risk owner (monitoring)
Our process for identifying and assessing risks is outlined
in our risk management section, see pages 47 to 50. The
Governance and Strategy sections of our TCFD disclosure
outlining this process for climate-related issues, see page
65. In FY23 we worked with JLL to conduct a double
materiality assessment of the most material ESG issues to
our business and stakeholders
2
. We do these double
materiality assessments on a regular basis with the next
planned for FY27.
1. Post-2050 flood exposure percentages are based on modelling completed in
FY24; this modelling is scheduled to be updated in FY27.
2. Read about our FY23 materiality review here – www.britishland.com/
materiality
STRATEGIC REPORT
7171
British Land
Annual Report and Accounts 2026
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)
CONTINUED
b) Managing climate-related risks
Climate-related risks are managed in line with our internal
risk management process, see pages 47 to 50. This section
outlines our process for mitigating, accepting and
controlling principal risks, including climate-related risks.
The Governance Framework for Climate-Related Issues
outlines our process of managing climate-related risks see
page 65.
Our identified material climate-related risks are monitored
as key risk indicators within our principal ‘Environmental
and Social Sustainability risk’, see page 56. In line with our
risk matrix we prioritise the mitigation and management of
identified material risks.
Transition risks and opportunities (Risks #2–3, Opportunity
#1) are addressed through the delivery of our Pathway to
Net Zero Carbon, which affects all aspects of our business
and is monitored through performance targets (see the
Metrics and Targets section). In addition, we maintain
asset-level business plans which include provisions for
identifying climate-related risks and opportunities, such as
flood risk assessments and environmental audits to
identify carbon efficient interventions. We have a
sustainable fit out brief to ensure that any fit outs are in
line with the building’s decarbonisation strategy (Risks #2,
3). Our Transition Vehicle provides funding for the carbon
efficient interventions (Risk 3). We pre purchase carbon
credits for our committed developments to provide
greater certainty over the costs. Our internal carbon price
increased to £90 per tonne in FY24 to better reflect the
true cost of carbon (Risk #2).
Physical climate risks (Risks #1, 4) are managed through
our key policies including our Sustainability Brief for our
Places and our Sustainability Checklist for Acquisitions.
Our Sustainability Brief for our Places sets out our
environmental criteria for new constructions and
renovations, including requirements for energy efficiency
(Risks #2, 3), flood risk (Risks #1, 4) and embodied carbon
reductions (Risk #3). Our Sustainability Checklist for
Acquisitions sets out our environmental criteria for
acquiring a new asset, including energy efficiency (Risk
#3) and flood risk categories (Risks #1, 4).
c) How processes for identifying, assessing,
andmanaging climate-related risks are integrated
intheorganisation’s overall risk management
This is covered in the above sections (see page 71) and
inour internal risk management process (see pages 47
to50).
Metrics and targets
To enable our shareholders to make informed decisions
weset a broad range of environmental targets and detail
progress against them alongside a comprehensive set of
climate and energy performance data in our 2026
Sustainability Progress Report. This includes other metrics
associated with climate-related risks including water
consumption, energy consumption and waste
management.
Our key targets are set out below:
Embodied carbon
50% reduction in upfront embodied carbon intensity
across our office developments to below 500kg CO
2
e per
sqm from 2030
100% of developments’ residual embodied carbon
emissions offset
Operational carbon
75% reduction in operational carbon intensity of managed
assets by 2030 vs 2019
25% reduction in whole building operational energy
intensity ofmanaged assets by 2030 vs 2019
We align to externally recognised frameworks including
the Sustainability Accounting Standards Board (SASB),
theEPRA Sustainability Best Practices Recommendations
on Sustainability Reporting and with reference to the GRI.
These disclosures align with the Section E recommended
disclosures for Materials and Buildings Group companies.
We also participate in international indices including CDP
2025: A, GRESB 2025: 5* Standing Investments and 5*
Development and FTSE4Good 83rd percentile.
Environmental measures are included in executive
remuneration including GRESB performance and EPC A
and B ratings by ERV across the portfolio. The Long Term
Incentive Plan for Executive Directors includes key
performance indicators linked to the reduction of
operational carbon and improvement of operational
energy efficiency. More details of these can be found on
page 103.
72
British Land
Annual Report and Accounts 2026
(a) Our metrics to assess climate-related risks and opportunities in line with our strategy and risk management
process
Climate-related risks (KRIs)
2026 2025 2024
Policy
and legal
1
Risk #3 EPCs rated A (byERV)
EPCs rated B (byERV)
EPCs rated C (byERV)
EPCs rated D (byERV)
EPCs rated E (byERV)
EPCs rated F (byERV)
EPCs rated G (byERV)
Certificate currently not available (by ERV) nr
Extreme
weather
Risks #1, 4 Percentage of portfolio located in 100-year flood zones (by
British Land % ownership of total insuredvalue)
Assets in high flood risk areas with flood management plans
(by British Land share of ownership of total insuredvalue)
2
3
1. EPC data includes retail assets located in Scotland.
2. These values only include occupied British Land managed properties.
3. Two flood management plans were completed in May 2026.
Climate-related opportunities (targets and KPIs)
2026 2025 2024
Resource
efficiency
Risk #2 50% reduction in upfront embodied carbon intensity across
our office developments completed from April 2020
(kgCO
2
e per sqm) vs 2019
Opportunity
#1
75% reduction in operational carbon intensity of managed
assets by 2030 vs 2019
1
25% reduction in whole building operational energy
intensity ofthe managed assets by 2030 vs 2019
Energy
sources
Opportunity
#1
Electricity purchased from renewable sources
On site renewable energy generation (MWh)
Products
and services
Opportunity
#1
Standing portfolio with green building ratings
(byfloor area)
Developments on track for BREEAM Excellent or higher
(by floor area, offices)
Percentage of gross rental income from BREEAM certified
assets (managed portfolio)
Risk #2 Internal price of carbon (£ per tonne)
1. Restated scope 1 emissions for increased accuracy.
Select environmental data above is assured by DNV – specific details of scope of assurance can be found in DNV’s assurance statement in our 2026 Sustainability
Progress Report www.britishland.com/SPR
(b) Our scope 1, scope 2 and scope 3 greenhouse gas (GHG) emissions, and the related risks
Our total scope 1, 2 and 3 GHG emissions data is subject to ‘limited assurance’ by DNV.
1
1. Details about our reporting methodology and DNV’s assurance statement can be found in our 2026 Sustainability Progress Report – www.britishland.com/SPR
(c) Our targets used to manage climate-related risks and opportunities and performance against targets
Our full set of sustainability targets, including our science-based targets, are detailed in our 2026 Sustainability Progress
Report. Our headline climate-related targets are listed above in the Opportunities table within the ‘Resource
efficiency’section.
The Strategic Report was approved by the Board on 19 May 2026 and signed on its behalf by:
Simon Carter
Chief Executive
STRATEGIC REPORT
7373
British Land
Annual Report and Accounts 2026
In this section we aim to show how
we have complied with the Code in
the year as well as highlighting some
of our Board focus areas and
achievements.
Code compliance
We are reporting against the 2024 UK Corporate
Governance Code (the ‘Code’) available at
frc.org.uk.
The Board considers that the Company has
complied with all provisions of the Code during
the year. In relation to Provision 10, which relates
to the Board’s conclusion as to the
independence of Directors, the Board has
determined that, notwithstanding her tenure of
11 years as at the date of this Annual Report,
Lynn Gladden remains independent in character
and judgement and provides important strategic
value to the Board. In reaching this decision, the
Board received a recommendation from the
Nomination Committee which considered all of
the circumstances within Provision 10 and noted
Lynn’s academic background which brings a
unique dimension of independent challenge to
the Board. Although Lynn remains independent,
she has decided after 11 years to step down from
the Board with effect from the end of the 2026
AGM. Further details about our Board changes
can be found on page 88.
CORPORATE
GOVERNANCE
74
British Land
Annual Report and Accounts 2026
REPORTING AGAINST
CODE PRINCIPLES
The table below has been included to enable
shareholders to understand how the Principles
have been applied.
1. Board leadership and
Company purpose
Pages
A Effective Board 14 and 30
B Purpose 4
Values and culture 86 and 87
C Governance and
Board decisions 78 and 79
Code adherence 74
D Stakeholder engagement 16 and 17
E Workforce policies
and practices 43 and 60 to 61
2. Division of responsibilities
Pages
F Chair leadership 77 and 80
G Board composition 80 to 83
H External appointments
and conflicts of interest 80 and 92
I Board policies, processes
and resources 60 to 61, 80 and 88 to 92
3. Composition, succession
and evaluation
Pages
J Appointments to the Board 89
K Board skills, experience
and knowledge 81 to 83 and 90
L Annual Board evaluation 80
4. Audit, risk and internal control
Pages
M Financial reporting 95 to 96
External Audit
and Internal Audit 97 to 99
N Review of the 2026 Annual
Report and Accounts 95 to 96 and 118
O Internal controls 99
Risk management
and Principal risks 47 to 58 and 99
5. Remuneration
Pages
P Linking remuneration with
purpose and strategy 100 to 102
Q Remuneration Policy 102
R Performance outcomes
in 2026 104 to 114
Broadgate event
CORPORATE GOVERNANCE
7575
British Land
Annual Report and Accounts 2026
NON-EXECUTIVE CHAIR’S INTRODUCTION
CORPORATE
GOVERNANCE
REPORT
Dear Shareholder,
As I near the two-year mark at British Land, I am pleased
to report on the Company’s strong fundamentals and the
Board’s continued focus on long term value creation. The
subsequent pages of this Governance Report will illustrate
how the Board has operated throughout the year and
provide insights into the vital work undertaken by each of
our Committees. I trust you will find it an informative read.
Board changes
In January 2026, we announced that Simon Carter will be
stepping down as Chief Executive. This follows a significant
portion of his career spanning 18 years at British Land.
TheBoard has commenced a search process for his
successor, the results of which will be announced as soon
as a decision has been made. I would like to personally
express my gratitude to Simon for his significant
contribution to the Company and the Board during
histenure.
During the year, the Board appointed Raj Shah who
joined the Company as a Non-Executive Director
in January 2026. Raj brings extensive investment
experience that will be invaluable to the Board.
Following a tenure of 11 years, Lynn Gladden will step down
as a Non-Executive Director at the conclusion of the 2026
AGM. Lynn’s expertise within the science and technology
sector has been invaluable to the Board in recent years as the
Company developed our presence in that important sector.
Loraine Woodhouse will step down as Chair of the Audit
Committee but remain a member at the conclusion of
the 2026 AGM, with Amanda James appointed as her
successor. Loraine has made a significant contribution
during her time as Chair of the Audit Committee.
Further details about these Board changes can be found
on page 88.
Strategic execution
During the year the Board has primarily focused on
executing the Company’s strategy. Pages 78 to 79
provide an insight into the Board decision-making
process with a selection of principal decisions.
Governance framework review
The Board agreed at the May 2026 Board meeting
that from the conclusion of the 2026 AGM, a revised
Governance Framework would take effect and the
ESG Committee will be dissolved. ESG considerations
are now embedded across the organisation as the
Company’s strategy has evolved and our
commitment remains as strong as ever. As the
Company enters the next phase of its strategy, the
responsibilities of the ESG Committee will be
integrated into the revised governance structure.
Keychanges:
– Delivery of the Sustainability Strategy will continue
to be overseen by the Executive-level Sustainability
Committee.
– The Board will directly review and approve our
Sustainability Strategy and monitor performance
against it.
– Oversight of certain risks (including Health &
Safety) previously exercised by the ESG Committee
will be transferred to the Audit Committee, which
will be renamed the Audit & Risk Committee.
– Oversight of the DE&I Strategy will sit with the
Remuneration Committee, which will be renamed
the Remuneration & People Committee.
– The Non-Executive Director responsible for
workforce engagement will be Alastair Hughes,
using our Employee Listening Sessions to provide
insights directly to the Board.
These structural changes are well aligned with our
strategic direction and provide a strong framework
for effective oversight.
Alastair Hughes will step down as Chair of the ESG
Committee following its dissolution. Alastair has
chaired the ESG Committee since its inception in
2019 and it is testament to the work of the
Committee that we are now able to integrate its
responsibilities into other parts of our Governance
Framework.
AGM
I look forward to welcoming shareholders to the AGM on
14 July 2026, which will be held at Ashurst LLP, London
Fruit & Wool Exchange, 1 Duval Square, London, E1 6PW.
Full details of the event and the proposed resolutions are
included in the Notice of Meeting.
William Rucker
Non-Executive Chair
Focus in the year
– Board changes
– Recommended acquisition of
Life Science REIT plc
– Strategic oversight
William Rucker
Non-Executive Chair
76
British Land
Annual Report and Accounts 2026
Management Committees
Operation of the Governance Framework during the year
The Board is satisfied that this structure operated effectively during the year to support clear accountability and strong
oversight. The Board delegated specific responsibilities to its Committees, each of which operates within defined terms
of reference and reports regularly to the Board. This enabled the Board to make well-informed, timely decisions and
ensured that governance arrangements remain robust, transparent and aligned with best practice.
* With effect from the conclusion of the 2026 AGM, the Remuneration Committee will become the Remuneration & People Committee, and the Audit
Committee will become the Audit & Risk Committee. The responsibilities of the ESG Committee will be integrated into the revised governance structure and
the ESG Committee will be dissolved.
Our key stakeholders
Investors People Customers
Communities
Suppliers
and partners
Environment
Joint venture
partners
All
All
Chair
Leads the Board and the effective
management of Board meetings.
Maintains a collaborative atmosphere
and ensures all Directors have the
opportunity to contribute. Informs the
Board about the views of key
stakeholders.
Executive
All
Reports to the Board
through the Chief
Executive
Supports the Chief
Executive to execute
the Company’s
strategy.
Senior Independent Director
Provides a sounding board to the Chair,
as well as being available to
shareholders and other Non-Executive
Directors should they have any
concerns.
Social Impact Committee
All
Reports to the Sustainability and
Investment Committees
Oversees the strategic management of
the Social Impact Fund.
Information Security Steering
Committee
Reports to the Risk Committee
Oversees the information security
programme.
Audit
*
Monitors the financial
reporting process, internal
control and risk management
system. Oversight of Internal
Audit, the audit of the
financial statements and
independence of the external
auditor.
Disclosure
Reports to the Board
Oversees the
disclosure of
information to meet
our regulatory
obligations.
Remuneration
*
Reviews the Remuneration
Policy and sets remuneration
levels for Executive Directors
and senior management.
Oversees the Company’s
overall remuneration strategy
and ensures alignment with
purpose, culture and
strategic delivery.
Environmental Social
Governance
*
Responsible for
understanding the views of
key stakeholders, as well as
managing mechanisms to
engage with them, and
assessing the Company’s
impact on communities and
the environment.
Sustainability
All
Reports to the ESG
Committee
Oversees the
Company’s activities,
development and
progress in achieving
the 2030
Sustainability Strategy
and beyond.
Risk
All
Reports to the Audit
Committee
Monitors and oversees
risk management and
internal control
processes.
Chief Executive
Responsible for developing and executing
the Company’s strategy, promoting our
culture and sharing key stakeholder views
with the Board.
Ensures the Board receives high quality
information by facilitating access to senior
management to develop the Board’s
understanding of the business.
Health and Safety
Reports to the Risk and ESG
Committees
Reviews performance against targets
and drives action to achieve our health
and safety goals and responsibilities.
Nomination
Reviews the structure,
composition and diversity of
the Board, time commitments
of Non-Executive Directors
and succession plans for
Board and Executive
Committee members.
Investment
Reports to the Board
Makes capital
decisions under
delegated authority
from the Board.
Board of Directors
All
Responsible for setting the Company strategy in a way that promotes the long term sustainable success of the Company, generating value
for shareholders and contributing to wider society. Several matters are reserved for the Board including but not limited to significant
corporate transactions and approving the Annual Report and Accounts.
Board Committees
Executive Committees
CORPORATE GOVERNANCE
7777
British Land
Annual Report and Accounts 2026
OUR APPROACH TO GOVERNANCE
MAY 2025
Finance: Approval of Annual Report and Accounts
Finance: Considered the Group’s reserves and capital
position and approved the final dividend
Risk: Approval of the identification and assessment of
principal risks, FY26 risk appetite and key risk indicators,
and effectiveness of risk management and internal
control processes during FY26
Q1
Q2
B OA R D
ACTIVITY
JULY 2025
Governance: AGM
Finance: Approval of a £450m secured ‘Green Loan’
against 1 Broadgate in the Broadgate joint venture
Governance: Succession planning for Executive
Committee and their direct reports
SEPTEMBER 2025
Update: 1 Appold Street redevelopment
Strategy: High level update
Governance: Approval of the Human Trafficking
Statement
Commitment to 1 Appold Street
redevelopment and pre-let to HSF Kramer
Decision: Commitment to the full redevelopment of
1Appold Street and pre-let to Herbert Smith Freehills
Kramer (‘HSF Kramer’) through our Broadgate joint
venture with GIC. 1 Appold Street is a 14-storey office-led
scheme forming a key component of the
Broadgatecampus.
Considerations
For shareholders: The Board was mindful of ensuring that
the building achieved significant pre-let activity. The
commitment to development was concurrently executed
with a 21-year lease agreement with leading global law firm
HSF Kramer for 268,000 sq ft, representing a 60% pre-let.
For customers: The redevelopment will offer high quality,
flexible, sustainable workspace, targeting BREEAM
Outstanding, EPC A and NABERS 5-5.5*. Thisaligns with
growing occupier demand for premium, sustainability-
conscious buildings.
From an environmental perspective: The scheme will
retain approximately 75% of its existing structural frame.
Outcome: The Board concluded that committing to the
development would benefit the long term success of the
Broadgate campus and deliver appropriate returns for
shareholders. The project has been substantially de-risked
through the pre-let and placing of a design and build
contract with Skanska, with a high degree of cost certainty.
Stakeholder engagement and
principal Board decisions
The methods used to engage with the Company’s
stakeholders are outlined on pages 16 and 17. The
outputs of that engagement and the wider factors listed
within Section 172 of the Companies Act are taken into
account by the Board when making decisions. These
considerations help ensure that decisions promote long
term value, support high quality placemaking, and
balance the needs of occupiers, local communities,
partners and the wider environment, in order to deliver
Places People Prefer. The process described below is
applied consistently to all Boarddecisions.
Stakeholder engagement
Bottom-up stakeholder engagement assessing the
needsof each relevant stakeholder group.
Management action
Executive-level scrutiny and challenge over
management proposals with consequential refinements
of the idea.
Proposal and checklist
Checklist appended to each decision paper detailing
theimpact on each Section 172 stakeholder group,
issues andother factors.
Board meeting and decision
The Board ultimately makes a decision based on
shareholder benefit, whilst taking into account the
impacton all stakeholders.
Key decision: Approval of the project to introduce
anew Enterprise Resource Planning system and
allocated capex
Key decision: Approval of the increase to £150m
andextension to five years of a term loan facility
agreement
2025
78
British Land
Annual Report and Accounts 2026
NOVEMBER 2025
Finance: Approval of half year results
Finance: Considered the Group’s reserves and
capital position and approved the interim dividend
Finance: Consideration of various financing
structures and initiatives
Finance: Assessment and approval of the Group’s
interest rate management policy
Risk: Approval of identification and assessment of
the Group’s principal risks and effectiveness of the
risk management and internal control processes
Strategy: Portfolio update and corporate actions
JANUARY 2026
Update: Geopolitical risk
FEBRUARY 2026
Strategy: Board strategy offsite
Finance: Approval of 100 Liverpool Street £475m secured
loan refinance in the Broadgate joint venture
MARCH 2026
Finance: Approval of £150m three-year revolving credit facility
Strategy: Board strategy offsite follow-up
Key decision: FY27 budget
Q3
Q4
Our key stakeholders
Investors People Customers
Communities
Suppliers
and partners
Environment
Joint venture
partners
All
All
Recommended acquisition of
Life Science REIT plc
Decision: A recommended cash-and-share offer for
LifeScience REIT plc.
Considerations
For shareholders: The Board discussed the solid business
fundamentals of the acquisition, recognising that this bolt
on acquisition, while relatively small, was both
strategically and financially attractive. It would enhance
British Land’s Science and Technology presence across
the Golden Triangle at an attractive entry point,
supported by a diverse and high-growth occupier base.
The acquisition was expected to be immediately earnings
accretive on completion and further significant accretion
relative to the deal size is expected over time from
capturing embedded reversion and leasing vacantspace.
The Board considered the impact of the acquisition on
the key financial metrics of the business, noting that as
well as being immediately accretive to earnings, the
transaction was importantly non-dilutive to net tangible
assets pershare.
From a reputational perspective: The transaction was
consistent with the stated Science and Technology
strategy of the business and evidenced British Land’s
ability to act decisively when presented with an
opportunity to grow the Company.
Long term impact: The Board concluded that the
acquisition would benefit British Land’s long term strategy
and enhance the Company’s exposure to this high growth
sector.
Outcome: The Board agreed that the recommended offer
represented good value for the Company’s shareholders,
whilst positively impacting a broad range of wider
stakeholders.
Key decision: Approval of the commitment to 1 Appold
Street redevelopment
Key decision: Approval of the recommended offer for
Life Science REIT plc
2026
CORPORATE GOVERNANCE
7979
British Land
Annual Report and Accounts 2026
Board and Committee evaluations
The Board reviews its performance and effectiveness annually.
During the year, the Company Secretary conducted an internal
Board evaluation with the last externally facilitated evaluation
in 2023/24 and next in 2026/27. The Board recognises the
importance of its annual evaluation, whether internal or
external, as it provides a crucial opportunity to assess how
it has discharged its duties in the year, find ways to
improve, and evaluate individual director performance.
Progress against 2025 focus areas
During the year, the Board sought to implement the key
takeaways from last year’s internal Board evaluation as
detailed below.
Focus area Action taken
New Non-
Executive
Director
Following a rigorous search process,
the Board appointed Raj Shah in January
2026. See page 88 for more detail.
Additional
external
perspectives
The Board continued to hear from
external speakers which enabled rich
discussion and informed debate.
Executive
succession
pipeline
The Board has strengthened the pipeline
for the Executive Committee and their
direct reports by enhancing visibility of
potential successors for critical
leadership roles and ensuring excellent
talent is being nurtured at the senior
level of the business. Comprehensive
succession and contingency plans remain
in place for all executive positions,
supported by the ongoing assessment
of leadership capability and readiness.
2026 internal Board evaluation process
The internal evaluation of the Board was carried out by the
Company Secretary who conducted interviews with each Board
member framed by a list of questions, seeking quantitative and
qualitative feedback and reporting the outcomes to the Board
at the May 2026 Board meeting. Following discussion by the
Board, key focus areas for the upcoming year were agreed.
The evaluation considered the Board’s composition of skills
and experiences, including diversity, and its effectiveness.
The Senior Independent Director also held a meeting of
the Non-Executive Directors without the Chair present to
appraise the Chair’s performance and running of the Board.
The internal evaluation concluded that the Board and its
individual members all continue to operate effectively
under the Chair, with an inclusive culture, and good
balance of skills, background and expertise.
The evaluation also assessed the composition and
effectiveness of the Board Committees. During the year, the
Board dedicated time to evaluating the effectiveness of its
Committee structure and assessing whether it continued to be
most appropriate for the Company’s strategy and operation.
Following this review, the Board concluded that revisions
were appropriate to ensure the Committee structure most
effectively supports the operational and strategic needs of
the business. Further information on the upcoming
Governance Framework changes are found on page 76.
2026 internal Board evaluation outcome
An opportunity was identified to remove some duplication
and overlap between the Board Committees, also enabling
the meeting cycle to be more efficient. It was anticipated that
the upcoming changes to the Governance Framework, post
AGM 2026, would address the issues and enable the Board
and its Committees to operate even more effectively.
Division of responsibilities
The division of responsibilities between the Chair, Chief
Executive and Senior Independent Director have been
agreed by the Board and are available to view on our
website www.britishland.com/committees.
Board operation
Care is taken to ensure that information is circulated in
good time ahead of Board and Committee meetings.
Papers are circulated one week prior to meetings, marked
‘For Decision’, ‘For Discussion’ or ‘For Information’,
and presented clearly with the appropriate level of
detail to assist the Board in discharging its duties.
Directors’ interests in contracts and conflicts
of interest
No contract existed during the year in relation to the
Company’s business in which any Director was materially
interested. In accordance with the Companies Act
2006, the Company’s Articles of Association allow
the Board to authorise potential conflicts of interest
that may arise and to impose such limits or conditions
as are deemed necessary. The Board has delegated
authority to the Chair (or Senior Independent Director
for appointments concerning the Chair) and any other
member of the Nomination Committee to consider
and provide approval for significant appointments
in between scheduled Board meetings. An updated
register of situational conflicts of interest is then tabled
at the next scheduled Board meeting for approval by
the full Board. The register is provided to the Board
for review and approval at least twice a year. These
procedures have operated effectively during the year.
Board Attendance as at 31 March 2026
Director Board Audit ESG Nomination Remuneration
Mark Aedy na na na
Simon Carter na na na na
Lynn Gladden na na
Alastair Hughes
na
Amanda James na na na
Amanda Mackenzie na
Mary Ricks
na na na
William Rucker na na na
Raj Shah
1
na na na na
David Walker na na na na
Loraine Woodhouse na
1. Raj Shah was appointed to the Board on 20 January 2026.
2. Alastair Hughes and Mary Ricks were unable to attend the February and March Board meetings respectively due to a pre-existing commitment.
OUR APPROACH TO GOVERNANCE CONTINUED
80
British Land
Annual Report and Accounts 2026
BOARD OF DIRECTORS
Board Committee membership key
A
Audit Committee
R
Remuneration Committee
E
Environmental Social Governance Committee
N
Nomination Committee
Chair of a Board Committee
OUR
LEADERSHIP
Career and experience
William is Chair of ICG plc and the UK
Dementia Research Institute. He was
previously Chair of Marston’s plc, Lazard UK,
Crest Nicholson Holdings plc and Quintain
Estates and Development plc. A Chartered
Accountant, William joined Lazard in 1987
from Arthur Andersen and has extensive
experience in the real estate sector.
Skills relevant to British Land
– A wealth of leadership and Board
experience in the real estate sector
– Strong communicator and solid
understanding of governance
– Brings sharp focus to emerging
opportunities in the market
– Transactional and commercial acumen
supports British Land’s policy of capital
recycling
– Creative strategic thinker and driver of
delivering growth at pace in line with
British Land’s values
Significant external appointments
Chair of ICG plc and UK Dementia Research
Institute.
William Rucker
Non-Executive Chair
Appointed as Non-Executive
Chair in July 2024
N
Career and experience
Simon joined British Land in 2018 from
Logicor, where he was CFO, and previously
served as Finance Director at Quintain
Estates and Development plc. Simon held a
number of senior roles at British Land from
2004 until 2015 and earlier worked at UBS.
He was the President of the British Property
Federation until April 2026. A Chartered
Accountant, he qualified with Arthur
Andersen.
Skills relevant to British Land
– Strategic leadership, fostering innovation
and driving impactful change
– Holistic and judicious approach to
decision making
– Extensive capital markets and property
knowledge
– Supports diversity and inclusion in the real
estate sector
Significant external appointments
None.
Simon Carter
Chief Executive
Appointed as Chief Financial Officer
in May 2018 and Chief Executive
in November 2020
Career and experience
David joined British Land in 2017 and was
previously Chief Operating Officer, Interim
CFO and Head of Investor Relations. A
Chartered Accountant, he qualified with PwC
and spent seven years at Deutsche Bank
before holding senior roles in Investor
Relations, Strategy, Finance and Corporate
Development across UK listed businesses. He
is currently on the Board of Equiem, a leading
property technology business.
Skills relevant to British Land
– Extensive understanding of stakeholder
and investment community needs and
engagement
– Sound financial knowledge covering
financial strategy and planning
– Discipline spanning career at British Land
that provides integral executive insight of
good breadth and depth
Significant external appointments
None.
David Walker
Chief Financial Officer
Appointed as Chief Financial Officer
in November 2024
Career and experience
Loraine is a Non-Executive Director at
Pennon Group plc and Associated British
Foods plc. She was CFO of Halfords Group
plc until 2022 and previously held senior
finance roles at John Lewis Partnership,
Hobbs, Capital Shopping Centres (Intu) and
Costa Coffee. A qualified accountant, Loraine
has extensive experience across finance
disciplines in sectors including retail and
realestate.
Skills relevant to British Land
– Finance expert with recent and relevant
financial experience
– A balanced sounding board and proven
leadership within a range of listed businesses
providing perspective and challenge
– Wide retail experience providing
understanding of our customers
Significant external appointments
Non-Executive Director of Pennon Group plc
and Associated British Foods plc.
N
R
Loraine Woodhouse
Senior Independent Director
Appointed as a Non-Executive
Director in March 2021 and
Senior Independent Director
inJanuary 2025
A
Loraine Woodhouse will step down as Chair of the Audit Committee (but will remain a member)
with effect from the conclusion of the 2026 AGM.
CORPORATE GOVERNANCE
8181
British Land
Annual Report and Accounts 2026
BOARD OF DIRECTORS CONTINUED
* The responsibilities of the ESG Committee will be integrated into the revised governance structure and the ESG Committee will be dissolved with effect from
the conclusion of the 2026 AGM, seepage76.
Career and experience
Mark is Chairman of EMEA & APAC, Moelis &
Company. Prior to 2009, he was on the
Global Executive Committee of Corporate &
Investment Banking at Bank of America
Merrill Lynch and before that was Head of
Investment Banking EMEA at Merrill Lynch.
Formerly, he was the Senior Independent
Director of The Royal Marsden NHS
Foundation Trust, and an Ambassador of the
HALO Trust.
Skills relevant to British Land
– Significant transactional expertise and
experience in public and private markets
– Good understanding of policy from global
interactions in the finance sector
– Compelling experience in finance and
banking enabling sound judgement and
approach to risk and decision making
Significant external appointments
Chairman of EMEA & APAC at Moelis &
Company.
Mark Aedy
Independent Non-Executive
Director
Appointed as a Non-Executive
Director in September 2021
E
*
Career and experience
Lynn is Shell Professor of Chemical
Engineering at the University of Cambridge
and former Pro-Vice Chancellor for Research.
She previously served as Executive Chair of
the Engineering and Physical Sciences
Research Council. Lynn is a member of the
Council for Science and Technology, a trustee
of the Faraday Institution and adviser to
BeyondNetZero. She is a Fellow of the Royal
Society and Royal Academy of Engineering
and a foreign member of the US National
Academy of Engineering.
Skills relevant to British Land
– Unrivalled knowledge and expertise in the
fields of science and technology and its
application to the sustainability agenda
– Proven experience of internal and external
interactions ensuring a strong grasp of
cultural indicators and public policy
processes
Significant external appointments
Shell Professor, University of Cambridge.
Lynn Gladden
Independent Non-Executive
Director
Appointed as a Non-Executive
Director in March 2015
E
R
Lynn Gladden will be stepping down from the Board with effect from the conclusion of the
2026AGM.
*
Career and experience
Amanda is a Non-Executive Director of
Lloyds Banking Group plc and Non-Executive
Chair and Partner of OtherWise Partners LLP.
She was Chief Executive of Business in the
Community and previously held senior roles
at Aviva, British Airways AirMiles, BT, Hewlett
Packard and British Gas.
Skills relevant to British Land
– A proven track record in sustainability and
representing various stakeholder voices in
the boardroom
– Cross-industry experience in listed
companies providing strategic and
customer insight
– Exposure to international policy and
governmental relations
Significant external appointments
Non-Executive Director of Lloyds Banking
Group plc.
N
R
E
Amanda Mackenzie
Independent Non-Executive
Director
Appointed as a Non-Executive
Director in September 2023
*
Career and experience
Alastair is Chair of Schroders Real Estate
Investment Trust and a Non-Executive
Director of Tritax Big Box REIT and QuadReal
Property Group. A Fellow of the Royal
Institution of Chartered Surveyors, he has
over 35 years’ experience in real estate and
previously held senior leadership roles at
Jones Lang LaSalle Inc., including managing
director in the UK, CEO for EMEA and then
CEO for Asia Pacific.
Skills relevant to British Land
– Established figure in the real estate sector
with an abundance of strategic and
operational knowledge
– A cultivated view of business culture both
internally and externally involving
suppliers, customers and employees that
offers a well-rounded approach
Significant external appointments
Non-Executive Director of Tritax Big Box REIT
plc and QuadReal Property Group, and
Chairman of Schroders Real Estate
Investment Trust.
N
A
Alastair Hughes
Independent Non-Executive
Director
Appointed as a Non-Executive
Director in January 2018
E
*
82
British Land
Annual Report and Accounts 2026
Career and experience
Mary brings over 35 years’ experience in UK,
European and US property markets. She
spent 32 years at Kennedy Wilson, where she
launched its European business and oversaw
its IPO in 2014, later serving as Group
President from 2018 to 2023. Mary has set up
a family foundation supporting educational
and children’s charities.
Skills relevant to British Land
– Deep real estate expertise across a variety
of markets
– Established public and private markets
expertise providing a dynamic approach
to our strategic thinking
Significant external appointments
None.
Mary Ricks
Independent Non-Executive
Director
Appointed as a Non-Executive
Director in November 2023
A
Career and experience
Raj is Partner and Chairman of Healthcare
investing at Nordic Capital Advisors. He
previously co-led Healthcare Investment
Banking at Goldman Sachs, having originally
trained as a cardiac surgeon. Raj brings
extensive investment experience in
science-focused companies and serves
onthe boards of several Nordic Capital
investments. He was a trustee of the Royal
Brompton & Harefield Hospitals Charity
until2024.
Skills relevant to British Land
– Deep experience in evaluating and
scalingcomplex, science focused and
operationally intensive businesses,
bringing a rigorous analytical approach
tostrategy and capital allocation
– Strong understanding of stakeholder
dynamics, informed by a career bridging
clinical practice, investment banking and
global private equity leadership
– Extensive investment experience across
the life sciences sector, supporting
informed decision making in innovation
driven environments
Significant external appointments
Partner and Chairman of Healthcare at
NordicCapital Advisors.
Raj Shah
Independent Non-Executive
Director
Appointed as a Non-Executive
Director in January 2026
Career and experience
Brona joined British Land in 2018 after four
years on the Executive Committee at The
Co-operative Bank plc where she played a
key role in its restructuring. She previously
held senior legal roles at Coventry Building
Society and Barclays, including Global
General Counsel of Corporate Banking. Brona
trained as a solicitor and spent a number of
years at a large London law firm.
Skills relevant to British Land
– Skilled in leadership, strategic thinking,
analysis and operational delivery of the
people agenda to drive a high
performance culture
– Extensive experience in legal and
corporate governance with significant
experience in navigating complex legal
landscapes
Significant external appointments
None.
Brona McKeown
HR Director, General Counsel and
Company Secretary
Appointed as General Counsel and
Company Secretary in January 2018
and HR Director in Jauary 2022
Career and experience
Amanda is an Independent Non-Executive
Director of Auto Trader Group plc and
Rightmove plc. She joined the Board of NEXT
plc as CFO in 2015, and after spending over
28 years in its finance team, stepped down
from the Board in 2024. A qualified
accountant, Amanda has extensive finance
experience across UK listed businesses.
Skills relevant to British Land
– Recent and relevant financial experience
– Strong consumer, retail and multichannel
experience providing invaluable insight
into customer needs and bolstering our
execution of the strategy
Significant external appointments
Non-Executive Director of Auto Trader Group
plc and Rightmove plc.
A
Amanda James
Independent Non-Executive
Director
Appointed as a Non-Executive
Director in July 2024
Amanda James will succeed Loraine Woodhouse as Chair of the Audit Committee, renamed the
Audit & Risk Committee, with effect from the conclusion of the 2026AGM.
CORPORATE GOVERNANCE
8383
British Land
Annual Report and Accounts 2026
REPORT OF THE ENVIRONMENTAL SOCIAL GOVERNANCE COMMITTEE
Alastair Hughes
Independent Non-Executive Director
ENGAGING
WITH OUR
WORKFORCE
Role of the Committee during the year
The primary role of the ESG Committee was to assist
the Board in:
Community and the environment
– Understanding the Company’s impact on the
community and environment
Workforce engagement
– Reviewing workforce engagement mechanisms
Key stakeholders and wider society
– Understanding the views of key stakeholders
– Ensuring the Board was aware of the mechanisms
used by the Company to engage with key
stakeholders
– Ensuring that those mechanisms were fit for purpose
and assist in contributing to wider society
Our Sustainability section found on pages 36 to 43
should be read alongside this report.
Membership and attendance during the year
The membership of the Committee was comprised of
four independent Non-Executive Directors.
Biographical details of the Committee members are
found on pages 81 to 83.
The Committee met three times in 2025/26 with an
additional joint meeting held with the Remuneration
Committee. Attendance is set out on page 80. Senior
managers from across the business are invited to
attend each Committee meeting, together with our
Executive Directors.
I am pleased to present the report of the ESG
Committee for the year ended 31 March 2026.
Activity during the year
– Monitored progress against our environmental
commitments and approved the launch of our Nature
Strategy.
– Received a report that the Company had achieved a
GRESB 5* rating.
– Approved the renewal of our SBTi targets.
– Reviewed our social sustainability commitments,
agreeing to prioritise initiatives that deliver strategically
important outcomes.
– Monitored progress against our DE&I Strategy and
oversaw the mechanisms for engaging with the
workforce on behalf of the Board.
– Assessed and monitored organisational culture to ensure
alignment with our purpose, strategy and values.
– Employee Listening Sessions continued to provide
valuable insight into our organisational culture,
supplemented by regular updates from our Employee
Networks.
– Monitored Health & Safety and Development Risk.
Governance framework review
As the Company enters the next phase of its strategy,
the responsibilities of the ESG Committee will be
integrated into the wider governance structure (see
page 76). I will be responsible for workforce
engagement, using our Employee Listening Sessions
to provide insights directly to the Board.
On behalf of the Board, I would like to thank all Committee
members, colleagues and stakeholders for their
contribution and commitment throughout the years.
Alastair Hughes
Chair of the ESG Committee
Focus in the year
– Engaging with our workforce
– ESG strategy review
– Progress against targets
“Our Employee Listening Sessions
provided valuable insight into our
organisational culture.”
Alastair Hughes
Chair of ESG Committee
84
British Land
Annual Report and Accounts 2026
Workforce engagement statement
In accordance with Provision 5 of the Code, during the year
the ESG Committee was responsible for workforce
engagement on behalf of the Board. In the context of
changes to the Company’s governance framework, and
following a review of these arrangements, responsibility for
workforce engagement will be owned by a designated
Non-Executive Director, Alastair Hughes, with effect from
the conclusion of the 2026 AGM.
Employee Listening Sessions will continue as the key
mechanism for workforce engagement and will be led by
Alastair Hughes, who will report key themes to the Board.
The Board considers our workforce engagement
mechanisms will remain effective, with the appointment of
a designated Non-Executive Director ensuring appropriate
oversight and clear accountability for workforce
engagement at Board level.
Director engagement
– The Employee Listening Sessions have strengthened
direct communication between the workforce and
ourBoard.
– Ahead of each Committee meeting, a small group of
employees from across the business meets with two or
more Non-Executive Directors to discuss culture,
recognition, DE&I and communication.
– These sessions provide valuable insights that help the
Committee monitor and support our organisational
culture.
– Outcome: Themes arising from the sessions are reported
to the Board and shared with the Executive Committee,
informing management actions and giving the Board
cultural insights into the Company. Employee feedback
indicated that the sessions were felt to be effective and
welcomed, and provided a valuable opportunity to
engage directly with Non-Executive Directors.
Employee engagement survey
– We hold a Company-wide survey to evaluate
engagement and highlight areas for improvement.
Thisisanalysed and discussed through a diversity lens.
– Having the detailed survey responses helps shape future
inclusion initiatives and provides the Board with valuable
insights.
– Outcome: The results are considered by the Executive
Committee and the Board as part of their ongoing
oversight and will help inform priorities within the
Company’s wider strategic direction.
READ MORE
about our engagement survey and
people strategy on pages 42 to 43
Linking remuneration
– 85% of eligible employees invest in British Land through
our Share Incentive Plan and SAYE schemes.
– In the year, we introduced greater links between the
financial targets, goals and individual performance
targets of the wider business and individuals, which
helps promote closer links between achieving corporate
objectives and rewarding our employees.
– Outcome: Wider range of bonus outcomes to reflect and
differentiate individual performance and ensure
objectives are closely linked to business goals.
Internal communications
– Our Internal Communications team sends a fortnightly
Company-wide email highlighting key business activities.
Employees also receive regular updates on Employee
Network events.
– There are monthly staff meetings led by our Executive
Committee that feature updates from across the
business.
– This year we hosted our Company Conference, which
gathered teams from across the business together under
one roof. We celebrated 170 years of British Land by
revisiting our history and by setting out our vision for
thefuture.
– Outcome: Following feedback from employees, there
was a range of speakers from across the business
presenting at our Company Conference, alongside senior
leadership and external speakers to give the
customerview.
Employee Networks
– Network chairs presented at our Executive Committee
and ESG Committee meetings to highlight issues
affecting our people and provide a forum for discussion.
– The Networks cover a wide range of topics, from
promoting sports and social activities, to supporting
diversity and inclusion initiatives.
– Our Networks provide a valuable opportunity to
understand how employees are collaborating and
influencing the broader inclusion and equality agenda
within the Company.
– Outcome: During the year, the Committee endorsed the
work of the Networks, which increased senior leadership
involvement in Network events. The Network Spotlight
below highlights a tangible outcome arising directly from
these engagements.
NextGen Fireside Chat, York House
Network Spotlight: NextGen
The NextGen Network is aimed at those early in their
careers to help nurture professional development and
form a community of support. NextGen offer a buddy
programme, connecting mentors and mentees from
across the Company, as well as organising a variety of
social events. The Committee endorsed the NextGen
Network to expand their outreach to host more
Fireside Chats with our Non-Executive Directors. This
year two events have been held with our Chair, William
Rucker, and Non-Executive Director, Mark Aedy,
participating. These sessions enabled employees to
listen to their career journey and lessons they have
learned along the way.
CORPORATE GOVERNANCE
8585
British Land
Annual Report and Accounts 2026
Embedding our desired culture
Outcomes of the Board’s monitoring and assessment
How the Board monitors and assesses culture
REPORT OF THE ENVIRONMENTAL SOCIAL GOVERNANCE COMMITTEE
CONTINUED
Focus on culture
The Board sets the tone for a culture that supports delivery of our strategy and oversees how that culture is embedded
across the business through the embodiment of our values. In doing so, the Board has continued to focus on our people
strategy, which aims to build a diverse, inclusive and ambitious culture, enabling us to attract, develop and inspire the
best people to deliver our strategy.
During the year, the Board and its Committees considered a range of indicators to assess culture in practice.
These included monitoring:
– Progress against our people strategy, with a particular focus on having a performance driven culture,
executing in line with our value “Deliver at Pace”, learning and development, internal mobility and investment
in coaching and mentoring
– Progress against our DE&I ambitions, recognising the importance of an inclusive culture for effective decision
making and long term success which is embedded through our values “Bring Your Whole Self” and “Build for
the Future”
The Board saw a dip in our overall engagement scores this year from very high scores previously. While in line
with relevant benchmarks, a reduction from the prior year was expected given organisational restructuring and
headcountreductions. The Board considered the engagement results in the context of the strategic changes
implemented during the year and will continue to monitor engagement and culture as the business moves
through this period of adjustment.
The strategic benefits of these changes support the culture the Board is seeking to embed and help position
the business for future success. In particular, the changes have:
– Reinforced cost discipline
– Increased accountability and efficiency following organisational restructuring and headcount reductions
The Board believes that the changes adopted during the year support the development of a sustainable
culture aligned with long term performance. The Board expects engagement levels to stabilise and
improve and will closely consider the results of next year’s engagement survey, adapting the strategy
where required in the interests of the business. Employee Listening Sessions will continue to be used as an
important tool to monitor culture and ensure it remains aligned with the Company’s values and objectives.
We continue to invest in our people to support performance and build long term capability. Clear expectations,
effective leadership and opportunities for development remain central to how we support colleagues to
perform at their best.
Looking ahead
Our focus remains on driving a high-performing, engaged and inclusive workforce that can “Deliver at Pace”.
Priorities include continued leadership development, further progress against our DE&I ambitions and
opportunities to enhance digital and technical skills at all levels across the business. Thekey metrics for FY26,
set out overleaf, enable the Board to keep abreast of the culture of the business, providing insight into
colleague experience, leadership effectiveness and engagement. The Board and Executive Committee remain
focused on our long term performance whilst continuing to embed our values toenable a diverse, inclusive and
ambitious culture.
86
British Land
Annual Report and Accounts 2026
6,129
training hours across
the business
Our culture in action
The snapshot below highlights some of the key culture metrics for FY26, which are aligned to our values and are visible
to the Board through our Governance structure.
64%
employee engagement
score in FY26
88%
of employees feel they
receive support from
people around them at
work when needed
28%
of new hires were from
a minoritised ethnic
background
£3.1bn
of financing activity
inthe year
11
staff meetings with all
employees invited to
attend and members
of our Executive
Committee presenting
9
employee-led
Networks
73%
of employees felt that
they are encouraged
to be innovative even
though some of their
initiatives may not
succeed
81%
of employees are
proud to work for
theCompany
90%
participation rate in
employee engagement
survey in FY26
80%
of employees felt they
can be their authentic
self at work
36%
female representation
at senior management
level
6.9%
gender pay gap
17.4%
ethnicity pay gap
30
employees attending
Listening Sessions
withour Non-
Executive Directors
82%
of employees felt they
have access to the
things they need to do
their job well
88%
of employees stated
they are able to
arrange time out of
work when needed
87%
of employees know
what they need to
doto be successful
intheir role
£333m
assets acquired
through the acquisition
of Life Science REIT
plc which completed in
April2026
65
people early on in their
careers participated in
our work experiences
programmes
74
internal job
movements or
promotions
40
Business-led digital
improvements
delivered in FY26,
enabled through the
Digital Skills Forum
1.7m
sq ft
of leasing across
Campuses during
theyear
94%
now let at One Triton
Square since its
launchin October
2025
54
days
from agreeing terms to
completion of the
158,000 sq ft
Anthropic lease at One
Triton Square
BE SMARTER
TOGETHER
LISTEN AND
UNDERSTAND
BRING YOUR
WHOLE SELF
BUILD FOR
THE FUTURE
DELIVER
AT PACE
OUR VALUES
CORPORATE GOVERNANCE
8787
British Land
Annual Report and Accounts 2026
“The Nomination Committee is
dedicated to ensuring that the
Company is best positioned to meet
its long term strategic objectives
through effective and dependable
leadership.”
REPORT OF THE NOMINATION COMMITTEE
William Rucker
Non-Executive Chair
DELIVERING
SUCCESS
THROUGH
EFFECTIVE
LEADERSHIP
Role of the Committee
The primary role of the Nomination Committee isto:
– Review the structure, composition anddiversityof
the Board
– Develop succession plans for Directors andsenior
management
– Review the time commitments required
fromNon-Executive Directors
The Nomination Committee is dedicated to ensuring that
the Company is best placed to meet its long term strategic
objectives through effective and dependable leadership
atboth Board and executive level. The Committee is
responsible for ensuring that the Board has a diverse
andmeaningful combination of skills and experience
amongst the Directors to meet those objectives.
Membership and attendance
The membership of the Committee comprises four
independent Non-Executive Directors. Inparticular,
Chairs of the Audit, ESG and Remuneration Committees
are members thus ensuring the Committee most
efficiently takes account ofthe risk, remuneration and
diversity priorities ofother Board Committees.
Biographical details of the Committee members can be
found on pages 81 to 83.
The Committee met five times during the year with
attendance set out on page 80. The Chief Executive,
Company Secretary and Director ofGovernance are
invited to attend each Committeemeeting.
I am pleased to present the report of the
Nomination Committee for the year ended
31 March 2026.
Board changes
In January 2026 we announced that Simon Carter will be
stepping down as Chief Executive. The Committee has
commenced a thorough search process and will follow
theselection and appointment process detailed on the
following page.
After consideration by the Committee, itwas decided that
the Board’s skillset would benefit from additional
experience in the healthcare and private equity sector.
Consequently, the Board approved the appointment
ofRajShah as Non-Executive Director with effect from
January2026.
In May 2026, it was announced that Lynn Gladden will
bestepping down from the Board. Raj Shah, already
amember of the Innovation Advisory Council, will become
Chair of the Council upon Lynn’s departure and will bring
great insight to this forum.
The Committee recommended the appointment of
Amanda James as Chair of the Audit Committee (which
will be renamed to the Audit & Risk Committee),
succeeding Loraine Woodhouse, with effect from the
conclusion of the 2026 AGM. Loraine Woodhouse will
remain a member of the Audit & Risk Committee. Further
information can be found on page 93.
Board diversity
The Committee periodically reviews the diversity of the
Board and Executive Committee both in terms of the
requirements under the UK Listing Rules and British Land’s
own more stretching Board Diversity and Inclusion Policy.
The Board is pleased now to comply with the requirements
of the UK Listing Rules in respect of ethnic diversity and
will continue to work towards the more stretching target
within its own policy.
The Committee is pleased that as at 31 March 2026, the
Board met and exceeded its targets in respect of gender.
A full description of the Board’s diversity, and areas of
focus for the year ahead, are included on page 92.
William Rucker
Chair of the Nomination Committee
William Rucker
Non-Executive Chair
Focus in the year
– Chief Executive succession
– Non-Executive Director changes
– Board diversity
88
British Land
Annual Report and Accounts 2026
Responsibilities
Director search, selection and appointment process
The Committee oversees the search, selection and
appointment process for Board appointments. The process
is conducted in accordance with the Board Diversity
and Inclusion Policy and the Selection and Appointment
Process, which are both explained later in this report.
Russell Reynolds Associates has been appointed to
lead the search for a successor to the Chief Executive
and WMW Consulting was appointed in the search for
a Non-Executive Director resulting in the appointment
of Raj Shah. Both firms have no other relationship with
the Company or individual Directors. The firms have
adopted the Voluntary Code of Conduct for Executive
Search Firms on gender diversity and best practice.
Induction, Board training and development
Each new Director is invited to meet with the Company
Secretary and Director of Governance to discuss their
induction needs in detail, following which the programme
is tailored specifically to their requirements and adapted to
reflect their existing knowledge and expertise.
Each induction programme will generally include:
1. Meetings with the Chair, Executive Directors, Committee
Chairs, external auditor and remuneration consultants
(as appropriate).
2. Information on the corporate strategy, investment
strategy, financial position and tax matters (including
details of the Company’s REIT status).
3. An overview of the property portfolio provided by
members of the senior management team.
4. Visits to key assets.
5. Details of Board and Committee procedures and
Directors’ responsibilities.
6. Details of the investor relations programme.
7. Information on the Company’s approach to
sustainability.
The Committee also has responsibility for the Board’s
training and professional development needs. Directors
receive training and presentations during the course of the
year to keep their knowledge current and enhance their
experience.
Board and Committee composition reviews and
appointments
During the year, the Committee reviewed the broader
composition and balance of the Board and its Committees,
and their alignment with the Company’s strategic
objectives.
The Board dedicated considerable time to evaluating the
effectiveness of its Committee structure and assessing
whether it remained fit for purpose. Following this review,
the Board concluded that revisions were appropriate to
ensure the Committee structure most effectively and
efficiently supports the operational and strategic needs
ofthe business. Further information on the governance
framework changes are found on page 76.
Details of significant external appointments taken on by
Directors during the year can be found on page 92. These
appointments are expected to enhance the Directors’
expertise and allow them to bring greater insight to their
role at British Land. All significant external appointments
are subject to British Land approval prior to being
accepted. Further information about our Conflicts of
Interest Policy can be found on page 80.
Independence and reappointment
The independence of all Non-Executive Directors is
reviewed by the Committee annually, with reference to
their independence of character and judgement and
whether any circumstances or relationships exist which
could affect their judgement. The Board is of the view that
the Non-Executive Directors each remain independent. In
respect of Lynn Gladden who has served on the Board for
11 years, the Committee made a recommendation to the
Board that notwithstanding her tenure of over nine years,
she remains independent in accordance with the
circumstances listed in Provision 10 of the Code.
The Committee also considers the time commitment
required and whether each reappointment would be in the
best interests of the Company. Consideration is given to
each Director’s contribution to the Board and its
Committees, together with the overall balance of
knowledge, skills, experience and diversity.
The Committee concluded that each Non-Executive
Director continues to demonstrate commitment to their
role as a member of the Board and its Committees,
discharges their duties effectively and makes a valuable
contribution to the leadership of the Company for the
benefit of all stakeholders.
The Committee recommended to the Board that all serving
Directors be put forward as appropriate for appointment
and reappointment at the 2026AGM, with the exception of
Lynn Gladden who will be stepping down as a Director at
its conclusion.
Selection and Appointment Process
Overview
Role brief
The Committee only works with external search
agencies that have adopted the Voluntary Code of
Conduct for Executive Search Firms on gender
diversity and best practice. The Committee and
agency work together to develop a comprehensive
role brief and person specification, aligned to the
Group’s values and culture. This brief contains clear
criteria against which prospective candidates can be
objectively assessed.
Longlist review
The external search agency is challenged to use the
objective criteria for the role to produce a longlist of
high quality candidates from a broad range of
potential sources of talent. This process supports the
creation of a diverse longlist. The Nomination
Committee selects candidates from this list to be
invited for interview.
Interview
A formal, multi-stage interview process is used to
assess the candidates. For each appointment the
choice of interviewer is customised to the specific
requirements of the role. All interview candidates are
subject to a rigorous referencing process.
Review and recommendation
The Committee ensures that, prior to making any
recommendation to the Board, any potential conflicts
and prospective Directors’ existing significant time
commitments have been satisfactorily reviewed.
CORPORATE GOVERNANCE
8989
British Land
Annual Report and Accounts 2026
88%
People/talent/culture
Listed PLC experience
Remuneration
Accounting/finance/risk
Public & private capital markets
Retail/customer orientation
M&A/transactions
Real estate
Strategy & data usage
Digital and technology
Policy/government relations
CEO experience
Sustainability & ESG
85%
88%
81%
81%
71%
70%
67%
70%
70%
79%
75%
71%
78%
67%
71%
70%
63%
56%
58%
71%
63%
67%
63%
63%
63%
57%
63%
Marketing
Skills matrix
20262025
11.0
Lynn Gladden
8.2
Alastair Hughes
5.1
Loraine Woodhouse
4.6
Mark Aedy
2.6
Amanda Mackenzie
2.4
Mary Ricks
1.8
Amanda James
1.7
William Rucker
0.2
Raj Shah
Non-Executive tenure as at 31 March 2026 (years)
Succession planning
The Committee is responsible for reviewing the succession
plans for the Board, including the Chief Executive. We
recognise that successful succession planning includes
nurturing our own talent pool and giving opportunities to
those who are capable of growing into more senior roles as
well as external recruitment.
Diversity is a key consideration for the Committee when
contemplating appointments to the Board. An outline of
the Company’s Board Diversity and Inclusion Policy and
performance against it is provided on the following page.
The Committee uses the skills matrix to review which skills
and expertise are held by the Board and where we can
strengthen our skill set for current and future strategic
needs. This is considered in conjunction with the tenure
ofDirectors on the Board.
The Chief Executive and HR Director prepare succession
plans for Executive Committee members and senior
management in critical roles for consideration by the
whole Board. The succession plans are reviewed annually,
ensuring a strategic approach across short, medium and
long term horizons. Additionally, all succession plans are
assessed taking account of the Company’s overarching
diversity targets. The Committee notes that the remit of
the ESG Committee includes consideration of the extent
towhich the business is developing a diverse pipeline
forsuccession to senior management roles.
Demonstrating our skills
Our skills matrix as at 31 March 2026 has been updated to show the additional skills brought to the Board with the
appointment of Raj Shah.
The percentage shows the outcome as a proportion of the maximum score available. The Committee uses this data
whenconsidering Non-Executive Director appointments.
REPORT OF THE NOMINATION COMMITTEE CONTINUED
90
British Land
Annual Report and Accounts 2026
Board gender balance
31 March 2026
Male
Female
55%
45%
31 March 2025
Male
Female
50%
50%
31 March 2024
Male
Female
50%
50%
Board ethnicity balance
31 March 2026
White/British
Asian/Asian British
91%
9%
31 March 2025
White/British
100%
31 March 2024
White/British
Asian/Asian British
83%
17%
Board Diversity and Inclusion Policy
The Board Diversity and Inclusion Policy recognises the
benefits of diversity in its broadest sense and sets out the
Board’s ambitions and objectives regarding diversity at
Board and senior management level (senior management
isdefined as the Executive Committee and its direct
reports). We believe that in order to achieve our strategy
we need a diverse Board that reflects the places we
develop and manage as well as the tenants and customers
that occupy our spaces. The policy, which applies to the
Board and its Committees, affirms that appointments will
continue to be made on merit against objective criteria,
which are developed in consideration of the skills,
experience, independence and knowledge which the
Board as a whole requires to be effective. The policy also
describes the Board’s firm belief that diversity in the
boardroom has a positive effect on the quality of
decisionmaking.
The policy aligns with the recommendation of the Parker
Review to introduce a percentage target for minoritised
ethnic representation in senior management. It also aligns
with the requirements of the UK Listing Rules, other than in
respect of ethnic diversity, where the Board has set a more
stretching ambition.
The objectives from the policy in force for the year ended
31 March 2026 included:
– the intention to maintain a balance such that at least
40% of the Board were women;
– the intention to maintain at least two Directors from
aminoritised ethnic background;
– the intention for at least one of the Chair, Chief
Executive, Chief Financial Officer or Senior Independent
Director to be a woman;
– to achieve a gender mix such that at least 40% of senior
management were women and a diversity mix such that
15% of senior management were from a minoritised
ethnic background; and
– to ensure that there was clear Board-level accountability
for diversity and inclusion for the wider workforce.
The Board recognises that there will inevitably be times
where the gender and ethnic diversity proportions may fall
below these objectives due to tenure limits and succession
timing; however, they are the Board’s long term intentions.
During the year, the ESG Committee was accountable for
diversity and inclusion, by benchmarking progress against
relevant objectives and British Land initiatives. Progress
towards our 2030 Diversity, Equality and Inclusion
Strategy is a core focus aswe recognise that a diverse
team is more representative of our customers and will
design better products and make better decisions. Our
Board Diversity and Inclusion Policy and Company
Diversity, Equality & Inclusion Strategy together enable us
to bring in people of wide-ranging talent and experience,
diversity of thought and bolster decision making allowing
us to continue to achieve our strategy.
As at 31 March 2026, which is our chosen reference date
inaccordance with the UK Listing Rules, the Board had a
gender balance of 45% women, and Loraine Woodhouse
remains appointed as the Senior Independent Director.
TheBoard is pleased to have exceeded and met these
objectives respectively as at the reference date.
As at 31 March 2026, the gender diversity for senior
management, as previously defined, was 36% women, in
line with 2025. The methodology for calculating this is the
same as that used to calculate theethnic background and
gender identity of the Board andExecutive Committee on
the following page.
As at the reference date, Raj Shah is the sole Board
member from a minoritised ethnic background. The
Nomination Committee is pleased that the Company once
again aligns with the recommendation of the Parker
Review and the UK Listing Rules requirement. However, we
are cognisant that the Company remains below its own
stretching target of two Directors from a minoritised ethnic
background, as set out in our policy. We will seek to
improve the ethnic diversity of the Board at the next
appropriate opportunity.
The Board reviewed the policy during the year and agreed
to maintain the aspirational target of two Directors from a
minoritised ethnic background, notwithstanding the
current Board composition.
As at 31 March 2026, 10.3% of our senior management
team was from a minoritised ethnic background.
CORPORATE GOVERNANCE
9191
British Land
Annual Report and Accounts 2026
The table above sets out the ethnic background and
gender identity of the Board and Executive Committee
as at 31 March 2026, which is our chosen reference date
in accordance with the UK Listing Rules. The data was
collected by the Director of Governance via individual
questionnaires and informs the status of our Board
Diversity and Inclusion Policy targets. Board and Executive
Committee members were asked to confirm, where
applicable, if there had been any change to their previous
response as at the reference date. The forms set out the
table as it is above and individuals were asked to indicate
which categories are applicable to them. There have been
no changes in Board composition since the reference date.
Board and Committee effectiveness
An internal Board effectiveness evaluation was conducted
during the year, as part of which the Committee was
determined to have operated effectively. Further detail
regarding the outcomes of the evaluation can be found on
page 80.
The Committee’s terms of reference were reviewed by the
Committee in May 2026 to reflect the governance
structure changes detailed on page 76. The terms are
available on our website www.britishland.com/committees.
Board composition review
The Committee annually reviews the structure, size
and composition of the Board. This review considers
the skills and qualities required by the Board and its
Committees as a whole in light of the Group’s long
term strategy, external environment and the need
to allow for progressive refreshing of the Board. The
review identifies the specific skills required by new
appointees and guides the Committee’s long term
approach to appointments and succession planning.
Board diversity
Number of
Board members
% of
the Board
Number of
senior positions
on the Board
(CEO, CFO, SID
and Chair)
Number in
executive
management
% of
executive
management
Men
Women
Other – – – – –
Prefer not to say – – – – –
Number of
Board members
% of
the Board
Number of
senior positions
on the Board
(CEO, CFO, SID
and Chair)
Number in
executive
management
% of
executive
management
White British or other White (including
minority-white groups)
Mixed/Multiple ethnic groups – – – – –
Asian/Asian British – – –
Black/African/Caribbean/Black British – – – – –
Other ethnic group – – – – –
Not specified/prefer not to say – – – – –
External appointments
Significant appointments include the appointment to the
Board of any listed company or large privately owned
company, and any other appointment deemed to be
significant in relation to its time commitment which is
determined on a case-by-case basis. The Board is aware
that each individual’s circumstances are different and
therefore does not take a ‘one size fits all’ approach.
Further detail about the Board Conflicts of Interest Policy
can be found on page 80.
The Board reviews and considers the time commitments of
each Director and confirms that all Directors maintain the
ability to dedicate sufficient time to their commitments at
British Land. All previously approved significant
appointments provide Directors with valuable exposure to
diverse strategic challenges and enable them to bring
fresh insight to their roles at British Land.
During the year under review, no significant external
appointments by Non-Executive Directors required prior
approval from the Board.
Key areas of focus for the coming year
A key area of focus for the Committee in the upcoming
year will be the search process that is currently underway
for a new Chief Executive.
The Committee will continue to monitor the skills and
experiences of Board members to ensure that the Board
isequipped to advance the Company’s strategy and
performance. From an Executive Committee perspective,
the Committee will continue to support the Board and
Chief Executive in ensuring appropriate succession
planning continues and that diversity forms a key part
ofthat process.
REPORT OF THE NOMINATION COMMITTEE CONTINUED
92
British Land
Annual Report and Accounts 2026
“Forthcoming technology changes will
drive efficiency alongside ongoing
improvements in the control environment.”
REPORT OF THE AUDIT COMMITTEE
EVOLVING
GOVERNANCE
AND SYSTEMS
80 to 83. The Committee met four times during 2025/26,
compared to three in 2024/25. The additional meeting
allowed more time to be allocated to risk management and
internal control, which was a constructive use of time.
ERP programme
The Committee has provided Board-level oversight of
the new ERP programme to implement Oracle Fusion.
The programme will transform the systems that facilitate
our core business functions, by upgrading various
legacy systems into a modern, high-performing ERP
tool. We received updates from management regarding
the tender of the service provider, timeframe for
implementation, and progress to date including design
and testing processes, before it was recommended
to the Board for approval. The programme will
streamline processes and standardise tasks, therefore
ultimately minimising risk and reducing costs.
Provision 29 of the Code
We dedicated significant time to discuss corporate
governance matters, including the revised Provision 29 of
the Code. In preparation for reporting under Provision 29
next year, we received an update from management on
their review of our internal controls. Overall, we were
impressed with the depth of preparation and maturity of
the Company’s risk and internal control environment.
Governance framework review
With effect from the conclusion of the 2026 AGM,
oversight of Health & Safety and Main Development
Contractor Risk, previously part of the ESG
Committee remit, will be transferred to the Audit
Committee. The Committee will be renamed the
Audit & Risk Committee to better reflect its role.
Year ahead
The Committee will continue to oversee the ERP
programme as it moves into its final stages. On Provision
29, we will build on the strong foundations laid this year to
support the Board’s first attestation in the 2027 Annual
Report. We will oversee preparations for IFRS 18 which
applies to British Land at the half year ending in 2028.
Finally, the Committee will hold deep dives on its new
areas of responsibility as the expanded Audit & Risk
Committee.
As agreed at the May 2026 Committee meeting, Amanda
James will Chair the Audit Committee from the end of the
2026 AGM and I wish her every success in the role. I will
continue to be a member of the Committee following
Amanda becoming Chair.
Loraine Woodhouse
Chair of the Audit Committee
Loraine Woodhouse
Independent
Non-Executive
Director
Role of the Committee
Corporate and financial reporting
– Ensures the integrity of the financial statements and formal
announcements relating to the Group’s financial performance
and evaluates significant financial judgements and estimates
– Advise on the fair, balanced and understandable assessment
External Audit
– Monitors the independence, effectiveness and
remuneration of the external auditor, and recommends to
the Board their appointment and non-audit services policy
Internal Audit
– Monitors and reviews the Internal Audit Plan and
effectiveness of the internal auditor
Risk management and internal control
– Monitors risk management and the Company’s system of
internal control including financial controls and reviewing
the going concern and long term viability statement
Investment and development property valuations
– Monitors the effectiveness of the Company’s valuers and
valuation process, assumptions, judgements and
resulting outcomes
The Committee’s terms of reference were reviewed by the
Committee in May 2026 to reflect the governance
structure changes detailed on page 76.
Membership and attendance
The Committee comprises four Non-Executive Directors.
Loraine Woodhouse and Amanda James both have recent and
relevant financial experience and as a whole the Committee
has competence relevant to the sector. Details of the
Committee members and attendance are found on pages
Loraine Woodhouse
Chair of the Audit Committee
Focus in the year
– Enterprise Resource Planning (ERP) programme
– Provision 29 of the UK Corporate Governance
Code (the ‘Code’)
– Governance framework review
CORPORATE GOVERNANCE
9393
British Land
Annual Report and Accounts 2026
Investment and development property
valuations
The external valuation of British Land’s property portfolio
is a significant area of estimation as it is a key determinant
of the Group’s balance sheet and financial performance
and the remuneration of the Executive Directors and senior
management. The Group’s valuers are CBRE, Knight Frank,
JLL and Cushman & Wakefield. As at 31 March 2026, the
portfolio was valued at £10.1bn.
Key matters discussed in the year:
– Yield movements, current and future rental levels, and
benchmarking;
– Trends affecting occupational and investment retail and
office sectors, logistics, life sciences and industrial
markets and Canada Water;
– Macroeconomic events affecting the markets the
Company operates in;
– Impact of the mandatory valuer rotation rules on the
market; and
– Biannual qualitative review of valuers’ service level.
The valuers present their reports biannually which include
details of the valuation process, market conditions and any
significant estimates made. The external auditor assesses
the valuations and valuation process, having had full
access to the valuers to determine that due process has
been followed and appropriate information used, before
separately reporting its findings to the Committee. The
Group’s valuers and external auditor have confirmed to the
Committee that the process undertaken by British Land to
ascertain the valuation of its real estate portfolio is robust.
British Land has fixed fee arrangements in place with the
valuers in relation to the valuation of wholly-owned assets,
in line with the recommendations of the Carsberg
Committee Report.
The Committee allocates time to ensure the rigorous
monitoring and review of the effectiveness of its valuers as
well as the valuation process itself. The biannual
effectiveness review is also subject to rigorous internal
review by our Analysis and Internal Audit team. In
November and May, the Committee considered the
following factors and determined that the valuers
remained effective:
– Market testing, which involves comparing new lettings
and rent reviews against the market;
– Benchmarking, which involves reviewing prime market
yields and valuation movements on our assets between
valuers as well as comparing valuation movements to
peers;
– Availability of market evidence is assessed to understand
any potential margin for error; and
– Valuation outliers are reviewed on our valuation
movements with any variances analysed.
Activities during the year
Valuer reports and effectiveness
2025 Annual Report and Accounts and
preliminary announcement
Going concern and viability
assessments
Sustainability assurance, Internal and
External audit reports
Corporate Governance Code
compliance
Principal risks and internal control
effectiveness review
Reappointment of external auditors,
PwC and BDO
ERP update
MAY
Valuer reports and effectiveness
Going concern and viability
assessments
2026 half year results, preliminary
announcements and financial reporting
judgements
Internal and external audit reports
Risk and internal control update
Cyber security update
Treasury policy approval
NOV
Going concern and viability
assessments
Provision 29 compliance, sustainability
reporting and ERP updates
Financial reporting judgements
Principal and emerging risks assessment
and appetite review
Data privacy, tax, whistleblowing and
compliance reports
Internal and external audit reports
Reappointment of internal auditor,
Deloitte
Effectiveness of the Committee, Internal
and External Audit
MAR
REPORT OF THE AUDIT COMMITTEE CONTINUED
Corporate governance changes
including Provision 29 of the Code
External audit plan, fees and
engagement letter
Insurance, ERP, technology and cyber
security updates
OCT
NEW
94
British Land
Annual Report and Accounts 2026
RECOMMENDATION
TO THE BOARD
The Board considers the Committee’s
recommendation that the Annual Report
and Accounts as a whole is FBU.
04
Corporate and financial reporting
The financial reporting process is overseen by the Audit
Committee and assessed by the external auditor. It is
managed using documented accounting policies and
reporting formats supported by detailed instructions and
guidance on reporting requirements.
As part of the process, the Committee reviewed the
content and tone of the preliminary and half year results
and the Annual Report and Accounts and made
recommendations to the Board regarding their accuracy
and appropriateness. In addition, the Disclosure
Committee regularly reviews ad hoc events, draft financial
reports and valuation information during the interim and
full year reporting process and determines, with external
advice from legal and financial advisers as required,
whether inside information exists and the appropriate
disclosure requirements.
During its review of the Annual Report and Accounts,
theCommittee considered the following:
– Accounting policies and practices including any new
standards introduced during the year. A summary of our
material accounting policies can be found in Note 2 of
the financial statements;
– Key financial reporting matters including major
transactions (further detail provided later in this Report)
as well as other financial reporting items such as the
FRC’s Corporate Reporting Review and any other
significant matters and accounting judgements and
estimates; and
– Key messaging, particularly matters considered
important to the Group by virtue of their size,
complexity, level of judgement required and potential
impact on the financial statements and wider
businessmodel.
Once the Committee completes its overarching review,
itconsiders whether, in its opinion, the Annual Report and
Accounts, taken as a whole, is fair, balanced and
understandable (FBU), and whether it provides the
information necessary for stakeholders to assess the
Company’s position, performance, business model
andstrategy.
The Committee has satisfied itself that the controls over the
accuracy and consistency of the information presented in
the Annual Report and Accounts are robust. The Committee
reviewed the procedure undertaken to enable the Board
toprovide the FBU confirmation to shareholders, an
overview of which is set out across the page. In particular,
the Committee contemplated the specific considerations in
the 2026 Annual Report and Accounts found opposite to
ensure that they did not have an adverse impact on the
balance and fairness of the report.
The Board is responsible for preparing the Annual Report
and Accounts and confirms in the Directors’
Responsibilities Statement on page 118 that it believes that
the Annual Report and Accounts, taken as a whole, is FBU.
The Committee reviewed management’s analysis
supporting the preparation of the financial statements on a
going concern basis. This included consideration of
forecast cash flows, availability of committed debt facilities,
sensitivity analysis and expected covenant headroom. The
external auditor also reviewed management’s assessment.
The Committee satisfied itself that the going concern basis
of preparation remained appropriate.
Fair, balanced and understandable
review process
MANAGEMENT REVIEW
Key members of the management team
independently review the Annual Report
and Accounts, challenging its accuracy,
consistency and appropriateness. They
then come together to discuss and
determine any suitable changes which are
overseen by the Committee.
PRIMARY CONSIDERATIONS:
– Maintaining an appropriate balance of
financial and non-financial measures.
– Ensuring the Company’s purpose is
communicated clearly and consistently.
– Ensuring that real estate terminology
was appropriately explained or clarified,
where necessary.
01
REGULAR AUDIT
COMMITTEE REVIEW
The Committee reviews the Annual Report
and Accounts from the early stages of the
drafting process before turning to its
dedicated FBU review once it is nearly
finalised. This provides sufficient time for
feedback prior to formal consideration by
the Board.
02
VERIFICATION
A group of individuals from across the
business verify all factual content and
provide assurance that all data is correct.
03
CORPORATE GOVERNANCE
9595
British Land
Annual Report and Accounts 2026
The Committee also reviewed management’s assessment
of whether the Group’s long term viability appropriately
reflects the prospects of the Group and covers an
appropriate period of time. This included consideration of
whether the assessment adequately reflected the Group’s
risk appetite and principal risks as disclosed on pages 49
to 58; whether the period covered by the statement was
reasonable given the strategy of the Group and the
environment in which it operates; and whether the
assumptions and sensitivities identified and stress tested
represented severe but plausible scenarios in the context
of solvency or liquidity.
The Committee agreed with management’s assessment
and recommended the viability statement to the Board.
The viability statement, which includes our going concern
statement and further details on this assessment, is set out
on page 59.
Significant matters considered during the year in relation
to the financial statements are set out below and should be
read in conjunction with the Independent Auditor’s Report
on pages 120 to 126 and the significant accounting policies
disclosed in the notes to the financial statements.
The Committee received reports from management in
relation to IFRS 18 which will replace IAS 1 and is effective
for annual reporting periods beginning on or after 1
January 2027, with the Company’s first affected reporting
period being the 2028 half year reporting period. The
standard introduces changes to the presentation and
disclosure requirements of the financial statements
intended to enhance transparency and comparability.
TheCommittee noted that preparatory work is already
underway and was satisfied that appropriate plans are in
place to ensure timely and effective implementation. On
this basis, the Committee was comfortable that the
Company will be compliant with the new requirements and
will continue to monitor progress ahead of the
implementation date.
Significant issues considered
Significant matters Outcome
Valuation of property portfolio
The valuation of investment and development properties
conducted by external valuers is inherently subjective as it
is undertaken on the basis of key assumptions made by the
valuers which may not prove to be accurate. The outcome
of the valuation is significant to the Group in terms of
investment decisions, results and remuneration. Selected
external valuers presented their reports to the Committee
prior to the half year and full year results, providing an
overview of the UK property market and summarising the
performance of the Group’s assets. Significant estimates
made in preparing these valuations were highlighted by
the external valuers and discussed by the Committee.
The Committee analysed the reports and reviewed
thevaluation outcomes, challenging whether the key
assumptions made by the external valuers were
appropriate. The Committee queried the valuers on how
the challenging macroeconomic environment had
impacted valuations. The Committee also challenged the
valuers on the availability of transactional evidence to
support their valuations, particularly within the London
office market. The Committee was satisfied with the
valuation process and the effectiveness of the Company’s
valuers. The Committee approved the relevant valuation
disclosures to be included in the Annual Report.
Accounting for significant transactions
The accounting treatment of significant property
acquisitions, disposals, financing and leasing transactions
is a recurring risk for the Group with non-standard
accounting entries required, and in some cases
management judgement applied. The Committee reviewed
management papers on key financial reporting matters,
including those for significant transactions, as well as the
external auditor’s findings on these matters.
The Committee was satisfied that the accounting
treatment and related financial disclosure of significant
transactions was appropriate. There was no interaction
with the FRC’s Corporate Reporting Review team during
the year.
Taxation and REIT compliance
The Group benefits from tax advantages as a REIT. Income
and chargeable gains on the qualifying property rental
business are exempt from corporation tax. Several tests
were conducted during the year to ensure the Group
remains firmly within the limits that defines it as a REIT,
including in relation to forecasts. The Committee further
reviewed the appropriateness of taxation provisions made,
released and utilised by the Group in the year.
Itconsidered papers prepared by management and
discussed the views of the external auditor to obtain
assurance that amounts held were commensurate with
theassociated risks.
The Committee reviewed the frequency of the testing and
noted the margin by which the Group complied with the
REIT requirements. The Committee was satisfied that good
judgement had been made.
The Committee was satisfied that the taxation provisions
were appropriate. ‘Our Approach to Tax’, which was
reviewed and updated by the Committee in the year,
isavailable at www.britishland.com/taxstrategy.
REPORT OF THE AUDIT COMMITTEE CONTINUED
96
British Land
Annual Report and Accounts 2026
Internal Audit
The role of Internal Audit is to act as an independent and
objective assurance function, designed to improve the
effectiveness of the governance, risk management and
internal controls framework in mitigating the key risks to
the Company. Deloitte, in their third year of appointment,
provided Internal Audit services to British Land during the
financial year and attended all Committee meetings to
present their audit findings alongside the status of
management actions.
Deloitte was reappointed as internal auditor during the
year for a term of three years. Over the past three years,
Deloitte has delivered a high quality internal audit
programme and has worked effectively with the British
Land teams, demonstrating appropriate professional
challenge alongside flexibility where required.
During the year, the internal auditor reported on progress
made against its three-year Internal Audit strategy
covering FY24 to FY26. Internal audits completed during
the year included:
1. Key controls
2. IT general controls
3. Leasing processes
4. Fraud risk management
5. Group cyber security – Asset systems
6. Payroll
7. ERP – Programme governance
8. Development procurement and supply chain resilience
9. Artificial intelligence – Strategy and governance
No material control issues were identified during the work of
the Internal Audit during the year. Control findings which
were identified were reported to management and actions
agreed to address each finding. Actions are tracked to
conclusion and verified before closure. During the year,
Internal Audit reported on the Company’s robust and
maturing enterprise-wide controls framework and positive
progress toward Provision 29 readiness. In addition,
enhancements to the Company’s fraud risk management
processes and procedures were identified to ensure
compliance with the Failure to Prevent Fraud requirements.
Effectiveness
The Committee held private sessions with the internal
auditor three times during the year. These meetings are
held without management present to enable the auditor to
raise any issues of concern. In addition, the Chair of the
Committee holds private meetings with the auditor
separately before each meeting and additional meetings
are held on request.
The annual evaluation of the internal auditor’s performance
was undertaken in March 2026. The review included:
consideration of whether objectives defined in the
Internal Audit charter had been met; review of the
quality of the Internal Audit work undertaken; and the
skills and competence of the Internal Audit teams. Key
stakeholders across the Group, including Committee
members, CFO, Group Financial Controller, Head of
Strategy and Investor Relations, Head of Information
Security, Head of Risk and Internal Control, and
Reward, Talent and Performance Director, completed
a questionnaire to assess the effectiveness of the
internal auditor, taking into account the same four
areas assessed as the external auditor effectiveness
questionnaire detailed on the next page. In addition,
theinternal auditor completes a self-assessment paper.
The results were positive, in particular it showed that the
internal auditor had further improved in quality of delivery
and people, with all four assessment areas being rated in
the highest category.
The Committee concluded that Deloitte had discharged
itsduties as internal auditor effectively throughout the
year. In particular, the Committee highlighted the practical
findings and insights from other organisations as a
keystrength.
External Audit
The Committee is responsible for overseeing the
relationship with the external auditor and for considering
their terms of engagement, remuneration, effectiveness,
independence and continued objectivity. The Committee
reviews annually the audit requirements of the Group, for
the business and in the context of the external
environment, placing great importance on ensuring a high
quality, effective External Audit process. BDO provides
audit services to a number of wholly-owned subsidiaries
and several joint venture companies that are not within the
scope of the Group audit. Both auditors are provided with
complete access to Company staff and records to assist in
their work. In addition, the Committee has cultivated a
strong relationship with the auditors, and encourage them
to challenge management continuously.
Audit firm PricewaterhouseCoopers
Original date of appointment July
Tender completed February
Audit firm tenure years
Lead partner, tenure Saira Choudhry years
FY26 non-audit fee as % of
total audit fee
Non-audit services and fees
The Committee discussed the audit fee for the 2026
Annual Report with the external auditor and approved the
proposed fee on behalf of the Board.
The Group has adopted a policy for the provision of
non-audit services by the external auditor in accordance
with the FRC’s 2024 Revised Ethical Standard. The policy
helps to safeguard the external auditor’s independence
and objectivity. The policy allows the external auditor to
provide non-audit services to British Land where they are
considered to be the most appropriate provider for audit
related services, including formal reporting relating to
borrowings, shareholder and other circulars and work in
respect of acquisitions and disposals.
In some circumstances, the external auditor is required to
carry out the work because of their office. In other
circumstances, selection would depend on which firm was
best suited to provide the services required. Further,
Committee approval is required where there might be
questions as to whether the external auditor has a conflict
of interest. The approval limits for non-audit services are
below and subject to review:
Value Approval required
Up to £25,000 CFO
£25,001 to £100,000 Audit Committee Chair
£100,001 and above Audit Committee
CORPORATE GOVERNANCE
9797
British Land
Annual Report and Accounts 2026
In addition, the total non-audit fee in the current year is
limited to 70% of the average of the audit fees paid in the
last three consecutive years. The ratio of audit to non-audit
fees is calculated in line with the methodology set out in
the FRC’s 2024 Revised Ethical Standard. The Committee
is satisfied that there is sufficient headroom before
reaching this upper limit.
Total fees for non-audit services, primarily relating to a
review of interim financial statements and formal reporting
relating to borrowings, amounted to £0.39m, which
represents 57% of the total Group audit fees payable for
the year ended 31 March 2026. Details of fees charged by
the external auditor during the year are set out on page
140. The Committee is satisfied that the Company has
complied with the provisions of the Statutory Audit
Services for Large Companies Market Investigation
(Mandatory Use of Competitive Processes and Audit
Committee Responsibilities) Order 2014, published by the
Competition and Markets Authority on 26 September 2014.
2
025/26
2
024/25
Total auditor fees
56%
Total fee
£1.06
m
£1.01
m
K
ey
Non-audit fees
Audit fees
£0.65m
£0.36m
2023/24
37%
£0.95
m
£0.69m
£0.26m
57%
£0.39m
£0.67m
Independence
PwC provides the Committee with an annual report on its
independence, objectivity and compliance with statutory,
regulatory and ethical standards. In accordance with the
FRC’s requirements, a tender of the audit firm was
conducted at 10 years in 2024 and the lead audit
engagement partner and senior members of the audit
team were rotated in the year. For the year ended 31 March
2026, as for the prior year, the external auditor made the
following confirmations:
– At each Committee meeting, that it remains
independent;
– An annual letter of confirmation stating its independence
and that it maintains appropriate internal safeguards to
ensure its independence and objectivity; and
– That PwC complies with the FRC’s Ethical Standards.
The Committee further received confirmation that:
– Non-audit services provided by PwC as detailed above
complied with the Group’s non-audit policy and the
requirements of the FRC’s Ethical Standard;
– The Group has not employed members of the PwC audit
team or any PwC partners during the year; and
– PwC confirmed compliance of its staff and partners with
PwC’s internal policies and process around
independence.
Effectiveness
The Committee held private sessions with the external
auditor four times during the year. These meetings are held
without management present to enable the auditor to raise
any issues of concern. In addition, the Chair of the
Committee holds private meetings with the auditor
separately before each meeting and additional meetings
are held on request.
The annual evaluation of the external auditor’s
performance was undertaken in March 2026. The auditor
completes a self-assessment paper and key stakeholders
also complete a questionnaire, including senior members
of the Finance, Strategy, IR and HR teams as well as
members of the Committee, CFO and Company Secretary.
The questionnaire took into account the following:
– Robustness of the overall audit process and auditor
challenge, including independence, audit strategy and
plan, and quality control;
– Quality of delivery of the audit and service provided
including project management and their working
relationships with management and the Committee
Chair;
– Quality of reporting to the Committee and management
including planning and significant judgements and
estimates; and
– Quality of the people on the audit team, including their
experience and technical knowledge.
The scores and feedback are shared with the external
auditor and compared against their self-assessment. The
feedback received from the survey included good
continuity in the external audit team, enabling a smooth
audit process. Each category was rated ‘good’, being the
highest rating obtainable.
PwC provides a report to the Committee to assess its
performance using Audit Quality Indicators (AQIs) which
are extremely useful to aid the assessment of the external
auditor. The AQIs used during the half and year end
include:
– Experience and continuity of the audit team;
– Percentage of total hours spent on the engagement by
the audit partner, director and specialists;
– Number of audit misstatements, both adjusted and
unadjusted; and
– Number of control findings or observations.
The Committee monitored any developments against the
AQIs and was satisfied that no risks to the audit quality
were identified.
In addition, the Committee considered the FRC’s Audit
Quality Review report in relation to the Group’s audit. After
considering the annual evaluation survey, noting those
areas for improvement in the coming year, AQIs and other
pertinent factors, the Committee concluded that the
quality of the external auditor’s work, and the level of
challenge, knowledge and competence of the audit team,
had been maintained at an appropriate standard during
the year.
REPORT OF THE AUDIT COMMITTEE CONTINUED
98
British Land
Annual Report and Accounts 2026
Risk management and internal control
The Board has delegated responsibility for establishing
and maintaining the effectiveness of the Group’s risk
management and internal control framework to the
Committee. The Committee’s review for the year ended
31 March 2026 covered financial, operational, compliance
and strategic risks.
A detailed summary of the Group’s risk management and
internal controls framework is set out in the ‘Managing risk
in delivering our strategy’ section on pages 47 to 49.
The Group has adopted the Code, best practice
recommendations in the FRC’s Guidance on Risk
Management, Internal Control and Related Financial and
Business Reporting and the FRC’s Minimum Standard for
Audit Committees and the External Audit (‘Minimum
Standard’). The Committee reviewed the Group’s
compliance with the Minimum Standard during the year
and agreed that it was aligned. In addition, the Company’s
internal control framework operates in line with the
recommendations set out in the internationally recognised
COSO Internal Control Integrated Framework.
Internal control
Internal controls remained a key focus for the Committee
during FY26 as the Company prepared to comply with the
new Provision 29 of the Code. The Committee devoted
significant time over the year to considering the
requirements of Provision 29 and its practical implications
for the Company, including a dedicated deep dive at the
newly introduced October Committee meeting.
As part of our roadmap, management undertook a
structured process to identify controls considered
‘material’ in relation to the Company’s principal risks, with
regular updates to the Committee. The Head of Risk and
Internal Control led an initial assessment of risks through
reputational, financial, fraud, compliance and disruption
lenses. Through iterative discussions with department
leads this was refined and resulted in material controls that
are categorised into entity-level, cluster-related and
singular controls.
The Committee provided active oversight throughout this
process, offering guidance to management and
emphasising the importance of a clear, proportionate and
well-defined approach to materiality that appropriately
reflected the scale and scope of the Company’s
operations. In doing so, the Committee was mindful of the
need to avoid an overly narrow set of material controls,
which could result in oversight being too high-level, and
therefore supported an approach that enabled an
appropriate depth of scrutiny.
In addition to the standard self-certification of key
controls, sample testing of internal controls was
undertaken during the year, consistent with the biannual
testing programme in place. The Committee reviewed and
was comfortable with the assurance processes supporting
the internal controls framework, noting that the
combination of self-certification and independent testing
provides a robust basis for scrutiny and will support the
assurance required for the Board’s future attestation. In
the coming year, sample testing will focus specifically on
the material controls identified.
Looking ahead, overseeing preparations for the Board
attestation under Provision 29 in the 2027 Annual Report
and Accounts will remain a priority for the Committee.
Risk Management
The Committee oversees the identification and assessment
of principal and emerging risks, key risk indicators and risk
appetite. The Committee received biannual assessments of
the most significant risks facing the Company which
indicated the exposure level and risk impact.
At the full and half year, the Committee reviewed the
Group’s principal and emerging risks, including
consideration of how risk exposures have changed during
the period. In particular, the Committee devoted
considerable time to discussing macroeconomic risk,
reflecting the heightened volatility and uncertainty in the
wider economic environment during the year. Both
external and internal risks are reviewed and their effect on
the Company’s strategic aims considered. The assessment
of emerging risks included a bottom-up review of all
business units and a deep dive by the executive-level Risk
Committee. The Committee made a recommendation to
the Board regarding the identification and assessment of
principal and emerging risks. The Board accepted the
Committee’s recommendation.
The Committee also allocates time to consider the Group’s
whistleblowing arrangements to ensure that they enable all
staff, including temporary and agency staff, suppliers and
occupiers, to report any suspected wrongdoing. These
arrangements, which are monitored by the HR Director,
General Counsel and Company Secretary, and reviewed by
the Committee annually, include an independent and
confidential whistleblowing service for staff provided by a
third party. The Committee received a summary of all
whistleblowing reports received during the year and
concluded that the response to each report by
management was appropriate. The whistleblowing reports
were also relayed to the Board by the Committee Chair.
Effectiveness
The Committee has delegated authority from the Board to
monitor the effectiveness of the Company’s risk
management and internal control systems. The assessment
was informed by discussions with the Finance team and
senior management, reports from the internal and external
auditor, and updates from the Risk Committee. Particular
focus was placed on controls over financial reporting, IT
general controls, cybersecurity and regulatory change.
While opportunities for further control enhancement were
identified, no material weaknesses were noted. Additional
reassurance was provided through the testing of our key
controls and rigorous review of our material controls as
described earlier in the report.
Following its review, the Committee confirmed to the
Board that it was satisfied that the Group’s risk
management procedures and internal control framework
operated effectively throughout the period providing
reasonable assurance and remaining aligned with the
FRC’s Guidance on Risk Management, Internal Control and
Related Financial and Business Reporting.
CORPORATE GOVERNANCE
9999
British Land
Annual Report and Accounts 2026
“Remuneration outcomes reflect a year
of strong delivery, strategic execution
and sustained operational performance.”
Amanda Mackenzie
Independent Non-Executive Director
Role of the Committee
Remuneration Policy
– To set and review the Remuneration Policy and
practices for Executive Directors and senior
management
Remuneration strategy
– To oversee the overall remuneration strategy
for the Company and ensure it aligns with the
purpose and culture and is clearly linked to the
successful delivery of the long term strategy of
the business
Remuneration outcomes
– To scrutinise the performance of the Company,
Executive Directors and management to ensure
remuneration is commensurate with
performance outcomes
DIRECTORS’ REMUNERATION REPORT
ALIGNING WITH
INVESTOR
PRIORITIES
Amanda Mackenzie
Chair of Remuneration Committee
Membership and attendance
The membership of the Committee comprises three
independent Non-Executive Directors. Biographical details
of the Committee members are found on pages 81 to 83.
The Committee met four times in 2025/26 with
anadditional joint meeting held with the ESG Committee.
Attendance is set out on page 80. Aswell as Committee
members, the Chair of the Board, CEO, CFO, HR Director,
Reward, Talent and Performance Director and Director of
Governance are invited to attend each meeting.
Company performance
Management has delivered another strong year of
operational performance, underpinned by favourable
occupational fundamentals across its market-leading
London campuses and retail park portfolio. Robust
demand and highly constrained supply, alongside a clear
return to office and continued retailer expansion, have
driven strong leasing activity, ERV growth and high
occupancy levels. This translated into solid earnings
growth and an 8.1% total accounting return, supported by
disciplined cost control, active asset management and
continued progress against the Group’s value-add
strategy. While macroeconomic and geopolitical
uncertainty persists, management remains focused on
executing against its strategic priorities and is well
positioned to deliver sustainable earnings growth and
attractive returns.
The Executive Directors performed well against the Annual
Incentive Plan (AIP) performance measures. Development
profit remains below target largely reflecting changing
macroeconomic conditions, although development across
our campuses continues to represent a key driver of long
term value creation.
Underlying Profit increased by £15m compared to the prior
year, representing a 5% increase. This resulted in an AIP
outcome just below the maximum outcome for this
performance measure.
In addition to strong financial performance, the Executive
Directors also exceeded expectations on the ESG related
measures, including achieving performance above the
GRESB 5* benchmark and improving EPC Ratings across
the portfolio.
Focus in the year
– Assessing Executive performance during the year
against remuneration performance measures
– Setting performance measures and remuneration
levels for the year ahead
– Altered the system of assessment for senior
leadership performance to use a more
quantitative score card approach based on
delivery and results
– Supported proposal to widen the performance
range for annual appraisals for all other
colleagues
100
British Land
Annual Report and Accounts 2026
The Committee reviewed and supported management’s
proposal to alter the performance assessment framework
for senior leadership (being the Executive Committee and
their direct reports) during the year. For FY26, the new
framework is an adaptation of the score card approach
already in place for Executive Directors and heavily
weights an individual’s objectives to quantitative targets
and outcomes. At the same time the appraisal framework
for all other colleagues was changed to make categories of
performance range from one to five (rather than one to
four) with an even greater emphasis on objectives that
support income generation and efficiencies. Taken
together, the changes mean there is a much wider range of
possible outcomes for annual incentive payments for all
colleagues. These changes further implement our
philosophy of greater differentiation of pay for truly
exceptional performance.
2026 remuneration outcomes
The Committee considered that the 2025 Remuneration
Policy operated effectively during the year and the
Committee has therefore not exercised discretion to alter
the formulaic remuneration outcomes for the Executive
Directors. As a result, AIP outcomes produced cash
bonuses of 97% and 104% of salary, respectively for Simon
Carter and David Walker. As announced on 12 January
2026 however, Simon Carter informed the Board of his
intention to step down as CEO and is ineligible to receive
his 2026 bonus. Following his resignation, all unvested
Performance Share awards under the Company’s Long
Term Incentive Plan (LTIP) will not vest.
David Walker’s 2023 LTIP grant will vest on 15 June 2026
at a rate of 54%. The Committee notes that performance is
largely driven by Total Property Return outperformance
relative to the sector weighted MSCI index, as well as the
achievement of the stretch performance target for energy
reduction.
In accordance with the 2024 UK Corporate Governance
Code, the Committee has not considered it necessary or
appropriate to invoke any malus or clawback provisions
during the year.
2025 remuneration outcomes
The AIP and LTIP performance condition outcomes
published in the 2025 Annual Report were final and not
subject to change following publication.
2027 AIP performance measures
The Committee considered the weighting of AIP
performance measures during the process of setting
targets for the year ending 31 March 2027. In doing so, the
Committee recognised the increased focus of investors on
earnings growth and has therefore increased the weighting
to profitability related measures, whilst reducing the
weighting of environmental measures. Full details are
available on page 103, however in aggregate, 70% of the
AIP is now weighted to profitability related measures
compared with 60% in FY26. In addition, 10% of the AIP is
now weighted to environmental targets compared with
20% in FY26. The remaining 20% of the AIP is weighted
towards strategic objectives.
Gender and ethnicity pay gaps
During the year, the gender pay gap has decreased
substantially by 6.7% from 13.6% to 6.9%, and the ethnicity
pay gap has decreased by 2.6% from 20.0% to 17.4%. The
Committee is very pleased to see continued progress in
these areas and in particular the progress with the gender
pay gap which was 40.6% in 2018 and is now 6.9%,
reflecting the continuing and focused efforts in this area.
Governance framework review
With effect from the conclusion of the 2026 AGM,
oversight of our DE&I Strategy, previously part of the
ESG Committee’s remit, will be transferred to the
Remuneration Committee. The Committee will be
renamed the Remuneration & People Committee to
better reflect its wider role. The Committee will also
continue to review the outcomes of the Employee
Engagement Survey, a role it currently shares with
the ESG Committee.
Recommendation
On behalf of the Board, the Committee recommends the
full Directors’ Remuneration Report to shareholders for
approval at the 2026 AGM.
The Committee considers that remuneration for 2026 and
the proposed operation of the policy for 2027 are
appropriate, taking into account the Group’s performance
and remuneration structures and outcomes across the
Group. Following extensive engagement with shareholders
in respect of the 2025 Remuneration Policy, there were no
remuneration related matters that required shareholder
engagement during the year.
Amanda Mackenzie
Chair of the Remuneration Committee
CORPORATE GOVERNANCE
101101
British Land
Annual Report and Accounts 2026
DIRECTORS’ REMUNERATION REPORT CONTINUED
SUMMARY OF OUR REMUNERATION POLICY
AND LINK TO STRATEGY
As outlined within the Strategic Report, our business model is centred around an ambition to responsibly deliver an
income focused Total Accounting Return of 8-10% through the cycle (see page 15). We do this by developing and
actively managing our portfolio, recycling capital out of mature assets into growth sectors and sourcing value add
opportunities. Our ambitions are supported by our values and underpinned by our purpose. A copy of the full policy
can be found at www.britishland.com/governance.
Profitability
Environment-
al Measures
Strategic
Objectives
We are an earnings driven business. The majority of our
annual incentive is focused on profitability related
measures, both in absolute terms and relative to the wider
property sector.
We are a responsible business. Our priority is to create
returns for our shareholders, but we do so in a way that
takes into account our environmental impact.
Our strategic objectives are centred around the delivery
ofan income focused Total Accounting Return of 8-10%
through the cycle. They are related to:
– Like-for-like growth
– Developments
– Cost control
– Capital recycling
– Fee income
The individual objectives under each heading are
commercially sensitive and will be reported within the
2027 Annual Report.
Total Accounting
Return
Total Shareholder
Return
Environmental
Measures
Aligns with our central ambition and
drives long term priority for an
income focused 8-10% Total
Accounting Return for our
shareholders through the cycle.
Drives behaviours to ensure that on a
long term basis, British Land remains
an attractive investment relative to
the wider listed property market.
Maintains a long term focus on our
carbon footprint.
Fixed remuneration
Attracts and retains talented people
with the appropriate degree of
expertise and experience to deliver
our agreed strategy.
Benefits
Executive Directors are eligible to
receive taxable and other benefits.
Salary
Set with reference to scope of role,
benchmarking and experience of the
candidate. Subject to annual review.
Pension
Defined Contribution arrangements
and/or cash allowances in lieu of
pension are made to the CEO and
CFO at 15% of their salary, in line with
the arrangement for the majority of
the workforce.
Long Term Incentive Plan
The maximum value of an LTIP award may be 300% of salary. Awards are subject to a three-year vesting period and any
vested shares must be held by the Executive Director for a further two years post-vesting.
Annual Incentive Plan
Maximum opportunity is 150% of basic salary. Two thirds is paid in cash with the remaining third (net of tax) used to
purchase shares on behalf of the Executive Director which must be held for a further three years whether or not they
remain an employee of British Land.
Details of the malus and clawback provisions found in the Remuneration Policy can be found on page 107.
102
British Land
Annual Report and Accounts 2026
Key for colour coding
Fixed Remuneration
Annual Incentive Plan
Long Term Incentive Plan
Annual Incentive Plan
The detailed targets the Committee sets are considered to be commercially sensitive and will be disclosed in the 2027
Annual Report.
Measure
Vesting range for minimum to
maximum expectations
Weighting for the year
ended 31 March 2026
Weighting for the year
ending 31 March 2027
Profitability
Total Property Return
TPR vs Sector Weighted MSCI Universe 17% to 100%
Annual Profitability
Underlying Profit 0% to 100%
Development Profit 0% to 100%
Environmental Measures
GRESB Ranking 25% to 100%
EPC Ratings 20% to 100%
Strategic Objectives
0% to 100%
HOW WE INTEND TO APPLY OUR REMUNERATION
POLICY DURING THE YEAR ENDING 31 MARCH 2027
Executive Director salaries
The Executive Directors’ salaries for the year beginning
1 April 2026 are set out in the table below. The increase to
David Walker’s salary is 3% which is consistent with the
average salary increase for the wider workforce. Simon
Carter will not receive an increase given he is serving his
notice post resignation.
Director
2025/26
£000
2026/27
£000
Simon Carter
David Walker
1. The Chair and Non-Executive Directors fees will each increase by 3%.
2. The Committee changes set out on page 76 will take effect from the end ofthe
2026 AGM after which there will not be an ESG Committee Chair orany ESG
Committee Members.
3. The Innovation Advisory Council Chair fee is reducing given the Council is now set
up and established. The higher fee reflected the additional work in its initial set up.
Non-Executive Director fees
Role
2025/26
£000
2026/27
£000
Chair
1
Non-Executive Director
1
Senior Independent Director
Audit or Remuneration Committee Chair
Audit or Remuneration Committee
Member
ESG Committee Chair
2
Nomination or ESG Committee Member
2
Innovation Advisory Council Chair
3
Innovation Advisory Council Member
Long Term Incentive Plan
Target range Weighting
Total Accounting Return
Threshold: 4% p.a. – Maximum: 10% p.a.
Total Shareholder Return
Threshold: Equal to FTSE 350 REIT index
Maximum: Index + 3% p.a.
Environmental Measures
Operational Carbon Reduction Threshold: 61% – Intermediate: 68% – Maximum: 74%
Operational Energy Reduction Threshold: 28% – Intermediate: 30% – Maximum: 32%
All Long Term Incentive Plan measures vest across a range of 20% to 100%
CORPORATE GOVERNANCE
103103
British Land
Annual Report and Accounts 2026
Single total figure of remuneration (audited)
The following tables detail all elements of remuneration receivable by British Land’s Executive Directors in respect ofthe
year ended 31 March 2026 and show comparative figures for the year ended 31 March 2025.
Simon Carter David Walker
2025
£000
2026
£000
2025
1
£000
2026
£000
Salary
Taxable benefits
Pension or pension allowance
Other items in the nature of remuneration
Fixed remuneration
Annual incentive
Long term incentives
Variable remuneration
Total
Notes to the single total figure of remuneration table (audited)
Taxable benefits
Simon Carter David Walker
2025
£000
2026
£000
2025
£000
2026
£000
Car allowance
Private medical
Benefits in kind na na
Total
Pensions
Simon Carter David Walker
2025
£000
2026
£000
2025
£000
2026
£000
DC Pension Contribution
Pension Allowance
Total
Simon Carter is also a member of the British Land Defined Benefit Pension Scheme in respect of his employment at
British Land earlier in his career prior to becoming an Executive Director.
Other items in the nature of remuneration
Simon Carter David Walker
2025
£000
2026
£000
2025
£000
2026
£000
Insurances
Subscriptions
Share Incentive Plan
Total
1. David Walker’s remuneration for 2025 was pro-rated to reflect the amount of time served on the Board as CFO, following his appointment on 20 November 2024.
2. Confirmed outcome. A forecast estimated figure was published in the 2025 Annual Report on the basis of a Volume Average Weighted Price for the quarter ended
31 March 2025. The actual outcome is reflected in the table above on the basis of the share price achieved upon vesting of 358.48p. The vesting level remained
unchanged at 50% as disclosed within the 2025 Annual Report.
3. Simon Carter’s 2026 AIP bonus will not be paid due to him resigning as CEO.
4. Simon Carter’s 2023 LTIP award will not vest following his resignation as CEO.
5. Estimated vesting value. The value is based on the Volume Weighted Average Price of 395.13p in respect of the last quarter of the year ended 31 March 2026.
Thefinal vesting value will be confirmed in the 2027 Annual Report.
DIRECTORS’ REMUNERATION REPORT CONTINUED
HOW WE APPLIED OUR REMUNERATION POLICY
DURING THEYEAR ENDED 31 MARCH 2026
104
British Land
Annual Report and Accounts 2026
Long Term Incentive Plan (audited)
The figure in the long term incentives column of the single total figure of remuneration table on page 104 relates to
the vesting of awards granted in 2023 under the Long Term Incentive Plan. The below table outlines the performance
conditions attached to the awards, final performance outcomes and the vesting position. No more than 20% of the
award will vest if the minimum performance threshold is achieved.
Measure Weighting
Threshold
(20% vests) Maximum
Performance
outcome
% of award
vesting
Total Accounting Return
4% p.a. pa
Total Property Return
MSCI +0.4% MSCI pa
Environmental Measures
Operational Carbon Reduction
-
-44% -
Operational Energy Reduction
-
-17% -
Vesting outcome
The table below summarises the awards granted in 2023 under the Long Term Incentive Plan. Simon Carter’s 2023 LTIP
award will not vest following his resignation as CEO.
Executive Director
Grant date Vesting date
Number of
performance
shares
awarded
Number of
performance
shares
vesting
Estimated
value of award
on vesting
£000
1
Estimated
dividend
equivalent value
£000
Increase in value as a
result of share price
movement between
grant and vesting
£000
2
Simon Carter
David Walker
1. The value is based on the Volume Weighted Average Price of 395.13p in respect of the last quarter of the year ended 31 March 2026.
2. The share price used to calculate the value of the award on grant was 338.74p.
Annual Incentive Plan (audited)
Measure Weighting Threshold
2
Maximum
Performance
outcome
Final outcome
weighting (%
of max)
Final
outcome (%
of salary)
Total Property Return
TPR vs Sector Weighted
MSCI Universe
bps
0bps bps
Annual Profitability
Underlying Profit
m
£279m m
Development Profit
m
£120m m
Environmental Measures
GRESB Ranking
*pts
5*-1pt *pt
EPC Ratings
72%
Strategic Objectives
Simon Carter
1
0%
David Walker
0%
Total payout % of max % of salary
Simon Carter
1
David Walker
1. Simon Carter’s AIP bonus will not be paid due to him resigning as CEO.
2. 0% payable for threshold performance for Underlying Profit and Development Profit. 25% payable for threshold performance, 50% payable for in-line
(being GRESB 5*) rising to 100% for maximum level for GRESB rating. 20% payable for threshold performance for EPC Ratings. 17% payable for threshold
performance for Total Property Return vs MSCI.
Achieved Not achieved
Achieved Not achieved
CORPORATE GOVERNANCE
105105
British Land
Annual Report and Accounts 2026
AIP scorecards (audited)
Simon Carter
1
Measure Weighting Outcome % award achieved
Active capital
recycling
Completed/exchanged on £0.6bn of gross investment activity,
including acquisition of Life Science REIT plc, £0.1bn of Retail Park
purchases and £0.1bn disposal of off strategy assets.
Grow fee income We continue to seek opportunities to drive fee income and are in
discussions with various parties.
Progressing value
accretive
development
1 Broadgate, One Triton Square, Mandela Way and Canada Water Plot
A1 / Three Deal Porters and The Founding reached practical
completion. Continuing to progress 2 Finsbury Avenue development,
the refurbishment of Broadgate Tower, and committed to West One
development.
Committed to the redevelopment of 1 Appold Street, where we have
also exchanged on 268k sq ft (plus option space) with Herbert Smith
Freehills Kramer.
Drive leasing income Aldgate build to rent scheme residential units are at close to full
occupancy.
Performance driven
culture
Gender pay gap improved by 6.7% and ethnicity pay gap improved by
2.6%.
Engagement survey completed with a Group engagement score of
64%, a reduction versus last year but similar to the benchmark.
David Walker
Measure Weighting Outcome % award achieved
Financial stewardship
and stakeholder
engagement
Maintained refinancing date of more than two years.
In July, Fitch affirmed our credit rating retained as Senior Unsecured
credit rating of A with stable outlook.
Re-entered FTSE 100 in December. Positive market reaction to Life
Science REIT plc transaction.
Progressing value
accretive
development
1 Broadgate, One Triton Square, Mandela Way and Canada Water Plot
A1 / Three Deal Porters and The Founding reached practical
completion. Continuing to progress 2 Finsbury Avenue development,
the refurbishment of Broadgate Tower, and committed to West One
development.
Committed to the redevelopment of 1 Appold Street, where we have
also exchanged on 268k sq ft (plus option space) with Herbert Smith
Freehills Kramer.
Drive leasing income Exchanged £42m of deals including £18m of new lettings in Retail, with
deals exchanged at an average of 8% ahead of ERV and 1% ahead of
previous passing rent.
At our campuses, exchanged £59m of deals, including £29m of new
lettings. Deals exchanged are 5% ahead of ERV and 20% ahead of
previous passing rent.
Storey stabilised occupancy is over 90%, with retentions at 73%.
Cost management Delivered significant savings in administrative costs driven by a focus
on cost control. FY26 Cost Ratio increased to 19% driven by increase in
voids whilst we lease up our developments.
ERP project well progressed following prior year’s delivery of new lead
to lease system.
Performance driven
culture
Gender pay gap improved by 6.7% and ethnicity pay gap improved by
2.6%.
Engagement survey completed with a Group engagement score of
64%, a reduction versus last year but similar to the benchmark.
1. Simon Carter’s AIP bonus will not be paid due to him resigning as CEO.
DIRECTORS’ REMUNERATION REPORT CONTINUED
106
British Land
Annual Report and Accounts 2026
Payments to past Directors and payments for loss of office (audited)
There were no payments to past Directors or payments to Directors for loss of office during the year ended
31 March2026.
Malus and Clawback
In relation to both Annual Incentive and LTIP awards under the Remuneration Policy, malus and clawback provisions will
apply in the following circumstances:
– the discovery of a material misstatement resulting in an adjustment in the audited accounts of the Group;
– if the assessment of any performance condition was based on error, or inaccurate or misleading information;
– the discovery that any information used to determine cash or share awards was based on error, or inaccurate or
misleading information;
– action or conduct of a participant which amounts to fraud or gross misconduct;
– corporate failure; and
– if events or the behaviour of a participant have led to the censure of a Group company by a regulatory authority or
have had a significant detrimental impact on the reputation of the Group.
The period for malus and clawback is three years from the determination of the award for the Annual Incentive award
(cash and shares) and for the LTIP, from the date of grant until three years after the determination of the vesting level of
an award. The Committee considers this time period to be appropriate as it is a reasonable period in which the specified
circumstances would be discovered, and the period is in line with FTSE 100 market practice. Malus and clawback were
not used during the year ended 31 March 2026.
Share scheme interests awarded during the year (audited)
The total face value of LTIP awards made to Simon Carter and David Walker during the year ended 31 March 2026 was
equivalent to250% of their basic salary at grant. Simon’s 2025 LTIP award will not vest following his resignation as CEO.
The share price used to determine the face value of performance shares (conditional rights to receive shares subject to
performance conditions), and thereby the number of performance shares awarded, is the average over the three dealing
days immediately prior to the day of award. The share price fordetermining the number of performance shares awarded
to Executive Directors was 386.13p. The performance conditions attached to these awards are summarised below.
Performance shares
Executive Director
Grant date
Number of
performance
shares granted
Face value
£000
End of
performance
period
Vesting
date
Percentage vesting on
achievement of minimum
performance threshold
%
Simon Carter
David Walker
Performance against the LTIP will be assessed over a period of three years. No more than 20% of each component of the
award will vest ifthe minimum performance threshold is achieved. Performance below the minimum threshold will result
in the relevant proportion of the LTIP award lapsing. 100% of the proportion of each element of award attached to each
measure will vest if British Land’s performance reaches the stretch level. Those levels are: TSR performance: equal to the
FTSE 350 REIT index for threshold performance and +3% p.a. for maximum performance (25% weighting); absolute TAR:
4% p.a. for threshold performance and 10% p.a. for maximum performance (50%weighting); Operational Carbon
Reduction: 55% reduction for threshold performance and 65% reduction for maximum performance (12.5% weighting);
and Operational Energy Reduction: 23% reduction for threshold performance and 25% reduction for maximum
performance (12.5% weighting).
TARwill be measured on the basis of a three-year average over the performance period. Both sustainability metrics will
be measured againstthe 31 March 2019 base level disclosed within our 2030 Sustainability Strategy, which can be found
at www.britishland.com/sustainability.
Directors’ shareholdings and share interests (audited)
Shareholding guidelines
The shareholding guidelines (as a percentage of salary) for Executive Directors are 200% for the Chief Financial Officer
and 225% for the Chief Executive. Executive Directors are required to retain shares equal to the level of this guideline
(orif they have not reached the guideline, the shares that count at that time) for the two years following their departure.
There is no set timescale for Executive Directors to reach the prescribed guideline but they are expected to retain net
shares received on the vesting of long term incentive awards until the target is achieved. Shares that count towards the
holding guideline are those which are unfettered and beneficially owned by the Executive Directors and their connected
persons, conditional Share Incentive Plan shares and all vested awards counttowards the requirement on a net of tax
basis. Any LTIP performance shares or share options do not count.
CORPORATE GOVERNANCE
107107
British Land
Annual Report and Accounts 2026
The guideline shareholdings for the year ended 31 March 2026 are shown below based on the Volume Weighted Average
Price for 31 March 2026 of 356.83p:
Executive Director
Guideline as
percentage of
basic salary
Guideline
holding
Holding counting
towards guidelines at
31March 2026
% of salary held
(based on 31March
2026 shareholding)
Simon Carter
David Walker
Directors’ shareholdings as at 31 March 2026
The table below shows the Directors’ shareholdings, including shares held by connected persons, as at year end.
Although there are no shareholding guidelines for Non-Executive Directors, they are each encouraged to hold shares in
British Land. The Company facilitates this by offering Non-Executive Directors the ability to purchase shares quarterly
using their post-tax fees. During the year ended 31 March 2026, Mark Aedy received shares in full satisfaction of his fee.
Director
Outstanding scheme interests as at 31 March 2026 Shares held
Total of all share
plan awards and
shareholdings
as at
31 March 2026
Unvested
share plan
awards
(subject to
performance
measures)
Unvested
share plan
awards (not
subject to
performance
measures)
Unvested
share plan
option
awards
Total shares
subject to
outstanding
share plan
awards
As at
1 April
2025
As at
31March
2026
Simon Carter
1
David Walker
William Rucker (Chair)
Mark Aedy
Lynn Gladden
Alastair Hughes
Amanda James
Amanda Mackenzie
– – -
Mary Ricks
Raj Shah
2
na – -
Loraine Woodhouse
1. Simon Carter’s LTIP awards will not vest following his resignation as CEO.
2. Raj Shah joined the Board during the year which means he has no shareholding to disclose as at 1 April 2025.
Unvested share awards (subject to performance)
Executive Director
LTIP performance shares
1
Date of
grant
Number
outstanding at
31March 2026
Subject to
performance
measures
End of
performance
period
Vesting
date
David Walker
Yes
Yes
Yes
1. Simon Carter’s LTIP awards will not vest following his resignation as CEO.
Unvested option awards (not available to be exercised)
Executive Director
Sharesave options
Date of grant
Number
outstanding at
31March 2026 Face value
Option price
pence
Subject to
performance
measures
End of
performance
period
Date
becomes
exercisable
Exercisable
until
Simon Carter
1
No NA
David Walker
No NA
1. Simon Carter’s 2025 SAYE grant will lapse on his departure from the Company.
2. The face value of Simon Carter’s SAYE options was determined based on a three-day average mid-market share price prior to the invitation date of the scheme
being 391.3p.
3. The face value of David Walker’s SAYE options was determined based on a three-day average mid-market share price prior to the invitation date of the scheme
being 439.3p.
DIRECTORS’ REMUNERATION REPORT CONTINUED
108
British Land
Annual Report and Accounts 2026
Acquisitions of ordinary shares after the year end
On 10 April 2026, Mark Aedy was allotted 2,708 shares at a price of 360.47 pence pershare in satisfaction of his
quarterly fee.
The Executive Directors have purchased or been granted the following fully paid ordinary British Land shares under the
terms of the partnership, matching and dividend elements of the Share Incentive Plan:
Executive Director
Date of
purchase or
award
Purchase
price
Partnership
shares
Matching
shares
Simon Carter
p
p
David Walker
p
p
Other than as set out above, there have been no further changes from 31 March 2026 up to the date this Annual Report
was approved by the Board on 19 May 2026.
Other disclosures
Relative importance of spend on pay
The graph below shows the amount spent on the remuneration for all employees (including Executive Directors) relative
to the amount spent on distributions to shareholders for the years to 31 March 2026 and 31 March 2025. During the year,
thetotal cost of remunerating employees reduced by 6.2% compared to the prior year, driven largely by organisational
restructuring and headcount reductions. The total cost of paying distributions toshareholders for the year ended
31 March 2026 increased by 4% compared with the prior year, driven by increased earnings flowing through to dividends.
2
025/26
£76
£225
0
22518045 90 135
22518045 90 135
2
024/25
£81
£216
0
Wages and salaries
Remuneration of employees
including Directors:
Annual Incentives
Social security costs
Pension costs
Equity-settled
share-based payments
PID cash dividends
paid to shareholders
Distributions
to shareholders:
PID tax withholding
Non-PID cash dividends
paid to shareholders
Total shareholder return and Chief Executive’s remuneration
The table below sets out the total remuneration of the Chief Executive over the same period as the Total Shareholder
Return graph.
The Annual Incentive awards against maximum opportunity and LTIP vesting percentages represent the year end awards
and forecast vesting outcome for the Chief Executive. The quantum of Annual Incentive awards granted each year and
long term incentive vesting rates are given as a percentage of the maximum opportunity available.
Chief Executive
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25
2
2025/26
3
Chris
Grigg
Chris
Grigg
Chris
Grigg
Chris
Grigg CEO
1
Simon
Carter
Simon
Carter
Simon
Carter
Simon
Carter
Simon
Carter
Chief Executive’s single total
figure ofremuneration (£000)
Annual Incentive awards against
maximum opportunity (%)
Long term incentive awards
vesting rate against maximum
opportunity (%)
1. The amount shown for the 2020/21 year is a blended figure, representing the remuneration paid to Chris Grigg (£1.093m) and Simon Carter (£0.551m) for the
respective periods that they served as CEO.
2. Confirmed outcome.
3. Simon Carter’s LTIP awards will not vest, and his AIP bonus will not be paid, following his resignation as CEO. This is reflected in his lower single total figure of
remuneration for 2025/26.
CORPORATE GOVERNANCE
109109
British Land
Annual Report and Accounts 2026
Total shareholder return
The graph below shows British Land’s total shareholder return for the 10 years to 31 March 2026, which assumes that
£100 was invested on 1 April 2016. The Company chose the FTSE All-Share REIT’s sector as an appropriate comparator
for this graph because British Land has been a constituent of that index throughout the period.
Covid-19 pandemic Truss mini budget
Withdrawal from EU Ukraine war
Value (£)
50
31 March
2016
31 March
2017
31 March
2018
31 March
2019
31 March
2020
31 March
2021
31 March
2022
31 March
2023
31 March
2024
31 March
2025
31 March
2026
250
200
150
100
The British Land Company PLC
FTSE All-Share REIT’s sector
91.3
100.8
97.4
58.0
88.6
96.1
74.0
80.9
80.1
81.6
100.2
106.9
108.3
91.8
110.1
134.9
93.1
102.6
94.9
94.9
CEO pay ratio
The 2025/26 CEO pay ratio, prepared in line with Method A of the reporting regulations, is set out below, along with
historic data. This method is considered to be the most comparable approach to the Single Figure calculation used for
the CEO. The pay data is based on employees as at 31 March 2026 and has been analysed on a full-time equivalent basis,
with pay for individuals working part-time increased pro-rata to the hours worked. Employees on parental leave have
been included in the analysis.
The table below shows the movement in median ratio since 2019/20. The median pay ratio has decreased in the year to
31 March 2026 driven primarily by the lack of any incentive payments to the CEO. The median ratio is considered to be
consistent with the pay and progression policies within British Land as the remuneration policy for the CEO is set based
on the same principles as the policy for the wider employee population. As such, salaries for all employees are set to
reflect the scope and responsibilities of their role and take into account pay levels in the external market. The majority of
staff are also eligible to receive a bonus, and whilst variable pay represents a larger proportion of the CEO’s potential
package, in all cases, there is a strong link between payouts and the performance of both the Company and the
individual. The Committee Chair has provided an explanation of the relationship between reward and performance on
page 100.
CEO pay ratio
2019/20 2020/21
1
2021/22 2022/23 2023/24 2024/25 2025/26
Method
C A A A A A A
CEO single figure (£000)
Upper quartile
Median
Lower quartile
1. The 2020/21 single total figure of remuneration represents a blended amount calculated by reference to the amounts paid to Chris Grigg and Simon Carter
fortherespective periods that they served as Chief Executive during the year.
The salary and total pay for the individuals identified at the Lower quartile, Median and Upper quartile positions in
2025/26 are set out below. Having reviewed the pay levels of these individuals it is felt that these are representative
ofthe structure and quantum of pay at these points in the distribution of employees’ pay.
2025/26 Employee pay
Salary
£
Total pay
£
Upper quartile
Median
Lower quartile
DIRECTORS’ REMUNERATION REPORT CONTINUED
110
British Land
Annual Report and Accounts 2026
Directors’ remuneration compared to remuneration of British Land employees
The table below shows the percentage changes in different elements of the Directors’ remuneration relative to the
previous financial year and the average percentage changes in those elements of remuneration for employees of the
listed parent company The British Land Company PLC. An explanation of the changes between 2025 and 2026 is
provided below, with the explanation of changes in prior periods available in the relevant Annual Report and Accounts.
– Simon Carter’s salary increased by 3% between 2025 and 2026 to reflect the average workforce increase.
– Simon Carter’s AIP bonus will not be paid following his resignation as CEO.
– Any change in Non-Executive Director fees are due to a change in Board roles such as Committee membership and
chairing roles, the fees for which were not increased.
– The change in benefits for Non-Executive Directors relates to taxable travel expenses, the tax and national insurance
for which is paid by the Company. Changes are reflective of additional or fewer travel requirements during the year.
Although certain % changes look relatively large, the actual amounts paid are small and are disclosed with the prior
year comparison on the following page.
– Changes are only displayed where there are two full years of fees to compare in order that there is a fair comparison
between years. William Rucker, David Walker and Amanda James joined the Board during the previous year, and
RajShah joined the Board during the current year therefore there is no prior year data to compare with.
Remuneration
element
Simon
Carter
David
Walker
William
Rucker
Mark
Aedy
Lynn
Gladden
Alastair
Hughes
Amanda
James
Amanda
Mackenzie
Mary
Ricks
Raj
Shah
Loraine
Woodhouse
Average
employees
2026 vs 2025
Base salary/fees
% change
na na na na
Benefits %
change
na na - na na
Annual Bonus %
change
-
na na na na na na na na na na
2025 vs 2024
Base salary/fees
% change
na na na na na na
Benefits %
change
na na - na na na na
Annual Bonus %
change
na na na na na na na na na na -
2024 vs 2023
Base salary/fees
% change
na na na na na na
Benefits %
change
na na na na na na -
Annual Bonus %
change
na na na na na na na na na na
2023 vs 2022
Base salary/fees
% change
na na na na na na na
Benefits %
change
- na na na na na na na -
Annual Bonus %
change
- na na na na na na na na na na -
2022 vs 2021
Base salary/fees
% change
na na na na na na na na
Benefits %
change
- na na na na na na na na -
Annual Bonus %
change
na na na na na na na na na na
The Committee reviews, takes advice and seeks information from both its independent adviser and the Human
Resources department on relative pay within the wider market and the Company throughout the year. The CEO pay
ratio, ethnicity and gender pay ratios help to inform the Committee in its assessment of whether the level and structure
of pay within the Company is appropriate. The Committee is satisfied with the current Policy and feels the opportunity
and alignment are appropriate at the current time.
CORPORATE GOVERNANCE
111111
British Land
Annual Report and Accounts 2026
Non-Executive Directors’ remuneration (audited)
The table below shows the fees paid to our Chair and Non-Executive Directors for the years ended 31 March 2026
and31 March 2025.
Chair and Non-Executive Directors
Fees
1
Taxable benefits
2
Total
2026
£000
2025
£000
2026
£000
2025
£000
2026
£000
2025
£000
William Rucker (Chair)
– –
Mark Aedy
– –
Lynn Gladden
Alastair Hughes
– –
Amanda James
Amanda Mackenzie
– –
Mary Ricks
3
Raj Shah
4
– – – –
Loraine Woodhouse – –
1. Fees include the basic fee of £66,000 paid to each Non-Executive Director as well as Committee membership and Chair roles, with the exception of the Chair.
2. Taxable benefits include the expenses incurred by Non-Executive Directors. The Company provides the tax gross up on these benefits and the figures shown above
are the grossed up values. There is no variable element to the Non-Executive Directors’ fees.
3. Mary Ricks lives in the USA and her taxable benefits relate to hotel accommodation at the time of Board and Committeemeetings. In addition, the Company
reimburses part of the cost of Mary’s flights to attend Board and Committee meetings, however these are not deemed ‘taxable’ benefits under the HMRC guidelines
and are therefore not included in the table above.
4. Raj Shah joined the Board on 20 January 2026 and his fee is pro-rated to reflect his time spent on the Board during the year.
Remuneration Committee meeting governance
As at 31 March 2026, and throughout the year under review, the Committee was comprised wholly of independent
Non-Executive Directors. The members of the Committee as at the date this Report was signed were: Amanda
Mackenzie, Loraine Woodhouse and Lynn Gladden. Further details together with attendance at Committee meetings, are
set out in the table on page 80.
During the year ended 31 March 2026, Committee meetings were also part attended by William Rucker (Chair), Simon
Carter (Chief Executive), David Walker (Chief Financial Officer), Brona McKeown (HR Director, General Counsel and
Company Secretary), Kelly Barry (Reward, Talent and Performance Director) and Gavin Bergin (Director of Governance)
other thanforany item relating to their own remuneration. A representative from Korn Ferry, the Committee’s
independent remuneration advisers, also routinely attends Committee meetings.
The Committee Chair holds regular meetings with theChair, Chief Executive and HR Director, General Counsel and
Company Secretary to discuss all aspects of remuneration within British Land. She also meets Korn Ferry to discuss
matters of governance, the Remuneration Policy and any concerns theymay have.
DIRECTORS’ REMUNERATION REPORT CONTINUED
112
British Land
Annual Report and Accounts 2026
How the Committee discharged its responsibilities during the year
The Committee’s role and responsibilities have remained unchanged during the year and are set out in full in its terms of
reference which can be found on the Company’s website www.britishland.com/committees. The Committee’s key areas
of responsibility are:
– developing the performance conditions relating to the Company’s 2030 Sustainability Strategy within the approved
2025 Directors’ Remuneration Policy, following a period of shareholder engagement, and in respect of which the
Committee received in-depth technical briefings from subject matter experts from the business;
– reviewing the Remuneration Policy and strategy for members of the Executive Committee and other members of
executive management, whilst having regard to pay and employment conditions across theGroup;
– determining the total individual remuneration package of each Executive Director, Executive Committee member and
other members of management;
– monitoring the extent to which performance measures and conditions attached to all annual and long term incentive
awards have been met;
– determining the vesting and payment outcomes of annual and long term incentive plans in respect of Executive
Directors and senior management; and
– selecting, appointing and setting the terms of reference of any independent remuneration consultants.
In addition to the Committee’s key areas of responsibility, during the year ended 31 March 2026, the Committee also
considered the following matters:
– remuneration of the Executive Directors and members of the Executive Committee including achievement of corporate
and individual performance, and pay and Annual Incentive awards below Board level;
– granting discretionary share awards; reviewing and setting performance measures for Annual Incentive awards and
Long Term incentives;
– the Committee was made aware of the results of engagement surveys and any general themes that are impacting
employees. The Committee Chair attended Employee Listening Sessions throughout the year where amongst other
topics remuneration was discussed. All-employee communications were sent from Executive Committee members,
including the CEO, relating to wider Company remuneration;
– considering gender and ethnicity pay gap reporting requirements and outcomes; and
– receiving updates and training on corporate governance and remuneration matters from the independent
remuneration consultant.
The Committee’s terms of reference have been reviewed by the Committee in May 2026 to reflect the governance
structure changes detailed on page 76.
Remuneration consultants
Korn Ferry was appointed as independent remuneration adviser by the Committee on 21 March 2017 following a
competitive tender process. Korn Ferry is a member of the Remuneration Consultants Group and adheres to that group’s
Code of Conduct. The Committee assesses the advice given by its advisers to satisfy itself that it is objective and
independent. The advisers have private discussions with the Committee Chair at least once a year in accordance with the
Code of Conduct. Fees, which are charged on a time and materials basis, were £58,107 (excluding VAT). Korn Ferry also
provided general remuneration advice to the Company during the year.
Voting at the AGM
The table below shows the voting outcomes of the resolutions put to shareholders regarding the Directors’
Remuneration Report and Remuneration Policy at the AGM on 15 July 2025. A copy of the full policy can be found at
www.britishland.com/governance.
Resolution
Votes
for
%
for
Votes
against
%
against
Total votes
cast
Total votes
withheld
Directors’ Remuneration Report (2025)
Directors’ Remuneration Policy (2025)
CORPORATE GOVERNANCE
113113
British Land
Annual Report and Accounts 2026
Service contracts and letters of appointment
The letters of appointment of Non-Executive Directors are generally subject to renewal on a triennial basis. In
accordance withthe UK Corporate Governance Code and the Company’s Articles of Association, all Directors stand for
appointment or re-appointment by the Company’s shareholders on an annual basis. As discussed on page 74, Lynn
Gladden will step down as a Non-Executive Director at the conclusion of the 2026 AGM. The Directors’ service contracts
and letters of appointment are available for inspection during normal business hours at the Company’s registered office
and at the AGM.
Executive Director service contracts
All Executive Directors have rolling service contracts with the Company which have notice periods of 12 months
oneitherside.
Director
Length of
service contract
Commencement date in
service contract
Normal notice period to
begiven by either party
Simon Carter 12 months 18 November 2020 12 months
David Walker 12 months 20 November 2024 12 months
Executive Directors’ external appointments
Executive Directors may take up one non-executive directorship at another FTSE company, subject to British Land Board
approval. The Executive Directors do not currently hold any paid external appointments.
Chair and Non-Executive Directors letters of appointment
The unexpired terms of the Chair’s and Non-Executive Directors’ letters of appointment are shown below:
Director
Original date
ofappointment
Effective date of
appointment in most recent
letter of appointment
Unexpired term at
19 May 2026
(months)
William Rucker (Chair)
9 July 2024 9 July 2024
Loraine Woodhouse (SID)
1 March 2021 9 July 2024
Mark Aedy
1 September 2021 15 July 2025
Lynn Gladden
20 March 2015 15 July 2025
Alastair Hughes
1 January 2018 9 July 2024
Amanda James
1 July 2024 1 July 2024
Amanda Mackenzie
1 September 2023 1 September 2023
Mary Ricks
1 November 2023 1 November 2023
Raj Shah 20 January 2026 20 January 2026
Although the Chair’s and Non-Executive Directors’ appointments are for fixed terms, their appointments may be
terminated immediately without notice if they are not re-appointed by shareholders or if they are removed from the
Board under the Company’s Articles of Association or if they resign and do not offer themselves for re-election.
Inaddition, their appointments may be terminated by either the individual or the Company giving three months’ written
notice of termination (or, for the current Chair, six months’ written notice of termination). Despite these terms of
appointment, neither the Chair nor the Non-Executive Directors are entitled to any compensation (other than accrued
and unpaid fees and expenses for the period up to the termination) for loss of office save that the Chair and
Non-Executive Directors may be entitled, in certain limited circumstances, such as corporate transactions, to receive
payment in lieu of their notice period where the Company has terminated their appointment with immediate effect.
This Remuneration Report was approved by the Board on 19 May 2026.
Amanda Mackenzie
Chair of the Remuneration Committee
DIRECTORS’ REMUNERATION REPORT CONTINUED
114
British Land
Annual Report and Accounts 2026
DIRECTORS’ REPORT AND ADDITIONAL DISCLOSURES
AGM
The 2026 AGM will be held at 11:30am on 14 July 2026 at
Ashurst LLP, London Fruit & Wool Exchange, 1 Duval
Square, London, E1 6PW.
A separate circular, comprising a letter from the Chair of
the Board, Notice of Meeting and explanatory notes on the
resolutions being proposed, has been circulated to
shareholders and is available on our website
www.britishland.com/agm.
Articles of Association
The Company’s Articles of Association (the ‘Articles’) may
only be amended by special resolution at a general
meeting of shareholders. Subject to applicable law and the
Articles, the Directors may exercise all powers of the
Company.
READ MORE
The articles are available on the Company’s website
www.britishland.com/governance
Board of Directors
The names and biographical details of the Directors and
details of the Board Committees of which they are
members are set out on pages 81 to 83 and are
incorporated into this Report by reference. Changes to the
Directors during the year and up to the date of this Report
are set out on page 88. The Company’s current Articles
require any new Director to stand for election at the next
AGM following their appointment. However, in accordance
with the 2024 UK Corporate Governance Code and the
Company’s current practice, all continuing Directors offer
themselves for election or re-election, as required, at
theAGM.
The Directors present their Report on the affairs of the Group, together with the audited
financial statements and the report of the auditor for the year ended 31 March 2026.
The Directors’ Report also encompasses the entirety of our Corporate Governance Report from pages 74 to 118
andOther Information section from pages 206 to 209 for the purpose of section 463 of the Companies Act 2006
(the‘Act’). The Directors’ Report and Strategic Report together constitute the Management Report for the year ended
31 March 2026 for the purpose of Disclosure and Transparency Rule 4.1.8R. Certain information that would otherwise be
required to be included in the Directors’ Report has been included within the Strategic Report in accordance with section
414C(11) of the Act. Information that is relevant to this Report, and which is incorporated by reference and including
information required in accordance with the Act and or UK Listing Rule (‘UKLR’) 6.6.1R, can be located in the
followingsections:
Information Section in Annual Report Page
Future developments of the business of the Company Strategic Report to
Dividends Strategic Report
Financial instruments – risk management objectives
andpolicies Strategic Report to
Engagement with stakeholders Strategic Report to
Employment policies and employee involvement Strategic Report
Greenhouse gas emissions, energy consumption
andefficiency Strategic Report to
Long term incentive schemes (UKLR 6.6.1 (3)) Directors’ Remuneration Report to
Share capital Directors Report
Capitalised interest (UKLR 6.6.1 (1)) Financial Statements and
Exposure to risks Financial Statements to
Additional unaudited financial information (UKLR 6.6.1 (2)) Other Information (unaudited) to
Details of the Directors’ interests in the shares of the
Company and any awards granted to the Executive
Directors under any of the Company’s all-employee or
executive share schemes are given in the Directors’
Remuneration Report on pages 100 to 114. The service
agreements of the Executive Directors and the letters of
appointment of the Non-Executive Directors are also
summarised in the Directors’ Remuneration Report and are
available for inspection at the Company’s registered office.
The appointment and replacement of Directors is
governed by the Articles, the Code, the Act and any
related legislation. The Board may appoint any person to
be a Director so long as the total number of Directors does
not exceed the limit prescribed in the Articles being 20.
The Articles provide that the Company may by ordinary
resolution at a general meeting appoint any person to
act as a Director, provided that notice is given of the
resolution identifying the proposed person by name and
that the Company receives written confirmation of that
person’s willingness to act as Director if he or she has
not been recommended by the Board. The Articles also
empower the Board to appoint as a Director any person
who is willing to act as such. In addition to any power of
removal conferred by the Act, the Articles provide that
the Company may by ordinary resolution (and without
the need for any special notice) remove any Director
from office. The Articles also set out the circumstances
in which a person shall cease to be a Director.
The Articles require that at each AGM each person who is a
Director on a specific date selected by the Board shall
retire from office. The date selected shall be not more than
14 days before, and no later than, the date of the notice of
AGM. A Director who retires at an AGM shall be eligible for
reappointment by the shareholders.
CORPORATE GOVERNANCE
115115
British Land
Annual Report and Accounts 2026
DIRECTORS’ REPORT AND ADDITIONAL DISCLOSURES CONTINUED
Directors’ liability insurance and indemnity
The Company maintains Directors’ and Officers’ liability
insurance cover in respect of any potential legal action
brought against its Directors.
‘Qualifying third party indemnity’ provisions (as defined by
section 234 of the Act) were in force during the course of
the year ended 31 March 2026 for the benefit of the then
Directors of the Company, and at the date of this Report,
are in force for the benefit of the Directors of the Company
in relation to certain losses and liabilities which they may
incur (or have incurred) in connection with their duties,
power or office.
Share capital
The Company has one class of shares, being ordinary
shares of 25p each, all of which are fully paid. Holders of
ordinary shares are entitled to attend and speak at general
meetings of the Company and to appoint one or more
proxies or, if the holder of shares is a corporation, one or
more corporate representatives. On a show of hands, each
holder of ordinary shares shall have one vote, as shall
proxies. On a poll, every holder of ordinary shares present
in person or by proxy shall have one vote for every share
for which they are a holder. There are no restrictions on
voting rights or the transfer of shares except in relation to
Real Estate Investment Trust restrictions.
The Directors were granted authority at the 2025 AGM
toallot relevant securities up to a nominal amount of
£83,263,703 as well as an additional authority to allot
shares to the same value again for a rights issue. This
authority will apply until the conclusion of the 2026 AGM
or the close of business on 30 September 2026, whichever
is the sooner. At this year’s AGM, shareholders will be
asked to renew the authority to allot relevant securities.
At the 2025 AGM, a special resolution was also passed
to permit the Directors to allot shares for cash on a
non-pre-emptive basis both in connection with a rights
issue or similar pre-emptive issue and, otherwise than
in connection with any such issue, up to a maximum
nominal amount of £24,979,111. A further special resolution
was passed to permit the Directors to allot shares
for cash on a non-pre-emptive basis up to the same
amount for use only in connection with an acquisition
or a specified capital investment. At this year’s AGM,
shareholders will be asked to renew such powers.
At the 2025 AGM a special resolution was passed to
permit the purchase of up to 99,916,444 ordinary shares.
This authority will expire at the earlier of the conclusion
of the 2026 AGM or close of business on 30 September
2026. The Company made no purchases of its own shares
into treasury during the year pursuant to the above
authority. The Company continued to hold 11,266,245
ordinary shares in treasury during the whole of the year
ended 31 March 2026 and to the date of this Report.
Further details relating to share capital, including
movements during the year, are set out in Note 19 to
thefinancial statements on pages 172 to 173.
Events after the balance sheet date
Details of subsequent events, if any, can be found in Note
24 on page 176.
Political donations and expenditure
The Company and its subsidiaries did not make any
political donations or incur any political expenditure during
the year ended 31 March 2026 (previous year ended
31 March 2025: £nil).
Rights under an employee share scheme
Employee Benefit Trusts (EBTs) operate in connection
withsome of the Company’s employee share plans.
Thetrustees of the EBTs may exercise all rights attached
tothe Company’s ordinary shares in accordance with their
fiduciary duties other than as specifically restricted in the
documents which govern the relevant employee share plan.
Waiver of dividends
Blest Limited and Equiniti Share Plan Trustees Limited act
as trustees (Trustees) of the Companies discretionary
Employee Share Trust (EST) and Share Incentive Plan
respectively. The EST holds and, from time to time,
purchases British Land ordinary shares in the market, for
the benefit of employees, including to satisfy outstanding
awards under the Company’s various executive employee
share plans. Dividend waivers are in place from the
Trustees in respect of all dividends payable by the
Company on shares which they hold in trust.
Payments policy
We recognise the importance of good supplier relationships
to the overall success of our business. Wemanage dealings
with suppliers in a fair, consistent andtransparent manner.
READ MORE
For more information please visit the suppliers section of our
website at www.britishland.com/suppliers
Substantial interests
All notifications made to British Land under the Disclosure
Guidance and Transparency Rules (DTR 5) are published
on a Regulatory Information Service and made available on
the Investors section of our website. As at 31 March 2026,
the Company had been notified of the interests noted
below in its ordinary shares in accordance with DTR 5. The
information provided is correct at the date of notification:
Interests in
ordinary
shares
Percentage
holding
disclosed %
BlackRock, Inc.
Bank of America Corporation
APG Asset Management N.V.
Invesco Ltd.
Schroders
Janus Henderson Group PLC
Caxton Associates LLP
Since the year end, and up to 19 May 2026, the Company
had been notified of the following interests in its ordinary
shares in accordance with DTR 5. The information provided
is correct at the date of notification:
Change in
interests in its
ordinary
shares
Percentage
holding
disclosed %
Bank of America Corporation
Janus Henderson Group PLC
116
British Land
Annual Report and Accounts 2026
Change of control
The Group’s unsecured borrowing arrangements include
provisions that may enable each of the lenders or
bondholders to request repayment or have a put at par
within a certain period following a change of control of the
Company. In the case of the Sterling bond this arises if the
change of control also results in a rating downgrade to
below investment grade. Further details on our unsecured
borrowing arrangements can be found on page 46.
There are no agreements between the Company and
its Executive Directors or employees providing for
compensation for loss of office or employment that
occurs specifically because of a takeover, merger
or amalgamation with the exception of provisions
in the Company’s share plans which could result in
options and awards vesting or becoming exercisable
on a change of control. All appointment letters for
Non-Executive Directors will, as they are renewed,
contain a provision that allows payment of their
notice period in certain limited circumstances, such
as corporate transactions, where the Company has
terminated their appointment with immediate effect.
Inclusive culture
Our 2030 Diversity, Equality & Inclusion Strategy sets
out our commitments and goals to make British Land the
most inclusive organisation it can be. We treat everyone
equally irrespective of gender, gender reassignment,
age, race, sexual orientation, religion or belief, disability,
marriage and civil partnership, and pregnancy and
maternity. As stated in our Equal Opportunities Policy,
British Land treats ‘all colleagues and job applicants with
equality. We do not discriminate against job applicants,
employees, workers or contractors because of any
protected characteristic. This applies to all opportunities
provided by the Company including, but not limited to,
job applications, recruitment and interviews, training
and development, role enrichment, conditions of work,
salary and performance review’. The Company ensures
that our policies are accessible to all employees,
making reasonable adjustments when required.
Through its policies and more specifically the Equal
Opportunities, Disability and Workplace Adjustment
and Recruitment policies, the Company ensures that
entry into, and progression within, the Company is
based solely on personal ability and competence to
meet set job criteria. Should an employee, worker or
contractor become disabled in the course of their
employment/engagement, the Company aims to ensure
that reasonable steps are taken to accommodate
their disability by making reasonable adjustments
to their existing employment/engagement.
Auditor and disclosure of information
So far as the Directors are aware, there is no relevant audit
information that has not been brought to the attention of
the Company’s auditor. Each Director has taken all
reasonable steps to make themselves aware of any
relevant audit information and to establish that such
information was provided to the auditor.
PwC has indicated its willingness to remain in office and,
on the recommendation of the Audit Committee, a
resolution to reappoint PwC as the Company’s auditor will
be proposed at the 2026 AGM.
The Directors’ Report was approved by the Board on
19 May 2026 and signed on its behalf by:
Brona McKeown
HR Director, General Counsel and Company Secretary
The British Land Company PLC
Company number: 621920
CORPORATE GOVERNANCE
117117
British Land
Annual Report and Accounts 2026
The Directors are responsible for preparing the Annual
Report and financial statements in accordance with
applicable law and regulation.
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 UK-adopted International Accounting
Standards and the Company Financial Statements in
accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting
Standards, comprising FRS 101 “Reduced Disclosure
Framework”, and applicable law).
Under company law, 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 Company and of the profit or loss of the Group for
that period. In preparing the financial statements, the
Directors are required to:
– select suitable accounting policies and then apply them
consistently;
– state whether applicable UK-adopted International
Accounting Standards have been followed for the Group
financial statements and United Kingdom Accounting
Standards, comprising FRS 101 have been followed for
the Company financial statements, subject to any
material departures disclosed and explained in the
financial statements;
– make judgements and accounting estimates that are
reasonable and prudent; and
– prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the
Group and Company will continue in business.
The Directors are responsible for safeguarding the assets
of the Group and Company and hence for taking
reasonable steps for the prevention and detection of fraud
and other irregularities.
The Directors are also responsible for keeping adequate
accounting records that are sufficient to show and explain
the Group’s and Company’s transactions and disclose with
reasonable accuracy at any time the financial position of
the Group and Company and enable them to ensure that
the financial statements and the Directors’ Remuneration
Report comply with the Companies Act 2006.
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.
Directors’ confirmations
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 Group’s and Company’s
position and performance, business model and strategy.
Each of the Directors, whose names and functions are
listed in the Corporate Governance report, confirm that, to
the best of their knowledge:
– the Group financial statements, which have been
prepared in accordance with UK-adopted International
Accounting Standards, give a true and fair view of the
assets, liabilities, financial position and profit of the
Group;
– the Company financial statements, which have been
prepared in accordance with United Kingdom
Accounting Standards, comprising FRS 101, give a true
and fair view of the assets, liabilities and financial
position of the Company; and
– the Strategic Report and Directors’ Report include a fair
review of the development and performance of the
business and the position of the Group and Company,
together with a description of the principal risks and
uncertainties that it faces.
In the case of each Director in office at the date the
Directors’ Report is approved:
– so far as the Director is aware, there is no relevant audit
information of which the Group’s and Company’s
auditors are unaware; and
– they have taken all the steps that they ought to have
taken as a Director in order to make themselves aware of
any relevant audit information and to establish that the
Group’s and Company’s auditors are aware of that
information.
David Walker
Chief Financial Officer
19 May 2026
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
IN RESPECT OF THE FINANCIAL STATEMENTS
118
British Land
Annual Report and Accounts 2026
FINANCIAL
STATEMENTS
Independent auditors’ report 120
Primary statements and notes 127
Company balance sheet 179
Supplementary disclosures 191
Other information (unaudited) 198
EPRA best practice recommendations
on sustainability reporting 204
10-year record 205
Shareholder information 206
CONTENTS
FINANCIAL STATEMENTS
119119
British Land
Annual Report and Accounts 2026
INDEPENDENT AUDITORS’ REPORT
INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF THE
BRITISH LAND COMPANY PLC
Report on the audit of the financial statements
Opinion
In our opinion:
– The British Land Company PLC’s Group financial
statements and Company financial statements (the
“financial statements”) give a true and fair view of the
state of the Group’s and of the Company’s affairs as at
31 March 2026 and of the Group’s profit and the Group’s
cash flows for the year then ended;
– the Group financial statements have been properly
prepared in accordance with UK-adopted international
accounting standards as applied in accordance with the
provisions of the Companies Act 2006;
– the Company financial statements have been properly
prepared in accordance with United Kingdom Generally
Accepted Accounting Practice (United Kingdom
Accounting Standards, including FRS 101 “Reduced
Disclosure Framework”, and applicable law); and
– the financial statements have been prepared in
accordance with the requirements of the Companies
Act2006.
We have audited the financial statements, included within
the Annual Report and Accounts 2026 (the “Annual
Report”), which comprise:
– the Consolidated Balance Sheet as at 31 March 2026;
– the Company Balance Sheet as at 31 March 2026;
– the Consolidated Income Statement for the year then
ended;
– the Consolidated Statement of Comprehensive Income
for the year then ended;
– the Consolidated Statement of Cash Flows for the year
then ended;
– the Consolidated Statement of Changes in Equity for the
year then ended;
– the Company Statement of Changes in Equity for the
year then ended; and
– the notes to the financial statements, comprising
material accounting policy information and other
explanatory information.
Our opinion is consistent with our reporting to the Audit
Committee.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (“ISAs (UK)”) and applicable
law. Our responsibilities under ISAs (UK) are further
described in the Auditors’ responsibilities for the audit of
the financial statements section of our report. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independence
We remained independent of the Group in accordance
with the ethical requirements that are relevant to our audit
of the financial statements in the UK, which includes the
FRC’s Ethical Standard, as applicable to listed public
interest entities, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that
non-audit services prohibited by the FRC’s Ethical
Standard were not provided.
Other than those disclosed in Note 5, we have provided no
non-audit services to the Company or its controlled
undertakings in the period under audit.
Our audit approach
Overview
Audit scope
– We tailored the scope of our audit to ensure that we
performed enough work to be able to give an opinion on
the financial statements as a whole. The Group financial
statements are prepared on a consolidated basis, and
the audit team carries out an audit over the consolidated
group balances in support of the Group audit opinion.
– The Group’s properties are held within a variety of
subsidiary and joint venture entities. The Group financial
statements consolidate the Company and its subsidiaries
and equity account for the Group’s joint ventures. All
work was carried out by the Group audit team with
additional procedures performed on the consolidation to
ensure sufficient coverage for our opinion on the Group
financial statements as a whole.
Key audit matters
– Valuation of investment and development properties,
either held directly or through joint ventures (Group);
– Recoverability of investments and loans to subsidiaries
(Company).
Materiality
– Overall Group materiality: £93.6m (2025: £88.8m) based
on 1% of Total Assets.
– Overall Company materiality: £84.2m (2025: £79.9m)
based on 1% of Total Assets.
– Performance materiality: £70.2m (2025: £66.6m)
(Group) and £63.2m (2025: £59.9m) (Company).
The scope of our audit
As part of designing our audit, we determined materiality
and assessed the risks of material misstatement in the
financial statements.
120
British Land
Annual Report and Accounts 2026
Key audit matters
Key audit matters are those matters that, in the auditors’
professional judgement, were of most significance in the
audit of the financial statements of the current period and
include the most significant assessed risks of material
misstatement (whether or not due to fraud) identified by
the auditors, including those which had the greatest effect
on: the overall audit strategy; the allocation of resources in
the audit; and directing the efforts of the engagement
team. These matters, and any comments we make on the
results of our procedures thereon, were addressed in the
context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
The key audit matters below are consistent with last year.
Key audit matter How our audit addressed the key audit matter
Valuation of investment and development properties,
either held directly or through joint ventures (Group)
Refer to the Report of the Audit Committee, Notes to the
financial statements – Note 1 (Basis of preparation, material
accounting policies and accounting judgements), Note 10
(Property) and Note 11 (Joint ventures).
The Group’s properties are held within a variety of
subsidiary and joint venture entities. The total property
portfolio valuation for the Group was £6,316m (2025:
£6,065m) and for the Group’s share of joint ventures was
£3,746m (2025: £3,421m) as at 31 March 2026.
The valuations were carried out by third party valuers
CBRE, Jones Lang LaSalle, Cushman & Wakefield and
Knight Frank LLP (the ‘Valuers’). The Valuers were
engaged by the directors and performed their work in
accordance with the Royal Institute of Chartered Surveyors
(‘RICS’) Valuation – Global Standards and IFRS 13 (Fair
Value Measurement).
In determining the valuation of a property, the Valuers take
into account property-specific information such as the
current tenancy agreements and rental income. They apply
assumptions for yields and estimated market rent, which
are influenced by prevailing market yields and comparable
market transactions, to arrive at the final valuation. For
developments, the residual appraisal method is used, by
estimating the fair value of the completed project using a
capitalisation method less estimated costs to completion
and a risk premium. The valuation of the Group’s property
portfolio was identified as a key audit matter given the
valuation is inherently subjective due to, among other
factors, the individual nature of each property, its location
and the expected future rental streams for that particular
property. The significance of the estimates and
judgements involved, coupled with the fact that only a
small percentage difference in individual property
valuations, when aggregated, could result in a material
misstatement, warranted specific audit focus in this area.
Given the inherent subjectivity involved in the valuation of
investment and development properties, either held
directly or through joint ventures, and therefore the need
for specialist market knowledge when determining the
most appropriate assumptions and the technicalities of
valuation methodology, we engaged our internal valuation
experts to assist us in our audit of this matter.
Assessing the Valuers’ expertise and objectivity
We assessed the Valuers’ qualifications and expertise and
read their terms of engagement with the Group to
determine whether there were any matters that might have
affected their objectivity or may have imposed scope
limitations upon their work. We also considered fees and
other contractual arrangements that might exist between
the Group and the Valuers. We found no evidence to
suggest that the objectivity of the Valuers was
compromised.
Assumptions and estimates used by the Valuers
We read the valuation reports for the properties and
confirmed that the valuation approach for each was in
accordance with RICS Valuation – Global Standards. We
obtained details of each property held by the Group and
set an expected range for yield and capital value
movement, determined by reference to published
benchmarks and using our experience and knowledge of
the market. We compared the investment yields used by
the Valuers with the range of expected yields and the
year-on-year capital movement to our expected range.
Where relevant, we also considered the reasonableness of
other assumptions that were not so readily comparable
with published benchmarks, such as estimated rental
value. For developments valued using the residual
valuation method, we obtained the development
appraisals and assessed the reasonableness of the Valuers’
key assumptions. This included comparing the yield to
comparable market benchmarks, comparing the costs to
complete estimates to development plans and contracts,
and, where relevant, considering the reasonableness of
other assumptions that are not so readily comparable with
published benchmarks, such as estimated rental value and
profit on cost. We held meetings with each of the Valuers
and challenged their approach to the valuations, the key
assumptions and their rationale behind the more
significant valuation movements during the year. Where
assumptions were outside the expected range or showed
unexpected movements based on our knowledge, we
undertook further investigations, held further discussions
with the Valuers and obtained evidence to support
explanations received. We also challenged the Valuers as
to the extent to which their valuations took into account
the impact of climate change. The valuation reports
provided by the Valuers and supporting evidence, enabled
us to consider the property specific factors that may have
had an impact on value, including recent comparable
transactions where appropriate.
FINANCIAL STATEMENTS
121121
British Land
Annual Report and Accounts 2026
INDEPENDENT AUDITORS’ REPORT CONTINUED
Key audit matter How our audit addressed the key audit matter
Information and standing data
We performed testing on the data inputs underpinning the
investment properties by agreeing the inputs to the
underlying property records on a sample basis, to satisfy
ourselves of the accuracy of the property information
supplied to the Valuers by management. Where applicable,
we agreed tenancy information to supporting evidence on
a sample basis. For developments, we confirmed that the
supporting information for construction contracts and
budgets, which was supplied to the Valuers, was also
consistent with the Group’s records, for example, by
inspecting construction contracts. Capitalised expenditure
was tested on a sample basis to invoices, and budgeted
costs to complete compared to supporting evidence. We
agreed the amounts per the valuation reports to the
accounting records and the financial statements, including
the relevant note disclosures.
Overall outcome
Based on the procedures performed and the evidence
obtained, we concluded that the valuation of investment
and development properties was reasonable.
Recoverability of investments and loans to subsidiaries
(Company)
Refer to the Notes to the Company financial statements
– Note A Accounting policies (Critical accounting
judgements and key sources of estimation uncertainty)
and Note D (Investments in subsidiaries and joint ventures,
loans to subsidiaries, other investments, and amounts due
to subsidiaries). The Company has shares in subsidiaries of
£7,855m (2025: £7,811m) as at 31 March 2026 after
recognising a reversal of impairment of £44m (2025:
reversal of impairment of £12m). The Company has loans to
subsidiaries of £15,270m (2025: £15,018m) as at 31 March
2026 after recognising a provision for impairment of £52m
(2025: provision for impairment of £55m). The Company’s
accounting policy for investments and loans is to hold
them at cost less any impairment. Impairment of the loans
is calculated in accordance with IFRS 9 (Financial
Instruments), where expected credit losses are considered
to be the excess of the Company’s loan to a subsidiary
over the subsidiary net asset value. Investments in
subsidiaries are assessed for impairment in line with IAS 36
(Impairment of Assets). The Company considered the
impairment of investment and loan balances at 31 March
2026 in accordance with IAS 36, IFRS 9 and its accounting
policy. Given the inherent estimation and complexity in
assessing both the carrying value of a subsidiary, and the
expected credit loss of intercompany loans, this was
identified as a key audit matter.
We obtained management’s impairment assessments for
the recoverability of investments and loans in subsidiaries
as at 31 March 2026. We assessed the accounting policies
for investments and loans in subsidiaries to ensure they
were compliant with FRS 101 “Reduced Disclosure
Framework”. We verified that the methodology used by
management in arriving at the carrying value of the
investments in subsidiaries was in line with IAS 36, and that
for loans to subsidiaries the expected credit loss was in line
with IFRS 9, including the related provision or reversal of
impairment. We identified the key estimate within the
assessment of impairment of the investments and loans to
subsidiaries to be the underlying valuation of investment
and development property held by the subsidiaries. For
details of our procedures over the valuation of investment
and development properties please refer to the related
group key audit matter above. Given the complexity and
the manual nature of the models, we assessed the integrity
of the spreadsheets and recalculated the provisions.
Overall outcome
We have no matters to report in respect of this work.
122
British Land
Annual Report and Accounts 2026
How we tailored the audit scope
We tailored the scope of our audit to ensure that we
performed enough work to be able to give an opinion on
the financial statements as a whole, taking into account the
structure of the Group and the Company, the accounting
processes and controls, and the industry in which they
operate.
The Group’s properties are held within a variety of
subsidiary and joint venture entities. The Group financial
statements consolidate the Company and its subsidiaries
and equity account for the Group’s joint ventures. The
Broadgate Joint Venture was subject to a full scope audit,
and the Paddington Central, Canada Water and One Triton
Square Joint Ventures were scoped in for specific account
balances. All work was carried out by the group audit team
with additional procedures performed at the Group level
(including audit procedures over the consolidation and
consolidation adjustments) to ensure sufficient coverage
and appropriate audit evidence for our opinion on the
Group financial statements as a whole.
The Group operates a common IT environment, processes
and controls. In establishing the overall approach to our
audit, we assessed the risk of material misstatement,
taking into account the nature, likelihood and potential
magnitude of any misstatement. Following this
assessment, we applied professional judgement to
determine the extent of testing required over each balance
in the financial statements.
In respect of the audit of the Company, the group audit
team performed a full scope statutory audit.
The impact of climate risk on our audit
In planning our audit, we made enquiries with management
to understand the extent of the potential impact of climate
change risk on the financial statements. Our evaluation of
this conclusion included challenging key judgements and
estimates in areas where we considered that there was
greatest potential for climate change impact. We
particularly considered how climate change risks would
impact the assumptions made in the valuation of
investment properties as explained in our key audit matter
above. We also considered the consistency of the
disclosures in relation to climate change made within the
Annual Report, the financial statements and the
knowledge obtained from our audit.
Materiality
The scope of our audit was influenced by our application
of materiality. We set certain quantitative thresholds for
materiality. These, together with qualitative considerations,
helped us to determine the scope of our audit and the
nature, timing and extent of our audit procedures on the
individual financial statement line items and disclosures
and in evaluating the effect of misstatements, both
individually and in aggregate on the financial statements
as a whole.
Based on our professional judgement, we determined
materiality for the financial statements as a whole as
follows:
Financial statements – Group Financial statements – Company
Overall materiality £93.6 million
(2025: £88.8 million).
£84.2 million
(2025: £79.9 million).
How we determined it 1% of Total Assets 1% of Total Assets
Rationale for
benchmarkapplied
A key determinant of the Group’s value is
property investments. Due to this, the key
area of focus in the audit is the valuation of
investment and development properties,
either held directly or through joint ventures.
On this basis, and consistent with the prior
year, we set an overall Group materiality level
based on total assets.
The Company’s main activity is the
investments in and loans to subsidiaries
and joint ventures. Given this, we set an
overall Company materiality level based on
total assets. For purposes of the Group
audit, we capped the overall materiality for
the Company to be 90% of the Group
overall materiality.
FINANCIAL STATEMENTS
123123
British Land
Annual Report and Accounts 2026
INDEPENDENT AUDITORS’ REPORT CONTINUED
We use performance materiality to reduce to an
appropriately low level the probability that the aggregate
of uncorrected and undetected misstatements exceeds
overall materiality. Specifically, we use performance
materiality in determining the scope of our audit and the
nature and extent of our testing of account balances,
classes of transactions and disclosures, for example in
determining sample sizes. Our performance materiality
was 75% (2025: 75%) of overall materiality, amounting to
£70.2m (2025: £66.6m) for the Group financial statements
and £63.2m (2025: £59.9m) for the Company financial
statements.
In determining the performance materiality, we considered
a number of factors – the history of misstatements, risk
assessment and aggregation risk and the effectiveness of
controls – and concluded that an amount in the middle of
our normal range was appropriate. We agreed with the
Audit Committee that we would report to them
misstatements identified during our audit above £4.7m
(Group audit) (2025: £4.4 m) and £4.2m (Company audit)
(2025: £3.9m) as well as misstatements below those
amounts that, in our view, warranted reporting for
qualitative reasons.
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the Group’s
and the Company’s ability to continue to adopt the going
concern basis of accounting included:
– Corroborated key assumptions (e.g. liquidity forecasts
and financing arrangements) to underlying
documentation and ensured this was consistent with our
audit work in these areas;
– Considered management’s forecasting accuracy by
comparing how the forecasts made in prior periods
compare to the actual performance;
– Understood and assessed the appropriateness of the key
assumptions used both in the base case and in the
severe but plausible downside scenario, including
assessing whether we considered the downside
sensitivities to be appropriately severe;
– Tested the integrity of the underlying formulas and
calculations within the going concern and cash flow
models;
– Considered the appropriateness of the mitigating actions
available to management in the event of the downside
scenario materialising. Specifically, we focused on
whether these actions are within the Group and
Company’s control and are achievable; and
– Reviewed the disclosures provided relating to the going
concern basis of preparation and found that these
provided an explanation of the directors’ assessment
that was consistent with the evidence we obtained.
Based on the work we have performed, we have not
identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast
significant doubt on the Group’s and the Company’s ability
to continue as a going concern for a period of at least
twelve months from when the financial statements are
authorised for issue.
In auditing the financial statements, we have concluded
that the directors’ use of the going concern basis of
accounting in the preparation of the financial statements is
appropriate.
However, because not all future events or conditions can
be predicted, this conclusion is not a guarantee as to the
Group’s and the Company’s ability to continue as a going
concern.
In relation to the directors’ reporting on how they have
applied the UK Corporate Governance Code, we have
nothing material to add or draw attention to in relation to
the directors’ statement in the financial statements about
whether the directors considered it appropriate to adopt
the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors
with respect to going concern are described in the relevant
sections of this report.
Reporting on other information
The other information comprises all of the information in
the Annual Report other than the financial statements and
our auditors’ report thereon. The directors are responsible
for the other information. Our opinion on the financial
statements does not cover the other information and,
accordingly, we do not express an audit opinion or, except
to the extent otherwise explicitly stated in this report, any
form of assurance thereon.
In connection with our audit of the financial statements,
our responsibility is to read the other information and, in
doing so, consider whether the other information is
materially inconsistent with the financial statements or our
knowledge obtained in the audit, or otherwise appears to
be materially misstated. If we identify an apparent material
inconsistency or material misstatement, we are required to
perform procedures to conclude whether there is a
material misstatement of the financial statements or a
material misstatement of the other information. If, based
on the work we have performed, we conclude that there is
a material misstatement of this other information, we are
required to report that fact. We have nothing to report
based on these responsibilities.
With respect to the Strategic Report and Directors’ Report
and additional disclosures, we also considered whether the
disclosures required by the UK Companies Act 2006 have
been included.
Based on our work undertaken in the course of the audit,
the Companies Act 2006 requires us also to report certain
opinions and matters as described below.
124
British Land
Annual Report and Accounts 2026
Strategic Report and Directors’ Report
and additional disclosures
In our opinion, based on the work undertaken in the course
of the audit, the information given in the Strategic Report
and Directors’ Report and additional disclosures for the
year ended 31 March 2026 is consistent with the financial
statements and has been prepared in accordance with
applicable legal requirements.
In light of the knowledge and understanding of the Group
and Company and their environment obtained in the
course of the audit, we did not identify any material
misstatements in the Strategic Report and Directors’
Report and additional disclosures.
Directors’ Remuneration
In our opinion, the part of the Directors’ Remuneration
Report to be audited has been properly prepared in
accordance with the Companies Act 2006.
Corporate governance statement
The Listing Rules require us to review the directors’
statements in relation to going concern, longer-term
viability and that part of the corporate governance
statement relating to the Company’s compliance with the
provisions of the UK Corporate Governance Code specified
for our review. Our additional responsibilities with respect
to the corporate governance statement as other
information are described in the Reporting on other
information section of this report.
Based on the work undertaken as part of our audit, we
have concluded that each of the following elements of the
corporate governance statement is materially consistent
with the financial statements and our knowledge obtained
during the audit, and we have nothing material to add or
draw attention to in relation to:
– The directors’ confirmation that they have carried out a
robust assessment of the emerging and principal risks;
– The disclosures in the Annual Report that describe those
principal risks, what procedures are in place to identify
emerging risks and an explanation of how these are
being managed or mitigated;
– The directors’ statement in the financial statements
about whether they considered it appropriate to adopt
the going concern basis of accounting in preparing them,
and their identification of any material uncertainties to
the Group’s and Company’s ability to continue to do so
over a period of at least twelve months from the date of
approval of the financial statements;
– The directors’ explanation as to their assessment of the
Group’s and Company’s prospects, the period this
assessment covers and why the period is appropriate; and
– The directors’ statement as to whether they have a
reasonable expectation that the Company will be able to
continue in operation and meet its liabilities as they fall
due over the period of its assessment, including any
related disclosures drawing attention to any necessary
qualifications or assumptions.
Our review of the directors’ statement regarding the
longer-term viability of the Group and Company was
substantially less in scope than an audit and only consisted
of making inquiries and considering the directors’ process
supporting their statement; checking that the statement is in
alignment with the relevant provisions of the UK Corporate
Governance Code; and considering whether the statement
is consistent with the financial statements and our
knowledge and understanding of the Group and Company
and their environment obtained in the course of the audit.
In addition, based on the work undertaken as part of our
audit, we have concluded that each of the following
elements of the corporate governance statement is
materially consistent with the financial statements and our
knowledge obtained during the audit:
– The directors’ statement that they consider the Annual
Report, taken as a whole, is fair, balanced and
understandable, and provides the information necessary
for the members to assess the Group’s and Company’s
position, performance, business model and strategy;
– The section of the Annual Report that describes the
review of effectiveness of risk management and internal
control systems; and
– The section of the Annual Report describing the work of
the Audit Committee.
We have nothing to report in respect of our responsibility
to report when the directors’ statement relating to the
Company’s compliance with the Code does not properly
disclose a departure from a relevant provision of the Code
specified under the Listing Rules for review by the
auditors.
Responsibilities for the financial statements
andtheaudit
Responsibilities of the directors for the financial
statements
As explained more fully in the Statement of Directors’
Responsibilities in Respect of the Financial Statements, the
directors are responsible for the preparation of the
financial statements in accordance with the applicable
framework and for being satisfied that they give a true and
fair view. The directors are also responsible for such
internal control as they determine is necessary to enable
the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are
responsible for assessing the Group’s and the Company’s
ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the
going concern basis of accounting unless the directors
either intend to liquidate the Group or the Company or to
cease operations, or have no realistic alternative but to
doso.
Auditors’ responsibilities for the audit of the financial
statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and
to issue an auditors’ report that includes our opinion.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance
with ISAs (UK) will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of
these financial statements.
Irregularities, including fraud, are instances of non-
compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above,
to detect material misstatements in respect of
irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities,
including fraud, is detailed below.
FINANCIAL STATEMENTS
125125
British Land
Annual Report and Accounts 2026
Based on our understanding of the Group and industry,
weidentified that the principal risks of non-compliance
with laws and regulations related to compliance with the
REIT status in accordance with Part 12 of the Corporation
Tax Act 2010 and the UK regulatory principles, such as
those governed by the Financial Conduct Authority, and
we considered the extent to which non-compliance might
have a material effect on the financial statements. We also
considered those laws and regulations that have a direct
impact on the financial statements such as the Companies
Act 2006. We evaluated management’s incentives and
opportunities for fraudulent manipulation of the financial
statements (including the risk of override of controls), and
determined that the principal risks were related to posting
inappropriate journal entries to increase revenue,
management bias in accounting estimates and
judgemental areas of the financial statements such as the
valuation of investment and development properties held
directly or through joint ventures. Audit procedures
performed by the engagement team included:
– Discussions with management and internal audit,
including consideration of known or suspected instances
of non-compliance with laws and regulations and fraud,
and review of the reports made by management and
internal audit;
– Understanding of management’s internal controls
designed to prevent and detect irregularities;
– Reviewing the Group’s litigation register in so far as it
related to non-compliance with laws and regulations and
fraud;
– Reviewing relevant meeting minutes, including those of
the Risk Committee and the Audit Committee;
– Review of tax compliance with the involvement of our
tax experts in the audit;
– Designing audit procedures to incorporate
unpredictability around the nature, timing or extent of
our testing;
– Challenging assumptions and judgements made by
management in their significant areas of estimation
including procedures relating to the valuation of
investment properties as described in the related key
audit matter above; and
– Identifying and testing journal entries, in particular any
journal entries posted with unusual account
combinations involving revenue.
There are inherent limitations in the audit procedures
described above. We are less likely to become aware of
instances of non-compliance with laws and regulations that
are not closely related to events and transactions reflected
in the financial statements. Also, the risk of not detecting a
material misstatement due to fraud is higher than the risk
of not detecting one resulting from error, as fraud may
involve deliberate concealment by, for example, forgery or
intentional misrepresentations, or through collusion.
Our audit testing might include testing complete
populations of certain transactions and balances, possibly
using data auditing techniques. However, it typically
involves selecting a limited number of items for testing,
rather than testing complete populations. We will often
seek to target particular items for testing based on their
size or risk characteristics. In other cases, we will use audit
sampling to enable us to draw a conclusion about the
population from which the sample is selected.
A further description of our responsibilities for the audit of
the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description
forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for
and only for the Company’s members as a body in
accordance with Chapter 3 of Part 16 of the Companies
Act 2006 and for no other purpose. We do not, in giving
these opinions, accept or assume responsibility for any
other purpose or to any other person to whom this report
is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report
to you if, in our opinion:
– we have not obtained all the information and
explanations we require for our audit; or
– adequate accounting records have not been kept by the
Company, or returns adequate for our audit have not
been received from branches not visited by us; or
– certain disclosures of directors’ remuneration specified
by law are not made; or
– the Company financial statements and the part of the
Directors’ Remuneration Report to be audited are not in
agreement with the accounting records and returns.
We have no exceptions to report arising from this
responsibility.
Appointment
We were first appointed by the Company for the financial
year ended 31 March 2015. Our uninterrupted engagement
covers 12 financial years.
Other matter
The Company is required by the Financial Conduct
Authority Disclosure Guidance and Transparency Rules to
include these financial statements in an annual financial
report prepared under the structured digital format
required by DTR 4.1.15R – 4.1.18R and filed on the National
Storage Mechanism of the Financial Conduct Authority.
This auditors’ report provides no assurance over whether
the structured digital format annual financial report has
been prepared in accordance with those requirements.
Saira Choudhry (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
19 May 2026
INDEPENDENT AUDITORS’ REPORT CONTINUED
126
British Land
Annual Report and Accounts 2026
127
CONSOLIDATED INCOME STATEMENT
For the year ended 31 March 2026
2026 | 2025 | ||||||
Capital | Capital | ||||||
Underlying 1 | and other | Total | Underlying 1 | and other | Total | ||
Note | £m | £m | £m | £m | £m | £m | |
Revenue | 3 | ||||||
Costs 2 | 3 | ( | ( | ( | ( | ||
3 | |||||||
Joint ventures (see also below) 3 | 11 | ||||||
Administrative expenses | ( | ( | ( | ( | ( | ||
Valuation movements on property | 4 | ||||||
Loss on disposal of investment properties, joint ventures and revaluation of investments | ( | ( | ( | ( | |||
Net financing charges | |||||||
financing income | 6 | ||||||
financing charges | 6 | ( | ( | ( | ( | ( | ( |
6 | ( | ( | ( | ( | ( | ( | |
Profit before taxation | |||||||
Taxation | 7 | ( | ( | ( | |||
Profit for the year after taxation | |||||||
attributable to shareholders of the Company | |||||||
Earnings per share: | |||||||
basic | 2 | ||||||
diluted | 2 | ||||||
| All results derive from continuing operations. | 2026 | 2025 | |||||
Capital | Capital | ||||||
Underlying 1 | and other | Total | Underlying 1 | and other | Total | ||
Note | £m | £m | £m | £m | £m | £m | |
Results of joint ventures accounted for using the equity method | |||||||
Underlying Profit | |||||||
Share of joint venture result 4 | |||||||
Net movements on property 5 | 4 | ( | ( | ||||
Capital financing income (charges) | ( | ( | |||||
(Loss) profit on disposal of properties | ( | ( | |||||
11 |
1. See definition in Note 2 and a reconciliation between Underlying Profit and IFRS profit in Note 20.
2. Included within ‘Costs’ is a debit relating to provisions for impairment of tenant debtors, accrued income and tenant incentives
and contracted rent increases of £3 m (2024/25: £2 m credit).
3. Included within ‘Joint ventures’ is a debit relating to the movement of provision for impairment of equity investments and loans
to joint ventures of £8 m (2024/25: £18 m credit excluding the Meadowhall Shopping Centre joint venture disposal), disclosed in further
detail in Note 11 and Note 22.
4. The ‘Share of joint venture result’ relates to Broadgate REIT Limited’s share of the 2 Finsbury Avenue joint venture, disclosed in
further detail in Note 11.
5. Included within the current year ‘Net movements on property’ credit of £98 m (2024/25: £14 m debit) are valuation movements on
investment and development properties of £111 m (2024/25: £14 m debit) and impairment of trading properties of £13 m (2024/25: £nil).
128
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2026
2026 | 2025 | |
£m | £m | |
Profit for the year after taxation | ||
Other comprehensive expense: | ||
Items that may be reclassified subsequently to profit or loss: | ||
Losses on cash flow hedges | ||
– Joint ventures | ( | |
( | ||
Other comprehensive expense for the year | ( | |
Total comprehensive income for the year attributable to shareholders of the Company |
129
CONSOLIDATED BALANCE SHEET
As at 31 March 2026
2026 | 2025 | ||
Note | £m | £m | |
ASSETS | |||
Non-current assets | |||
Investment and development properties | 10 | ||
Other non-current assets | |||
Investments in joint ventures | 11 | ||
Other investments | 12 | ||
Property, plant and equipment | |||
Interest rate and currency derivative assets | 16 | ||
Current assets | |||
Trading properties | 10 | ||
Debtors | 13 | ||
Interest rate and currency derivative assets | 16 | ||
Cash and cash equivalents | 16 | ||
Investment properties held-for-sale | 10 | ||
Total assets | |||
LIABILITIES | |||
Current liabilities | |||
Short term borrowings and overdrafts | 16 | ( | ( |
Creditors | 14 | ( | ( |
Corporation tax | 7 | ( | ( |
Interest rate and currency derivative liabilities | 16 | ( | |
( | ( | ||
Non-current liabilities | |||
Debentures and loans | 16 | ( | ( |
Other non-current liabilities | 15 | ( | ( |
Deferred tax liabilities | ( | ( | |
Interest rate and currency derivative liabilities | 16 | ( | ( |
( | ( | ||
Total liabilities | ( | ( | |
Net assets | |||
EQUITY | |||
Share capital | |||
Share premium | |||
Merger reserve | |||
Other reserves | |||
Retained earnings | |||
Total equity attributable to shareholders of the Company | |||
EPRA Net Tangible Assets per share 1 | 2 |
1. See definition in Note 2 and a reconciliation between EPRA Net Tangible Assets and IFRS net assets in Note 20.
Company number 621920.
130
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 March 2026
2026 | 2025 | ||
Note | £m | £m | |
Income received from tenants | |||
Fees and other income received | |||
Operating expenses paid to suppliers and employees | ( | ( | |
Cash generated from operations | |||
Interest paid | ( | ( | |
Interest received | |||
Corporation taxation payments | ( | ( | |
Distributions and other receivables from joint ventures | 11 | ||
Net cash inflow from operating activities | |||
Cash flows from investing activities | |||
Development and other capital expenditure | ( | ( | |
Purchase of investment properties | ( | ( | |
Sale of investment properties 1 | |||
Purchase of investments and joint ventures | ( | ( | |
Indirect taxes paid in respect of investing activities | ( | ( | |
Loan repayments from joint ventures 2 | 11 | ||
Investment in and loans to joint ventures | ( | ( | |
Capital distributions from joint ventures | 11 | ||
Net cash outflow from investing activities | ( | ( | |
Cash flows from financing activities | |||
Issue of ordinary shares | 19 | ( | |
Dividends paid | 18 | ( | ( |
Capital payments in respect of interest rate derivatives | ( | ( | |
Repayment of lease liabilities | ( | ( | |
Purchase of non-controlling interests | ( | ||
Proceeds from new borrowings | 16 | ||
Repayment of bank and other borrowings | ( | ( | |
Drawdowns on bank and other borrowings | |||
Net drawdown of revolving credit facilities | |||
Net cash inflow from financing activities | |||
Net increase (decrease) in cash and cash equivalents | ( | ||
Cash and cash equivalents at 1 April | |||
Cash and cash equivalents at 31 March | 16 | ||
Cash and cash equivalents consists of: | |||
Cash and short term deposits | |||
Tenant deposits |
1. Sale of investment properties in the prior year includes the sale of investment in Meadowhall Shopping Centre joint venture of £158 m.
Refer to Note 11 for further information.
2. Loan repayments from joint ventures in the current year of £205 m relates to a loan repayment from Broadgate REIT Limited,
following the joint venture’s completion of a £450 m five-year Green Loan secured against 1 Broadgate. The loan repayment from joint
ventures in the prior year of £93 m relates to a loan repayment from Broadgate REIT Limited as part of the 2 Finsbury Avenue joint
venture transaction. Refer to Note 11 for further information.
131
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2026
Re- | Non- | |||||||
Share | Share | valuation | Merger | Retained | controlling | Total | ||
capital | premium | reserve | reserve | earnings | Total | interests | equity | |
£m | £m | £m | £m | £m | £m | £m | £m | |
Balance at 1 April 2025 | ||||||||
Profit for the year after taxation | ||||||||
Other comprehensive expense | ( | ( | ( | |||||
Total comprehensive (expense) income | ||||||||
for the year | ( | |||||||
Shares issued in the year | ||||||||
Dividends payable in year | ||||||||
(22.88p per share) | ( | ( | ( | |||||
Balance at 31 March 2026 | ||||||||
Balance at 1 April 2024 | ||||||||
Profit for the year after taxation | ||||||||
Other comprehensive income | ||||||||
Total comprehensive income for the year | ||||||||
Shares issued in the year 1 | ||||||||
Fair value of share and share | ||||||||
option awards | ( | ( | ( | |||||
Purchase of non-controlling interests 2 | ( | ( | ||||||
Dividends payable in year | ||||||||
(22.88p per share) | ( | ( | ( | |||||
Balance at 31 March 2025 |
1. In the prior year, on 2 October 2024, the Company announced a share placing, retail offer and subscription of 71,227,309 ordinary
shares of 25p each at a price of 422p per share, resulting in an increase in share capital of £18 m and share premium of £277 m. See
Note 19 for further information.
2. In the prior year, on 12 June 2024, the Group acquired the remaining 12.5% interest of the Speke Unit Trust for a cash consideration
of £13m, which represented the entirety of the Group’s non-controlling interest in Speke Unit Trust. As a result of this acquisition, the
Group had £nil non-controlling interests as at 31 March 2025.
132
NOTES TO THE ACCOUNTS CONTINUED
1 Basis of preparation, material accounting
policies and accounting judgements
133
1 Basis of preparation, material accounting
policies and accounting judgements continued
134
NOTES TO THE ACCOUNTS CONTINUED
1 Basis of preparation, material accounting
policies and accounting judgements continued
135
1 Basis of preparation, material accounting
policies and accounting judgements continued
136
NOTES TO THE ACCOUNTS CONTINUED
1 Basis of preparation, material accounting
policies and accounting judgements continued
137
2 Performance measures
Management considers the business on a proportionally consolidated basis when reviewing performance, which includes
the Group’s share of joint ventures on a line-by-line basis. Management uses a number of performance measures in order
to assess the performance of the Group. These performance measures include various proportionally consolidated,
European Public Real Estate Association (EPRA) and Underlying measures, which are non-GAAP measures and
therefore Alternative Performance Measures (APMs) that are disclosed in these financial statements. Management does
not consider these performance measures and APMs to be a substitute for IFRS measures. Reconciliations between the
APMs and IFRS measures are included within the supplementary disclosures (Table B).
Earnings per share
The Group measures financial performance with reference to Underlying earnings per share, EPRA earnings per share
and IFRS earnings per share. The relevant earnings and weighted average number of shares (including dilution
adjustments) for each performance measure are shown below, and a reconciliation between these is shown within the
supplementary disclosures (Table B).
EPRA earnings per share is calculated using EPRA earnings, which is the IFRS profit after taxation attributable to
shareholders of the Company excluding investment and development property revaluations, gains/losses on investment
and trading property disposals, changes in the fair value of financial instruments and associated close-out costs,
adjustments relating to non-operating and exceptional items and their related taxation. In the current year to 31 March
2026, Capital administrative expenses of £3m, relating to software as a service implementation costs, were excluded in
the calculation of EPRA earnings as an EPRA non-operating and exceptional item adjustment. There is no tax effect of
this adjustment. No adjustments were made in the prior year to 31 March 2025.
Underlying earnings per share is calculated using Underlying Profit adjusted for Underlying taxation (see Note 7), with
the dilutive measure being the primary disclosure measure used. Underlying Profit is the pre-tax EPRA earnings
measure, with additional Company adjustments for items which are considered to be unusual and/or significant by
virtue of their size and nature. No Company adjustments were made in the current year to 31 March 2026 or prior year
to 31 March 2025.
2026 | 2025 | |||||
Relevant | Relevant | |||||
Relevant | number | Earnings | Relevant | number | Earnings | |
earnings | of shares | per share | earnings | of shares | per share | |
Earnings per share | £m | million | pence | £m | million 1 | pence |
Underlying | ||||||
Underlying basic | 290 | 1,000 | 29.0 | 275 | 962 | 28.6 |
Underlying diluted | 290 | 1,002 | 28.9 | 275 | 965 | 28.5 |
EPRA | ||||||
EPRA basic | 290 | 1,000 | 29.0 | 275 | 962 | 28.6 |
EPRA diluted | 290 | 1,002 | 28.9 | 275 | 965 | 28.5 |
IFRS | ||||||
Basic | 454 | 1,000 | 45.4 | 338 | 962 | 35.1 |
Diluted | 454 | 1,002 | 45.3 | 338 | 965 | 35.0 |
1. In the prior year, on 2 October 2024, the Company announced a share placing, retail offer and subscription of 71,227,309 ordinary
shares of 25p each at a price of 422p per share, resulting in a 71,227,309 increase in the number of shares. See Note 19 for
further information.
138
NOTES TO THE ACCOUNTS CONTINUED
2 Performance measures continued
Net asset value
The Group measures financial position with reference to EPRA Net Tangible Assets (NTA), Net Reinstatement Value
(NRV) and Net Disposal Value (NDV). The net assets and number of shares for each performance measure are shown
below. A reconciliation between IFRS net assets and the EPRA net asset valuation metrics, and the relevant number of
shares for each performance measure, is shown within the supplementary disclosures (Table B). EPRA NTA is a measure
that is based on IFRS net assets excluding the mark-to-market on derivatives and related debt adjustments, the carrying
value of intangibles, as well as deferred taxation on property and derivative valuations. The metric includes the valuation
surplus on trading properties and is adjusted for the dilutive impact of share options.
2026 | 2025 | |||||
Relevant | Net asset | Relevant | Net asset | |||
Relevant | number | value per | Relevant | number | value per | |
net assets | of shares | share | net assets | of shares | share | |
Net asset value per share | £m | million | pence | £m | million 1 | pence |
EPRA | ||||||
EPRA NTA | 5,923 | 1,004 | 590 | 5,698 | 1,005 | 567 |
EPRA NRV | 6,538 | 1,004 | 651 | 6,283 | 1,005 | 625 |
EPRA NDV | 5,982 | 1,004 | 596 | 5,768 | 1,005 | 574 |
IFRS | ||||||
Basic | 5,932 | 1,000 | 593 | 5,710 | 999 | 572 |
Diluted | 5,932 | 1,004 | 591 | 5,710 | 1,005 | 568 |
1. In the prior year, on 2 October 2024, the Company announced a share placing, retail offer and subscription of 71,227,309 ordinary
shares of 25p each at a price of 422p per share, resulting in a 71,227,309 increase in the number of shares. See Note 19 for
further information.
Total accounting return
The Group also measures financial performance with reference to total accounting return. This is calculated as the
movement in EPRA NTA per share and dividend paid in the year as a percentage of the EPRA NTA per share at the start
of the year.
2026 | 2025 | |||||
Movement in | Movement in | |||||
NTA per | Dividend per | Total | NTA per | Dividend per | Total | |
share | share paid | accounting | share | share paid | accounting | |
pence | pence | return | pence | pence | return | |
Total accounting return | 23 | 8.1% | 5 | 5.0% |
139
2026 | 2025 | |||||
Capital | Capital | |||||
Underlying | and other | Total | Underlying | and other | Total | |
£m | £m | £m | £m | £m | £m | |
Rent receivable | 361 | – | 361 | 317 | – | 317 |
Spreading of tenant incentives and contracted | ||||||
rent increases | 7 | – | 7 | 3 | – | 3 |
Surrender premia | 29 | – | 29 | 10 | – | 10 |
Gross rental income | 397 | – | 397 | 330 | – | 330 |
Service charge income | 78 | – | 78 | 77 | – | 77 |
Management and performance fees (from joint ventures and assets under management) | 19 | – | 19 | 20 | – | 20 |
Other fees and commissions | 29 | – | 29 | 27 | – | 27 |
Revenue | 523 | – | 523 | 454 | – | 454 |
Service charge expenses | (72) | – | (72) | (68) | – | (68) |
Property operating expenses | (50) | – | (50) | (35) | – | (35) |
Movement in impairment of trade debtors and accrued income | (3) | – | (3) | (5) | – | (5) |
Movement in impairment of tenant incentives and contracted rent increases | – | – | – | 7 | – | 7 |
Other fees and commissions expenses | (22) | – | (22) | (22) | – | (22) |
Costs | (147) | – | (147) | (123) | – | (123) |
376 | – | 376 | 331 | – | 331 |
140
NOTES TO THE ACCOUNTS CONTINUED
4 Valuation movements on property
2026 | 2025 | |
£m | £m | |
Revaluation of properties (consolidated income statement) | 107 | 148 |
Revaluation of properties held by joint ventures accounted for using the equity method 1 | 98 | (14) |
205 | 134 |
1. Revaluation of properties held by joint ventures accounted for using the equity method of £98m credit (2024/25: £14m debit)
includes valuation movements on investment and development properties of £111m (2024/25: £14m debit) and impairment of trading
properties of £13m (2024/25: £nil).
2026 | 2025 | |
£m | £m | |
Fees payable to the Company’s auditor for the audit of the Company’s annual accounts and consolidated financial statements | 0.7 | 0.6 |
Fees payable to the Company’s auditor for the audit of the Company’s subsidiaries, pursuant | ||
to legislation | – | – |
Total audit fees | 0.7 | 0.6 |
Audit related assurance services | 0.3 | 0.3 |
Total audit and audit related assurance services | 1.0 | 0.9 |
Other fees | – | – |
Other services | 0.1 | 0.1 |
Total | 1.1 | 1.0 |
141
2026 | 2025 | |
£m | £m | |
Underlying | ||
Financing charges | ||
Facilities and overdrafts | (38) | (36) |
Derivatives | 35 | 50 |
Other loans | (107) | (106) |
Obligations under head leases | (3) | (3) |
(113) | (95) | |
Development interest capitalised | 26 | 33 |
(87) | (62) | |
Financing income | ||
Deposits, securities and liquid investments | 2 | 2 |
2 | 2 | |
Net financing charges – Underlying | (85) | (60) |
Capital and other Financing charges | ||
Capital financing costs | (2) | – |
Valuation movement on fair value hedge accounted derivatives | (1) | 9 |
Valuation movement on fair value hedge accounted debt | – | (12) |
Valuation movement on non-hedge accounted derivatives | (29) | (40) |
(32) | (43) | |
Net financing charges – Capital and other | (32) | (43) |
Total financing income | 2 | 2 |
Total financing charges | (119) | (105) |
Net financing charges | (117) | (103) |
142
NOTES TO THE ACCOUNTS CONTINUED
7 Taxation
2026 | 2025 | |
£m | £m | |
Taxation income (expense) | ||
Current taxation | ||
Underlying Profit | ||
Current period UK corporation taxation (25%) | (4) | (3) |
Underlying Profit adjustments in respect of prior periods | – | (1) |
Total current Underlying Profit taxation expense | (4) | (4) |
Capital and other profit | ||
Current period UK corporation taxation (25%) | – | – |
Capital and other profit adjustments in respect of prior periods | 6 | (1) |
Total current Capital and other profit taxation income (expense) | 6 | (1) |
Total current taxation income (expense) | 2 | (5) |
Deferred taxation on revaluation of derivatives | 2 | 1 |
Group total taxation income (expense) | 4 | (4) |
Attributable to joint ventures | (3) | – |
Total taxation income (expense) | 1 | (4) |
Taxation reconciliation | ||
Profit before taxation | 450 | 342 |
Less: Profit attributable to joint ventures | (188) | (90) |
Group profit before taxation | 262 | 252 |
Taxation on profit at UK corporation taxation rate of 25% | (66) | (63) |
Effects of: | ||
– REIT exempt income and gains | 70 | 72 |
– Taxation losses | (8) | (12) |
– Deferred taxation on revaluation of derivatives | 2 | 1 |
– Adjustments in respect of prior years | 6 | (2) |
Group total taxation income (expense) | 4 | (4) |
Corporation tax liability as at 31 March 2026 was £3m (2024/25: £6m liability) as shown on the consolidated balance
sheet. The credit to the consolidated income statement for the current year in relation to the deferred taxation
movement on the revaluation of derivatives was £2m (2024/25: £1m credit).
At 31 March 2026 the Group had capital losses of £732m (2024/25: £730m) available to offset future capital gains giving
rise to an unrecognised deferred tax asset calculated at 25% (2024/25: 25%) of £183m (2024/25: £183m).
At 31 March 2026 the Group had UK revenue tax losses from previous years of £226m (2024/25: £182m) giving rise to
an unrecognised deferred tax asset calculated at 25% (2024/25: 25%) of £57m (2024/25: £46m).
A REIT is required to pay Property Income Distributions (PIDs) of at least 90% of the taxable profits from its UK property
rental business within 12 months of the end of each accounting period.
143
8 Staff costs
2026 | 2025 | |
Staff costs (including Directors) | £m | £m |
Wages and salaries | 55 | 61 |
Social security costs | 9 | 9 |
Pension costs | 7 | 7 |
Equity-settled share-based payments | 5 | 4 |
76 | 81 |
Of the £76m (2024/25: £81m) total staff costs for the year, £48m (2024/25: £52m) is included within administrative
expenses, £9m (2024/25: £9m) within service charge expenses, £3m (2024/25: £4m) within property operating
expenses and £16m (2024/25: £16m) within other fees and commissions expenses.
The average monthly number of employees of the Company during the year was 311 (2024/25: 349). The average
monthly number of Group employees, including those employed directly at the Group’s properties and their costs
recharged to tenants, was 599 (2024/25: 646).
For the year ended 31 March 2026, the average monthly number of employees of the Company by category was
as follows: Campuses: 32 (2024/25: 36); Retail & London Urban Logistics: 27 (2024/25: 29); Developments: 26
(2024/25: 31); Storey: 5 (2024/25: 6); and Support Functions: 221 (2024/25: 247). The average number of employees
working at the Group’s properties and their costs recharged to tenants of 288 (2024/25: 297) are categorised as
Property Management.
The Executive Directors and Non-Executive Directors are the key management personnel. Their emoluments are
disclosed in the Remuneration Report on pages 100 to 114.
Staff costs
The Group’s equity-settled share-based payments comprise the following:
Scheme | Fair value measure |
Long Term Incentive Plan (LTIP) | Monte Carlo model simulation and Black-Scholes option valuation models |
Restricted Share Plan (RSP) | Market value at grant date |
Save As You Earn schemes (SAYE) | Black-Scholes option valuation model |
The Group expenses an estimate of how many shares are likely to vest based on the market price at the date of grant,
taking account of expected performance against the relevant performance targets and service periods, which are
discussed in further detail in the Remuneration Report.
144
NOTES TO THE ACCOUNTS CONTINUED
8 Staff costs continued
During both the current year and prior year, the Group granted performance shares under its Long Term Incentive Plan
scheme. Performance conditions are measured over a three-year period and depending on the year of grant, are a
weighted blend of Total Property Return (TPR), Total Accounting Return (TAR) and ESG measures (see Directors’
Remuneration Report for details). For non-market-based performance conditions, the Group uses a Black-Scholes
option valuation method to obtain fair values. For market-based performance conditions, a Monte Carlo model is used
as this provides a more accurate fair value for these performance conditions. The key inputs used to obtain fair values
for LTIP awards are shown below.
23 June 2025 | 20 June 2024 | |||
Awards with | Awards with no | Awards with | Awards with no | |
holding period | holding period | holding period | holding period | |
Share price | £3.79 | £3.79 | £4.17 | £4.17 |
Exercise price | £0.00 | £0.00 | £0.00 | £0.00 |
Expected volatility | 26.9% | 26.9% | 30.7% | 30.7% |
Expected term (years) | 3 | 3 | 3 | 3 |
Dividend yield | 3.8% | 3.8% | 5.5% | 5.5% |
Risk free interest rate | 4.0% | 4.0% | 3.9% | 3.9% |
Fair value – TPR and TAR Tranches | £3.36 | £3.79 | £3.63 | £4.17 |
Fair value – ESG Tranche | £3.36 | £3.79 | £3.63 | £4.17 |
Movements in shares and options are given in Note 19.
9 Pensions
The British Land Group of Companies Pension Scheme (‘the scheme’) is the principal defined benefit pension scheme
in the Group. The assets of the scheme are held in a trustee-administered fund and kept separate from those of the
Company. It is not contracted out of SERPS (State Earnings-Related Pension Scheme), it is not planned to admit new
employees to the scheme and the scheme closed to future accrual effective 1 September 2020.
The Group has two other small defined benefit pension schemes. There are also two defined contribution pension
schemes. Contributions to the defined contribution schemes are at a flat rate of salary and are paid by the Company.
2026 | 2025 | |
% p.a. | % p.a. | |
Discount rate | 6.2 | 5.8 |
Salary inflation | – | – |
Pensions increase | 3.4 | 3.2 |
Price inflation | 3.6 | 3.4 |
145
9 Pensions continued
2026 | 2025 | |
£m | £m | |
Equities | 17 | 18 |
Diversified growth funds | 14 | 13 |
Other assets | 63 | 62 |
Total scheme assets | 94 | 93 |
2026 | 2025 | |
£m | £m | |
Present value of defined scheme obligations | (72) | (74) |
Fair value of scheme assets | 94 | 93 |
Irrecoverable surplus 1 | (22) | (19) |
Amount recognised on the consolidated balance sheet | – | – |
(Decrease) increase in | |||
defined scheme obligations | |||
Change in | 2026 | 2025 | |
Assumption | assumption | £m | £m |
Discount rate | +0.5% | (4) | (4) |
Salary inflation | +0.5% | – | – |
RPI inflation | +0.5% | 3 | 3 |
Assumed life expectancy | +1 year | 2 | 2 |
146
NOTES TO THE ACCOUNTS CONTINUED
9 Pensions continued
2026 | 2025 | |
£m | £m | |
At 1 April | (74) | (85) |
Interest cost | (4) | (4) |
Actuarial gain | ||
Gain from change in financial assumptions | 2 | 10 |
Gain on scheme liabilities arising from experience | – | 1 |
Benefits paid | 4 | 4 |
At 31 March | (72) | (74) |
2026 | 2025 | |
£m | £m | |
At 1 April | 93 | 108 |
Interest income on scheme assets | 5 | 5 |
Contributions by employer | – | – |
Actuarial loss | – | (16) |
Benefits paid | (4) | (4) |
At 31 March | 94 | 93 |
147
10 Property
Property reconciliation for the year ended 31 March 2026
Retail & | ||||||
London | Investment and | |||||
Urban | development | Trading and | ||||
Campuses | Logistics Developments | properties | held-for-sale | |||
Level 3 | Level 3 | Level 3 | Level 3 | properties | Total | |
£m | £m | £m | £m | £m | £m | |
Carrying value at 1 April 2025 | 2,173 | 3,566 | 391 | 6,130 | 44 | 6,174 |
Additions | ||||||
– property purchases | – | 113 | – | 113 | – | 113 |
– development expenditure | 11 | 3 | 25 | 39 | – | 39 |
– capitalised interest and staff costs | 1 | 1 | 8 | 10 | – | 10 |
– capital expenditure on asset | ||||||
management initiatives | 21 | 27 | – | 48 | 1 | 49 |
33 | 144 | 33 | 210 | 1 | 211 | |
Disposals | (14) | (43) | – | (57) | (23) | (80) |
Reclassifications | 23 | 72 | (95) | – | – | – |
Revaluations included in income statement | 52 | 90 | (35) | 107 | – | 107 |
Movement in tenant incentives and contracted | ||||||
rent uplift balances | 2 | 6 | – | 8 | – | 8 |
Carrying value at 31 March 2026 | 2,269 | 3,835 | 294 | 6,398 | 22 | 6,420 |
Lease liabilities (Notes 14 and 15) | (109) | |||||
Less valuation surplus on right-of-use assets 1 | (3) | |||||
Valuation surplus on trading properties | 8 | |||||
Group property portfolio valuation at 31 March 2026 attributable to shareholders | 6,316 | |||||
1. Relates to properties held under leasing agreements. The fair value of right-of-use assets is determined by calculating the present
value of net rental cash flows over the term of the lease agreements. IFRS 16 right-of-use assets are not externally valued, their fair
values are determined by management and are therefore not included in the Group property portfolio valuation of £6,316m above.
Additions include £1m of capital expenditure in response to climate change (2024/25: £1m), in line with our
Sustainability Strategy to reduce both the embodied carbon in our developments and the operational carbon across the
Group’s standing property portfolio. For further details, refer to the Sustainability section of the Strategic Report on
pages 36 to 43.
148
NOTES TO THE ACCOUNTS CONTINUED
10 Property continued
Property reconciliation for the year ended 31 March 2025
Retail & | ||||||
London | Investment and | |||||
Urban | development | Trading and | ||||
Campuses | Logistics Developments | properties | held-for-sale | |||
Level 3 | Level 3 | Level 3 | Level 3 | properties | Total | |
£m | £m | £m | £m | £m | £m | |
Carrying value at 1 April 2024 | 1,995 | 2,686 | 548 | 5,229 | 22 | 5,251 |
Additions | ||||||
– property purchases 1 | – | 730 | – | 730 | – | 730 |
– development expenditure | 22 | 5 | 78 | 105 | – | 105 |
– capitalised interest and staff costs | 7 | 1 | 10 | 18 | – | 18 |
– capital expenditure on asset | ||||||
management initiatives | 19 | 31 | 1 | 51 | – | 51 |
– head lease assets and right-of-use assets 1 | – | 4 | – | 4 | – | 4 |
48 | 771 | 89 | 908 | – | 908 | |
Disposals | (59) | (82) | – | (141) | – | (141) |
Reclassifications | 237 | – | (259) | (22) | 22 | – |
Revaluations included in income statement | (52) | 189 | 11 | 148 | – | 148 |
Movement in tenant incentives and contracted | ||||||
rent uplift balances | 4 | 2 | 2 | 8 | – | 8 |
Carrying value at 31 March 2025 | 2,173 | 3,566 | 391 | 6,130 | 44 | 6,174 |
Lease liabilities (Notes 14 and 15) 2 | (111) | |||||
Less valuation surplus on right-of-use assets 3 | (3) | |||||
Valuation surplus on trading properties | 5 | |||||
Group property portfolio valuation at 31 March 2025 attributable to shareholders | 6,065 | |||||
1. Included within property purchases of £730m are seven retail parks acquired for consideration of £441m on 2 October 2024. The
retail park acquisition was funded by the equity placing disclosed in Note 19.
2. The £3m difference between lease liabilities of £111m and £114m per Notes 14 and 15 relates to a lease liability where the right-of-use
asset is classified as property, plant and equipment and premiums associated with the Norton Folgate head lease.
3. Relates to properties held under leasing agreements. The fair value of right-of-use assets is determined by calculating the present
value of net rental cash flows over the term of the lease agreements. IFRS 16 right-of-use assets are not externally valued, their fair
values are determined by management and are therefore not included in the Group property portfolio valuation of £6,065m above.
149
10 Property continued
Property valuation
The different valuation method levels are defined below:
Level 1:
Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2:
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).
Level 3:
Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
These levels are specified in accordance with IFRS 13 ‘Fair Value Measurement’. Property valuations are inherently
subjective as they are made on the basis of assumptions made by the valuer which may not prove to be accurate. For
these reasons, and consistent with EPRA’s guidance, we have classified the valuations of our property portfolio as Level
3 as defined by IFRS 13. The inputs to the valuations are defined as ‘unobservable’ by IFRS 13. These key unobservable
inputs are net equivalent yield and estimated rental values for investment properties, and costs to complete for
development properties. Further analysis and sensitivity disclosures of these key unobservable inputs have been
included on the following pages. There were no transfers between levels in the year.
The Group’s total property portfolio was valued by external valuers on the basis of fair value, in accordance with the
latest version of the RICS Valuation – Global Standards (incorporating the International Valuation Standards) and the
UK national supplement (the “Red Book”), published by The Royal Institution of Chartered Surveyors.
The information provided to the valuers, and the assumptions and valuation models used by the valuers, are reviewed
by the property portfolio team, the Head of Real Estate and Investment, the Chief Financial Officer and the Chief
Executive. The valuers meet with the external auditor and also present directly to the Audit Committee at the interim
and year end review of results on a rotational basis. Further details of the Audit Committee’s responsibilities in relation
to valuations can be found in the Report of the Audit Committee on pages 93 to 99.
Investment properties, excluding properties held for development, are valued by adopting the ‘investment method’ of
valuation. This approach involves applying capitalisation yields to current and future rental streams net of income voids
arising from vacancies or rent-free periods and associated running costs. These capitalisation yields and future rental
values are based on comparable property and leasing transactions in the market using the valuers’ professional
judgement and market observation. Other factors taken into account in the valuations include the tenure of the
property, tenancy details and ground and structural conditions.
In the case of ongoing developments, the approach applied is the ‘residual method’ of valuation, which is the investment
method of valuation as described above, with a deduction for all costs necessary to complete the development,
including a notional finance cost, together with a further allowance for remaining risk. Properties held for development
are generally valued by adopting the higher of the residual method of valuation, allowing for all associated risks, or the
investment method of valuation for the existing asset.
The valuers of the Group’s property portfolio have a working knowledge of the various ways that sustainability and
Environmental, Social and Governance factors can impact value and have considered these, and how market
participants are reflecting these in their pricing, in arriving at their Opinion of Value and resulting valuations as at the
balance sheet date. These may be:
• physical risks;
• transition risks related to policy or legislation to achieve sustainability and Environmental, Social and Governance
targets; and
• risks reflecting the views and needs of market participants.
Where available, the Group has shared physical climate and transitional risk assessments with the valuers which they
have reviewed and taken into consideration to the extent that current market participants would. For further details,
refer to the Sustainability section of the Strategic Report on pages 36 to 43.
Valuers observe, assess and monitor evidence from market activities, including market (investor) sentiment on issues
such as longer term obsolescence and, where known, future Environmental, Social and Governance related risks and
issues which may include, for example, the market’s approach to capital expenditure required to maintain the utility
of the asset. In the absence of reliable benchmarking data and indices for estimating costs, specialist advice on cost
management may be required which is usually agreed with the valuer in the terms of engagement and without which
reasonable estimates/assumptions may be needed to properly reflect market expectations in arriving at the Opinion
of Value.
150
NOTES TO THE ACCOUNTS CONTINUED
10 Property continued
A breakdown of valuations split between the Group and its share of joint ventures is shown below:
2026 | 2025 | |||||
Joint | Joint | |||||
Group | ventures | Total | Group | ventures | Total | |
£m | £m | £m | £m | £m | £m | |
Knight Frank LLP | 765 | 78 | 843 | 713 | 69 | 782 |
CBRE | 2,497 | 133 | 2,630 | 2,368 | 139 | 2,507 |
Jones Lang LaSalle | 2,848 | 693 | 3,541 | 2,753 | 632 | 3,385 |
Cushman & Wakefield | 206 | 2,842 | 3,048 | 231 | 2,581 | 2,812 |
Total property portfolio valuation attributable to shareholders 1 | 6,316 | 3,746 | 10,062 | 6,065 | 3,421 | 9,486 |
1. The £176m (2024/25: £96m) difference between the total property portfolio valuation for joint ventures of £3,746m (2024/25:
£3,421m) and the total investment and trading properties of £3,570m (2024/25: £3,325m) disclosed in Note 11 relates to £191m
(2024/25: £115m) of property included within investments in joint ventures, £19m (2024/25: £17m) of headleases and a £4m (2024/25:
£2m deficit) trading property surplus, all at Group share.
Information about fair value measurements using unobservable inputs (Level 3) as at 31 March 2026
ERV per sq ft | Equivalent yield | Costs to complete per sq ft | |||||||||
Fair | |||||||||||
value at | |||||||||||
31 March | |||||||||||
2026 | Valuation | Min | Max | Average | Min | Max | Average | Min | Max | Average | |
Investment | £m | technique | £ | £ | £ | % | % | % | £ | £ | £ |
Campuses | Investment | ||||||||||
2,185 methodology | 30 | 99 | 70 | 5 | 9 | 6 | – | 171 | 36 | ||
Retail & London | Investment | ||||||||||
Urban Logistics | 3,807 methodology | 2 | 43 | 21 | 4 | 19 | 7 | – | 78 | 4 | |
Developments | Residual | ||||||||||
294 methodology | 35 | 117 | 89 | 5 | 6 | 5 | 416 | 1,429 | 1,072 | ||
Total | 6,286 | ||||||||||
Trading | |||||||||||
properties | |||||||||||
at fair value | 30 | ||||||||||
Group property | |||||||||||
portfolio | |||||||||||
valuation | 6,316 |
151
10 Property continued
ERV per sq ft | Equivalent yield | Costs to complete per sq ft | |||||||||
Fair | |||||||||||
value at | |||||||||||
31 March | |||||||||||
2025 | Valuation | Min | Max | Average | Min | Max | Average | Min | Max | Average | |
Investment | £m | technique | £ | £ | £ | % | % | % | £ | £ | £ |
Campuses | Investment | ||||||||||
2,086 methodology | 28 | 136 | 67 | 5 | 9 | 6 | – | 171 | 41 | ||
Retail & London | Investment | ||||||||||
Urban Logistics | 3,539 methodology | 2 | 41 | 20 | 4 | 18 | 7 | – | 69 | 3 | |
Developments | Residual | ||||||||||
391 methodology | 29 | 113 | 70 | 5 | 6 | 5 | 225 | 1,337 | 899 | ||
Total | 6,016 | ||||||||||
Trading and held- for-sale | |||||||||||
properties | |||||||||||
at fair value | 49 | ||||||||||
Group property | |||||||||||
portfolio | |||||||||||
valuation | 6,065 |
Impact on valuations | Impact on valuations | Impact on valuations | |||||
Fair | |||||||
value at | |||||||
31 March | -25bps | +25bps | |||||
2026 | +5% ERV | -5% ERV | NEY | NEY | -5% costs | +5% costs | |
£m | £m | £m | £m | £m | £m | £m | |
Campuses 1 | 2,215 | 93 | (90) | 111 | (100) | – | – |
Retail & London Urban Logistics | 3,807 | 155 | (153) | 158 | (147) | – | – |
Developments | 294 | 17 | (17) | 13 | (12) | 32 | (31) |
Group property portfolio valuation | 6,316 | 265 | (260) | 282 | (259) | 32 | (31) |
Share of joint venture property portfolio valuation | 3,746 | 157 | (167) | 204 | (197) | 40 | (41) |
Total property portfolio valuation | 10,062 | 422 | (427) | 486 | (456) | 72 | (72) |
152
NOTES TO THE ACCOUNTS CONTINUED
10 Property continued
Impact on valuations | Impact on valuations | Impact on valuations | |||||
Fair | |||||||
value at | |||||||
31 March | -25bps | +25bps | |||||
2025 | +5% ERV | -5% ERV | NEY | NEY | -5% costs | +5% costs | |
£m | £m | £m | £m | £m | £m | £m | |
Campuses 1 | 2,113 | 90 | (90) | 106 | (97) | – | – |
Retail & London Urban Logistics | 3,539 | 144 | (141) | 149 | (137) | – | – |
Developments 2 | 413 | 19 | (19) | 21 | (19) | 3 | (3) |
Group property portfolio valuation | 6,065 | 253 | (250) | 276 | (253) | 3 | (3) |
Share of joint venture property portfolio valuation | 3,421 | 186 | (183) | 223 | (203) | 57 | (57) |
Total property portfolio valuation | 9,486 | 439 | (433) | 499 | (456) | 60 | (60) |
153
Equity | Loans 1 | Total | |
£m | £m | £m | |
At 1 April 2025 | 1,334 | 1,128 | 2,462 |
Additions | 58 | 220 | 278 |
Disposals and repayments | (13) | (238) | (251) |
Share of profit after taxation 2 | 187 | 1 | 188 |
Distributions and dividends: | |||
– Capital | – | – | – |
– Revenue | (58) | (3) | (61) |
Hedging and exchange movements | (5) | – | (5) |
At 31 March 2026 | 1,503 | 1,108 | 2,611 |
154
NOTES TO THE ACCOUNTS CONTINUED
11 Joint ventures continued
See page 158 for additional information on each joint venture | Broadgate | West One | BL West End |
Group share | 50% | 25% | 25% |
Summarised income statements for the year ended 31 March 2026 | |||
Revenue 3 | 275 | 9 | 27 |
Costs | (93) | (2) | (9) |
182 | 7 | 18 | |
Administrative expenses | (2) | – | – |
Net interest payable | (77) | – | (6) |
Underlying Profit (Loss) | 103 | 7 | 12 |
Share of joint venture result | 24 | – | – |
Net movements on property 4 | 184 | (3) | 45 |
Capital financing income (charges) | 11 | – | – |
Loss on disposal of properties | (2) | – | – |
Profit (loss) before taxation | 320 | 4 | 57 |
Taxation | – | – | (1) |
Profit (loss) after taxation | 320 | 4 | 56 |
Other comprehensive expense | (10) | – | (3) |
Total comprehensive income (expense) | 310 | 4 | 53 |
British Land share of total comprehensive income (expense) | 155 | 1 | 14 |
British Land share of distributions payable | 38 | 1 | 2 |
Summarised balance sheets as at 31 March 2026 | |||
Investment, development and trading properties | 4,603 | 140 | 464 |
Investments in joint ventures | 374 | – | – |
Other non-current assets | 6 | – | 9 |
Current assets | 23 | 1 | 5 |
Cash and cash equivalents | 131 | 19 | 11 |
Gross assets | 5,137 | 160 | 489 |
Current liabilities | (139) | (10) | (11) |
Bank and securitised debt | (1,850) | – | (160) |
Loans from joint venture partners | (1,619) | (27) | – |
Other non-current liabilities | – | (4) | (13) |
Gross liabilities | (3,608) | (41) | (184) |
Net assets (liabilities) | 1,529 | 119 | 305 |
British Land share of net assets less shareholder loans 1 | 765 | 30 | 76 |
155
11 Joint ventures continued
Total | |||||||
Paddington | One Triton | Hercules Unit | Other joint | Total | Group share | ||
Canada Water | 1 | Square | SouthGate | Trust JV | ventures 2 | 2026 | 2026 |
Central | |||||||
50% | 25% | 50% | 50% | 50% | |||
8 | 65 | 2 | 17 | 16 | 14 | 433 | 192 |
(9) | (22) | (3) | (5) | (1) | (4) | (148) | (66) |
(1) | 43 | (1) | 12 | 15 | 10 | 285 | 126 |
(1) | (1) | – | – | (1) | – | (5) | (2) |
(3) | (24) | – | (1) | – | – | (111) | (48) |
(5) | 18 | (1) | 11 | 14 | 10 | 169 | 76 |
– | – | – | – | – | – | 24 | 12 |
(57) | (13) | 29 | 9 | 7 | 8 | 209 | 98 |
– | (4) | – | – | – | – | 7 | 5 |
(4) | – | – | – | – | – | (6) | (3) |
(66) | 1 | 28 | 20 | 21 | 18 | 403 | 188 |
– | – | – | – | – | – | (1) | – |
(66) | 1 | 28 | 20 | 21 | 18 | 402 | 188 |
– | – | – | – | – | – | (13) | (5) |
(66) | 1 | 28 | 20 | 21 | 18 | 389 | 183 |
(33) | 1 | 14 | 10 | 11 | 10 | 183 | |
– | 3 | – | 4 | 7 | 6 | 61 | |
695 | 853 | 509 | 183 | 224 | 198 | 7,869 | 3,570 |
– | – | – | – | – | – | 374 | 187 |
– | 10 | – | – | – | – | 25 | 7 |
3 | 5 | 4 | 2 | 1 | 1 | 45 | 17 |
8 | 27 | 8 | 5 | 6 | 3 | 218 | 96 |
706 | 895 | 521 | 190 | 231 | 202 | 8,531 | 3,877 |
(19) | (27) | (9) | (7) | (3) | (3) | (228) | (101) |
(107) | (513) | – | – | – | – | (2,630) | (1,146) |
– | (445) | (336) | – | – | (73) | (2,500) | (1,132) |
– | – | – | (28) | – | – | (45) | (19) |
(126) | (985) | (345) | (35) | (3) | (76) | (5,403) | (2,398) |
580 | (90) | 176 | 155 | 228 | 126 | 3,128 | 1,479 |
290 | – | 88 | 77 | 114 | 63 | 1,503 |
156
NOTES TO THE ACCOUNTS CONTINUED
11 Joint ventures continued
See page 158 for additional information on each joint venture | Broadgate 1 | 2 | BL West End | |
Meadowhall | West One | |||
Group share | 50% | 0% 2 | 25% | 25% |
Summarised income statements for the year ended 31 March 2025 | ||||
Revenue 5 | 242 | 26 | 8 | 28 |
Costs | (72) | (5) | (4) | (9) |
170 | 21 | 4 | 19 | |
Administrative expenses | 3 | – | – | – |
Net interest payable | (66) | (6) | – | (6) |
Underlying Profit | 107 | 15 | 4 | 13 |
Share of joint venture result 1 | 22 | – | – | – |
Net valuation movements on property | 4 | 1 | – | (33) |
Capital financing charges | (4) | – | – | – |
Profit (loss) on disposal of properties | 10 | (1) | – | – |
Profit (loss) before taxation | 139 | 15 | 4 | (20) |
Taxation | – | – | – | – |
Profit (loss) after taxation | 139 | 15 | 4 | (20) |
Other comprehensive (expense) income | (1) | 2 | – | – |
Total comprehensive income (expense) | 138 | 17 | 4 | (20) |
British Land share of total comprehensive income (expense) | 69 | 8 | 1 | (5) |
British Land share of distributions payable | 45 | 3 | 2 | 3 |
Summarised balance sheets as at 31 March 2025 | ||||
Investment, development and trading properties | 4,179 | – | 126 | 415 |
Investments in joint ventures 1 | 232 | – | – | – |
Other non-current assets | 14 | – | – | 13 |
Current assets | 30 | – | 2 | 2 |
Cash and cash equivalents | 160 | – | 4 | 13 |
Gross assets | 4,615 | – | 132 | 443 |
Current liabilities | (147) | – | (5) | (13) |
Bank and securitised debt | (1,529) | – | – | (160) |
Loans from joint venture partners | (1,671) | – | (56) | (13) |
Other non-current liabilities | – | – | (4) | (14) |
Gross liabilities | (3,347) | – | (65) | (200) |
Net assets (liabilities) | 1,268 | – | 67 | 243 |
British Land share of net assets less shareholder loans 3 | 634 | – | 17 | 61 |
157
11 Joint ventures continued
C | |||||||
158
NOTES TO THE ACCOUNTS CONTINUED
11 Joint ventures continued
Joint venture | Name | Partner | Property sector | Group share |
Broadgate REIT Limited | Broadgate | Euro Bluebell LLP (GIC) | City Campuses | 50% |
MSC Property Intermediate Holdings | Meadowhall | Norges Bank Investment | Shopping Centre | 0% 1 |
Limited | Management | |||
WOSC Partners Limited Partnership | West One | Norges Bank Investment | West End Campuses | 25% |
Management | ||||
BL West End Offices Limited | BL West End | Pimco Prime | West End Campuses | 25% |
BL CW Upper Limited Partnership | Canada Water | Australian Super | Other Campuses | 50% |
Paddington Property Investment | Paddington | Euro Emerald Private | West End Campuses | 25% |
Limited Partnership | Central | Limited (GIC) | ||
One Triton Holding Limited | One Triton | The Royal London Mutual | West End Campuses | 50% |
Square | Insurance Society Limited | |||
Southgate Property Unit Trust | SouthGate | Aviva Investors | Shopping Centre | 50% |
Hercules Unit Trust joint venture | Hercules Unit | The Prudential Assurance | Retail Parks | 50% |
Trust JV | Company Limited |
2026 | 2025 | |
£m | £m | |
Income received from tenants | 181 | 176 |
Operating expenses paid to suppliers and employees | (76) | (70) |
Proceeds from sale of trading properties | 18 | – |
Cash generated from operations | 123 | 106 |
Interest paid | (48) | (46) |
Interest received | 9 | 5 |
UK corporation tax paid | (1) | (1) |
Cash inflow from operating activities | 83 | 64 |
Cash inflow from operating activities deployed as: | ||
Surplus (deficit) cash retained within joint ventures | 22 | (8) |
Revenue distributions per consolidated statement of cash flows | 61 | 72 |
Revenue distributions attributable to shareholders of the Company | 61 | 72 |
2026 | 2025 | |||||
Fair value | Fair value | |||||
through | Intangible | through | Intangible | |||
profit or loss | assets | Total | profit or loss | assets | Total | |
£m | £m | £m | £m | £m | £m | |
At 1 April | 41 | 7 | 48 | 46 | 8 | 54 |
Additions | 2 | – | 2 | 2 | 3 | 5 |
Capital distribution | (7) | – | (7) | (3) | – | (3) |
Revaluation and foreign currency translation | (4) | – | (4) | (4) | – | (4) |
Amortisation | – | (2) | (2) | – | (4) | (4) |
At 31 March | 32 | 5 | 37 | 41 | 7 | 48 |
159
2026 | 2025 | |
£m | £m | |
Trade and other debtors | 21 | 28 |
Prepayments and accrued income | 13 | 8 |
34 | 36 |
2026 | 2025 | |
£m | £m | |
Trade creditors | 67 | 69 |
Accruals | 85 | 77 |
Deferred income | 46 | 47 |
Other taxation and social security | 31 | 27 |
Lease liabilities | 7 | 7 |
Tenant deposits | 45 | 36 |
281 | 263 |
2026 | 2025 | |
£m | £m | |
Lease liabilities | 102 | 107 |
102 | 107 |
160
NOTES TO THE ACCOUNTS CONTINUED
2026 | 2025 | ||
Footnote | £m | £m | |
Secured on the assets of the Group | |||
5.264% First Mortgage Debenture Bonds 2035 | 1 | 247 | 250 |
5.0055% First Mortgage Amortising Debentures 2035 | 81 | 83 | |
5.357% First Mortgage Debenture Bonds 2028 | 1 | 146 | 164 |
474 | 497 | ||
Unsecured | |||
2.375% Sterling Unsecured Bond 2029 | 299 | 299 | |
5.25% Sterling Unsecured Bond 2032 | 1 | 297 | 297 |
2.67% Senior Notes 2025 | – | 37 | |
2.75% Senior Notes 2026 | 37 | 37 | |
3.81% Senior Notes 2026 | – | 99 | |
3.97% Senior Notes 2026 | – | 99 | |
4.16% Senior US Dollar Notes 2025 | 2 | – | 76 |
5.003% Senior US Dollar Notes 2026 | 2 | 61 | 63 |
Floating Rate Senior Notes 2028 | 80 | 80 | |
Floating Rate Senior Notes 2034 | 101 | 101 | |
Commercial paper | 3 | 274 | – |
Facilities and overdrafts | 833 | 568 | |
Term loans | 540 | 475 | |
2,522 | 2,231 | ||
Gross debt | 4 | 2,996 | 2,728 |
Interest rate and currency derivative liabilities | 5 | 45 | 58 |
Interest rate and currency derivative assets | 6 | (68) | (82) |
Cash and cash equivalents | 7 | (176) | (57) |
Total net debt attributable to shareholders of the Company | 2,797 | 2,647 | |
Total net debt | 2,797 | 2,647 | |
Amounts payable under leases (Notes 14 and 15) | 109 | 114 | |
Total net debt attributable to shareholders of the Company (including lease liabilities) | 2,906 | 2,761 |
161
16 Net debt continued
2026 | 2025 | ||
£m | £m | ||
Repayable: | within one year and on demand | 521 | 311 |
Between: | one and two years | 252 | 98 |
two and five years | 1,528 | 1,386 | |
five and ten years | 695 | 531 | |
ten and fifteen years | – | 402 | |
2,475 | 2,417 | ||
Gross debt | 2,996 | 2,728 | |
Interest rate and currency derivatives | (23) | (24) | |
Cash and cash equivalents | (176) | (57) | |
Net debt | 2,797 | 2,647 |
2026 | 2025 | |||||
Fair value | Book value | Difference | Fair value | Book value | Difference | |
£m | £m | £m | £m | £m | £m | |
Debentures and unsecured bonds | 1,592 | 1,624 | (32) | 1,643 | 1,685 | (42) |
Bank debt and other floating rate debt | 1,382 | 1,372 | 10 | 1,054 | 1,043 | 11 |
Gross debt | 2,974 | 2,996 | (22) | 2,697 | 2,728 | (31) |
Interest rate and currency derivative liabilities | 45 | 45 | – | 58 | 58 | – |
Interest rate and currency derivative assets | (68) | (68) | – | (82) | (82) | – |
Cash and cash equivalents | (176) | (176) | – | (57) | (57) | – |
Net debt attributable to shareholders | ||||||
of the Company | 2,775 | 2,797 | (22) | 2,616 | 2,647 | (31) |
162
NOTES TO THE ACCOUNTS CONTINUED
16 Net debt continued
2026 | 2025 | |
£m | £m | |
Group LTV | 32.1% | 31.7% |
Principal amount of gross debt | 3,006 | 2,740 |
Less cash and short term deposits (consolidated statement of cash flows) 1 | (131) | (21) |
Total net debt for LTV calculation | 2,875 | 2,719 |
Group property portfolio valuation (Note 10) | 6,316 | 6,065 |
Investments in joint ventures (Note 11) | 2,611 | 2,462 |
Other investments and property, plant and equipment (consolidated balance sheet) 2 | 38 | 50 |
Total assets for LTV calculation | 8,965 | 8,577 |
2026 | 2025 | |
£m | £m | |
Proportionally consolidated LTV | 39.2% | 38.1% |
Principal amount of gross debt | 4,157 | 3,738 |
Less cash and short term deposits 3 | (195) | (101) |
Total net debt for proportional LTV calculation | 3,962 | 3,637 |
Group property portfolio valuation (Note 10) | 6,316 | 6,065 |
Share of property of joint ventures (Note 10) | 3,746 | 3,421 |
Other investments and property, plant and equipment (consolidated balance sheet) 2 | 38 | 50 |
Total assets for proportional LTV calculation | 10,100 | 9,536 |
163
16 Net debt continued
2026 | 2025 | |
£m | £m | |
Group Net Debt to EBITDA | 7.7x | 8.0x |
Principal amount of gross debt | 3,006 | 2,740 |
Less cash and short term deposits (consolidated statement of cash flows) 1 | (131) | (21) |
Total net debt for Group Net Debt to EBITDA calculation | 2,875 | 2,719 |
Underlying Profit (Table A) | 294 | 279 |
Plus Net financing charges (Note 6) | 85 | 60 |
Less Underlying Profit due to joint ventures 2 | (76) | (90) |
Plus distributions and other receivables from joint ventures 3 | 66 | 84 |
Plus depreciation and amortisation (Table A) | 5 | 8 |
Total EBITDA for Group Net Debt to EBITDA calculation | 374 | 341 |
2026 | 2025 | |
£m | £m | |
Proportionally consolidated Net Debt to EBITDA | 9.2x | 9.3x |
Principal amount of gross debt | 4,157 | 3,738 |
Less cash and short term deposits 4 | (195) | (101) |
Total net debt for proportional Net Debt to EBITDA calculation | 3,962 | 3,637 |
Underlying Profit (Table A) | 294 | 279 |
Plus Net financing charges (Table A) | 133 | 103 |
Plus depreciation and amortisation (Table A) | 5 | 8 |
Total EBITDA for proportional Net Debt to EBITDA calculation | 432 | 390 |
164
NOTES TO THE ACCOUNTS CONTINUED
16 Net debt continued
2026 | 2025 | |
£m | £m | |
Net Borrowings not to exceed 175% of Adjusted Capital and Reserves | 48% | 47% |
Principal amount of gross debt | 3,006 | 2,740 |
Less cash and short term deposits (consolidated statement of cash flows) 1 | (131) | (21) |
Net Borrowings | 2,875 | 2,719 |
Share capital and reserves (consolidated balance sheet) | 5,932 | 5,710 |
Deferred tax liabilities (Table A) | 4 | 4 |
Trading property surplus (Table A) | 12 | 3 |
Exceptional refinancing charges (see below) | 95 | 107 |
Fair value adjustments of financial instruments (Table A) | (27) | (23) |
Adjusted Capital and Reserves | 6,016 | 5,801 |
2026 | 2025 | |
£m | £m | |
Net Unsecured Borrowings not to exceed 70% of Unencumbered Assets | 44% | 43% |
Principal amount of gross debt | 3,006 | 2,740 |
Less cash and short term deposits not subject to a security interest | (131) | (21) |
Less principal amount of secured and non-recourse borrowings | (480) | (501) |
Net Unsecured Borrowings | 2,395 | 2,218 |
Group property portfolio valuation (Note 10) | 6,316 | 6,065 |
Investments in joint ventures (Note 11) | 2,611 | 2,462 |
Other investments and property, plant and equipment (consolidated balance sheet) 2 | 38 | 50 |
Less investments in joint ventures (Note 11) | (2,611) | (2,462) |
Less encumbered assets (Note 10) | (925) | (905) |
Unencumbered Assets | 5,429 | 5,210 |
165
16 Net debt continued
Arrangement | |||||||
Foreign | cost | ||||||
2025 | Cash flows | Transfers 1 | exchange | Fair value | amortisation | 2026 | |
£m | £m | £m | £m | £m | £m | £m | |
Short term borrowings | 311 | (43) | 247 | 2 | – | 4 | 521 |
Long term borrowings | 2,417 | 309 | (247) | (2) | (1) | (1) | 2,475 |
Derivatives 2 | (24) | (5) | – | – | 6 | – | (23) |
Total liabilities from financing activities 3 | 2,704 | 261 | – | – | 5 | 3 | 2,973 |
Cash and cash equivalents | (57) | (119) | – | – | – | – | (176) |
Net debt | 2,647 | 142 | – | – | 5 | 3 | 2,797 |
Arrangement | |||||||
Foreign | cost | ||||||
2024 | Cash flows | Transfers 1 | exchange | Fair value | amortisation | 2025 | |
£m | £m | £m | £m | £m | £m | £m | |
Short term borrowings | 10 | (12) | 311 | – | – | 2 | 311 |
Long term borrowings | 2,202 | 513 | (311) | (6) | 21 | (2) | 2,417 |
Derivatives 4 | (43) | 29 | – | 6 | (16) | – | (24) |
Total liabilities from financing activities 5 | 2,169 | 530 | – | – | 5 | – | 2,704 |
Cash and cash equivalents | (88) | 31 | – | – | – | – | (57) |
Net debt | 2,081 | 561 | – | – | 5 | – | 2,647 |
2026 | 2025 | |||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | |
Interest rate and currency | ||||||||
derivative assets | – | (68) | – | (68) | – | (82) | – | (82) |
Other investments – fair value through profit or loss (Note 12) | – | – | (32) | (32) | – | – | (41) | (41) |
Assets | – | (68) | (32) | (100) | – | (82) | (41) | (123) |
Interest rate and currency | ||||||||
derivative liabilities | – | 45 | – | 45 | – | 58 | – | 58 |
Liabilities | – | 45 | – | 45 | – | 58 | – | 58 |
Total | – | (23) | (32) | (55) | – | (24) | (41) | (65) |
166
NOTES TO THE ACCOUNTS CONTINUED
16 Net debt continued
2026 | 2025 | |
£m | £m | |
Financial assets | ||
Amortised cost | ||
Cash and cash equivalents | 176 | 57 |
Trade and other debtors (Note 13) | 21 | 28 |
Fair value through profit or loss | ||
Derivatives in designated fair value hedge accounting relationships 1,2 | 11 | 14 |
Derivatives not in designated hedge accounting relationships | 57 | 68 |
Other investments (Note 12) | 32 | 41 |
297 | 208 | |
Financial liabilities | ||
Amortised cost | ||
Creditors (Note 14) | (197) | (182) |
Gross debt | (2,996) | (2,728) |
Lease liabilities (Notes 14 and 15) | (109) | (114) |
Fair value through profit or loss | ||
Derivatives in designated fair value hedge accounting relationships 1,2 | (4) | (6) |
Derivatives not in designated hedge accounting relationships | (41) | (52) |
(3,347) | (3,082) | |
Total | (3,050) | (2,874) |
167
16 Net debt continued
2026 | 2025 | |
£m | £m | |
Outstanding: at one year | 1,570 | 2,020 |
at two years | 1,450 | 1,670 |
at five years | 850 | 950 |
2026 | 2025 | |
£m | £m | |
Fixed or capped rate | 2,797 | 2,647 |
2,797 | 2,647 |
2026 | 2025 | |||
Increase | Decrease | Increase | Decrease | |
Movement in interest rates (bps) 1 | 100 | (100) | 100 | (100) |
Impact on underlying annual profit (£m) | – | – | – | – |
Movement in medium and long term swap rates (bps) 2 | 421 | (421) | 424 | (424) |
Impact on cash flow hedge and non-hedge accounted derivative | ||||
valuations (£m) | 154 | (137) | 164 | (185) |
168
NOTES TO THE ACCOUNTS CONTINUED
16 Net debt continued
Assets 1 | Liabilities | |||
2026 | 2025 | 2026 | 2025 | |
£m | £m | £m | £m | |
USD denominated | 32 | 35 | 33 | 33 |
169
16 Net debt continued
2026 | |||||
Within one | Following | Three to five | Over five | ||
year | year | years | years | Total | |
£m | £m | £m | £m | £m | |
Gross debt 1 | 525 | 254 | 1,536 | 701 | 3,016 |
Interest on debt | 137 | 120 | 267 | 109 | 633 |
Derivative payments | 56 | 13 | 23 | 14 | 106 |
Lease liability payments | 9 | 10 | 28 | 313 | 360 |
Total payments | 727 | 397 | 1,854 | 1,137 | 4,115 |
Derivative receipts | (91) | (12) | (17) | (2) | (122) |
Net payment | 636 | 385 | 1,837 | 1,135 | 3,993 |
Operating leases with tenants | 324 | 284 | 555 | 604 | 1,767 |
Liquidity deficit | (312) | (101) | (1,282) | (531) | (2.226) |
Cumulative liquidity deficit | (312) | (413) | (1,695) | (2,226) |
2025 | |||||
Within one | Following | Three to five | Over five | ||
year | year | years | years | Total | |
£m | £m | £m | £m | £m | |
Gross debt 1 | 337 | 105 | 1,374 | 937 | 2,753 |
Interest on debt | 129 | 110 | 272 | 195 | 706 |
Derivative payments | 93 | 66 | 31 | 14 | 204 |
Lease liability payments | 9 | 10 | 30 | 319 | 368 |
Total payments | 568 | 291 | 1,707 | 1,465 | 4,031 |
Derivative receipts | (117) | (81) | (18) | (4) | (220) |
Net payment | 451 | 210 | 1,689 | 1,461 | 3,811 |
Operating leases with tenants | 307 | 271 | 583 | 584 | 1,745 |
Liquidity (deficit) surplus | (144) | 61 | (1,106) | (877) | (2,066) |
Cumulative liquidity deficit | (144) | (83) | (1,189) | (2,066) |
170
NOTES TO THE ACCOUNTS CONTINUED
16 Net debt continued
2026 | 2025 | |
£m | £m | |
Maturity date: over five years | 250 | 140 |
between four and five years | 665 | 1,055 |
between three and four years | 235 | 6 |
Total facilities available for more than three years | 1,150 | 1,201 |
Between two and three years | 4 | 24 |
Between one and two years | – | 450 |
Within one year | 302 | 100 |
Total | 1,456 | 1,775 |
17 Leasing
Operating leases with tenants
The Group leases out all of its investment properties under operating leases with a weighted average lease length of five
years (2024/25: five years). The future aggregate minimum rentals receivable under non-cancellable operating leases
are as follows:
2026 | 2025 | |
£m | £m | |
Less than one year | 324 | 307 |
Between one and two years | 284 | 271 |
Between three and five years | 555 | 583 |
Between six and ten years | 382 | 364 |
Between eleven and fifteen years | 158 | 164 |
Between sixteen and twenty years | 43 | 48 |
After twenty years | 21 | 8 |
Total | 1,767 | 1,745 |
171
17 Leasing continued
Lease commitments
Lease liabilities are payable in line with the disclosure below and no contingent rents were payable in either year.
The lease payments mainly relate to head leases where the Group does not own the freehold of a property.
2026 | 2025 | |||||
Minimum | Minimum | |||||
lease | lease | |||||
payments | Interest | Principal | payments | Interest | Principal | |
£m | £m | £m | £m | £m | £m | |
British Land Group | ||||||
Less than one year | 9 | 2 | 7 | 9 | 2 | 7 |
Between one and two years | 10 | 2 | 8 | 10 | 2 | 8 |
Between two and five years | 28 | 8 | 20 | 30 | 8 | 22 |
More than five years | 313 | 239 | 74 | 319 | 242 | 77 |
Total | 360 | 251 | 109 | 368 | 254 | 114 |
Less future finance charges | (251) | (254) | ||||
Present value of lease obligations | 109 | 114 |
18 Dividends
The final dividend payment for the six-month period ended 31 March 2026 will be 10.80 p. Payment will be made on
24 July 2026 to shareholders on the register at close of business on 19 June 2026. 9.34p will be payable as a Property
Income Distribution and 1.46p will be payable as a non-Property Income Distribution.
PID dividends are paid, as required by REIT legislation, after deduction of withholding tax at the basic rate (currently
20%), where appropriate. Certain classes of shareholders may be able to elect to receive dividends gross. Please refer
to our website www.britishland.com/dividends for details.
Pence per | 2026 | 2025 | |||
Payment date | Dividend | share | £m | £m | |
Current year dividends | |||||
24.07.2026 | 2026 | Final | 10.80 | ||
14.01.2026 | 2026 | Interim | 12.32 | 123 | |
23.12 | |||||
Prior year dividends | |||||
25.07.2025 | 2025 | Final | 10.56 | 106 | |
15.01.2025 | 2025 | Interim | 12.24 | 122 | |
22.80 | |||||
26.07.2024 | 2024 | Final | 10.64 | 99 | |
Dividends disclosed in consolidated statement of changes in equity | 229 | 221 | |||
Dividends settled in cash | 229 | 221 | |||
Timing difference relating to payment of withholding tax | – | (1) | |||
Dividends disclosed in consolidated statement of cash flows | 229 | 220 |
172
NOTES TO THE ACCOUNTS CONTINUED
2026 | 2025 | |
Number of ordinary shares in issue at 1 April | 1,010,420,504 | 938,764,023 |
Share issues | 741,109 | 71,656,481 |
Number of ordinary shares in issue at 31 March | 1,011,161,613 | 1,010,420,504 |
Exercise dates | ||||||||
At | Exercise | |||||||
At 1 April | Exercised/ | Lapsed/ | 31 March | price | ||||
Date of grant | 2025 | Granted | Vested | Forfeited | 2026 | (pence) | From | To |
Share options Sharesave Scheme | ||||||||
18.06.19 | 689 | – | – | (689) | – | 435 | 01.09.24 | 01.03.25 |
07.07.20 | 145,074 | – | (123,485) | (15,339) | 6,250 | 336 | 01.09.25 | 01.03.26 |
06.07.21 | 3,998 | – | – | (3,998) | – | 414 | 01.09.24 | 01.03.25 |
06.07.21 | 19,849 | – | – | (2,173) | 17,676 | 414 | 01.09.26 | 01.03.27 |
22.06.22 | 53,467 | – | – | (51,331) | 2,136 | 421 | 01.09.25 | 01.03.26 |
22.06.22 | 6,695 | – | – | – | 6,695 | 421 | 01.09.27 | 01.03.28 |
21.06.23 | 530,865 | – | (17,312) | (45,455) | 468,098 | 287 | 01.09.26 | 01.03.27 |
21.06.23 | 268,819 | – | (4,807) | (33,341) | 230,671 | 287 | 01.09.28 | 01.03.29 |
03.07.24 | 88,225 | – | (1,714) | (28,676) | 57,835 | 352 | 01.09.27 | 01.03.28 |
03.07.24 | 54,478 | – | – | (23,962) | 30,516 | 352 | 01.09.29 | 01.03.30 |
25.06.25 | – | 135,364 | (31) | (9,489) | 125,844 | 314 | 01.09.28 | 01.03.29 |
25.06.25 | – | 113,039 | (31) | (9,331) | 103,677 | 314 | 01.09.30 | 01.03.31 |
Total | 1,172,159 | 248,403 | (147,380) | (223,784) | 1,049,398 | |||
Weighted average exercise price | ||||||||
of options (pence) | 311 | 314 | 329 | 343 | 302 |
173
19 Share capital and reserves continued
Share price | |||||||
At 1 April | Exercised/ | Lapsed/ | At 31 March | at grant date | |||
Date of grant | 2025 | Granted | Vested | Forfeited | 2026 | (pence) | Vesting date |
Performance Shares Long Term Incentive Plan | |||||||
19.07.22 | 1,160,685 | – | (580,342) | (580,343) | – | 470.70 | 19.07.25 |
15.06.23 | 1,516,122 | – | – | – | 1,516,122 | 334.70 | 15.06.26 |
20.06.24 | 1,216,758 | – | – | (450,101) | 766,657 | 416.60 | 20.06.27 |
23.06.25 | – | 1,617,042 | – | (515,160) | 1,101,882 | 379.20 | 23.06.28 |
3,893,565 | 1,617,042 | (580,342) | (1,545,604) | 3,384,661 | |||
Restricted Share Plan | |||||||
19.07.22 | 594,796 | – | (585,930) | (8,866) | – | 470.70 | 19.07.25 |
15.06.23 | 795,624 | – | – | (65,008) | 730,616 | 334.70 | 15.06.26 |
20.06.24 | 665,589 | – | – | (65,808) | 599,781 | 416.60 | 20.06.27 |
01.08.24 | 11,653 | – | – | – | 11,653 | 411.00 | 20.06.27 |
23.06.25 | – | 718,898 | – | (24,602) | 694,296 | 379.20 | 23.06.28 |
2,067,662 | 718,898 | (585,930) | (164,284) | 2,036,346 | |||
Total | 5,961,227 | 2,335,940 | (1,166,272) | (1,709,888) | 5,421,007 | ||
Weighted average price | |||||||
of shares (pence) | 401 | 379 | 471 | 420 | 370 |
20 Segment information
The Group allocates resources to investment and asset management according to the sectors it expects to perform over
the medium term, and reports under two operating segments, being Campuses and Retail & London Urban Logistics.
The relevant gross rental income, net rental income, operating result and property assets, being the measures of segment
revenue, segment result and segment assets used by the management of the business, are set out on the following pages.
Management reviews the performance of the business principally on a proportionally consolidated basis, which includes
the Group’s share of joint ventures on a line-by-line basis. The chief operating decision maker for the purpose of segment
information is the Executive Committee.
Gross rental income is derived from the rental of investment properties. Operating result is the net of net rental income,
fee income and administrative expenses. No customer exceeded 10% of the Group’s revenues in either year.
174
NOTES TO THE ACCOUNTS CONTINUED
20 Segment information continued
Segment result
Retail & London | ||||||||
Campuses | Urban Logistics | Unallocated | Total | |||||
2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |
£m | £m | £m | £m | £m | £m | £m | £m | |
Gross rental income | ||||||||
British Land Group | 108 | 95 | 289 | 235 | – | – | 397 | 330 |
Share of joint ventures | 124 | 111 | 24 | 35 | – | – | 148 | 146 |
Total | 232 | 206 | 313 | 270 | – | – | 545 | 476 |
Net rental income | ||||||||
British Land Group | 88 | 79 | 266 | 222 | – | – | 354 | 301 |
Share of joint ventures | 101 | 98 | 21 | 32 | – | – | 122 | 130 |
Total | 189 | 177 | 287 | 254 | – | – | 476 | 431 |
Operating result | ||||||||
British Land Group | 96 | 93 | 263 | 222 | (43) | (52) | 316 | 263 |
Share of joint ventures | 92 | 89 | 20 | 30 | (1) | – | 111 | 119 |
Total | 188 | 182 | 283 | 252 | (44) | (52) | 427 | 382 |
2026 | 2025 | |
Reconciliation to Underlying Profit | £m | £m |
Operating result | 427 | 382 |
Net financing charges 1 | (133) | (103) |
Underlying Profit | 294 | 279 |
Reconciliation to profit before taxation | ||
Underlying Profit | 294 | 279 |
Capital and other | 156 | 63 |
Total profit before taxation | 450 | 342 |
Reconciliation to Group revenue | ||
Gross rental income per operating segment result | 545 | 476 |
Less share of gross rental income of joint ventures | (148) | (146) |
Gross rental income (Note 3) | 397 | 330 |
Service charge income | 78 | 77 |
Management and performance fees (from joint ventures and assets under management) | 19 | 20 |
Other fees and commissions | 29 | 27 |
Revenue (consolidated income statement) | 523 | 454 |
1. A reconciliation between net financing charges in the consolidated income statement and net financing charges of £133m
(2024/25: £103m) in the segmental disclosures above can be found within Table A in the supplementary disclosures.
All of the operating result above, in the current year to 31 March 2026 and prior year to 31 March 2025, was derived
in the UK.
175
20 Segment information continued
Segment assets
Retail & London | ||||||
Campuses | Urban Logistics | Total | ||||
2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |
£m | £m | £m | £m | £m | £m | |
Property assets | ||||||
British Land Group | 2,431 | 2,397 | 3,888 | 3,671 | 6,319 | 6,068 |
Share of joint ventures | 3,424 | 3,107 | 322 | 314 | 3,746 | 3,421 |
Total | 5,855 | 5,504 | 4,210 | 3,985 | 10,065 | 9,489 |
Reconciliation to net assets
2026 | 2025 | |
£m | £m | |
Property assets | 10,065 | 9,489 |
Other non-current assets | 51 | 64 |
Non-current assets | 10,116 | 9,553 |
Other net current liabilities | (328) | (310) |
EPRA net debt 1 | (3,865) | (3,545) |
EPRA NTA | 5,923 | 5,698 |
EPRA adjustments | 9 | 12 |
IFRS net assets (consolidated balance sheet) | 5,932 | 5,710 |
1. A reconciliation between EPRA net debt and IFRS net debt can be found within Table A in the supplementary disclosures.
2026 | 2025 | |
£m | £m | |
British Land Group | 42 | 38 |
Share of joint ventures | 337 | 250 |
379 | 288 |
176
NOTES TO THE ACCOUNTS CONTINUED
Joint | Joint | ||
ventures | ventures | ||
2026 | 2025 | ||
Summarised income statement | Note | £m | £m |
Management and performance fees (from joint ventures and assets under management) | 3 | 19 | 20 |
Share of distributions | 11 | 61 | 72 |
Capital return | 11 | – | 2 |
Summarised balance sheet | |||
Loans | 11 | (1,132) | (1,152) |
2026 | 2025 | |||||||||||
Closing | Movement in | Closing | Movement in | |||||||||
Net closing | provision for | provision for | Net closing | provision for | provision for | |||||||
investment | impairment | impairment | investment | impairment | impairment | |||||||
Loan | Equity | Loan | Equity | Loan | Equity | Loan | Equity | Loan | Equity | Loan | Equity | |
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
Broadgate | 810 | 765 | – | – | – | 12 | 835 | 634 | – | (12) | – | 20 |
Meadowhall 1 | – | – | – | – | – | – | – | – | – | – | 174 | 199 |
West One | 4 | 30 | (3) | (20) | – | 1 | 11 | 17 | (3) | (21) | – | 1 |
BL West End | – | 76 | – | (20) | – | 10 | 3 | 61 | – | (30) | – | (10) |
Canada Water | – | 290 | – | (134) | – | (33) | – | 308 | – | (101) | – | (31) |
Paddington Central | 100 | – | (11) | – | – | – | 102 | – | (11) | – | (3) | – |
One Triton Square | 168 | 88 | – | – | – | 3 | 135 | 74 | – | (3) | – | (1) |
SouthGate | – | 77 | – | (33) | – | 5 | – | 69 | – | (38) | – | 12 |
Hercules Unit Trust JV | – | 114 | – | – | – | – | – | 110 | – | – | – | – |
Other joint ventures | 26 | 63 | (10) | (40) | – | 10 | 42 | 61 | (10) | (50) | (10) | 4 |
Total | 1,108 | 1,503 | (24) | (247) | – | 8 | 1,128 | 1,334 | (24) | (255) | 161 | 194 |
24 Subsequent events
On 20 April 2026, post year end, the Group completed the acquisition of Life Science REIT plc. Under the terms of the
acquisition each Life Science REIT plc shareholder received, for each Life Science REIT plc share held, 14.1p in cash and
0.07 new British Land shares. The total consideration of £146m therefore comprises £49m in cash and £97m of new British
Land shares. Shortly after completion, Life Science REIT plc was re-registered as a private limited company.
177
Company | |
Entity Name | Number |
17-19 Bedford Street Limited | 07398971 |
18-20 Craven Hill Gardens Limited | 07667839 |
20 Brock Street Limited | 07401697 |
Ashband Limited | 04409592 |
B.L.Holdings Limited | 00000529 |
Bayeast Property Co Limited | 00635800 |
BF Properties (No.5) Ltd | 05270039 |
BL 5KS Holdings Limited | 13398992 |
BL Aldgate Development Limited | 05070564 |
BL Aldgate Investment Holdings Limited | 15314977 |
BL Bluebutton 2023 Limited | 15306841 |
BL Bradford Forster Limited | 07780266 |
BL Broadway Investment Limited | 10754763 |
BL Chess Limited | 08548399 |
BL City Offices Holding Company Limited | 06002147 |
BL CW Residential Holdings Limited | 14178788 |
BL CW Upper LP Company Limited | 10375411 |
BL Department Stores Holding Company Limited 06002135 | |
BL Didcot 1 Limited | 05422338 |
BL Didcot 2 Limited | 05495284 |
BL Doncaster Wheatley Limited | 07780272 |
BL Drummond Properties Limited | 09806622 |
BL Eden Walk 2 Limited | 05270219 |
BL Eden Walk Limited | 10620935 |
BL Euston Tower Holding Company Limited | 11612398 |
BL Falkirk Limited | 04295313 |
BL Finsbury Square Limited | 13797223 |
BL Goodman (LP) Limited | 05056902 |
BL HB Investments Limited | 10461500 |
BL HC PH LLP | OC317199 |
BL High Street And Shopping Centres | 06002148 |
Holding Company Limited | |
BL Holdings 2010 Limited | 07353966 |
BL Innovation Properties 2 Limited | 05070554 |
BL Innovation Properties Limited | 12293278 |
BL Intermediate Holding Company 2 Limited | 12462158 |
BL Leisure And Industrial Holding | 05995024 |
Company Limited | |
BL Merthyr Limited | 06663608 |
BL Middlesbrough Limited | 03537439 |
BL Office (Non-City) Holding Company Limited | 06002133 |
BL Office Holding Company Limited | 05995028 |
BL Office Properties 1 Limited | 13514407 |
BL Office Properties 3 Limited | 14103029 |
BL Osnaburgh St Residential Ltd | 06874523 |
BL Piccadilly Residential Limited | 08707494 |
BL Ravenhead Limited | 02534666 |
BL Residual Holding Company Limited | 05995030 |
Company | |
Entity Name | Number |
BL Retail Holding Company Limited | 05995033 |
BL Retail Indirect Investments Limited | 12288466 |
BL Retail Investment Holdings Limited | 11612693 |
BL Retail Properties 3 Limited | 04869976 |
BL Retail Properties Limited | 13215893 |
BL Retail Property Holdings Limited | 13215871 |
BL Retail Warehousing Holding | 06002154 |
Company Limited | |
BL Shoreditch Development Limited | 05326670 |
BL Shoreditch No.2 Limited | 08570558 |
BL South Camb Limited | 07555233 |
BL Thanet Limited | 13843760 |
BL Triton Building Residential Limited | 07508029 |
BL Tunbridge Wells Limited | 11184483 |
BL Turbary Limited | 16695801 |
BL Vangarde Limited | 05270196 |
BL Warwickshire Limited | 04323341 |
BL West End Investments Limited | 07793483 |
BL Whiteley Limited | 11253224 |
BL Whiteley Retail Limited | 11254281 |
BL Woolwich Limited | 11079254 |
BLD Property Holdings Limited | 00823907 |
BLMH Centre Limited | 03918066 |
BLSSP (PHC 5) Limited | 04104061 |
Boldswitch Limited | 02307096 |
British Land (Joint Ventures) Limited | 04682740 |
British Land Fund Management Limited | 04450726 |
British Land In Town Retail Limited | 03325066 |
British Land Industrial Limited | 00643370 |
British Land Offices (Non-City) Limited | 02740378 |
British Land Offices (Non-City) No.2 Limited | 06849369 |
British Land Property Advisers Limited | 02793828 |
British Land Superstores (Non Securitised) | 06514283 |
Number 2 Limited | |
Broadgate Adjoining Properties Limited | 07580963 |
Capitol Preston Limited | 06120395 |
Cavendish Geared Limited | 02779045 |
Clarges Estate Property Management Co Limited 08418875 | |
Drake Circus Centre Limited | 09069182 |
Drake Circus Leisure Limited | 09190208 |
Eden Walk Shopping Centre General | 06421966 |
Partner Limited | |
Elk Mill Oldham Limited | 10461879 |
Hempel Holdings Limited | 05341380 |
Hempel Hotels Limited | 02728455 |
Industrial Real Estate Limited | 00503636 |
Lonebridge UK Limited | 03292034 |
Longford Street Residential Limited | 08700158 |
178
NOTES TO THE ACCOUNTS CONTINUED
25 Audit exemptions taken for subsidiaries continued
Company | |
Entity Name | Number |
Mayflower Retail Park Basildon Limited | 07566738 |
Nugent Shopping Park Limited | 06153558 |
Orbital Shopping Park Swindon Limited | 05489767 |
Osnaburgh Street Limited | 05886735 |
Paddington 3KS Investments Limited | 13843646 |
Paddington 5KS Holdings Limited | 13843365 |
Paddington Box Limited | 14782912 |
Pillar Denton Limited | 02982293 |
Pillar Property Group Limited | 02570618 |
Company | |
Entity Name | Number |
Plymouth Retail Limited | 10368557 |
Regent's Place Holding 2 Limited | 11864307 |
Solartron Retail Park Limited | 13060834 |
St. Stephens Shopping Centre Limited | 04931198 |
Storey Offices Limited | 11417071 |
TBL Properties Limited | 03863190 |
Tollgate Centre Colchester Limited | 10461649 |
Topside Street Limited | 11253428 |
Union Property Corporation Limited | 00664862 |
Name |
BL Fixed Uplift Fund Limited Partnership |
BL Lancaster Limited Partnership |
BL Shoreditch Limited Partnership |
Eden Walk Shopping Centre Limited Partnership |
Hereford Shopping Centre Limited Partnership |
Name |
Paddington 5KS Property Limited Partnership |
Power Court Luton Limited Partnership |
The Aldgate Place Limited Partnership |
The Hercules Property Limited Partnership |
179
COMPANY BALANCE SHEET
As at 31 March 2026
Note
2026
£m
2025
£m
Fixed assets
Investments and loans to subsidiaries
D
23,125
22,829
Investments in joint ventures
D
–
1
Other investments
D
19
23
Interest rate and currency derivative assets
E
42
73
23,186
22,926
Current assets
Debtors
G
4
3
Interest rate and currency derivative assets
E
26
9
Cash at bank and in hand
E
74
2
104
14
Creditors: amounts falling due within one year
Short term borrowings and overdrafts
E
(521)
(311)
Creditors
H
(111)
(108)
Amounts due to subsidiaries
D
(15,237)
(15,265)
Interest rate and currency derivative liabilities
E
–
(2)
(15,869)
(15,686)
Net current liabilities
(15,765)
(15,672)
Total assets less current liabilities
7,421
7,254
Creditors: amounts falling due after more than one year
Debentures and loans
E
(2,475)
(2,417)
Lease liabilities
(15)
(19)
Deferred tax liabilities
(1)
(3)
Interest rate and currency derivative liabilities
E
(45)
(56)
(2,536)
(2,495)
Net assets
4,885
4,759
Equity
Called up share capital
I
253
253
Share premium account
1,591
1,589
Other reserves
(5)
(5)
Merger reserve
213
213
Profit and loss account
2,833
2,709
Total equity
4,885
4,759
The profit after taxation for the year ended 31 March 2026 for the Company was £353m (2024/25: £232m).
Simon Carter David Walker
Chief Executive Chief Financial Officer
The financial statements on pages 179 to 190 were approved by the Board of Directors and signed on its behalf
on 19 May 2026.
Company number 621920
180
COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2026
Called up
share
capital
£m
Share
premium
account
£m
Other
reserves
£m
Merger
reserve
£m
Profit and
loss account
£m
Total
equity
£m
Balance at 1 April 2025
253
1,589
(5)
213
2,709
4,759
Shares issued in the year
–
2
–
–
–
2
Dividend paid
–
–
–
–
(229)
(229)
Fair value of share and share option awards
–
–
–
–
–
–
Profit for the year after taxation
–
–
–
–
353
353
Balance at 31 March 2026
253
1,591
(5)
213
2,833
4,885
Balance at 1 April 2024
235
1,310
(5)
213
2,701
4,454
Shares issued in the year
1
18
279
–
–
–
297
Dividend paid
–
–
–
–
(221)
(221)
Fair value of share and share option awards
–
–
–
–
(3)
(3)
Profit for the year after taxation
–
–
–
–
232
232
Balance at 31 March 2025
253
1,589
(5)
213
2,709
4,759
1. In the prior year, on 2 October 2024, the Company announced a share placing, retail offer and subscription of 71,227,309 ordinary
shares of 25p each at a price of 422p per share, resulting in an increase in share capital of £18m and share premium of £277m. See
Note I for further information.
181
(A) Accounting policies
The British Land Company PLC is a public limited company, limited by shares, incorporated, domiciled and registered
in England
The principal activities of the Company and its subsidiaries, and the nature of the Group’s operations are set out in the
Strategic Report on pages 2 to 73.
The financial statements for the year ended 31 March 2026 have been prepared on the historical cost basis, except for
the revaluation of derivatives which are measured at fair value. These financial statements have been prepared in
accordance with the Companies Act 2006 as applicable to companies using Financial Reporting Standard 101 Reduced
Disclosure Framework (‘FRS 101’).
The financial statements apply the recognition, measurement and presentation requirements of UK-adopted
International Accounting Standards in conformity with the requirements of the Companies Act 2006, but make
amendments where necessary in order to comply with the Act and take advantage of the FRS 101 exemptions. Instances
in which advantages of the FRS 101 disclosure exemptions have been taken are set out below.
The Company has taken advantage of the exemption under S.408 Companies Act 2006, to prepare an individual profit
and loss account where Group accounts are prepared.
The Company has taken advantage of the following disclosure exemptions under FRS 101:
(a) the requirements of IAS 1 ‘Presentation of Financial Statements’ to provide a statement of cash flows for the year;
(b) the requirements of IAS 1 to provide a statement of compliance with IFRS;
(c) the requirements of IAS 1 to disclose information on the management of capital;
(d) the requirements of paragraphs 30 and 31 of IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and
Errors’ to disclose new IFRSs that have been issued but are not yet effective;
(e) the requirements in IAS 24 ‘Related Party Disclosures’ to disclose related party transactions entered into between
two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly-owned
by such a member;
(f) the requirements of paragraph 17 of IAS 24 to disclose key management personnel compensation;
(g) the requirements of IFRS 7 ‘Financial Instruments: Disclosures’ to disclose financial instruments; and
(h) the requirements of paragraphs 91-99 of IFRS 13 ‘Fair Value Measurement’ to disclose information of fair value
valuation techniques and inputs.
Going concern
The financial statements are prepared on a going concern basis. The balance sheet shows that the Company is in a net
current liability position. This results from loans due to subsidiaries of £15,237m which are repayable on demand and
therefore classified as current liabilities. These liabilities are not due to external counterparties and there is no
expectation or intention that these loans will be repaid within the next 12 months from the signing date of these financial
statements. The net current liability position also results from the £521m of facilities that are reaching maturity within the
next 12 months and current creditors of £111m. The Company has access to £1.6bn of undrawn facilities and cash, which
provides the Directors with comfort that the Company will be able to meet these current liabilities as they fall due. As a
consequence of this, the Directors feel that the Company is well placed to manage its business risks successfully despite
the current economic climate, and have reasonable expectation that the Company has adequate resources to continue
in operation for at least 12 months from the signing date of these financial statements. Accordingly, they believe the
going concern basis is an appropriate one.
182
NOTES TO THE ACCOUNTS CONTINUED
(A) Accounting policies continued
Investments and loans
Investments in and loans to subsidiaries and joint ventures are stated at cost less any impairment. Impairment of loans is
calculated in accordance with IFRS 9 ‘Financial Instruments’. Impairment of investments is calculated in accordance with
IAS 36 ‘Impairment of Assets’. Further detail is provided below.
Critical accounting judgements and key sources of estimation uncertainty
The key source of estimation uncertainty relates to the Company’s investments in and loans to subsidiaries. In
estimating the requirement for impairment of investments, management makes assumptions and judgements on the
value of these investments using inherently subjective underlying asset valuations, supported by independent valuers
with reference to the properties held by the subsidiaries which are held at fair value. The assumptions and inputs used
in determining the fair value of the properties, are disclosed in Note 10 of the consolidated financial statements.
In accordance with IFRS 9, management has assessed the recoverability of amounts due to the Company from its
subsidiaries. Amounts due to the Company from subsidiaries are recovered through the sale of properties and
investments held by subsidiaries and through settling financial assets, net of financial liabilities, that the subsidiaries hold
with counterparties other than the Company. This is essentially equal to the net asset value of the subsidiary and
therefore the net asset value of the subsidiary is considered to be a reasonable approximation of the available assets
that could be realised to recover the amounts due and the requirement to recognise expected credit losses. This
assumption takes into account historical analysis and future expectations prevalent at the balance sheet date. As a
result, the expected credit loss is considered to be equal to the excess of the Company’s interest in a subsidiary over the
subsidiary’s fair value.
The Directors do not consider there to be any critical accounting judgements in the preparation of the Company’s
financial statements.
Distributable reserves
When making a distribution to shareholders, the Directors determine profits available for distribution by reference to
‘Guidance on realised and distributable profits under the Companies Act 2006’ issued by the Institute of Chartered
Accountants in England and Wales and the Institute of Chartered Accountants of Scotland in April 2017.
The profits of the Company have been received predominantly in the form of interest income, gains on disposal of
investments, management and administration fee income and dividends from subsidiaries. The availability of distributable
reserves in the Company is dependent on those dividends meeting the definition of qualifying consideration within the
guidance and on available cash resources of the Group and other accessible sources of funds. Additionally, the Company
does not recognise internally generated gains in the current and prior years from intra-Group sales of investments or
investment properties as distributable until they are realised, usually through onward sale to external third parties. The
distributable reserves are therefore subject to any future restrictions or limitations at the time such distribution is made.
(B) Dividends
Details of dividends paid and proposed are included in Note 18 of the consolidated financial statements.
(C) Employee information
Employee costs include wages and salaries of £32m (2024/25: £37m), social security costs of £6m (2024/25: £6m)
and pension costs of £5m (2024/25: £5m). Details of the Executive Directors’ remuneration are disclosed in the
Remuneration Report on pages 100 to 114. Details of the number of employees of the Company are disclosed in Note 8 of
the consolidated financial statements. Audit fees in relation to the parent Company only were £0.7m (2024/25: £0.6m).
183
(D) Investments in subsidiaries and joint ventures, loans to subsidiaries, other investments
and amounts due to subsidiaries
Shares in
subsidiaries
£m
Loans to
subsidiaries
£m
Investments
in joint
ventures
£m
Other
investments
£m
Total
£m
At 1 April 2025
7,811
15,018
1
23
22,853
Additions
–
889
–
1
890
Disposals
–
(585)
(1)
–
(586)
Amortisation
–
–
–
(5)
(5)
Reversal of (provision for) impairment
44
(52)
–
–
(8)
As at 31 March 2026
7,855
15,270
–
19
23,144
The historical cost of shares in subsidiaries is £8,401m (2024/25: £8,706m). The historical cost of other investments
is £55m (2024/25: £55m).
Amounts due to subsidiaries is £15,237m (2024/25: £15,265m), consisting of loans that are repayable on demand.
There is no expectation or intention that these loans will be repaid within the next 12 months.
184
NOTES TO THE ACCOUNTS CONTINUED
(E) Net debt
2026
£m
2025
£m
Secured on the assets of the Company
5.264% First Mortgage Debenture Bonds 2035
1
247
250
5.0055% First Mortgage Amortising Debentures 2035
81
83
5.357% First Mortgage Debenture Bonds 2028
1
146
164
474
497
Unsecured
2.375% Sterling Unsecured Bond 2029
299
299
5.25% Sterling Unsecured Bond 2032
1
297
297
2.67% Senior Notes 2025
–
37
2.75% Senior Notes 2026
37
37
3.81% Senior Notes 2026
–
99
3.97% Senior Notes 2026
–
99
4.16% Senior US Dollar Notes 2025
2
–
76
5.003% Senior US Dollar Notes 2026
2
61
63
Floating Rate Senior Notes 2028
80
80
Floating Rate Senior Notes 2034
101
101
Commercial paper
3
274
–
Facilities and overdrafts
833
568
Term loans
540
475
2,522
2,231
Gross debt
2,996
2,728
Interest rate and currency derivative liabilities
4
45
58
Interest rate and currency derivative assets
5
(68)
(82)
Cash at bank and in hand
(74)
(2)
Net debt
2,899
2,702
1. In the prior year, on 13 March 2025 the Company issued £300m 5.25% bonds due in 2032. The bonds were issued at a discount of £1m,
and after issue costs have an effective interest rate of 5.5%. The proceeds were used to redeem £78m 5.264% bonds due in 2035 and
£72m 5.357% bonds due in 2028, by way of a cash tender. £130m of the £150m total aggregate nominal amount was settled on the
bearer settlement date of 27 March 2025. The remaining £20m was settled on the registered settlement date of 8 April 2025. The
5.264% 2035 bonds were redeemed at a discount and the 5.357% 2028 bonds were redeemed at a premium.
2. Principal and interest on these borrowings were fully hedged into Sterling at a floating rate at the time of issue.
3. In the current year to 31 March 2026, the Company issued commercial paper denominated in Euros, US Dollars and Pound Sterling.
All commercial paper denominated in a foreign currency was converted by way of an FX swap at full interest rate parity.
4. Interest rate and currency derivative liabilities includes non-current interest rate and currency derivative liabilities of £45m (2024/25:
£56m) and current interest rate and currency derivative liabilities of £nil (2024/25: £2m).
5. Interest rate and currency derivative assets includes non-current interest rate and currency derivative assets of £42m (2024/25:
£73m) and current interest rate and currency derivative assets of £26m (2024/25: £9m).
185
(E) Net debt continued
Maturity analysis of net debt
2026
£m
2025
£m
Repayable within one year and on demand
521
311
between:
one and two years
252
98
two and five years
1,528
1,386
five and ten years
695
531
ten and fifteen years
–
402
2,475
2,417
Gross debt
2,996
2,728
Interest rate and currency derivatives
(23)
(24)
Cash at bank and in hand
(74)
(2)
Net debt
2,899
2,702
(F) Pension
The British Land Group of Companies Pension Scheme and the Defined Contribution Pension Scheme are the principal
pension schemes of the Company and details are set out in Note 9 of the consolidated financial statements.
(G) Debtors
2026
£m
2025
£m
Trade and other debtors
4
2
Corporation tax
–
1
4
3
Trade and other debtors are shown after deducting a provision for impairment against tenant debtors of £nil (2024/25:
£nil). The provision for impairment is calculated as an expected credit loss on trade and other debtors in accordance
with IFRS 9.
(H) Creditors
2026
£m
2025
£m
Trade creditors
28
31
Corporation tax
3
7
Other taxation and social security
25
21
Accruals and deferred income
55
49
111
108
(I) Called up share capital
£m
Number of
ordinary shares
of 25p each
Issued, called and fully paid
At 1 April 2025
253
1,010,420,504
Share issues
–
741,109
At 31 March 2026
253
1,011,161,613
186
NOTES TO THE ACCOUNTS CONTINUED
(I) Called up share capital continued
£m
Number of
ordinary shares
of 25p each
Issued, called and fully paid
At 1 April 2024
235
938,764,023
Share issues
18
71,656,481
At 31 March 2025
253
1,010,420,504
In the prior year, on 2 October 2024, the Company announced a share placing, retail offer and subscription of 71,227,309
ordinary shares of 25p each at a price of 422p per share. The Company raised gross proceeds of £301m and net
proceeds of £295m. Consequently, the Company’s share capital increased by £18m and share premium by £277m. The
new shares are fully paid and rank pari passu in all respects with those ordinary shares of the Company in issue prior to
the placing.
(J) Contingent liabilities, capital commitments and related party transactions
The Company has contingent liabilities in respect of legal claims, guarantees and warranties arising in the ordinary
course of business. It is not anticipated that any material liabilities will arise from the contingent liabilities.
At 31 March 2026, the Company has £nil of capital commitments (2024/25: £nil).
Related party transactions are the same for the Company as for the Group. For details refer to Note 22 of the
consolidated financial statements.
(K) Disclosures relating to subsidiary undertakings
The Company’s subsidiaries and other related undertakings at 31 March 2026 are listed on the next page. All Group
entities are included in the consolidated financial results.
Unless otherwise stated, the Company holds 100% of the voting rights and beneficial interests in the shares of the
following subsidiaries, partnerships, associates and joint ventures. Unless otherwise stated, the subsidiaries and related
undertakings are registered in the United Kingdom.
The share capital of each of the companies, where applicable, comprises ordinary shares unless otherwise stated.
The Company holds the majority of its assets in UK companies, although some are held in overseas companies.
Unless noted otherwise as per the following key, the registered address of each company is York House, 45 Seymour
Street, London W1H 7LX.
1. 44 Esplanade, St Helier, Jersey, JE4 9WG
2. 45 Gresham Street, London, EC2V 7BG
3. 26 New Street, St Helier, Jersey, JE2 3RA
4. First Names House, Victoria Road, Douglas, Isle of Man, IM2 4DF
5. 80 Fenchurch Street, London, EC3M 4AE
6. 28 Esplanade, St Helier, Jersey, JE4 2QP
7. IFC 1, The Esplanade, St Helier, Jersey, JE1 4BP
*Companies with an active proposal to be struck off the register or are undergoing liquidation.
187
(K) Disclosures relating to subsidiary undertakings continued
Direct holdings
Name
UK/Overseas Tax
Resident Status
BL Bluebutton 2014 Limited*
UK Tax Resident
BL Bluebutton 2023 Limited
UK Tax Resident
BL Davidson Limited
UK Tax Resident
BL Intermediate Holding Company Limited
UK Tax Resident
BL Intermediate Holding Company 2 Limited
UK Tax Resident
BL Shoreditch Development Limited
UK Tax Resident
BLMH 4 Limited
UK Tax Resident
Bluebutton Property Management
UK Limited (50% interest)*
UK Tax Resident
Boldswitch (No 1) Limited
UK Tax Resident
Boldswitch Limited
UK Tax Resident
British Land Company Secretarial Limited
UK Tax Resident
British Land Properties Limited
UK Tax Resident
Broadgate Estates Limited
UK Tax Resident
London and Henley Holdings Limited
UK Tax Resident
Regis Property Holdings Limited
UK Tax Resident
Indirect holdings
Name
UK/Overseas Tax
Resident Status
10 Brock Street Limited
UK Tax Resident
10 Triton Street Limited
UK Tax Resident
17-19 Bedford Street Limited
UK Tax Resident
18-20 Craven Hill Gardens Limited
UK Tax Resident
20 Brock Street Limited
UK Tax Resident
20 Triton Street Limited
UK Tax Resident
338 Euston Road Limited
UK Tax Resident
350 Euston Road Limited
UK Tax Resident
Adamant Investment Corporation Limited
UK Tax Resident
Aldgate Land One Limited
UK Tax Resident
Aldgate Place (GP) Limited
UK Tax Resident
Ashband Limited
UK Tax Resident
B.L.Holdings Limited
UK Tax Resident
Barnclass Limited
UK Tax Resident
Barndrill Limited
UK Tax Resident
Bayeast Property Co Limited
UK Tax Resident
BF Properties (No.4) Limited
UK Tax Resident
BF Properties (No.5) Limited
UK Tax Resident
BL 5KS Holdings Limited
UK Tax Resident
BL Aldgate Development Limited
UK Tax Resident
BL Aldgate Holdings Limited
UK Tax Resident
BL Aldgate Investment Holdings Limited
UK Tax Resident
BL Aldgate Investment Limited
UK Tax Resident
BL Bradford Forster Limited
UK Tax Resident
BL Broadway Investment Limited
UK Tax Resident
BL Chess Limited
UK Tax Resident
BL Chilwell Limited
1
UK Tax Resident
BL City Offices Holding Company Limited
UK Tax Resident
BL CW Residential Holdings Limited
UK Tax Resident
BL CW Trading GP Company Limited
(50% interest)
UK Tax Resident
BL CW Trading Limited Partnership
(Partnership interest) (50% interest)
UK Tax Resident
BL CW Upper GP Company Limited
(50% interest)
UK Tax Resident
BL CW Upper Limited Partnership
(Partnership interest) (50% interest)
UK Tax Resident
BL CW Upper LP Company Limited
UK Tax Resident
BL Department Stores Holding
Company Limited
UK Tax Resident
BL Didcot 1 Limited
UK Tax Resident
BL Didcot 2 Limited
UK Tax Resident
BL Doncaster Wheatley Limited
UK Tax Resident
BL Drummond Properties Limited
UK Tax Resident
BL Ealing Holding Company Limited
UK Tax Resident
BL Ealing Limited
UK Tax Resident
BL Eden Walk Limited
UK Tax Resident
188
NOTES TO THE ACCOUNTS CONTINUED
(K) Disclosures relating to subsidiary undertakings continued
Name
UK/Overseas Tax
Resident Status
BL Eden Walk 2 Limited
UK Tax Resident
BL Euston Tower Holding Company Limited
UK Tax Resident
BL Falkirk Limited
UK Tax Resident
BL Finsbury Square Limited
UK Tax Resident
BL Fixed Uplift Fund Limited Partnership
(Partnership interest)
UK Tax Resident
BL Fixed Uplift General Partner Limited
UK Tax Resident
BL Fixed Uplift Nominee 1 Limited
UK Tax Resident
BL Fixed Uplift Nominee 2 Limited
UK Tax Resident
BL Goodman (General Partner) Limited
(50% interest)
UK Tax Resident
BL Goodman (LP) Limited
UK Tax Resident
BL Goodman Limited Partnership
(50% interest)
UK Tax Resident
BL HB Investments Limited
UK Tax Resident
BL HC PH LLP (Member interest)
UK Tax Resident
BL High Street and Shopping Centres
Holding Company Limited
UK Tax Resident
BL Holdings 2010 Limited
UK Tax Resident
BL Innovation Properties 2 Limited
UK Tax Resident
BL Innovation Properties Limited
UK Tax Resident
BL Lancaster Investments Limited
UK Tax Resident
BL Lancaster Limited Partnership
(Partnership interest)
UK Tax Resident
BL Leisure and Industrial Holding
Company Limited
UK Tax Resident
BL Logistics Investment 2 Limited
UK Tax Resident
BL Logistics Investment 3 Limited
UK Tax Resident
BL Logistics Investment Limited
UK Tax Resident
BL Merthyr Limited
UK Tax Resident
BL Middlesbrough Limited
UK Tax Resident
BL Office (Non-City) Holding
Company Limited
UK Tax Resident
BL Office Holding Company Limited
UK Tax Resident
BL Office Properties 1 Limited
UK Tax Resident
BL Office Properties 3 Limited
UK Tax Resident
BL Osnaburgh St Residential Ltd
UK Tax Resident
BL Piccadilly Residential Limited
UK Tax Resident
BL Ravenhead Limited
UK Tax Resident
BL Residual Holding Company Limited
UK Tax Resident
BL Retail Holding Company Limited
UK Tax Resident
BL Retail Indirect Investments Limited
UK Tax Resident
BL Retail Investment Holdings Limited
UK Tax Resident
BL Retail Park Holding Company Limited
1
UK Tax Resident
BL Retail Properties 2 Limited
UK Tax Resident
BL Retail Properties 3 Limited
UK Tax Resident
BL Retail Properties Limited
UK Tax Resident
BL Retail Property Holdings Limited
UK Tax Resident
Name
UK/Overseas Tax
Resident Status
BL Retail Warehousing Holding
Company Limited
UK Tax Resident
BL Sainsbury Superstores Limited (50%
interest)
2,
*
UK Tax Resident
BL Shoreditch General Partner Limited
UK Tax Resident
BL Shoreditch Limited Partnership
(Partnership interest)
UK Tax Resident
BL Shoreditch No. 1 Limited
UK Tax Resident
BL Shoreditch No. 2 Limited
UK Tax Resident
BL South Camb Limited
UK Tax Resident
BL Superstores Holding Company Limited
UK Tax Resident
BL Telford Limited
1
UK Tax Resident
BL Thanet Limited
UK Tax Resident
BL Triton Building Residential Limited
UK Tax Resident
BL Tunbridge Wells Limited
UK Tax Resident
BL Turbary Limited
UK Tax Resident
BL Vangarde Limited
UK Tax Resident
BL Warwickshire Limited
UK Tax Resident
BL Wellington Limited
1
UK Tax Resident
BL West (Watling House) Limited
UK Tax Resident
BL West End Investments Limited
UK Tax Resident
BL West End Offices Limited (25% interest)
UK Tax Resident
BL Whiteley Limited
UK Tax Resident
BL Whiteley Retail Limited
UK Tax Resident
BL Woolwich Limited
UK Tax Resident
BL Woolwich Nominee 1 Limited
UK Tax Resident
BL Woolwich Nominee 2 Limited
UK Tax Resident
Blackwall (1)
UK Tax Resident
BLD (SJ) Limited
UK Tax Resident
BLD Property Holdings Limited
UK Tax Resident
BLMH 1 Limited
UK Tax Resident
BLMH 2 Limited
UK Tax Resident
BLMH 3 Limited
UK Tax Resident
BLMH Centre Limited
UK Tax Resident
BLMH Holdings 2 Limited
UK Tax Resident
BLMH Holdings Limited
UK Tax Resident
BLMH Limited
UK Tax Resident
BLMH Nominee 1 Limited
UK Tax Resident
BLMH Nominee 2 Limited
UK Tax Resident
BLSSP (PHC 5) Limited
UK Tax Resident
BLU Estates Limited
UK Tax Resident
BLU Property Management Limited
UK Tax Resident
BLU Securities Limited
UK Tax Resident
British Land (Joint Ventures) Limited
UK Tax Resident
British Land Acquisitions Limited
UK Tax Resident
British Land City Offices Limited
UK Tax Resident
British Land Fund Management Limited
UK Tax Resident
British Land Hercules Limited
UK Tax Resident
189
(K) Disclosures relating to subsidiary undertakings continued
Name
UK/Overseas Tax
Resident Status
British Land In Town Retail Limited
UK Tax Resident
British Land Industrial Limited
UK Tax Resident
British Land Offices (Non-City) Limited
UK Tax Resident
British Land Offices (Non-City) No.2 Limited
UK Tax Resident
British Land People Management Limited
UK Tax Resident
British Land Property Advisers Limited
UK Tax Resident
British Land Property Management Limited
UK Tax Resident
British Land Property Services Limited
UK Tax Resident
British Land Superstores (Non-Securitised)
Number 2 Limited
UK Tax Resident
Broadgate Adjoining Properties Limited
UK Tax Resident
Broadgate City Limited
UK Tax Resident
Broadgate Court Investments Limited
UK Tax Resident
Broadgate Investment Holdings Limited
UK Tax Resident
Broadgate Properties Limited
UK Tax Resident
Broadgate REIT Limited (50% interest)
3
UK Tax Resident
Broughton Retail Park Limited (Jersey)
1
UK Tax Resident
Broughton Unit Trust (Units)
1
Overseas Tax
Resident
Brunswick Park Limited
UK Tax Resident
Capitol Preston Limited
UK Tax Resident
Cavendish Geared Limited
UK Tax Resident
Cheshine Properties Limited (50% Interest)
UK Tax Resident
Chester Limited
(Beneficial Interest)
1
UK Tax Resident
Chrisilu Nominees Limited
UK Tax Resident
City of London Office Unit Trust (Jersey)
(Units) (35.94% interest)
7
Overseas Tax
Resident
Clarges Estate Property Management
Co Limited
UK Tax Resident
Cornish Residential Properties
Trading Limited
UK Tax Resident
Crescent West Properties
UK Tax Resident
Drake Circus Centre Limited
UK Tax Resident
Drake Circus Leisure Limited
UK Tax Resident
Drake Property Holdings Limited
UK Tax Resident
Drake Property Nominee (No. 1) Limited
UK Tax Resident
Drake Property Nominee (No. 2) Limited
UK Tax Resident
Eden Walk Shopping Centre General Partner
Limited (Partnership interest)
UK Tax Resident
Eden Walk Shopping Centre Unit Trust)
(Jersey) (Units)
1
Overseas Tax
Resident
Elk Mill Oldham Limited
UK Tax Resident
Euston Tower Limited
UK Tax Resident
Fort Kinnaird GP Limited (50% Interest)
UK Tax Resident
Fort Kinnaird Limited Partnership
(50% interest)
UK Tax Resident
FRP Group Limited
UK Tax Resident
Name
UK/Overseas Tax
Resident Status
Garamead Properties Limited
UK Tax Resident
Giltbrook Retail Park Nottingham Limited
UK Tax Resident
Glenway Limited
UK Tax Resident
Hempel Holdings Limited
UK Tax Resident
Hempel Hotels Limited
UK Tax Resident
Hercules Property UK Holdings Limited
UK Tax Resident
Hercules Property UK Limited
UK Tax Resident
Hercules Unit Trust (Units)
1
Overseas Tax
Resident
Hereford Old Market Limited
UK Tax Resident
Hereford Shopping Centre GP Limited
UK Tax Resident
Hereford Shopping Centre Limited
Partnership (Partnership Interest)
UK Tax Resident
HUT Investments Limited
1
Overseas Tax
Resident
Industrial Real Estate Limited
UK Tax Resident
Insistmetal 2 Limited
UK Tax Resident
Lancaster General Partner Limited
UK Tax Resident
London and Henley (UK) Limited
UK Tax Resident
Lonebridge UK Limited
UK Tax Resident
Longford Street Residential Limited
UK Tax Resident
Ludgate Investment Holdings Limited
UK Tax Resident
Mayfair Properties
UK Tax Resident
Mayflower Retail Park Basildon Limited
UK Tax Resident
Mercari
UK Tax Resident
Mercari Holdings Limited
UK Tax Resident
Moorage (Property Developments) Limited
UK Tax Resident
Nugent Shopping Park Limited
UK Tax Resident
One Hundred Ludgate Hill
UK Tax Resident
One Triton Holding Limited (50% Interest)
UK Tax Resident
Orbital Shopping Park Swindon Limited
UK Tax Resident
Osnaburgh Street Limited
UK Tax Resident
Paddington 3KS Investments Limited
UK Tax Resident
Paddington 5KS GP Limited
UK Tax Resident
Paddington 5KS Holdings Limited
UK Tax Resident
Paddington 5KS Nominee 1 Limited
UK Tax Resident
Paddington 5KS Nominee 2 Limited
UK Tax Resident
Paddington 5KS Unit Trust (Units)
1
Overseas Tax
Resident
Paddington Box Limited
UK Tax Resident
Paddington Property Investment GP Limited
UK Tax Resident
Paddington Property Investment Limited
Partnership (25% interest)
UK Tax Resident
Parwick Holdings Limited
UK Tax Resident
Parwick Investments Limited
UK Tax Resident
Piccadilly Residential Limited
UK Tax Resident
Pillar (Dartford) Limited
UK Tax Resident
190
NOTES TO THE ACCOUNTS CONTINUED
(K) Disclosures relating to subsidiary undertakings continued
Name
UK/Overseas Tax
Resident Status
Pillar (Fulham) Limited
UK Tax Resident
Pillar City Limited
UK Tax Resident
Pillar Dartford No.1 Limited
UK Tax Resident
Pillar Denton Limited
UK Tax Resident
Pillar Europe Management Limited
UK Tax Resident
Pillar Hercules No.2 Limited
UK Tax Resident
Pillar Nugent Limited
UK Tax Resident
Pillar Projects Limited (99% Interest)
UK Tax Resident
Pillar Property Group Limited
UK Tax Resident
PillarStore Limited
UK Tax Resident
Planet Investment Holdings Limited
4,
*
UK Tax Resident
Plymouth Retail Limited
UK Tax Resident
Power Court GP Limited
UK Tax Resident
Power Court Luton Limited Partnership
(Partnership interest)
UK Tax Resident
Project Sunrise Limited
UK Tax Resident
Reading Gate Retail Park Co-Ownership
(Member interest) (50% interest)
UK Tax Resident
Regent’s Place Holding 1 Limited
UK Tax Resident
Regent’s Place Holding 2 Limited
UK Tax Resident
Regent’s Place Holding Company Limited
UK Tax Resident
Regents Place Management Company
Limited (94.39% interest)
UK Tax Resident
Regents Place Residential Limited
UK Tax Resident
Salmax Properties
UK Tax Resident
Seymour Street Homes Limited
UK Tax Resident
Southgate General Partner Limited
(50% interest)
5
UK Tax Resident
Southgate Property Unit Trust (50% interest)
(Units)
6
Overseas Tax
Resident
Solartron Retail Park Limited
UK Tax Resident
Speke Unit Trust (Units)
1
Overseas Tax
Resident
St. Stephens Shopping Centre Limited
UK Tax Resident
Stockton Retail Park Limited
UK Tax Resident
Storey Offices Limited
UK Tax Resident
Storey Spaces Limited
UK Tax Resident
TBL (Bromley) Limited
UK Tax Resident
TBL Holdings Limited
UK Tax Resident
TBL Properties Limited
UK Tax Resident
Teesside Leisure Park Limited (51% interest)
UK Tax Resident
The Aldgate Place Limited Partnership
(Partnership interest)
UK Tax Resident
The Dartford Partnership (Member interest)
(50% interest)
UK Tax Resident
The Hercules Property Limited Partnership
(Partnership interest)
UK Tax Resident
Name
UK/Overseas Tax
Resident Status
The Leadenhall Development Company
Limited (50% interest)
UK Tax Resident
The Mary Street Estate Limited
UK Tax Resident
The Whiteley Co-Ownership (Member
interest) (50% interest)
UK Tax Resident
Thurrock Retail Park Unit Trust
1
Overseas Tax
Resident
Tollgate Centre Colchester Limited
UK Tax Resident
Topside Street Limited
UK Tax Resident
Tweed Premier 4 Limited
UK Tax Resident
Union Property Corporation Limited
UK Tax Resident
Union Property Holdings (London) Limited
UK Tax Resident
United Kingdom Property Company Limited
UK Tax Resident
Wates City of London Properties Limited
UK Tax Resident
Westbourne Terrace Partnership
(Partnership interest)
UK Tax Resident
Whiteley Shopping Centre Unit Trust (Units)
1
Overseas Tax
Resident
WOSC GP Limited (25% interest)
UK Tax Resident
WOSC Partners LP (Partnership interest)
(25% interest)
UK Tax Resident
191
SUPPLEMENTARY DISCLOSURES
Unaudited
Table A: Summary income statement and balance sheet
Summary income statement based on proportional consolidation for the year ended 31 March 2026
The following pro forma information does not form part of the consolidated financial statements or the notes thereto.
It presents the results of the Group, with its share of the results of joint ventures included on a line-by-line basis.
Year ended 31 March 2026
Year ended 31 March 2025
Group
£m
Share of
joint
ventures
£m
Proportionally
consolidated
£m
Group
£m
Share of
joint
ventures
£m
Proportionally
consolidated
£m
Gross rental income
1
403
148
551
338
146
484
Property operating expenses
(53)
(22)
(75)
(32)
(13)
(45)
Net rental income
350
126
476
306
133
439
Administrative expenses
2
(73)
(2)
(75)
(82)
–
(82)
Net fees and other income
26
–
26
25
–
25
Ungeared income return
303
124
427
249
133
382
Net financing charges
(85)
(48)
(133)
(60)
(43)
(103)
Underlying Profit
218
76
294
189
90
279
Underlying taxation
(4)
–
(4)
(4)
–
(4)
Underlying Profit after taxation
214
76
290
185
90
275
Valuation movements on property (Note 4)
205
134
Other capital and taxation (net)
3
(46)
(71)
Result attributable to shareholders of the Company
449
338
1. Group gross rental income includes £6m (2024/25: £8m) of all-inclusive rents relating to service charge income.
2. Administrative expenses includes £5m (2024/25: £8m) of depreciation and amortisation.
3. Includes other comprehensive income.
192
SUPPLEMENTARY DISCLOSURES CONTINUED
Table A: continued
Summary balance sheet based on proportional consolidation as at 31 March 2026
The following pro forma information does not form part of the consolidated financial statements or the notes thereto.
It presents the composition of the EPRA NTA of the Group, with its share of the net assets of the joint ventures included
on a line-by-line basis and assumes full dilution.
Group
£m
Share of
joint
ventures
£m
Share
options
£m
Mark-to-
market on
derivatives
and related
debt
adjustment
£m
Lease
liabilities
£m
Valuation
surplus on
trading
properties
£m
Intangibles
and
deferred tax
£m
EPRA NTA
31 March
2026
£m
EPRA NTA
31 March
2025
£m
Campuses properties
2,507
3,424
–
–
(85)
9
–
5,855
5,504
Retail & London Urban
Logistics properties
3,913
337
–
–
(43)
3
–
4,210
3,985
Total properties
1
6,420
3,761
–
–
(128)
12
–
10,065
9,489
Investments in
joint ventures
2,611
(2,611)
–
–
–
–
–
–
–
Other investments
37
–
–
–
–
–
(5)
32
41
Other net (liabilities)
assets
(338)
(106)
7
–
128
–
–
(309)
(287)
Deferred tax liability
(1)
(3)
–
–
–
–
4
–
–
Net debt
2
(2,797)
(1,041)
–
(27)
–
–
–
(3,865)
(3,545)
Net assets
5,932
–
7
(27)
–
12
(1)
5,923
5,698
EPRA NTA per share
(Note 2)
590p
567p
1. Included within the total property value of £10,065m (2024/25: £9,489m) are right-of-use assets net of lease liabilities of £3m
(2024/25: £3m), which in substance relates to properties held under leasing agreements. The fair values of right-of-use assets are
determined by calculating the present value of net rental cash flows over the term of the lease agreements.
2. EPRA net debt of £3,865m represents adjusted net debt used in proportionally consolidated LTV and Net Debt to EBITDA
calculations of £3,962m (see Note 16), less tenant deposits of £77m and issue costs and fair value hedge adjustments of £20m.
EPRA Net Tangible Assets movement
Year ended
31 March 2026
Year ended
31 March 2025
£m
Pence per
share
£m
Pence per
share
Opening EPRA NTA
5,698
567
5,252
562
Income return
290
29
275
27
Capital and other return
164
17
95
11
Dividend paid
(229)
(23)
(221)
(23)
Dilution due to issue of shares
–
–
297
(10)
Closing EPRA NTA
5,923
590
5,698
567
193
Table B: EPRA Performance measures
EPRA Performance measures summary table
2026
2025
£m
Pence per
share
£m
Pence per
share
EPRA Earnings
– basic
290
29.0
275
28.6
– diluted
290
28.9
275
28.5
Percentage
Percentage
EPRA Net Initial Yield
4.5%
5.0%
EPRA ‘topped-up’ Net Initial Yield
5.5%
5.5%
EPRA Vacancy Rate
6.6%
10.0%
EPRA Cost Ratio (including direct vacancy costs)
18.9%
17.5%
EPRA Cost Ratio (excluding direct vacancy costs)
11.9%
10.5%
2026
2025
Net assets
£m
Net asset
value per
share
(pence)
Net assets
£m
Net asset
value per
share
(pence)
EPRA NTA
5,923
590
5,698
567
EPRA NRV
6,538
651
6,283
625
EPRA NDV
5,982
596
5,768
574
Percentage
Percentage
EPRA LTV
41.8%
40.7%
Calculation and reconciliation of Underlying/EPRA/IFRS Earnings and Underlying/EPRA/IFRS
Earnings per share
2026
£m
2025
£m
Profit attributable to the shareholders of the Company
454
338
Exclude:
Group – Underlying taxation (Note 7)
4
4
Group – Capital and other taxation (Note 7)
(8)
–
Group – valuation movements on property (Note 4)
(107)
(148)
Group – loss on disposal of investment properties, joint ventures and revaluation of investments
28
42
Group – Capital administrative expenses
3
–
Joint ventures – share of joint venture result
1
(12)
(11)
Joint ventures – net movements on property (Note 4)
2
(98)
14
Joint ventures – Capital financing (income) charges
(5)
3
Joint ventures – loss (profit) on disposal of properties
3
(6)
Changes in fair value of financial instruments and associated close-out costs (Note 6)
32
43
Underlying Profit
294
279
Group – Underlying taxation (Note 7)
(4)
(4)
EPRA/Underlying Earnings – basic and diluted
290
275
Profit attributable to the shareholders of the Company
454
338
IFRS Earnings – basic and diluted
454
338
1. The share of joint venture result relates to Broadgate REIT Limited’s share of the 2 Finsbury Avenue joint venture, disclosed in further
detail in Note 11.
2. Included within the current year ‘Joint ventures – net movements on property’ credit of £98m (2024/25: £14m debit) are valuation
movements on investment and development properties of £111m (2024/25: £14m debit) and impairment of trading properties of £13m
(2024/25: £nil).
194
SUPPLEMENTARY DISCLOSURES CONTINUED
Table B continued
2026
Number
million
2025
Number
million
Weighted average number of shares
1
1,011
973
Adjustment for treasury shares
(11)
(11)
IFRS/EPRA/Underlying Weighted average number of shares (basic)
1,000
962
Dilutive effect of share options
–
–
Dilutive effect of ESOP shares
2
3
EPRA/Underlying Weighted average number of shares (diluted)
1,002
965
Remove anti-dilutive effect
–
–
IFRS Weighted average number of shares (diluted)
1,002
965
1. In the prior year, on 2 October 2024, the Company announced a share placing, retail offer and subscription of 71,227,309 ordinary
shares of 25p each at a price of 422p per share, resulting in a 71,227,309 increase in the number of shares. See Note 19 for
further information.
Calculation and reconciliation of EPRA NTA/NRV/NDV and EPRA NTA/NRV/NDV per share
2026
2025
£m
Pence per
share
£m
Pence per
share
IFRS net assets
5,932
5,710
Deferred tax arising on revaluation movements
4
4
Mark-to-market on derivatives and related debt adjustments
(27)
(23)
Dilution effect of share options
7
11
Surplus on trading properties
12
3
Intangible assets
(5)
(7)
EPRA NTA
5,923
590
5,698
567
Intangible assets
5
7
Purchasers’ costs
610
578
EPRA NRV
6,538
651
6,283
625
Deferred tax arising on revaluation movements and the surplus on trading
properties
(7)
(5)
Purchasers’ costs
(610)
(578)
Mark-to-market on derivatives and related debt adjustments
27
23
Mark-to-market on debt
34
45
EPRA NDV
5,982
596
5,768
574
EPRA NTA is considered to be the most relevant measure for the Group and is now the primary measure of net assets.
EPRA NTA assumes that entities buy and sell assets, thereby crystallising certain levels of unavoidable deferred tax. Due to
the Group’s REIT status, deferred tax is only provided at each balance sheet date on properties outside the REIT regime. As
a result, deferred taxes are excluded from EPRA NTA for properties within the REIT regime. For properties outside of the
REIT regime, deferred tax is included to the extent that it is expected to crystallise. EPRA NRV reflects what would be
needed to recreate the Group through the investment markets based on its current capital and financing structure. EPRA
NDV reflects shareholders’ value which would be recoverable under a disposal scenario, with deferred tax and financial
instruments recognised at the full extent of their liability.
195
Table B continued
2026
Number
million
2025
Number
million
Number of shares at year end
1
1,011
1,010
Adjustment for treasury shares
(11)
(11)
IFRS/EPRA number of shares (basic)
1,000
999
Dilutive effect of share options
1
1
Dilutive effect of ESOP shares
3
5
IFRS/EPRA number of shares (diluted)
1,004
1,005
1. In the prior year, on 2 October 2024, the Company announced a share placing, retail offer and subscription of 71,227,309 ordinary
shares of 25p each at a price of 422p per share, resulting in a 71,227,309 increase in the number of shares. See Note 19 for
further information.
EPRA Net Initial Yield and ‘topped-up’ Net Initial Yield
2026
£m
2025
£m
Group property portfolio valuation (Note 10)
6,316
6,065
Share of property of joint ventures (Note 10)
3,746
3,421
Less developments, residential and land
(1,087)
(1,590)
Completed property portfolio
8,975
7,896
Allowance for estimated purchasers’ costs
613
534
Gross up completed property portfolio valuation (A)
9,588
8,430
Annualised cash passing rental income
464
450
Property outgoings
(32)
(28)
Annualised net rents (B)
432
422
Rent expiration of rent-free periods and fixed uplifts
1
92
39
‘Topped-up’ net annualised rent (C)
524
461
EPRA Net Initial Yield (B/A)
4.5%
5.0%
EPRA ‘topped-up’ Net Initial Yield (C/A)
5.5%
5.5%
Including fixed/minimum uplifts received in lieu of rental growth
5
5
Total ‘topped-up’ net rents (D)
529
466
Overall ‘topped-up’ Net Initial Yield (D/A)
5.5%
5.5%
‘Topped-up’ net annualised rent
524
461
ERV vacant space
41
56
Reversions
52
27
Total ERV (E)
617
544
Net Reversionary Yield (E/A)
6.4%
6.5%
1. The weighted average period over which rent-free periods expire is one year (2024/25: one year).
EPRA Net Initial Yield (NIY) basis of calculation
EPRA NIY is calculated as the annualised net rent (on a cash flow basis), divided by the gross value of the completed
property portfolio. The valuation of our completed property portfolio is determined by our external valuers as at
31 March 2026, plus an allowance for estimated purchasers’ costs. Estimated purchasers’ costs are determined by the
relevant stamp duty liability, plus an estimate by our valuers of agent and legal fees on notional acquisition. The net rent
deduction allowed for property outgoings is based on our valuers’ assumptions on future recurring non-recoverable
revenue expenditure.
In calculating the EPRA ‘topped-up’ NIY, the annualised net rent is increased by the total contracted rent from expiry
of rent-free periods and future contracted rental uplifts where defined as not in lieu of growth. Overall ‘topped-up’ NIY
is calculated by adding any other contracted future uplift to the ‘topped-up’ net annualised rent.
The net reversionary yield is calculated by dividing the total estimated rental value (ERV) for the completed property
portfolio, as determined by our external valuers, by the gross completed property portfolio valuation.
The EPRA Vacancy Rate is calculated as the ERV of the unrented, lettable space as a proportion of the total rental value
of the completed property portfolio.
196
SUPPLEMENTARY DISCLOSURES CONTINUED
Table B continued
EPRA Vacancy Rate
31 March
2026
£m
31 March
2025
£m
Annualised potential rental value of vacant premises
41
56
Annualised potential rental value for the completed property portfolio
629
555
EPRA Vacancy Rate
6.6%
10.0%
EPRA Cost Ratios
2026
£m
2025
£m
Property operating expenses
53
32
Administrative expenses
75
82
Share of joint ventures expenses
22
13
Less:
Performance and management fees (from joint ventures and assets under management)
(13)
(13)
Net other fees and commissions
(13)
(12)
Ground rent costs and operating expenses de facto included in rents
(25)
(22)
EPRA Costs (including direct vacancy costs) (A)
99
80
Direct vacancy costs
(37)
(32)
EPRA Costs (excluding direct vacancy costs) (B)
62
48
Gross Rental Income less ground rent costs and operating expenses de facto included in rents
381
320
Share of joint ventures (GRI less ground rent costs)
142
138
Total Gross rental income less ground rent costs (C)
523
458
EPRA Cost Ratio (including direct vacancy costs) (A/C)
18.9%
17.5%
EPRA Cost Ratio (excluding direct vacancy costs) (B/C)
11.9%
10.5%
Overhead and operating expenses capitalised (including share of joint ventures)
6
8
In the current year, employee costs in relation to staff time on development projects have been capitalised into the base
cost of relevant development assets.
Table C: Gross rental income
2026
£m
2025
£m
Rent receivable
1
496
466
Spreading of tenant incentives and contracted rent increases
22
(2)
Surrender premia
33
20
Gross rental income
551
484
1. Group gross rental income includes £6m (2024/25: £8m) of all-inclusive rents relating to service charge income.
The current and prior year information is presented on a proportionally consolidated basis.
197
Table D: Property related capital expenditure
Year ended 31 March 2026
Year ended 31 March 2025
Group
£m
Share of
joint
ventures
£m
Total
£m
Group
£m
Share of
joint
ventures
£m
Total
£m
Acquisitions
113
–
113
730
–
730
Development
39
160
199
105
205
310
Investment properties
Incremental lettable space
2
–
2
2
–
2
No incremental lettable space
42
49
91
43
39
82
Tenant incentives
5
9
14
6
1
7
Other material non-allocated types
of expenditure
3
3
6
4
4
8
Capitalised interest
7
22
29
14
19
33
Total property related capital expenditure
211
243
454
904
268
1,172
Conversion from accrual to cash basis
(4)
(10)
(14)
(7)
35
28
Total property related capital expenditure
on cash basis
207
233
440
897
303
1,200
The above is presented on a proportionally consolidated basis. The ‘Other material non-allocated types of expenditure’
category contains capitalised staff costs of £6m (2024/25: £8m).
Table E: EPRA LTV
As at 31 March 2026
As at 31 March 2025
Proportionally
consolidated
Proportionally
consolidated
Group
£m
Share of
joint ventures
£m
Total
£m
Group
£m
Share of
joint ventures
£m
Total
£m
Include:
Gross debt
3,006
1,151
4,157
2,740
998
3,738
Net payables
243
90
333
224
87
311
Exclude:
Cash and cash equivalents
(176)
(96)
(272)
(57)
(108)
(165)
EPRA Net Debt (A)
3,073
1,145
4,218
2,907
977
3,884
Include:
Property portfolio valuation
6,316
3,746
10,062
6,065
3,421
9,486
Other financial assets
32
–
32
43
–
43
Intangibles
5
–
5
7
–
7
EPRA Total Property Value (B)
6,353
3,746
10,099
6,115
3,421
9,536
EPRA LTV (A/B)
48.4%
41.8%
47.5%
40.7%
Data includes Group’s share of joint ventures.
FY26 rent collection
Rent due between 25 March 2025 and 24 March 2026 Campuses
Retail &
London
Urban
Logistics Total
Received
Outstanding –
Total m m m
March quarter 2026 rent collection
Rent due between 25 March 2026 and 11 May 2026 Campuses
Retail &
London
Urban
Logistics Total
Received
Outstanding –
Total m m m
Purchases
12 months to 31 March 2026 Sector
Price
(100%)
£m
Price
(BL Share)
£m
Annualised
Net Rents
£m
1
York Vangarde Retail Park Retail Parks
Eden Walk Shopping Centres
Turbary Retail Park Retail Parks
H&M Bath Other Retail
Towngate Retail Park
Retail Parks
Total
1. British Land share of annualised rent topped up for rent frees.
Sales
12 months to 31 March 2026 Sector
Price
(100%)
£m
Price
(BL Share)
£m
Annualised
Net Rents
£m
1
Canada Water residential sales Residential –
International House Other Campuses –
Newport Harlech Retail Park Retail Parks
19-33 Liverpool Street City Office
Westwood Thanet Retail Park Retail Parks
Woolwich Phase 1 Plot 1 (Beresford Square) Other Retail
Aberdeen Shopping Centre Unit Trust Shopping Centres –
TGI Croydon Other Retail –
TGI Prestwich Other Retail –
Total
1. British Land share of annualised rent topped up for rent frees.
OTHER INFORMATION (UNAUDITED)
198
British Land
Annual Report and Accounts 2026
Portfolio valuation by sector
1,2
As at 31 March 2026
Group
£m
Joint
Ventures
£m
Total
£m
1
FY Value
Change
%
2
FY Value
Change
£m
2
Portfolio
Weighting
%
City
West End
Other Campuses () ()
Residential
3
() ()
Campuses
Retail Parks
Shopping Centres
London Urban Logistics – () ()
Other Retail – () –
Retail & London Urban Logistics
Total
Standing Investments
Developments
On a proportionally consolidated basis including the Group’s share of joint ventures and excluding non-controlling interests.
1. Property valuation as at 31 March 2026, including capital expenditure in the period.
2. Valuation movement during the period (gross valuation less capital expenditure) of properties held at the balance sheet date, including developments (classified by
end use), purchases and sales.
3. Standalone residential.
Accounting basis: annualised gross rental income
1
Annualised as at 31 March 2026
Accounting basis £m Group
Joint
Ventures Total
City
West End
Other Campuses
Residential –
Campuses
Retail Parks
Shopping Centres
London Urban Logistics –
Other Retail –
Retail & London Urban Logistics
Total
On a proportionally consolidated basis including the Group’s share of joint ventures.
1. Annualised accounting rent as at 31 March 2026, which differs from the gross rental income seen in the period as a result of leasing activity,
capital activity, properties moving from and to development and other movements.
199
British Land
Annual Report and Accounts 2026
OTHER INFORMATION
Portfolio net yields
1,2
As at 31 March 2026
EPRA
NIY
(%)
EPRA
TUNIY
3
(%)
Overall
TUNIY
4
(%)
EPRA
NEY
(%)
NEY
Movement
(bps)
EPRA
NRY
5
(%)
ERV
Growth
(%)
City Offices ()
West End Offices ()
Other Campuses
Residential na na
Campuses ()
Retail Parks ()
Shopping Centres ()
London Urban Logistics () ()
Other Retail
Retail & London Urban Logistics ()
Total ()
On a proportionally consolidated basis including the Group’s share of joint ventures and excluding non-controlling interests.
1. Including notional purchaser’s costs.
2. Excluding committed developments and assets held for development.
3. Including rent contracted from expiry of rent-free periods (or other unexpired lease incentives such as discounted rent periods and step rents).
4. Including fixed/minimum uplifts (excluded from EPRA definition).
5. Net reversionary yield is the anticipated yield to which the initial yield will rise (or fall) once the rent reaches the estimated rental value, assuming 100% occupancy.
Total property return (as calculated by MSCI)
12 months to 31 March 2026 Campuses
Retail & London
Urban Logistics Total
% British Land MSCI British Land MSCI British Land MSCI
Capital Return
ERV Growth
Yield Movement
1
() bps () bps () bps () bps () bps bps
Income Return
Total Property Return
On a proportionally consolidated basis including the Group’s share of joint ventures and excluding non-controlling interests.
1. Net equivalent yield movement.
OTHER INFORMATION (UNAUDITED) CONTINUED
200
British Land
Annual Report and Accounts 2026
Top 20 occupiers by sector
1
As at 31 March 2026
Share of Retail & London
Urban Logistics Rent
(%)
Next
M&S
Boots
TJX (TK Maxx)
Kingfisher
Currys
JD Sports
DFS
Matalan
Hutchinson Whampoa
Frasers Group
Sainsbury’s
Pets at Home
Tapi
Smyths Toys
ASDA
SCS Group
B&M
Primark
River Island
Total Top 20
1. Excludes occupiers who have entered administration or CVA.
As at 31 March 2026
Share of
Campus Rent
(%)
Meta
A&O Shearman
Dentsu
Arm
Reed Smith
SEFE
Herbert Smith Freehills Kramer
Sumitomo Mitsui
Jones Lang LaSalle
TP ICAP
Janus Henderson
Interpublic Group
Mayer Brown International LLP
Milbank LLP
Crédit Agricole
Essendi
Mimecast
Akin Gump LLP
Marex
Anthropic
Total Top 20
Lease length & occupancy
Average Lease Length (Yrs) Occupancy Rate (%)
As at 31 March 2026 To Expir y To Break
EPRA
Occupancy
Occupancy
1,2,3
City
West End
Other Campuses
Residential
Campuses
Retail Parks
Shopping Centres
London Urban Logistics
Other Retail
Retail & London Urban Logistics
Total
1. Occupancy excludes recently completed developments in the last 12 months.
2. Space allocated to Storey is shown as occupied where there is a Storey tenant in place otherwise it is shown as vacant. Total occupancy for Campuses would rise
from 94.7% to 95.3% if Storey space was assumed to be fully let.
3. Where occupiers have entered administration or CVA but are still liable for rates, these are treated as occupied. If units in administration are treated as vacant,
thenthe occupancy rate for Retail & London Urban Logistics would fall from 99.0% to 98.3%, and total occupancy would fall from 96.9% to 96.5%.
201
British Land
Annual Report and Accounts 2026
OTHER INFORMATION
Valuation basis: annualised rent & estimated rental value (ERV)
Annualised Rent (Valuation Basis)
£m
1
ERV
£m
Average Rent
£psf
As at 31 March 2026 Group
Joint
Ventures Total Total Contracted
2
ERV
City
3
West End
3
Other Campuses –
Residential –
Campuses
Retail Parks
Shopping Centres
London Urban Logistics –
Other Retail –
Retail & London Urban Logistics
Total
On a proportionally consolidated basis including the Group’s share of joint ventures and excluding committed, near term and assets held for development.
1. Gross rents plus, where rent reviews are outstanding, any increases to ERV (as determined by the Group’s external valuers), less any ground rents payable under
head leases, excludes contracted rent subject to rent free and future uplift.
2. Annualised rent, plus rent subject to rent free.
3. £psf metrics shown for office space only.
Rent subject to open market rent review
For year to 31 March
As as 31 March 2026
2027
£m
2028
£m
2029
£m
2030
£m
2031
£m
2027-29
£m
2027-31
£m
City
West End –
Other Campuses – – – – –
Campuses
Retail Parks
Shopping Centres
London Urban Logistics – – – – – – –
Other Retail – – –
Retail & London Urban Logistics
Total
Rent subject to lease break or expiry
For year to 31 March
As at 31 March 2026
2027
£m
2028
£m
2029
£m
2030
£m
2031
£m
2027-29
£m
2027-31
£m
West End
City
Other Campuses – – –
Residential – – – –
Campuses
Retail Parks
Shopping Centres
London Urban Logistics – –
Other Retail
Retail & London Urban Logistics
Total
% of contracted rent
On a proportionally consolidated basis including the Group’s share of joint ventures and excluding non-controlling interests excluding committed and near term, and
assets held for development.
OTHER INFORMATION (UNAUDITED) CONTINUED
202
British Land
Annual Report and Accounts 2026
Recently completed & committed developments
As at 31 March 2026 Sector
BL
Share
%
100%
sq ft
‘000
PC Calendar
Year
Current
Value
£m
Cost to
Come
1
£m
ERV
2
£m
Let &
Under
Offer
3
£m
Gross Yield
on Cost
4
%
1 Broadgate Office Q
Southwark Urban Logistics
London Urban Logistics
Q
One Triton Square Science & Technology Q
Canada Water: Plot A1
5
Mixed Use Q
Total Recently Completed
Broadgate Tower
6
Office Q
2 Finsbury Avenue Office Q
1 Appold Street Office Q
West One Office Q –
Total Committed
On a proportionally consolidated basis including the Group’s share of joint ventures (except area which is shown at 100%).
1. From 31 March 2026. Cost to come excludes notional interest as interest is capitalised individually on each development at our capitalisation rate.
2. Estimated headline rental value net of rent payable under head leases (excluding tenant incentives).
3. Pre-let & under offer excludes space under option and includes deals up to 15 May 2026. 1 Broadgate total let & under offer exceeds the ERV as deals post period
end exceeded March 2026 ERV.
4. Gross yield on cost is calculated by dividing the ERV of the project by the total development costs, including the land value at the point of commitment, and any
actual / estimated capitalisation of interest.
5. Canada Water Plot A1 includes Three Deal Porters and The Founding.
6. Broadgate Tower let space also includes space where tenants remain in occupation during development in now reversionary space. This represents £7.0m of the
£18.6m ERV and £5.1m of the £9.8m let and under offer. The ERV numbers are used to calculate overall occupancy of 59%.
Near term development pipeline
As at 31 March 2026 Sector
BL
Share
%
100%
sq ft
‘000
Earliest
Start
Calendar
Year
Current
Value
£m
Cost to
Come
£m
1
ERV
£m
2
Planning
Status
Canada Water:
AffordableHousing Residential Q – –
Pre-
submission
Total Near Term
On a proportionally consolidated basis including the Group’s share of joint ventures (except area which is shown at 100%).
1. From 31 March 2026. Cost to come excludes notional interest as interest is capitalised individually on each development at our capitalisation rate.
2. Estimated headline rental value net of rent payable under head leases (excluding tenant incentives).
203
British Land
Annual Report and Accounts 2026
OTHER INFORMATION
Medium term development pipeline
As at 31 March 2026 Sector
BL Share
%
100% sq ft
‘000 Planning Status
Euston Tower Office Consented
5 Kingdom St Office Consented
Hannah Close, Wembley London Urban Logistics Submitted
Verney Road London Urban Logistics Consented
The Box, Paddington London Urban Logistics Consented
Canada Water: Printworks Mixed Use Pre-submission
Canada Water: Future Phases
1
Mixed Use Outline Consent
Total Medium Term
On a proportionally consolidated basis including the Group’s share of joint ventures (except area which is shown at 100%).
1. The London Borough of Southwark has the right to invest in up to 20% of the completed development. The ownership share of the joint venture between
BritishLand and AustralianSuper will change over time depending on the level of contributions made, but will be no less than 80%.
EPRA best practice recommendations on sustainability reporting
We have received Gold Awards for sustainability reporting from the European Public Real Estate Association (EPRA),
14 years running. Selected data in the Sustainability Progress Report 2026 has been independently assured by DNV
inaccordance with the International Standard on Assurance Engagements (ISAE) 3000 revised – Assurance
Engagements other than Audits and Reviews of Historical Financial Information’ (revised), issued by the International
Auditing and Assurance Standards Board.
Governance indicators
Annual Report and Accounts 2025
Composition of the highest governance body Board’s Executive and Non-Executive Directors pages 81 to 83
Tenures of Non-Executive Directors page 90
Nominating and selecting the highest governance body Appointment process for new Directors page 89
Process for managing conflicts of interest Board procedure for managing conflicts of interest page 80
READ MORE
This year, full disclosure against the EPRA Sustainability Best Practice Recommendations
can be found in the Sustainability Datasheets 2026 at www.britishland.com/sustainability-datasheets
OTHER INFORMATION (UNAUDITED) CONTINUED
204
British Land
Annual Report and Accounts 2026
10-year record
The table below summarises the last ten years’ results, balance sheets and cash flows.
2026
£m
2025
£m
2024
£m
2023
£m
2022
£m
2021
£m
2020
£m
2019
£m
2018
£m
2017
£m
Summarised income
statement
1
Gross rental income
Net rental income
Net fees and other income
Net financing charges () () () () () () () () () ()
Administrative expense () () () () () () () () () ()
Underlying Profit
Summarised balance
sheets
1
Total properties at
valuation
2
EPRA net debt () () () () () () () () () ()
Other assets and liabilities () () () () () () () () () ()
EPR A NTA/NAV
3
Cash flow movement –
Grouponly
Cash generated from
operations
Other cashflows from
operating activities () () () () () ()
Net cash inflow from
operatingactivities
Cash (outflow) inflow
from investing activities () () () () ()
Equity dividends paid () () () () () () () () () ()
Cash inflow (outflow)
from management of
liquid resources and
financing () () () () () ()
Increase (decrease)
incash
4
() () () () () () –
Capital returns
Growth in net assets
5
() () () () () ()
Total accounting return () () () () ()
Per share information
EPR A NTA/NAV
pershare
6
p p p p p p p p p p
Memorandum
Dividends declared
intheyear p p p p p p p p p p
Dividends paid
in the year p p p p p p p p p p
Diluted earnings
Underlying earnings
pershare p p p p p p p p p p
IFRS earnings (loss)
pershare p p ()p ()p p ()p ()p ()p p p
1. Including share of joint ventures.
2. Including surplus over book value of trading properties.
3. EPRA NTA is disclosed in 2026 to 2021 and EPRA NAV is disclosed from 2020 to 2017.
4. Represents movement in cash and cash equivalents under IFRS.
5. Represents movement in EPRA NTA in 2026 to 2021 and movement in EPRA NAV from 2020 to 2017.
6. Represents diluted EPRA NTA per share in 2026 to 2021 and diluted EPRA NAV per share in 2020 to 2017.
205
British Land
Annual Report and Accounts 2026
OTHER INFORMATION
Shareholder information
Analysis of shareholders – 31 March 2026
Number of
shares
Number
of holdings %
Balance
as at
31 March
2026
1
%
1–1,000
1,001–
5,000
5,001–
20,000
20,001–
50,000
50,001–
highest
Total
Holder type
Individuals
Nominee and
institutional
investors
Total
1. Excluding 11,266,245 shares held in treasury.
Registrars
British Land has appointed Equiniti Limited (Equiniti) to
administer its shareholder register. Equiniti can be
contacted at:
Highdown House
Yeoman Way
Worthing
BN99 6DA
Tel: +44 (0)371 384 2143 (UK and Overseas callers)
Lines are open from 8.30am to 5.30pm Monday to Friday
excluding public holidays in England and Wales.
Website: shareview.co.uk
By registering with Shareview, shareholders can:
– view their British Land shareholding online;
– update their details; and
– elect to receive shareholder mailings electronically.
Share dealing facilities
By registering with Shareview, Equiniti also provides
existing and prospective UK shareholders with a share
dealing facility for buying and selling British Land shares
online or by phone.
FOR MORE INFORMATION
Contact Equiniti at shareview.co.uk/dealing or call 03456 037
037 (Monday to Friday excluding public holidays from 8.00am
to4.30pm, or for enquiries from 8.00am to 6.00pm). Existing
British Land shareholders will need the reference number given
on their share certificate to register. Similar share dealing
facilities are provided by other brokers, banks and
financialservices
Website and shareholder communications
The British Land corporate website contains materials for
shareholders, including the current share price, press
releases and information on dividends. The website can be
accessed at www.britishland.com.
British Land encourages its shareholders to receive
shareholder communications electronically. This enables
shareholders to receive information quickly and securely as
well as in a more environmentally friendly and cost-effective
manner. Further information can be obtained from
Shareview or the Shareholder Helpline.
ShareGift
Shareholders with a small number of shares, the value of
which makes it uneconomic to sell them, may wish to
consider donating their shares to charity. ShareGift is a
registered charity (No. 1052686) which collects and sells
unwanted shares and uses the proceeds to support a wide
range of UK charities. A ShareGift donation form can be
obtained from Equiniti.
Further information about ShareGift can be obtained from
their website: sharegift.org
Registered office
The British Land Company PLC
York House
45 Seymour Street
London
W1H 7LX
Telephone: +44 (0)20 7486 4466
Registered number: 621920
Website: www.britishland.com
Dividends
As a REIT, British Land pays Property Income Distribution
(PID) and non-Property Income Distribution (non-PID)
dividends. More information on REITs and PIDs can be
found in the Investors section of our website at
www.britishland.com/dividends.
British Land dividends can be paid directly into your bank
or building society account instead of being despatched to
you by cheque. More information about the benefits of
having dividends paid directly into your bank or building
society account, and the mandate form to set this up, can
be found in the Investors section of our website at
www.britishland.com/dividend.
OTHER INFORMATION (UNAUDITED) CONTINUED
206
British Land
Annual Report and Accounts 2026
Dividend Reinvestment Plan (DRIP)
The DRIP provides shareholders with the opportunity to
use cash dividends to increase their shareholding in British
Land. It is a convenient and cost-effective facility provided
by Equiniti Financial Services Limited.
Under the DRIP, cash dividends are automatically used to
purchase shares in the market as soon as possible after the
dividend payment. Any residual cash will be carried
forward to the next dividend payment.
FOR MORE INFORMATION
please visit the Investors section of our website at
www.britishland.com/dividend-reinvestment-plan
Unsolicited mail
British Land is required by law to make its share register
available on request to other organisations. This may result
in the receipt of unsolicited mail. To limit this, shareholders
may register with the Mailing Preference Service. For more
information, or to register, visit www.mpsonline.org.uk.
Shareholders are also advised to be vigilant in regard to
share fraud which includes telephone calls offering free
investment advice or offers to buy and sell shares at
discounted or highly inflated prices. Further information
can be found on the Financial Conduct Authority’s website
fca.org.uk/ scams or by calling the FCA Consumer Helpline
on 0800 111 6768.
Tax
The Group elected for REIT status on 1 January 2007,
paying a £308m conversion charge to HMRC in the
sameyear.
As a consequence of the Group’s REIT status, tax is not
levied within the corporate group on the qualifying
property rental business but is instead deducted from
distributions of such income as Property Income
Distributions (PID) to shareholders. Any income which
does not fall within the REIT regime is subject to tax within
the Group in the usual way. This includes profits on
property trading activity, property related fee income and
interest income.
FURTHER INFORMATION
on our Tax Strategy can be found in the section Our Approach
toTax Strategy at www.britishland.com/governance
207
British Land
Annual Report and Accounts 2026
OTHER INFORMATION
Forward-looking statements
This Annual Report contains certain (and we may make
other verbal or written) ‘forward-looking’ statements.
These forward-looking statements include all matters that
are not historical facts. Such statements reflect current
views, intentions, expectations, forecasts and beliefs of
British Land concerning, among other things, our markets,
activities, projections, strategy, plans, initiatives,
objectives, performance, financial condition, liquidity,
growth and prospects, as well as assumptions about future
events and developments. Such ‘forward-looking’
statements can sometimes, but not always, be identified
by their reference to a date or point in the future, the
future tense, or the use of ‘forward-looking’ terminology,
including terms such as ‘believes’, ‘considers’, ‘estimates’,
‘anticipates’, ‘expects’, ‘forecasts’, ‘intends’, ‘continues’,
‘due’, ‘potential’, ‘possible’, ‘plans’, ‘seeks’, ‘projects’,
‘budget’, ‘ambition’, ‘mission’, ‘objective’, ‘goal’, ‘guidance’,
‘trends’, ‘future’, ‘outlook’, ‘schedule’, ‘target’, ‘aim’, ‘may’,
‘likely to’, ‘will’, ‘would’, ‘could’, ‘should’ or similar
expressions or in each case their negative or other
variations or comparable terminology. By their nature,
forward-looking statements involve inherent known and
unknown risks, assumptions and uncertainties because
they relate to future events and circumstances and depend
on circumstances which may or may not occur and may be
beyond our ability to control, predict or estimate. Forward-
looking statements should be regarded with caution as
actual outcomes or results may differ materially from those
expressed in or implied by such statements. Recipients
should not place reliance on, and are cautioned about
relying on, any forward-looking statements.
Important factors that could cause actual results (including
the payment of dividends), performance or achievements
of British Land to differ materially from any outcomes and
results expressed or implied by such forward-looking
statements include, among other things, changes and/or
developments as regards: (a) general business and
political, social and economic conditions globally, (b) the
United Kingdom’s evolving relationship with the European
Union, (c) industry and market trends (including demand in
the property investment market and property price
volatility), (d) competition, (e) the behaviour of other
market participants, (f) changes in government policy, law
and other regulation including in relation to the
environment, sustainability-related issues, landlord and
tenant law, health and safety and taxation (in particular, in
respect of British Land’s status as a Real Estate Investment
Trust), (g) inflation and consumer confidence, (h) labour
relations, work stoppages and increased costs for, or
shortages of, talent, (i) climate change, natural disasters
and adverse weather conditions, (j) terrorism, conflicts or
acts of war, (k) British Land’s overall business strategy, risk
appetite and investment choices in its portfolio
management, (l) legal or other proceedings against or
affecting British Land, (m) cyber-attacks and other
disruptions and reliability and security of IT infrastructure,
(n) changes in occupier demand and tenant default, (o)
changes in financial and equity markets including interest
and exchange rate fluctuations, (p) changes in accounting
practices and the interpretation of accounting standards,
(q) the availability and cost of finances, including
prolonged higher interest rates, (r) changes in construction
supplies and labour availability or cost inflation, (s) global
conflicts and trade and tariff policies and their impact on
supply chains and the macroeconomic outlook, and (t)
public health crises.
Please refer to the section of this Annual Report headed
“Risk Management and Principal Risks” on pages 47 to 58
for a discussion of certain additional risks and other factors
that could cause British Land’s actual results, performance
and achievements to differ materially. Forward-looking
statements in this Annual Report or made subsequently,
which are attributable to British Land or persons acting on
its behalf, should therefore be construed in light of all such
factors.
Information contained in this Annual Report relating to
British Land or its share price or the yield on its shares are
not guarantees of, and should not be relied upon as an
indicator of, future performance, and nothing in this
Annual Report should be construed as a profit forecast or
profit estimate, or be taken as implying that the earnings
of British Land for the current year or future years will
necessarily match or exceed the historical or published
earnings of British Land. Any forward-looking statements
made by or on behalf of British Land speak only as of the
date they are made. Such forward-looking statements are
expressly qualified in their entirety by the factors referred
to above and no representation, assurance, guarantee or
warranty is given in relation to them (whether by British
Land or any of its associates, directors, officers, employees
or advisers), including as to their completeness, accuracy,
fairness, reliability, the basis on which they were prepared,
or their achievement or reasonableness. Other than in
accordance with our legal and regulatory obligations
(including under the UK Financial Conduct Authority’s UK
Listing Rules, Disclosure Guidance and Transparency Rules,
the UK Market Abuse Regulation, and the requirements of
the Financial Conduct Authority and the London Stock
Exchange), British Land does not intend or undertake any
obligation to update or revise publicly forward-looking
statements to reflect any changes in British Land’s
expectations with regard thereto or any changes in events,
conditions, circumstances or other information on which
any such statement is based. This document shall not,
under any circumstances, create any implication that there
has been no change in the business or affairs of British
Land since the date of this document or that the
information contained herein is correct as at any time
subsequent to this date. Nothing in this document shall
constitute, in any jurisdiction, an offer or solicitation to sell
or purchase any securities or other financial instruments,
nor shall it constitute a recommendation, invitation or
inducement, or advice, in respect of any securities or other
financial instruments or any other matter.
The Annual Report has been prepared for, and only for, the
members of British Land, as a body, and no other persons.
British Land, its Directors, officers, employees or advisers
do not accept or assume responsibility to any other person
to whom this document is shown or into whose hands it
may come, and any such responsibility or liability is
expressly disclaimed.
OTHER INFORMATION (UNAUDITED) CONTINUED
208
British Land
Annual Report and Accounts 2026
CBP036145
Printed by a Carbon Neutral Operation (certified:
CarbonQuota) under the PAS2060 standard.
This publication was printed by an FSC™ certified
printer that holds an ISO 14001 certification.
This product is made using recycled materials
limiting the impact on our precious forest resources,
helping reduce the need to harvest more trees.
100% of the inks used are vegetable oil based, 95% of press
chemicals are recycled for further use and, on average
99% of any waste associated with this production will be
recycled and the remaining 1% used to generate energy.
The paper is Carbon Balanced with World Land Trust,
an international conservation charity, who offset carbon
emissions through the purchase and preservation
of high conservation value land. Through protecting
standing forests under threat of clearance, carbon
is locked-in that would otherwise be released.
Head office and registered office
www.britishland.com
BRITISH LAND Annual Report and Accounts 2026