British Land raised its full-year earnings forecast on Wednesday, citing strong demand for its London office campuses and retail parks, particularly from the artificial intelligence sector.
The property company said it now expects underlying earnings per share of at least 28.5 pence for fiscal 2026, with growth of at least 6% projected for the following year.
In a trading update for the six months ended Sept. 30, the company reported leasing 1.4 million square feet of space at rates 5.3% above their estimated rental value.
"Occupational fundamentals continue to favour our prime London office campuses and retail parks," Chief Executive Simon Carter said.
British Land said the take-up of space from AI businesses is increasing across London, noting it had leased offices to 11 AI-led companies since April.
The company is repositioning its Regent's Place property as a science and technology campus, where it has leased 49,000 square feet to such businesses.
For the six-month period, underlying profit was 155 million pounds, up from 143 million pounds a year earlier, while the portfolio valuation increased by 1.2%, according to the company.