British Land (LSE:BLND) - Share price, News & Analysis

BLND fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	1/6
Financial Health	2/6
Dividends	3/6

BLND Stock Overview

Our portfolio of high quality UK commercial property is focused on London Offices and Retail around the UK.

Rewards

Trading at 18.2% below our estimate of its fair value

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of 25.5% per year for the next 3 years

Unstable dividend track record

Large one-off items impacting financial results

British Land Competitors

Land Securities Group

LSE:LAND

UK£5.6b

Secure Income REIT

AIM:SIR

UK£1.5b

LXI REIT

LSE:LXI

UK£1.3b

UK Commercial Property REIT

LSE:UKCM

UK£1.1b

Price History & Performance

Summary of all time highs, changes and price drops for British Land
Historical stock prices
Current Share Price	UK£5.23
52 Week High	UK£5.64
52 Week Low	UK£4.42
Beta	1.41
1 Month Change	3.20%
3 Month Change	3.44%
1 Year Change	4.48%
3 Year Change	-1.80%
5 Year Change	-17.51%
Change since IPO	107.54%

Shareholder Returns

	BLND	GB REITs	GB Market
7D	0.1%	0.3%	1.0%
1Y	4.5%	1.5%	-2.8%

Return vs Industry: BLND exceeded the UK REITs industry which returned 2.7% over the past year.

Return vs Market: BLND exceeded the UK Market which returned -3% over the past year.

Price Volatility

Is BLND's price volatile compared to industry and market?
BLND volatility
BLND Average Weekly Movement	4.5%
REITs Industry Average Movement	3.4%
Market Average Movement	6.0%
10% most volatile stocks in GB Market	11.4%
10% least volatile stocks in GB Market	3.0%

Stable Share Price: BLND is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BLND's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1856	613	Simon Carter	https://www.britishland.com

Our portfolio of high quality UK commercial property is focused on London Offices and Retail around the UK. We own or manage a portfolio valued at £13.7bn (British Land share: £10.3bn) as at 30 September 2020 making us one of Europe's largest listed real estate investment companies. Our strategy is to provide places which meet the needs of our customers and respond to changing lifestyles - Places People Prefer.

British Land Fundamentals Summary

How do British Land's earnings and revenue compare to its market cap?
BLND fundamental statistics
Market Cap	UK£4.85b
Earnings (TTM)	UK£958.00m
Revenue (TTM)	UK£492.00m

5.1x

P/E Ratio

9.9x

P/S Ratio

Is BLND overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BLND income statement (TTM)
Revenue	UK£492.00m
Cost of Revenue	UK£129.00m
Gross Profit	UK£363.00m
Other Expenses	-UK£595.00m
Earnings	UK£958.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.03
Gross Margin	73.78%
Net Profit Margin	194.72%
Debt/Equity Ratio	40.3%

How did BLND perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

63%

Payout Ratio

Does BLND pay a reliable dividends?

See BLND dividend history and benchmarks

When do you need to buy BLND by to receive an upcoming dividend?
British Land dividend dates
Ex Dividend Date	Jun 23 2022
Dividend Pay Date	Jul 29 2022
Days until Ex dividend	27 days
Days until Dividend pay date	63 days

Does BLND pay a reliable dividends?

See BLND dividend history and benchmarks

Valuation

Is British Land undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

18.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BLND (£5.23) is trading below our estimate of fair value (£6.4)

Significantly Below Fair Value: BLND is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: BLND is good value based on its Price-To-Earnings Ratio (5.1x) compared to the UK REITs industry average (9.4x).

PE vs Market: BLND is good value based on its Price-To-Earnings Ratio (5.1x) compared to the UK market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: BLND's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: BLND is good value based on its Price-To-Book Ratio (0.7x) compared to the GB REITs industry average (0.9x).

Future Growth

How is British Land forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-25.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLND's earnings are forecast to decline over the next 3 years (-25.5% per year).

Earnings vs Market: BLND's earnings are forecast to decline over the next 3 years (-25.5% per year).

High Growth Earnings: BLND's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BLND's revenue is expected to decline over the next 3 years (-3.7% per year).

High Growth Revenue: BLND's revenue is forecast to decline over the next 3 years (-3.7% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BLND's Return on Equity is forecast to be low in 3 years time (3.7%).

Past Performance

How has British Land performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-26.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BLND has a large one-off gain of £678.0M impacting its March 31 2022 financial results.

Growing Profit Margin: BLND became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: BLND's earnings have declined by 26.6% per year over the past 5 years.

Accelerating Growth: BLND has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BLND has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (129.6%).

Return on Equity

High ROE: BLND's Return on Equity (14.3%) is considered low.

Financial Health

How is British Land's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BLND's short term assets (£134.0M) do not cover its short term liabilities (£434.0M).

Long Term Liabilities: BLND's short term assets (£134.0M) do not cover its long term liabilities (£2.7B).

Debt to Equity History and Analysis

Debt Level: BLND's net debt to equity ratio (39.2%) is considered satisfactory.

Reducing Debt: BLND's debt to equity ratio has increased from 36.1% to 40.3% over the past 5 years.

Debt Coverage: BLND's debt is not well covered by operating cash flow (9%).

Interest Coverage: BLND's interest payments on its debt are well covered by EBIT (16.2x coverage).

Balance Sheet

Dividend

What is British Land current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.19%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: BLND's dividend (4.19%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: BLND's dividend (4.19%) is low compared to the top 25% of dividend payers in the UK market (4.82%).

Stability and Growth of Payments

Stable Dividend: BLND's dividend payments have been volatile in the past 10 years.

Growing Dividend: BLND's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (63.3%), BLND's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (82.9%), BLND's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure

CEO

Simon Carter (45 yo)

1.5yrs

Tenure

UK£1,149,000

Compensation

Mr. Simon Carter, MA, ACA, had been Chief Financial Officer of British Land Company Plc from May 21, 2018 to November 18, 2020 and serves its Director since May 2018. He serves as Chief Executive Officer o...

CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD1.44M) is below average for companies of similar size in the UK market ($USD3.35M).

Compensation vs Earnings: Simon's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: BLND's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: BLND's board of directors are considered experienced (4.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: BLND insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31