BRITISH LAND

ANNUAL REPORT

AND ACCOUNTS

2025

BRITISH LAND Annual Report and Accounts 2025

P L ACE S

PEOPLE

PREFER

Presentation of financial information

The financial statements for the year ended 31 March 2025 have been 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, the Group has adopted a number of new standards and amendments to

standards for the year ended 31 March 2025, none of which have had a material impact on the

Group. The accounting polices used are consistent with those contained in the Group’s previous

Annual Report and Accounts for the year ended 31 March 2024.

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 and excludes non-controlling interests in the Group’s subsidiaries. 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 207 for reconciliations, in addition to Note 2 in

the financial statements and the glossary found at www.britishland.com/glossary

Integrated reporting

We integrate environmental and social information throughout this Report in line with the

International Integrated Reporting Framework. This reflects how sustainability is integrated

throughout our business. Our approach is focused on three key pillars: Greener Spaces, Thriving

Places and Responsible Choices. For detailed social and environmental case studies and data,

see our Sustainability Progress Report found at www.britishland.com/SPR

about our approach to sustainability on

our website at www.britishland.com

Elliott’s Field Retail Park, Rugby

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

CONTENTS

Strategic Report

2 Performance highlights

3 Highlights and key performance indicators (KPIs)

4 British Land at a glance

6 Chair’s statement

8 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

82 Board of Directors

86 Report of the Environmental Social

GovernanceCommittee

94 Report of the Nomination Committee

99 Report of the Audit Committee

107 Directors’ Remuneration Report

130 Directors’ Report and additional disclosures

134 Statement of Directors’ Responsibilities

Financial Statements

136 Independent auditors’ report

143 Primary statements and notes

195 Company balance sheet

207 Supplementary disclosures

214 Other information (unaudited)

220 EPRA best practice recommendations

on sustainability reporting

221 10-year record

222 Shareholder information

British Land

Annual Report and Accounts 2025

HIGHLIGHTS

AND KPIs

FINANCIAL HIGHLIGHTS

Underlying EPS

(diluted)

28.5p

2024: 28.5p

Dividend

per share

22.80p

2024: 22.80p

IFRS EPS

(diluted)

35.0p

2024: (0.1)p

IFRS profit

after tax

£338m

2024: £1m

EPRA NTA

per share

567p

2024: 562p

Refinance

date

2028

2024: 2027

Senior unsecured

credit rating

2024: A

OPERATIONAL HIGHLIGHTS

1. Occupancy excludes space under offer or subject to asset management

initiatives and recently completed developments

Leasing activity

3.3m sq ft

2024: 3.3m sq ft

ERV growth

4.9%

2024: 5.9%

Gross capital activity

£1.7bn

2024: £0.9bn

Occupancy

98%

2024: 97%

Queen’s Shopping Park, Stafford

IFRS

net assets

£5,710m

2024: £5,312m

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

NON-FINANCIAL KPIs

GREENER

SPACES

THRIVING

PLACES

RESPONSIBLE

CHOICES

GRESB rating

GRESB for Development

and Standing Investments

2024: 5*

Direct social value generated

£11.3m

2024: £9.7m

Staff engagement

79%

2024: 78%

EPC rated A or B

68%

2024: 58%

Number of social impact

beneficiaries

18,500

2024: 15,000

Ethnicity pay gap

20.0%

2024: 17.4%

Improvement in energy intensity

of managed portfolio since FY19

19%

2024: 18%

Value of affordable space

provided

£1.2m

2024: £1m

Gender pay gap

13.6%

2024: 19.4%

about our environmental strategy on

page 37 and at www.britishland.com/

SPR

about our social impact strategy on

page 40 and at www.britishland.com/

SPR

about our people on page 42 and at

www.britishland.com/SPR

1. Measured by ERV

2. FY24 restated to include an additional £0.3m of direct value subsequently identified in FY25

Underlying Profit

£279m

2024: £268m

Total property return

6.9%

2024: 2.0%

Net Debt to EBITDA (Group)

8.0x

2024: 6.8x

Total accounting return

5.0%

2024: (0.5)%

Total shareholder return

(1.0)%

2024: 9.2%

Loan to value (LTV)

(proportionally consolidated)

38.1%

2024: 37.3%

FINANCIAL KPIs

Links to remuneration: Long Term Incentive Plan Annual Incentive Plan

British Land

Annual Report and Accounts 2025

B R ITI S H

L AN D

AT A

GLANCE

Our purpose is to create and manage

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 to thrive.

100 Liverpool Street, Broadgate

ortfolio by value (British Land share)

58%

42%

INCOME

FOCUSED

8-10%

TOTAL ACCOUNTING

RETURN THROUGH

THE CYCLE

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

OUR PORTFOLIO

Our portfolio of high quality UK commercial

property is focused on office-led campuses

in Central London, retail across the UK and

London urban logistics. We own or manage

a portfolio valued at £14.6bn (British Land

share: £9.5bn).

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.

WHAT WE DO

We are a diversified business and invest

insubsectors with strong rental growth

prospects where we can leverage our

strengths to generate an income-led

total accounting return (TAR) of 8-10%

through thecycle.

BUSINESS REVIEW

from page 18

SUSTAINABILITY REVIEW

from page 36

BUSINESS MODEL

from page 14

Campuses £5.5bn

Retail & London Urban Logistics £4.0bn

British Land

Annual Report and Accounts 2025

CHAI R ’ S

STATEMENT

Dear Shareholder,

It is a privilege to present this Annual Report, my first as Chair

of British Land, following a year of strategic progress, robust

operational and financial performance and a series of Board

and Executive leadership changes.

My first year as Chair has been spent meeting shareholders,

a wide range of other stakeholders and visiting British Land

properties across the UK. During this time, I have been struck

by the excellent quality of our assets, the pace at which we

are delivering against our strategy and the calibre of people

within the business.

Good progress in FY25

The real estate sector has faced a myriad of challenges in recent

years, from the Covid-19 pandemic and working from home,

inflation and rising interest rates to recent uncertainty over the

impact of global tariffs. Against this backdrop, all of us at British

Land continue to concentrate on the things we can control.

I am therefore encouraged by our operational and financial

performance this year. Driven by the strong occupational

fundamentals within our core sectors, we continue to lease

space at rents significantly ahead of valuers’ expectations,

for example setting a new high water mark for City pre-lets at

2 Finsbury Avenue. This leasing momentum, combined with

good cost control and successful asset management, means

we have maintained our underlying earnings per share, despite

significant development activity. Alongside this we have

continued to be disciplined in our balance sheet management,

and I am comfortable with leverage being towards the higher

end of our range at this stage in the real estate cycle.

Looking ahead,

weare focused

ondriving income

and delivering

sector-leading total

accounting returns.

William Rucker

Chair

William Rucker

Chair

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

The strategic calls made in 2021 to invest in retail parks

and continue to build best-in-class office developments

are paying off, and we have achieved a lot in the year. The

reshaping of our portfolio continues, with £1.7bn of gross

capital activity, including the sale of Meadowhall and 50%

of our stake in 2 Finsbury Avenue, the proceeds of which

have been invested into higher yielding retail parks and

best-in-class developments where rental growth is

strongest.

Capitalising on favourable market conditions, in October

2024, we successfully raised equity to part fund the

acquisition of a £441m portfolio of retail parks, a deal

that was earnings accretive from day one. The Board was

delighted with the level of support from shareholders and

the wider market for this transaction, marking our first

equity raise in 10 years.

Looking ahead, we are focused on driving income and

delivering sector-leading total accounting returns, as we

continue to recycle capital out of mature and non-core

assets into earnings accretive opportunities.

Executive leadership and Board changes

This year has been marked by significant Executive

leadership and Board changes. In November 2024, David

Walker succeeded Bhavesh Mistry as Chief Financial

Officer; in September 2024, Kelly Cleveland was appointed

to a new combined role of Head of Real Estate and

Investment; and in December 2024, Emma Cariaga was

appointed as Chief Operating Officer, with David Lockyer

assuming responsibility for Canada Water as Head of

Development, alongside Roger Madelin. Each person has

held a number of roles within the business and brings

significant expertise and wisdom, which will be invaluable

as we continue to execute our value add strategy.

At Board level, we were delighted to welcome Amanda

James as Non-Executive Director in July 2024. Amanda

brings not only deep expertise in finance, but also strong

consumer, retail and multi-channel experience. In the same

month, Laura Wade-Gery stepped down as Non-Executive

Director and Chair of the Remuneration Committee and

was succeeded by Amanda Mackenzie. In January 2025,

Preben Prebensen stepped down as Senior Independent

Director and was succeeded by Loraine Woodhouse

and in March 2025, Irvinder Goodhew stepped down

as Non-Executive Director. I’d like to thank them for

their significant contribution to the Board and wish

them well for the future.

I strongly believe that we need a diverse Board that

reflects the places we develop and manage, and that

diversity in the boardroom has a positive effect on the

quality of decision making. While I am pleased that the

Board has a gender balance of 50% female, we are

working hard to improve the ethnic diversity of the Board

at the next appropriate opportunity.

You can read more about our Board changes and Board

Diversity & Inclusion Policy on pages 94 to 98.

Sustainability

We are, and continue to be, rightly focused on the

transition to a greener economy. Not only is this the right

thing to do but it drives tangible commercial benefit,

enabling us to let space quicker, secure enhanced rents

and makes our assets more valuable.

Progress has been made in all areas of our Sustainability

Strategy. The percentage of the portfolio which is rated

EPC A or B increased to 68%, up from 58% at FY24. We are

a sector leader in sustainable development, retaining our

5-star rating in GRESB’s annual sustainability assessment

for both standing investments and developments,

outperforming last year’s scores on bothmetrics.

In addition, we have achieved a Top 75 Social Mobility

Employer rating from the Social Mobility Employer

Index, for the seventh consecutive year, and Living Wage

Employer accreditation, providing external recognition

of our commitment and action on ESG issues.

Concluding remarks

The last 12 months have demonstrated the strength of

British Land’s platform and our ability to deliver against an

uncertain macroeconomic and geopolitical backdrop. The

strategic calls made in 2021 to invest in retail parks and

continue to build best-in-class office developments are

delivering, and looking ahead, we are focused on driving

earnings growth and delivering sector-leading income

focused total accounting returns.

Our performance is a result of the hard work and

dedication of the British Land team, and I would like to

thank colleagues across the business. I am excited to be

working with them, our shareholders and other

stakeholders in the coming years.

William Rucker

Non-Executive Chair

British Land

Annual Report and Accounts 2025

CHIEF EXECUTIVE’S

REVIEW

Overview

Our operational and financial performance has

been strong this year as we’ve focused on the

controllable elements of the business and

executing our strategy.

Good levels of leasing ahead of ERV, active cost discipline and

our earnings accretive retail parks acquisition partially funded

via a £301m equity placing, enabled us to grow Underlying

Profit by 4% and maintain Underlying earnings per share (EPS)

despite significant development activity. Strong demand for our

retail parks and campuses continued in FY25 and translated

into ERV growth of 4.9%, at the top end of our guidance range,

and 3% like-for-like net rental growth on the standing portfolio.

Portfolio values were up by 1.6%, with growth accelerating in

the second half of the year. Encouragingly campus values

passed an inflection point with values up 0.8% in the second

half compared to a valuation decline of 1.7% in the first half of

the year. This was largely driven by a valuation uplift of our

best-in-class campus development pipeline, which increased by

3.2% in the second half, and we expect that our developments

will be a key driver of earnings growth going forward.

Overall EPRA Net Tangible Assets (NTA) per share was up 5p as

increased property valuations and retained profits more than

offset the slightly dilutive NTA impact of the placing. Including

dividends paid in the year of 22.88p per share, total accounting

return was 5.0%. We continue to deliver good ERV growth,

which we expect to be a key driver of value going forward, and

reiterate our guidance of 3-5% per annum rental growth across

the portfolio.

The continued

occupational

strength of our key

markets and the

resulting above

inflation rental

growth gives us

confidence for the

future, despite

ongoing macro

volatility.

Simon Carter

Chief Executive

Simon Carter

Chief Executive

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

We have been nimble in seizing opportunities this year.

Since 1 April 2024, we have disposed of £597m of assets,

on average 2% ahead of March 2024 book value. The most

notable disposals were the sale of Meadowhall and 50% of

our stake in 2 Finsbury Avenue, the proceeds of which

have been invested into £738m of retail parks and our

best-in-class campus development pipeline.

It is the continued occupational strength of our key

markets that gives us confidence for the future and in our

strategy, despite continued macro volatility. ‘Return to

office’ is in full swing, with utilisation (Tuesday-Thursday)

back at pre-Covid levels and retailers continue to expand

their presence on retail parks due to their affordability and

strong trading. Looking forward, we feel confident that we

are deploying capital into the right markets.

Operational update

Operational momentum in the business continues, with

3.3m sq ft of leasing across the portfolio, 8.6% ahead of

ERV, with a further 0.9m sq ft under offer, 15% ahead of

ERV. In the year, we delivered 3% like-for-like net rental

income growth across the portfolio, driven by strong

leasing at good rental levels. Occupancy was 98%,

excluding asset management initiatives and developments

completed in the last 12 months.

On our campuses, we completed 1.5m sq ft of leasing, 7.5%

ahead of ERV, the second highest volume of leasing in 15

years. 1m sq ft of these were new deals including to Citadel

at 2 Finsbury Avenue and Akin at 155 Bishopsgate and 0.5m

sq ft were renewals and regears, demonstrating demand

for existing assets in our core locations. As at 31 March

2025, there is a further 0.3m sq ft under offer, 9.2% ahead

of ERV. Occupancy on our campuses is 97%, excluding

asset management initiatives and developments completed

in the last 12 months. On an EPRA basis, occupancy is at

83%, where the majority of vacancy is concentrated in

new space on our campuses. Demand for this space is

strong, and we are making good progress on leasing.

Retail parks continue to be the preferred format for

many retailers due to their affordability, adaptability and

accessibility. The portfolio remains virtually full at 99%

occupancy and ERV growth in the year was 6.0%, above

our guided range of 3-5%. Leasing volumes in the year

were 1.1m sq ft, 9.6% ahead of ERV. There was a significant

increase in leasing transactions in the second half of the

year and a further 0.5m is under offer, 11% ahead of ERV,

demonstrating continued competitive tension for space and

the formats’ resilience in the wake of the Autumn Budget.

Strategy

Five years on from the first Covid lockdown, it is striking

how differently things have played out from the perceived

wisdom at the time. Many were convinced that work from

home would be the norm and the majority of shopping

would be done online, delivered to front doors. We were

not so sure, and so we stayed close to our customers,

followed the data, looked at what we were doing in our

own lives and across British Land. Based on this we

became increasingly convinced that we could generate

good returns by taking a contrarian position. So over the

next five years, we bought £1.2bn of retail parks and

committed to 3m sq ft of best-in-class campus

developments, at a time when there was very little new

supply coming into both markets.

1. JLL

2. CBRE / Cushman & Wakefield

3. Cushman & Wakefield: New and newly refurbished City availability, level 17

and above

4. Cushman & Wakefield

Fast forward to today, the ‘return to office’ trend is clear,

and our retail parks have never been busier or more highly

occupied. This has driven strong net absorption of space,

particularly over the past year, and as a result we are

seeing above inflation rental growth as well as renewed

investor demand across both markets, enhancing our

conviction in our strategy.

Campuses

‘Return to office’ trends have accelerated this year, with

many large businesses mandating their staff back to the

office between three and five days a week. We are seeing

this play out on our campuses, where office utilisation is

back to pre-Covid levels on Tuesday to Thursday, and

Monday is increasingly catching up with those days.

So, what does this mean for our portfolio? Previously,

we have spoken about the strength of demand for

best-in-class developments in core Central London

locations i.e. HQ space in the most central locations

next to key transport infrastructure that we deliver on

our campuses. The strength of this demand continues

with the number of active requirements over 100,000

sq ft in Central London reaching a record high of 36

at the end of March 2025.

This together with a tight

supply picture is resulting in very strong rental growth.

Take the City as an example, where there is a 5.3m sq ft

shortfall of new or substantially refurbished space to

2029.

At Broadgate, we have seen asking rents for

pre-lets of best-in-class developments like 2 Finsbury

Avenue increase by c.10-15% since the deal with Citadel

signed in April 2024 and Cushman & Wakefield are

forecasting rents for this type of space to grow by a

further c.8% per annum to 2028. To capitalise on these

dynamics, we have committed to upgrading Broadgate

Tower. The scheme is expected to complete in late 2026,

where the supply picture is particularly tight with only 12

tower floors available in the City.

We expect to attract

occupiers looking for well located, high quality office

space in a thriving campus environment and are already in

conversations on 100,000 sq ft of space.

So, for the very best space the picture is positive, but

what about the rest? Importantly, we are now seeing

unfulfilled demand target good ‘existing stock’ in these

core Central London locations. Vacancy for this space in

the City has declined by 21% since 2023, and rents are

increasing.

This is beneficial for our standing campus

portfolio and is highlighted by 0.5m sq ft of renewals

and regears completed on our campuses this year. We

expect this trend to continue with unfulfilled demand

for best-in-class space in core locations gravitating to

good existing buildings in these locations. However,

some occupiers still want to secure a new building and

are adding emerging locations to their searches which

can meet their demand for high quality workspace, with

good amenities, and transport connectivity, but at a

lower price point. These markets have been quiet since

Covid, but leasing activity for new space here has more

than doubled since 2023, albeit from a low base, and we

are seeing increasing enquiries and negotiations for the

new space we have just delivered at Canada Water.

British Land

Annual Report and Accounts 2025

CHIEF EXECUTIVE’S REVIEW CONTINUED

Science and technology

Targeting fast growing occupiers is a key part of our

campus strategy. The science and technology sector

continues to grow driven by the rise of AI. Demand from

these businesses is concentrated in the Golden Triangle

(London, Oxford and Cambridge), which benefits from a

strong ecosystem of academic and research institutions

and a deep pool of talent. In the year we let the entirety

of The Optic, a new 100,000 sq ft office and lab building

located on the Peterhouse Technology Park to ARM

Holdings, demonstrating the strength in demand from

science and tech occupiers for new space in Cambridge.

In London, the Knowledge Quarter is the centre of this

activity, as businesses cluster around world leading

institutions like The Francis Crick Institute, University

College London, University College London Hospital and

The Turing Institute. Given its location in the heart of the

Knowledge Quarter, we believe that Regent’s Place has

huge potential, and our aim is to replicate the success of

Broadgate on this campus, through the delivery of world

class buildings, public realm and amenities. We were

therefore pleased to secure planning for Euston Tower in

March 2025 to deliver a 560,000 sq ft office and

innovation tower in the West End.

Retail parks

A key strategic call in 2021 was to deploy capital into retail

parks, which have become the preferred physical format

for many retailers, due to their affordability, accessibility

and adaptability. This decision is paying off. Over the last

four years, retail parks have been the best performing

subsector in UK real estate and we have delivered a total

property return of 12.7% per annum, outperforming the

wider retail park sector by 380 bps.

The affordability of parks is highlighted by their low

occupancy cost ratio (rent, rates and service charge

as a percentage of total sales) which has reduced from

17.7% in 2016 to 9.2% today. Their location on major

arterial roads on the outskirts of towns and cities with

ample free car parking, means they are both highly

accessible and ideal for click and collect, returning

goods to store and increasingly shipping from store.

The adaptability of a retail park unit, which is essentially

a steel framed box, is an important feature for retailers

who face significant challenges in remodelling stores

on the high street and in shopping centres.

Retailers are increasingly wanting to expand on parks.

Since 2016, there have been net store closures of -4,488

on the high street and -1,003 within shopping centres,

but +792 net store openings at retail parks, reflecting

this incremental demand.

With increasing retailer

costs following the Autumn Budget, our conversations

with key retailers suggest they are looking to offset

these with efficiencies, therefore we expect the shift

to parks to accelerate, as businesses opt to take more

affordable space. This is already playing out on our

retail parks, where leasing volumes in the second half

were 2.5 times that of the first, and we have a further

0.5m sq ft of deals under offer, 11% ahead of ERV.

These strong occupational fundamentals combined with

low capital expenditure requirements, pricing below

replacement cost and 6-7% cash yields on day one, make

retail parks an attractive investment. Since 1 April 2024,

we have deployed £738m of capital into this subsector

including the seven retail parks partially funded via a

£301m equity placing in October 2024. Our leading

scalable platform means that when we acquire retail parks,

minimal additional overheads are required to operate

more assets and our relationships with retailers gives us

confidence in our ability to drive above market rental

growth. Retail parks now make up 32% of our portfolio,

up from 15% when we set out our strategy in 2021.

London urban logistics

London urban logistics is a small part of the portfolio

today, but our 1.2m sq ft pipeline provides good optionality

for us to grow this in the future. Our urban logistics

strategy is development-led, focused on densification and

repurposing opportunities in London. The sequencing of

our development programme means the first schemes

we’ll deliver are located in London’s Zone 1 and 2, where

the occupational fundamentals are strong. The first is

Mandela Way, a 144,000 sq ft multi-storey facility in

Southwark, which we will be delivering later this year.

Capital allocation

Actively recycling capital is an important way we create

value. We dispose of dry assets where we have completed

our asset and development management activities and

redeploy capital into opportunities with higher returns. We

currently see the strongest occupational fundamentals and

most attractive returns in retail parks and best-in-class

developments on our campuses. Since we launched our

strategy in 2021, we have recycled £3.8bn of gross capital

and 93% of our portfolio is now in our chosen markets.

Since 1 April 2024, we have disposed of £597m of

assets, on average 2% ahead of March 2024 book value,

including the sale of our 50% stake in the Meadowhall

Shopping Centre for £360m, completed in July 2024. We

have an excellent track record of using joint ventures to

accelerate returns, stretch our equity, share risk and earn

high margin development management fees. Partners

are attracted by our strong capabilities in development

and asset management and our excellent track record

of delivery. In January 2025, Broadgate REIT, owned

equally by British Land and GIC, entered into a 50:50

joint venture agreement with Modon Holding to deliver

the 750,000 sq ft 2 Finsbury Avenue development.

Our share of cash proceeds received were £100m.

We have also taken advantage of opportunities to deploy

£738m into high quality retail parks since 1 April 2024. This

included the acquisition of seven retail parks for £441m

partially funded via a £301m equity placing, which

combined, added 0.2p to Underlying EPS this year and will

add 0.4p in FY26. These acquisitions further build upon

our market leading position in retail parks and we will look

to continue to acquire in the future, but will remain

disciplined on price.

1. Local Data Company, a Green Street Company

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

In the London office investment market, there are early

signs that liquidity is increasing with £2.6bn of transactions

in Q1 2025, up by nearly 30% on the previous quarter.

Demand for larger lot sizes is also increasing with seven

deals over £100m transacted in Q1 2025 compared to ten

deals in the whole of 2024. If this trend continues, we will

look to recycle capital out of our mature, lower returning

office assets.

The resilience of our balance sheet is of utmost importance

as it gives us the ability to navigate macroeconomic

uncertainties and the flexibility to invest in opportunities

as they arise. Loan to value (LTV) on a proportionally

consolidated basis was 38.1% at 31 March 2025 (37.3%

at 31 March 2024) and Group Net Debt to EBITDA was

8.0x (6.8x at 31 March 2024). We remain disciplined in

our management of leverage and whilst these metrics

are at the upper end of our internal ranges, they remain

comfortable at this point in the cycle. With values

inflecting, income to come from our development pipeline

and a continued focus on recycling capital, our expectation

is these metrics will reduce over time. For example, Group

Net Debt to EBITDA would be c.7x taking into account the

annualised impact of FY25 net purchases and upcoming

financing of joint venture developments post completion.

We have continued to be active in debt markets, on

new and extended transactions with debt providers

across a range of markets. During the year, our total

financing activity amounted to £2.2bn, comprising £1.3bn

of new finance raised, £700m of facility extensions,

and £150m of existing debentures repurchased. These

strategic transactions have maintained the diverse

sources of our finance and extended the debt maturity

profile. As a result of this activity, at March 2025 we

have £1.8bn of undrawn facilities and cash. Based

on these facilities and our current commitments we

have no requirement to refinance until late 2028.

Based on our policy of setting the dividend at 80% of

Underlying EPS, the Board are proposing a final dividend

of 10.56p, bringing the total dividend to 22.80p per share

for the year, in line with the prior year.

Sustainability

We continue to make good progress against our

sustainability strategy, which is focused on areas that drive

commercial advantage, such as stronger occupational and

investment demand for buildings with lower carbon. The

percentage of the portfolio which is rated EPC A or B

increased to 68%, up from 58% at FY24.

We remain on

track to meet the proposed Minimum Energy Efficiency

Standard of EPC B by 2030, and the cost of this is

estimated to be around £100m, of which around two thirds

will be recovered through the service charge. Since FY19

we have spent a cumulative £26m on these initiatives,

c.70% of which has been recovered via service charges.

We are a sector leader in sustainable development,

retaining our 5-star rating in GRESB’s annual sustainability

assessment for both standing investments and

developments, outperforming last year’s scores on both

metrics. Our standing investments scored 90/100 and we

scored a maximum 100/100 on our developments. Both

scores are 14 points ahead of the GRESB average.

Outlook

Sentiment towards real estate and liquidity in our markets

continued to improve during the year supported by

falling inflation and interest rates, however heightened

geopolitical and macroeconomic uncertainty persists,

in particular with regard to global trade disputes.

Against this backdrop, our cash flow predictability

and the above inflation rental growth characteristics

of our portfolio are increasingly important.

We are encouraged by the strong occupational

fundamentals which are reducing vacancy in our markets.

As such, we reiterate our guidance of 3-5% per annum

rental growth across the portfolio.

Assuming medium term interest rates do not increase

materially from here, we expect investment markets to

continue to improve. We are already seeing good activity

for retail parks and there are early signs of increasing

liquidity for larger lot size offices as the investment market

responds to the strong rental growth prospects for high

quality space.

We expect FY26 Underlying earnings per share to be

broadly flat, which equates to Underlying Profit growth

of 2%. The full year benefit of the earnings accretive retail

parks acquisition and associated equity placing, like for

like rental growth of 3-5%, the lease up of completed

developments, further reductions in admin expenses to

below £80m and increased fee income are expected to

offset the impact of onsite development and a 20-30

bps increase in our weighted average interest rate.

Going forward we expect to deliver 3-6% per annum

earnings growth utilising our identified five levers:

– Driving like-for-like rental growth on our portfolio

– Income from committed developments (c.5p of EPS

per annum, with c.80% of this to be delivered by the

end of FY27)

– Increased fee income

– Disciplined cost control; and

– Continued recycling of capital from mature office assets

into higher returning opportunities

Volatility creates opportunities for those that can be

nimble as we showed with our opportunistic acquisitions,

disposals and capital market issuances this year. With 3-5%

ERV growth per annum, a portfolio yield over 6%, and

development upside, we expect to deliver income focused

total accounting returns of 8-10% through the cycle.

Simon Carter

Chief Executive

1. Measured by ERV

CANADA

WATER

LIVERPOOL ST.

FARRINGDON

KING’S CROSS

EUSTON

WARREN ST.

PIMLICO

REGENT’S PARK

BOND ST.

PADDINGTON

WHITECHAPEL

SURREY

QUAYS

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

British Land

Annual Report and Accounts 2025

Regent’s Place

Located in London’s Knowledge Quarter,

close to academic and research institutions,

including University College London, The

Wellcome Trust and The Francis Crick

Institute. It has excellent transport links with

Euston and King’s Cross stations nearby and

is fast developing into one of London’s

leading science, technology and AI clusters.

Size: 13 acres

Ownership: 100% ownership (except 1 Triton

Square 50:50 JV with Royal London Asset

Management)

OFFICE-LED CAMPUSES IN CENTRAL LONDON (58% OF TOTAL PORTFOLIO BY VALUE)

% of total portfolio by value

Broadgate 23%

Regent’s Place 17%

Paddington 3%

Canada Water 4%

Other 11%

Broadgate

Located in the City of London, with excellent

connectivity, next to Liverpool Street Station

and the Elizabeth Line. Its proximity 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

2Finsbury Avenue 25:25:50 JV with British

Land, 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. Its

central 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%

Canada Water

One of the largest mixed use developments in

the UK, located on the Jubilee Line and the

London Overground. The Masterplan is highly

flexible and will deliver a mix of workspace,

retail, leisure, entertainment, education and

community space, as well as residential

(including affordable housing).

Size: 53 acres

Ownership: 50:50 JV with AustralianSuper

O U R

PORTFOLIO

NORTH

CIRCUL AR

SOUTH

CIRCULAR

NORTH

CIRCUL AR

A10

A12

A41

A40

A20

FINSBURY SQUARE

THE CITY

HANNAH CLOSE

WEMBLEY

VERNEY ROAD

SOUTHWARK

HERITAGE HOUSE

ENFIELD

MANDELA WAY

SOUTHWARK

THE BOX

PADDINGTON

WEMBLEY

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

RETAIL AND LONDON URBAN LOGISTICS INCLUDING 54 RETAIL PARKS

(42% OF TOTAL PORTFOLIO BY VALUE)

LONDON URBAN LOGISTICS

% of total portfolio by value

Retail Parks 32%

Shopping Centres

and other retail 7%

London Urban Logistics 3%

Retail Parks

We are one of the UK’s largest owners and

operators of retail parks with a total of 54

parks representing c.10% of the retail park

market. Parks are the preferred format for

many retailers due to their affordability,

adaptability and accessibility.

Occupancy rate: 99%

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.

Occupancy rate: 98%

London Urban Logistics

We own six development-led urban logistics

sites in Zone 1 of London and within the M25.

Our pipeline will deliver best-in-class logistics

space in a highly constrained market. In the

meantime, the portfolio continues to generate

good rental income.

Occupancy rate: 100%

Our portfolio of high quality UK commercial property is

focused on office-led campuses in Central London, retail

across the UK and London urban logistics. We own or manage

a portfolio valued at £14.6bn (British Land share: £9.5bn).

British Land

Annual Report and Accounts 2025

BUSINESS

MODEL

OUR STRENGTHS ARE: OUR LEVERS OF EARNINGS GROWTH:

Portfolio of high quality assets

Our portfolio of office-led campuses in London

appeals to a broad range of businesses. We are one

of the largest owners and operators of retail parks in

the UK and we are building a unique portfolio of

urban logistics schemes in London.

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 to stretch

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.

SUPPORTED BY

OUR VALUES:

DELIVER

AT PACE

BE SMARTER

TOGETHER

LIKE-FOR-LIKE

GROWTH

DEVELOPMENTS

COST CONTROL

CAPITAL

RECYCLING

FEE INCOME

INCOME

FOCUSED

8-10%

TOTAL ACCOUNTING

RETURN THROUGH

THE CYCLE

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

THIS FEEDS INTO HOW WE MANAGE THE BUSINESS

TO CREATE VALUE FOR ALL OUR STAKEHOLDERS:

We are a diversified business and invest in subsectors with

strong 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.

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 in

our chosen subsectors

as well as development

opportunities.

About how we create value for

our stakeholders on page 16

About how our approach to

risk underpins our strategy on

pages 47 to 58

About how our approach to

remuneration aligns with our

strategy on pages 107 to 129

BRING YOUR

WHOLE SELF

BUILD FOR

THE FUTURE

LISTEN AND

UNDERSTAND

British Land

Annual Report and Accounts 2025

STAKEHOLDER

ENGAGEMENT

Our customers

The users of our buildings

andspaces

Our investors

The people and institutions

who own British Land shares

or debt holders

What matters to them?

– High quality, well-connected,

sustainable space that fulfils

their needs

– Healthy and safe spaces that

promote wellbeing

– Fair and appropriate lease terms

– Property management and

maintenance

– Affordability, adaptability

and accessibility

What matters to them?

– Financial performance (including

income and cost control), returns

and dividends

– Strong balance sheet and

disciplined capital allocation

– Clear strategy and business model

– Leading ESG performance

– Risk management

– Strong leadership

How we engage

– Regular dialogue with customers

– Annual customer satisfaction

surveys to gain insight into how our

places are performing

– Customer networks across our

campuses

How we engage

– Investor relations programme

including meetings, roadshows,

conferences and video calls

– Investor seminars, capital markets

days, debt investors presentations

– Regulatory reporting, including the

Annual Report, full and half-year

results and our annual general

meeting (AGM)

Priorities for 2025/26

– Continue to be the partner of

choice for headquarter office

space in London

– Maintain high levels of customer

retention

– Work with existing customers to

upgrade buildings to meet shared

environmental objectives

Priorities for 2025/26

– Continue to have an open and

engaged dialogue with investors

– Consistently deliver sector-leading

income focused total accounting

returns

– Investor seminars

– Maintain strong balance sheet and

disciplined approach to capital

allocation

Outcomes:

78%

of customers stated BL are ‘the best’

or ‘better than most’ other providers

£301m

raised via an equity placing

inOctober2024

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 to discuss activities

– Working groups on a project or

topic basis

– Board meetings to assess

performance, progress and agree

future objectives

– Quarterly joint venture reporting

Priorities for 2025/26

– Leverage our strong joint venture

relationships to grow our third

party capital business

– Continue to earn fee income and

look to accelerate developments

in a capital light-way

Outcomes:

New joint venture

with Modon Holding

at 2 Finsbury Avenue

3.3m sq ft

of space leased in the year

including1.5msq ft of regears

50%

of share register met and 235

investormeetings completed

Key joint venture partners, including with

sovereign wealth and large pension funds

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

Section 172 statement:

Understanding our stakeholders is critical to the long term success

of our business. Regular engagement with them helps to shape our

strategy and ultimately informs our decisions so that we can deliver

outstanding places and positive outcomes for our stakeholders.

Our people

Everyone employed

by British Land

Our communities and local

authorities

People who live in and around

ourplaces; local organisations

andenterprises

Our suppliers and partners

Those who have a direct contractual

relationship with us to provide

goods and services

What matters to them?

– Diverse and inclusive culture

with strong leadership

– Career progression and

development opportunities

– Healthy and safe spaces that

promote wellbeing

– Fair pay and reward

– Ethical business with a clear

Sustainability Strategy

What matters to them?

– Collaboration and engagement

on local initiatives

– Long term, collaborative, trusted

relationships

– Places that foster social

connections and enhance wellbeing

– Providing a relevant mix of services

such as education, jobs and space

What matters to them?

– Long term, collaborative, trusted

relationships

– New business opportunities

– Fair commercial and payment

terms

– Aligned objectives and values

How we engage

– Internal communications channel,

including newsletters and intranet

– Regular team meetings and half-

yearly appraisals

– Annual employee engagement

survey

– CEO breakfast series open to all

employees

– Biennial Company Conference

– Employee networks

How we engage

– Our Local Charter

– Our Social Impact Fund and

Customer Community Funds

– Aligning on local programmes

such as employment opportunities

– Engagement and participation

in local networks

– Expert volunteering

How we engage

– Operating a rigorous onboarding

and tendering process

– Supplier Code of Conduct

articulates what we stand for, how

we work and the commitments we

expect them to share with us in

relation to social, sustainable and

ethical practices

Priorities for 2025/26

– Continue leadership and

management training

– Focus on DE&I objectives

– Advancing professional

development

– Enhance digital skills

– Continue to drive a performance-

orientated culture

Priorities for 2025/26

– Facilitate the impactful use of our

spaces by small local businesses

and community organisations

– Support educational initiatives

for local people

– Support local talent essential

to the UK’s growth industries

Priorities for 2025/26

– Focus on working with suppliers who

align with our values and ESG targets

– Maintain our 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)

Outcomes:

93%

employees proud to work

at British Land

18,500

people benefitting from

social impact partnerships

Achieved Living Wage

Employer accreditation

The nature of our business means that we have a continuous

dialogue with a wide group of stakeholders and their views are

taken into account 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 page 78.

79%

employee engagement score

£32.5m

direct social and economic

value generated in the year

100%

of suppliers signed up to the

SupplierCode of Conduct

British Land

Annual Report and Accounts 2025

BUSINESS

REVIEW

Key metrics

Year ended

31 March

2025

31 March

2024

Portfolio valuation £9,486m £8,684m

Occupancy

1,2

97.7% 97. 2 %

Weighted average lease length to first break 5.3 yrs 5.2 yrs

Total property return 6.9% 2.0%

– Yield shift -4 bps +33 bps

– ERV movement 4.9% 5.9%

– Valuation movement 1.6% (2.6)%

Lettings/renewals (sq ft) over 1 year 2.8m 2.8m

Lettings/renewals over 1 year vs ERV +8.6% +15.1%

Gross capital activity £1,729m £869m

– Acquisitions £738m £55m

– Disposals £(597)m £(410)m

– Capital investment £394m £404m

Net investment/(divestment) £535m £49m

On a proportionally consolidated basis including the Group’s share of joint ventures and excluding non-controlling interests

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 would reduce from 97.7% to 97.0%

2. Occupancy excludes recently completed developments at Norton Folgate, Aldgate, The Priestley Centre, The Optic and Dock Shed at Canada Water

Portfolio performance

At 31 March 2025

Valuation

£m

valuation

movement

valuation

movement

valuation

movement

ERV

movement

Yield shift

bps

Total

property

return

Net

equivalent

yield

Campuses 5,501 (1.7) 0.8 (0.8) 4.3 +14 3.1 5.6

City 2,646 (1.7) 1.8 0.2 6.0 +14 4.2 5.5

West End 2,097 (1.5) 0.4 (1.2) 3.1 +14 3.2 5.7

Canada Water & other

Campuses (incl. resi) 758 (2.3) (1.4) (3.6) (5.0) +39 (1.0) 6.0

Retail & London Urban Logistics 3,985 3.0 2.5 5.0 5.6 -27 13.2 6.6

Retail Parks 3,018 5.1 2.8 7.1 6.0 -32 16.0 6.4

Shopping Centres & other retail 643 (0.3) 3.8 2.1 5.1 -23 12.3 8.0

London Urban Logistics 324 (2.6) (2.6) (4.9) 0.8 +13 (2.4) 5.0

Total 9,486 0.2 1.5 1.6 4.9 -4 6.9 6.1

See supplementary tables for detailed breakdown

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

The value of the portfolio was up 1.6%, with valuation

growth accelerating in the second half of the year (H2:

+1.5% vs H1: +0.2%). The majority of the valuation

performance was driven by strong ERV growth of 4.9%,

at the upper end of our guidance range, with yields moving

marginally in by -4 bps.

Campus valuations were down 0.8% in the year, but there

was an inflection point in H2 where values increased by

0.8% vs a 1.7% decline in H1. Yield movements stabilised in

H2 with a +2 bps yield shift vs +12 bps in H1. ERV growth

across our campuses was 4.3% reflecting strong leasing

activity and limited supply. The value of our West End

portfolio was down 1.2%, with +14 bps yield shift partially

offset by ERV growth of 3.1%. In the City, portfolio values

were up 0.2% with ERV growth of 6.0% offsetting +14 bps

yield expansion. Values declined marginally on our

standing assets, while the values of our best-in-class

developments such as 2 Finsbury Avenue and 1 Broadgate

were up 8% and 5% respectively.

The value of our retail park portfolio increased 7.1% in the

year, with continued strong ERV growth of 6.0%, driven by

continued occupier demand and high occupancy on our

parks, and inward yield shift of -32 bps. London urban

logistics values declined by 4.9% based on outward yield

shift of +13 bps. ERV growth on the standing portfolio was

0.8% in the year, with performance impacted by the small

size of the portfolio, where there were limited lease events.

The retail portfolio outperformed the MSCI All Retail

benchmark by 390 bps on a total return basis for the year

to 31 March 2025, whilst our campuses outperformed the

MSCI benchmark for All Offices by 120 bps. Overall, our

portfolio outperformed the MSCI All Property total return

index by 50 bps.

Capital activity

From 1 April 2024

Campuses

£m

Retail &

London

Urban

Logistics

£m

Total

£m

Purchases – 738 738

Sales (147) (450) (597)

Development Spend 275 35 310

Capital Spend 57 27 84

Net Investment 185 350 535

Gross Capital Activity 479 1,250 1,729

On a proportionally consolidated basis including the Group’s share of joint

ventures and excluding non-controlling interests

We have been active in the investment market with gross

value of our capital activity totalling £1.7bn in the year. We

have sold £450m of non-core retail and shopping centres,

including our 50% stake in the Meadowhall Shopping

Centre joint venture for £360m, which completed in July

2024. In January 2025, we also sold 50% of our stake in

the 750,000 sq ft 2 Finsbury Avenue development to

Modon Holding and received cash proceeds of £100m,

retaining a 25% interest.

In the year, we acquired a total of 15 retail parks located

across the UK, for £738m, as well the remaining 12.5%

interest in New Mersey Retail Park in Speke. These parks

were earnings accretive from day one and partially funded

through our equity placing in October 2024.

We also invested £394m in our best-in-class development

pipeline and asset management initiatives on the standing

portfolio.

Kelly Cleveland

Head of Real Estate and Investment

New Mersey Retail Park, Speke

British Land

Annual Report and Accounts 2025

BUSINESS REVIEW CONTINUED

CAMPUSES

Key metrics

Year ended

31 March

2025

31 March

2024

Portfolio valuation £5,501m £5,278m

Occupancy

96.5% 95.8%

Weighted average lease length to first

break 6.2 yrs 5.8 yrs

Total property return 3.1% (2.3)%

– Yield shift +14 bps +50 bps

– ERV growth 4.3% 5.4%

– Valuation movement (0.8)% (5.3)%

Total lettings/renewals (sq ft) 1,500,000 679,000

Lettings/renewals (sq ft) over 1 year 1,193,000 561,000

Lettings/renewals over 1 year vs ERV +7.5% +8.7%

Like-for-like rental growth

+2% +4%

On a proportionally consolidated basis including the Group’s share of joint ventures and

excluding non-controlling interests

1. Occupancy excludes recently completed developments at Norton Folgate, Aldgate, The

Priestley Centre and Dock Shed at Canada Water

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 income would be +1% in both FY24 and FY25

Paddington Central

Portfolio valuation

£5,501m

Leasing

1.5m sq ft

Of deals signed in 2025

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

Exchange Square, Broadgate

1. Excludes Storey

Campuses operational review

Campuses were valued at £5.5bn, down 0.8%. This was

driven by outward yield shift of +14 bps, partly offset by

ERV growth of 4.3%, which is at the upper end of our

guided range of 3-5% for the year.

Lettings and renewals (including Storey) totalled 1.5m sq

ft, 7.5% ahead of ERV. As at 31 March 2025, we had a

further 250,000 sq ft under offer, 9.2% ahead of ERV. As

of 16 May 2025, we had 1.7m sq ft in negotiations on 1.5m

sq ft of space. The weighted average lease length to break

is 6.2 years and the weighted average lease length of

lettings in the year is 9.3 years.

Occupancy on our campuses is 97%, which excludes new

developments and recently refurbished space. On an EPRA

basis, occupancy is at 83%, where the majority of vacancy

is concentrated in new space on our campuses, where

demand is most concentrated, and we are making good

progress on leasing.

Campuses like-for-like rental growth was 2%

, with our core

campuses of Broadgate, Regent’s Place and Paddington

Central growing by 3%

, driven by strong leasing and asset

management initiatives. Overall, leasing was 21.8% ahead

of previous passing rent and fully offset the impact of

expiries and breaks.

Broadgate

Broadgate’s central location next to Liverpool Street Station,

high quality workspace, excellent range of amenities and

public realm continue to attract and retain occupiers at the

campus with occupancy remaining high at 97%.

Leasing activity (excluding Storey) covered 712,000 sq ft, of

which 638,000 sq ft were long term deals, 10.0% ahead of

ERV. Significant deals include:

– 261,000 sq ft pre-let with Citadel at 2 Finsbury Avenue,

with options to lease up to another 121,000 sq ft, meaning

the building is already 33% pre-let at a minimum and

c.50% pre-let if the option space is taken into account

– 77,000 sq ft new letting to US law firm, Akin on recently

surrendered, newly refurbished floors at 155 Bishopsgate

– 85,000 sq ft regear with Marex at 155 Bishopsgate,

upsizing from 75,000 sq ft in the building

– 101,000 sq ft with A&O Shearman exercising their option

on space at 1 Broadgate and signing an additional 7,000

sq ft to maximise their space take

– 56,000 sq ft of retail leasing at Broadgate Central, the

ground floors of 1 Broadgate and 100 Liverpool Street, to

brands including Ralph Lauren, Mango, Luca Faloni, Hobbs

and Whistles

Broadgate saw a valuation increase of 0.8%, with ERV

growth of 7.3% offsetting outward yield shift of +15 bps.

Regent’s Place

Regent’s Place continues to gain momentum as a science

and technology hub, capitalising on its location in London’s

Knowledge Quarter where technology meets science,

close to leading academic and research institutions

including University College London, The Wellcome Trust

and The Francis Crick Institute.

Leasing activity (excluding Storey) covered 124,000 sq ft,

of which 120,000 sq ft were long term deals, 1.6% ahead of

ERV. Key activity includes:

– The completion of lab space at 20 Triton Street and a

20,000 sq ft letting to Synthesia, the UK’s most valuable

generative AI media company. They bring the total

number of AI occupiers on the campus to 7

– Relation Therapeutics, an end-to-end biotech business

developing transformational medicines, doubling their

space take at 338 Euston Road to 13,000 sq ft. The

business has already upsized twice on the campus,

initially taking 6,000 sq ft at 338 Euston Road in 2022,

growing to 7,000 sq ft in 2024 and then doubling their

space take in 2025

– The launch of a 6,700 sq ft lab incubator space at

Drummond Street in partnership with Co-Laboratories, a

dynamic, community-led incubator built for life science

startups. The space is already c.30% let to four fast

growing organisations since its launch in April

Regent’s Place valuation was marginally down 0.8%, with

ERV growth largely offsetting outward yield shift of +12

bps. Occupancy at the campus is 96%.

British Land

Annual Report and Accounts 2025

BUSINESS REVIEW CONTINUED

Paddington Central

Paddington Central’s location and excellent connectivity,

next to Paddington Station with access to the Elizabeth Line

and Heathrow Express, continues to attract and retain

occupiers, with occupancy remaining high at 99%.

Leasing activity (excluding Storey) covered 212,000 sq ft,

172,000 sq ft of which were long term deals, 1.3% ahead of

ERV. Key deals include:

– Two regears with Vertex and a global technology business

covering 142,000 sq ft at 2 and 4 Kingdom Street

Paddington Central saw valuation declines of 1.9% driven by

outward yield shift of +10 bps. This has been partially offset

by ERV growth of 2.9%.

2. JLL

Broadgate Tower, Broadgate

1 Triton Square, Regent’s Place

Portfolio valuation

£9,486m

ERV growth

4.9%

across the portfolio

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

Storey: flexible office space

Storey is a key part of our campus proposition and

provides occupiers with the flexibility to expand and

contract depending on their requirements. 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.

Storey is currently operational across 258,000 sq ft and

leasing activity covered 157,000 sq ft across 43 deals in

the year. Occupancy is at 97%, above our target of 90%.

Canada Water

Momentum at Canada Water has continued during

the year with the first phase of the Masterplan nearing

completion. Dock Shed, which includes a mix of workspace

with a leisure centre on the ground floors is now

complete. Three Deal Porters Way, comprising 119,000

sq ft of workspace and The Founding, comprising 186

homes is due to complete this summer. Notwithstanding

this progress, the valuation of Canada Water declined

6.5% in the year, largely reflecting the higher sensitivity

of development sites to yield movements.

Placemaking initiatives are taking shape. In November

2024, we unveiled a new, Asif Khan designed boardwalk,

across Canada Dock connecting Canada Water tube

station to Surrey Quays Shopping Centre, and what will

be the new town centre. April 2025 saw the opening

of Corner Corner, a 55,000 sq ft cultural hub located

in Surrey Quays Shopping Centre overlooking Canada

Dock. The space is operated by Broadwick live, the

former operator of Printworks London, and features

collaborative workspaces, live music, and food and

beverage outlets alongside London’s largest indoor

urban vertical farm. The venue welcomed 100,000

visitors in its first month of operation, with another

500,000 visitors expected by the end of the year.

Dock Shed, which includes 180,000 sq ft of workspace

on the upper floors and a leisure centre built for

Southwark Council on the lower floors is now complete.

Across the office space at both Dock Shed and

Three Deal Porters, we have seen increasing levels

of interest from a variety of businesses looking for

brand new workspace at a lower price point, and we

have 6,000 sq ft of space under offer with our first

occupier and 180,000 sq ft of space in negotiations.

At The Founding, we have sold 46 residential units to

date at an average price of £1,250 psf, above target

pricing levels and attractive relative to competing

schemes. We expect sales velocity to increase when

we reach practical completion this summer.

A key benefit of the Canada Water planning consent is

that it provides significant flexibility over the mix of uses

we can deliver, allowing us to flex our plans in response

to changing market conditions. Looking forward, the

next phases of the Masterplan are likely to have a higher

residential element. For example, we are currently

seeing strong demand from student housing developers,

so we will likely partner or sell some plots to them to

benefit from their expertise and accelerate returns.

Canada Water Dock

The Founding, Canada Water

British Land

Annual Report and Accounts 2025

BUSINESS REVIEW CONTINUED

R E TAI L AN D

LONDON URBAN

LOGISTICS

Elliott’s Field Retail Park, Rugby

Portfolio valuation

£3,985m

Like-for-like rental growth

Key metrics

Year ended

31 March

2025

31 March

2024

Portfolio valuation £3,985m £3,406m

– Of which Retail Parks £3,018m £2,128m

– Of which Shopping Centres £435m £753m

– Of which London Urban Logistics £324m £313m

Occupancy

98.6% 98.5%

Weighted average lease length to first

break 4.6 yrs 4.7 yrs

Total property return 13.2% 9.6%

– Yield shift -27 bps +15 bps

– ERV growth 5.6% 6.3%

– Valuation movement 5.0% 2.1%

Total lettings/renewals (sq ft) 1,766,000 2,628,000

Lettings/renewals (sq ft) over 1 year 1,577,000 2,282,000

Lettings/renewals over 1 year vs ERV +10.5% +17.8 %

Like-for-like rental growth

+5% +1%

On a proportionally consolidated basis including the Group’s share of joint ventures and

excluding non-controlling interests

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 98.6% to 97.4%

2. Like-for-like rental growth excludes the impact of surrender premia, CVAs & admins and

provisions for debtors and tenant incentives

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

Glasgow Fort

Retail & London Urban Logistics

operational review

Valuations in these subsectors increased by 5.0% in the

year, with retail parks up 7.1%, shopping centres and other

retail up 2.1% and London urban logistics values down

4.9%. ERV growth across the three subsectors was 5.6%,

driven by retail parks, where ERVs grew by 6.0%,

exceeding our ERV growth guidance of 3-5%.

We continue to lease well, with 1.8m sq ft of lettings and

renewals signed in the year, 10.5% ahead of ERV, with a

further 622,000 sq ft under offer, 18.4% above March 2024

ERV. Excluding a small number of outliers (12 out of 208

deals) related to space previously let at very high legacy

rents, leasing was ahead of previous passing rents (8.6%

behind if these are included). Weighted average lease

length is 4.6 years.

Overall occupancy in the three subsectors remained high

at 99%. Like-for-like rental growth for retail & London

urban logistics was 5% for the year. This was a result of the

continued strong performance of our retail parks, the

preferred format for many retailers, and an improved

market at our shopping centres. Like-for-like growth at our

retail parks contributed an additional £6m to net rental

income. The over rent on our portfolio has narrowed

significantly over the last 3 years given strong ERV growth

and we continue to lease ahead of ERV.

Retail Parks

Retail parks are the preferred format for many retailers

due to their affordability, adaptability and accessibility.

Despite being virtually full, we continue to see significant

leasing momentum with 1.1m sq ft of deals signed in the

year, 9.6% above ERV. There was a significant increase

in leasing transactions in the second half of the year,

with 802,000 sq ft completed compared to 311,000 sq

ft in H1, and we have a further 0.5m under offer, 11.0%

ahead of ERV, demonstrating continued competitive

tension for space. Occupancy remains high at 99%,

driven in part by a 93% retention rate for those with break

or expiries in the year and reflecting strong demand

and limited supply. Key activity in the year includes:

– Leading omni-channel retailers continue to expand on

retail parks, with 78,000 sq ft let or under offer to Marks

and Spencer and 54,000 sq ft let or under offer to Next

– Smyths Toys signed four deals covering 63,000 sq ft,

including a new 15,000 sq ft unit at Biggleswade

– JD Sports signed four deals across 37,000 sq ft

including new units at Colchester and Giltbrook

– Mango signed two new leases at Teesside and

Broughton totalling 10,000 sq ft

– Mountain Warehouse signed two new leases at Milton

Keynes and Didcot totalling 16,000 sq ft

– B&Q signed the 43,000 sq ft former Homebase unit at

Biggleswade

– Following the opening of InHealth in FY24 at Denton, we

have further diversified the occupier line up on the park,

including MyDentist, and CVS Vets signing 5,000 sq ft

and 2,000 sq ft leases respectively

Shopping Centres

We continue to actively manage our shopping centres,

maintaining occupancy and driving rents forward. We have

completed 522,000 sq ft of deals, 8.4% ahead of ERV and

occupancy is now at 98%.

We prefer the occupational fundamentals of retail parks

and have said we will reduce our exposure to covered

centres at the right time and price. In line with this, we

completed the sale of our 50% stake in the Meadowhall

Shopping Centre joint venture to our partner Norges Bank

Investment Management for £360m in the year.

London Urban Logistics

In London urban logistics we have assembled a 1.2m sq ft

pipeline. We are making good progress on site with our

first development at Mandela Way in Southwark, building a

144,000 sq ft urban logistics scheme in Central London.

Construction is progressing to plan and is due to complete

in Q3 2025. This multi-storey logistics facility is the first of

its kind. It is set across four floors, serviced by five goods

lifts large enough for a fork-lift truck and three separate

cargo bike lifts, with ample loading space at ground level.

Marketing began in October 2024 and, whilst it is early

days, interest has been broad with a mix of traditional and

non-traditional logistics occupiers. In the year, we also

achieved planning consent for a multi-storey logistics hub

at Verney Road, located approximately a mile from

Mandela Way. This means that 3 out of 5 sites in our

pipeline now have consent.

Retail footfall and sales

31 March 2024 – 5 April 2025

% growth on

prior year

Performance

benchmark

2,3

Footfall

– Portfolio 0.1% +30 bps

– Retail Parks 0.3% +50 bps

Sales

– Portfolio 1.6% +120 bps

– Retail Parks 1.9% +150 bps

1. Compared to the equivalent weeks in the prior year

2. Footfall benchmark: Springboard MRI overall

3. Sales benchmark: BRC UK total instore retail sales

British Land

Annual Report and Accounts 2025

DEVELOPMENTS

BUSINESS REVIEW CONTINUEDBUSINESS REVIEW CONTINUED

2 Finsbury Avenue, Broadgate

Committed development ERV

£84m

Committed pipeline

2.4m sq ft

Developments

At 31 March 2025

Sq ft

‘000

Current

Value

£m

Cost to

complete

£m

ERV

£m

ERV

Let &

under offer

£m

Committed 2,405 929 330 83.5 29.9

Near term 698 116 309 31.1 –

Medium term 7,0 4 0 671 3,641 259.4 –

Total pipeline 10,143 1,716 4,280 374.0 29.9

On a proportionally consolidated basis including the Group’s share of joint ventures (except area which is

shown at 100%)

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

Development Pipeline

Developments are a driver of long-term value creation. In

FY24, higher interest rates caused yields to move out and

funding costs to rise. As a result, we increased the return

hurdles for our new developments and now target IRRs

of 12-14% on our campuses and mid teens on our London

urban logistics developments. We are in the right markets

with good supply demand tension, and are securing

higher rents, and our new developments are exceeding

these hurdles.

Construction cost inflation appears to be levelling

off and higher funding costs have resulted in limited

new supply coming on stream. We expect our

committed and recently completed developments, in

addition to asset management initiatives, to deliver

c.5p of future Underlying earnings per share growth,

with 80% to be delivered by the end of FY27.

We are currently on site with 2.4m sq ft of space,

delivering £83.5m of ERV, of which 36% is already let or

under offer. Total development exposure is now 3.5% of

portfolio gross asset value. Speculative exposure, which is

based on ERV and includes space under offer is 8.2% and

within our internal risk parameter of 12.5%. Development

valuations were up 2.3%.

Completed Developments

We completed five developments totalling 905,000 sq ft

in the year. At Norton Folgate, we completed the fit out of

56,000 sq ft of fully fitted floors in July. Unlike HQ space

with large floorplates that we deliver on our campuses, this

type of space typically leases after completion given the

smaller floorplates and target customer. We are 56% let or

under offer on space within the scheme and are seeing

good interest in the rest, with 56,000 sq ft of deals in

negotiations and a high velocity of viewing numbers.

Aldgate Place also reached practical completion in

the year. The scheme comprises 159 premium rental

apartments with 19,000 sq ft of office space and

8,000 sq ft of retail and leisure space. It is well located,

adjacent to Aldgate East and between Liverpool

Street and Whitechapel stations. The apartments

launched in September, and we are 38% let.

We recently completed The Optic on the Peterhouse

Technology Park, a 101,000 sq ft office and lab building,

which we have let in its entirety to Arm Holdings. We also

completed the development of The Priestley Centre in

Guildford. The building was 63% pre-let to LGC, a leading

global life sciences company, and we are in discussions

with potential occupiers on the remainder.

At Canada Water, we completed Dock Shed, which

consists of 180,000 sq ft of office space on the upper

floors and a leisure centre built for Southwark Council

on the lower floors. Across the office space at both Dock

Shed and Three Deal Porters, we have seen increasing

levels of interest from a variety of businesses looking

for brand new workspace at a lower price point, and

we have 6,000 sq ft of space under offer with our first

occupier and 180,000 sq ft of space in negotiations.

David Lockyer

Head of Development

Completed Developments

At 31 March 2025 Sector

BL Share

100% sq ft

‘000

Calendar

Year

ERV

£m

Norton Folgate Office 100 335 Q3 2024 26.3

Aldgate Place: Phase 2 Residential 100 138 Q2 2024 6.9

The Priestley Centre Science & technology 100 86 Q2 2024 3.5

The Optic Science & Technology 100 101 Q1 2025 4.5

Canada Water: Dock Shed (Plot A2) Mixed use 50 245 Q1 2025 5.6

Total Completed 905 46.8

British Land

Annual Report and Accounts 2025

BUSINESS REVIEW CONTINUED

Committed Developments

Our committed pipeline stands at 2.4m sq ft. At

Broadgate, we committed to 2 Finsbury Avenue and

Broadgate Tower, best-in-class office schemes to capitalise

on the favourable demand, supply fundamentals in the

City and at Regent’s Place we committed to 1 Triton

Square, a world class science and technology building, to

capitalise on its location in London’s Knowledge Quarter.

Mandela Way, Southwark

We are currently on site at Mandela Way, where we are

leveraging our planning and development expertise to

deliver an urban logistics facility in Southwark, in London’s

Zone 2. Construction is progressing on programme

and the building is due to complete in Q3 2025.

The development of 1 Broadgate is progressing on

programme and, with the exception of one floor, the

office space is fully pre-let to JLL and A&O Shearman.

Committed Developments

As at 31 March 2025 Sector

BL Share

100% sq ft

‘000

Calendar

Year

ERV

£m

Gross Yield

on Cost%

1 Triton Square Science & Technology 50 306 Q3 2025 17.3 6.8

Mandela Way Logistics 100 144 Q3 2025 4.2 5.8

1 Broadgate Office 50 546 Q2 2025 20.2 5.8

2 Finsbury Avenue Office 25 749 Q2 2027 19.7 7.8

Broadgate Tower Office 50 396 Q4 2026 18.5 8.3

Canada Water: Plot A1

Mixed use 50 264 Q2 2025 3.6 7. 3

Total Committed 2,405 83.5

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

3. Canada Water Plot A1 includes Three Deal Porters Way and The Founding

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

Near Term Pipeline

Our near term pipeline covers 698,000 sq ft, including

the development of 1 Appold Street at Broadgate

into a 404,000 sq ft best-in-class office building;

Verney Road, an urban logistics development in

Southwark, located approximately a mile away from

Mandela Way and a 92,000 sq ft office development

at West One, located over Bond Street station.

Medium Term Pipeline

Our medium term pipeline covers 7m sq ft. This includes

Euston Tower, where we have achieved planning consent

to deliver a 560,000 sq ft office and innovation tower in

London’s Knowledge Quarter; Botley Road in Oxford,

where we have achieved planning to build 235,000 sq ft of

science and technology facilities; three urban logistics

developments covering 0.9m sq ft including The Box at

Paddington Central, Finsbury Square Car Park and Hannah

Close in Wembley, as well as future phases of the Canada

Water Masterplan.

The Optic, Cambridge

British Land

Annual Report and Accounts 2025

FINANCIAL

REVIEW

Year ended

31 March

2025

31 March

2024

Underlying Profit

1,2

£279m £268m

Underlying earnings per share

1,2

28.5p 28.5p

IFRS profit after tax £338m £1m

Dividend per share 22.80p 22.80p

Total accounting return

5.0% (0.5)%

EPRA Net Tangible Assets per share

1,2

567p 562p

IFRS net assets £5,710m £5,312m

Loan to value

3,4,5

38.1% 37.3%

Net Debt to EBITDA (Group)

3,6

8.0x 6.8x

Weighted average interest rate

3.6% 3.4%

Senior Unsecured credit rating A A

1. See Note 2 of the financial statements for definition and calculation

2. See Table B within supplementary disclosures for reconciliations to IFRS metrics

3. See Note 16 of 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

and excluding non-controlling interests

5. EPRA Loan to value is disclosed in Table E of the financial statements

6. Net Debt to EBITDA on a Group basis excludes joint venture borrowings, and

includes distributions and other receivables from joint ventures

We have a

consistent, clear

strategy and

deliverable levers

of earnings growth

that play to our

competitive

strengths.

David Walker

Chief Financial Officer

David Walker

Chief Financial Officer

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

Overview

Underlying Profit was £279m, up 4% on the prior year as

strong demand for our retail parks and campuses continued

through FY25 and translated into 3% like-for-like net rental

growth on the standing portfolio. This was further

supported by our capital activity, increased fee income and

a disciplined approach to costs. We remained active in

recycling capital with the sale of £597m of assets, whilst

re-investing £738m into retail parks and maintaining good

momentum on our pipeline of best-in-class developments.

Our accretive retail park purchases were partially funded

through a successful £301m equity placing in October 2024.

Underlying earnings per share (EPS) were flat for the year at

28.5p despite the increase in Underlying Profit, primarily as

a result of taking a number of properties into development

which are expected to drive future earnings growth. Based

on our policy of setting the dividend at 80% of Underlying

EPS, the Board are proposing a final dividend of 10.56p,

bringing the total dividend to 22.80p per share for the year,

in line with the prior year.

IFRS profit after tax for the year to 31 March 2025 was

£338m, compared with a profit after tax for the prior year of

£1m, reflecting the improved valuation performance of the

Group’s properties and those of its joint ventures, partly

offset by the one-off capital receipt from the surrender

premium received at 1 Triton Square in the prior year.

Notwithstanding recent uncertainties relating to global

trade disputes, sentiment towards real estate and liquidity

in our sub-markets continued to improve during the

year, supported by falling inflation and interest rates.

This improvement in sentiment was evident in our own

activity with the recent joint venture sell down of a

share in 2 Finsbury Avenue at Broadgate, one of the

largest London office transactions in the market over

the past 12 months, as well as our successful equity

placing and concurrent purchase of seven retail parks in

October 2024. Whilst the placing was earnings accretive,

EPRA Net Tangible Assets (NTA) per share was diluted

by 11p, which was more than offset by increases in

property values on a proportionally consolidated basis

of 1.6% or 13p. Overall, EPRA NTA per share was up 5p

in the year, at 567p, and including dividends paid of

22.88p per share, total accounting return was 5.0%.

Balance sheet strength continues to be of utmost

importance and underpins our capital allocation framework,

providing the business with a platform to grow and remain

front footed. Loan to value (LTV) on a proportionally

consolidated basis was 38.1% at 31 March 2025 (37.3% at

31 March 2024) and Group Net Debt to EBITDA was 8.0x

(6.8x at 31 March 2024). Both metrics remain within our

internal ranges as we continue to recycle capital from

mature assets into our best-in-class developments and

higher returning opportunities.

We have continued to be active in financing with

debt providers across a range of markets. During the

year, our total financing activity amounted to £2.2bn,

comprising £1.3bn of new finance raised, £700m of

facility extensions, and £150m of existing debentures

repurchased. These transactions have maintained the

diverse sources of our finance and extended the debt

maturity profile. As a result of this activity, at March

2025 we have £1.8bn of undrawn facilities and cash.

Based on these facilities and our current commitments

we have no requirement to refinance until late 2028.

Fitch Ratings, as part of their annual review in July 2024,

affirmed all our credit ratings with a stable outlook,

including the Senior Unsecured rating at ‘A’. This rating has

been held since 2018.

Presentation of financial information and

alternative performance measures

The Group financial statements are prepared under IFRS

(UK-adopted International Accounting Standards) where

the Group’s interests in joint ventures are shown as a

single line item on the income statement and balance

sheet and all subsidiaries are consolidated at 100%.

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 and excludes non-controlling

interests in the Group’s subsidiaries. The financial key

performance indicators are also presented on this basis.

A summary income statement and summary balance

sheet which reconcile the Group income statement

and balance sheet to British Land’s interests on a

proportionally consolidated basis are included in

Table A within the supplementary disclosures.

Management uses a number of performance metrics

in order to assess the performance of the Group

and allow for greater comparability between years,

however, does not consider these performance

measures to be a substitute for IFRS measures. See

our supplementary disclosures for reconciliations, in

addition to Note 2 of the financial statements and the

glossary found at www.britishland.com/glossary.

Management monitors Underlying Profit as it is an

additional informative measure of the underlying recurring

performance of our core property rental activity and

excludes the non-cash valuation movement on the

property portfolio when compared to IFRS metrics. It is

based on the Best Practices Recommendations of the

European Public Real Estate Association (EPRA) which

are widely used alternate metrics to their IFRS equivalents,

with additional Company adjustments when relevant (see

Note 2 of the financial statements for further detail).

Management monitors EPRA NTA as this provides a

transparent and consistent basis to enable comparison

between European property companies. Linked

to this, the use of Total Accounting Return allows

management to monitor return to shareholders

based on movements in a consistently applied

metric, being EPRA NTA, and dividends paid.

Loan to Value (proportionally consolidated) and Net Debt

to EBITDA (Group and proportionally consolidated) are

monitored by management as key measures of the level

of debt employed by the business to meet its strategic

objectives, along with a measurement of risk. It also allows

comparison to other property companies who similarly

monitor and report these measures. The definitions and

calculations of Loan to Value and Net Debt to EBITDA

are shown in Note 16 of the financial statements.

British Land

Annual Report and Accounts 2025

FINANCIAL REVIEW CONTINUED

Income statement

1.1 Underlying profit

Underlying Profit is the measure that we use to assess

income performance. This is presented below on

a proportionally consolidated basis. No company

adjustments were made in the year to 31 March 2025.

In the year to 31 March 2024, £120m was excluded

from the calculation of Underlying Profit (see Note

2 of the financial statements for further details) in

relation to the lease surrender at 1 Triton Square.

Year ended Section

31 March

2025

£m

31 March

2024

£m

Gross rental income 484 476

Property operating

expenses (45) (36)

Net rental income 1.2 439 440

Net fees and other income 25 23

Administrative expenses 1.3 (82) (87)

Net financing costs 1.4 (103) (108)

Underlying Profit 279 268

Underlying tax (4) (3)

Non-controlling interests

in Underlying Profit – 1

EPRA and Company

adjustments 63 (265)

IFRS profit after tax 2 338 1

Underlying EPS 28.5p 28.5p

IFRS basic EPS 2 35.1p (0.1)p

Dividend per share 3 22.80p 22.80p

1.2 Net rental income

£m

Net rental income for the year ended

31 March 2024 440

Disposals (30)

Acquisitions 29

Developments (11)

Like-for-like net rent 10

Surrender premia 9

Provisions for debtors and tenant incentives (8)

Net rental income for the year ended

31 March 2025 439

The disposal of non-core assets over the past 24 months

has resulted in a reduction of net rents by £30m for the

year, primarily due to the sale of our share in the

Meadowhall Shopping Centre joint venture in July 2024.

Proceeds from disposals have subsequently been

deployed into income producing retail parks and our

developments. We acquired one retail park for £55m in

FY24 and were significantly more active in FY25, post the

Meadowhall disposal, acquiring a total of £738m of retail

parks. As a result, net rents increased by £29m in the year.

To drive future value, we have an active development

pipeline and properties moving into this pipeline reduced

net rents by £11m, largely driven by the surrender of the 1

Triton Square lease in September 2023 and subsequent

commitment to the development. Additional reductions

came from Broadgate Tower moving to development, as

well as 1 Appold Street which is now vacant and classified

as a development. These reductions were partially offset

by leasing space in our recently completed developments

at Norton Folgate and 3 Sheldon Square. Our committed

developments and significant asset management initiatives

are expected to deliver c.5p of EPS per annum, with c.80%

of this to be delivered by the end of FY27.

Like-for-like net rental growth across the portfolio was 3%

in the year, adding £10m to net rents.

Campus like-for-like net rental growth was 2%, with our

core campuses of Broadgate, Regent’s Place and

Paddington Central growing by 3%. Growth was driven by

strong leasing at Regent’s Place, including the impact of

new lettings to AI and other innovation businesses across

various floors at 338 Euston Road and 350 Euston Road,

as well as positive leasing momentum we are seeing on

existing stock at Broadgate including 155 & 199

Bishopsgate and 10 Exchange Square. Overall, leasing was

21.8% ahead of previous passing rent and fully offset the

impact of a tenant break at 1 Finsbury Avenue, as well as

the impact of breaks and expires on non-core assets in the

portfolio, such as 54 The Broadway in Ealing, which

reduced campus like-for-like net rental income by £2m.

Like-for-like net rental growth for retail & London urban

logistics was 5% for the year. This was a result of the

continued strong performance of our retail parks, the

preferred format for many retailers, and an improved

occupational market at our Shopping Centres. Like-for-like

growth at our retail parks contributed an additional £6m to

net rental income and included upsides from successful

new store openings at Glasgow Fort and Teesside. The

over rent on our portfolio has narrowed significantly over

the last 3 years with strong ERV growth, and we continue

to lease ahead of ERV given the strong demand for space

and profitability of the retail park format for retailers.

Surrender premium receipts, which are excluded from

like-for-like growth, added £9m to net rental income as we

negotiated the surrender of space at 155 Bishopsgate and

20 Triton Street in order to quickly capture positive

reversion on these assets. This space is now 88% let

significantly above previous passing rents.

The impact of provisions made against debtors and tenant

incentives on net rents was negative £8m compared to the

prior year. This was primarily due to the one-off benefit

from the collection of arrears relating to Arcadia in FY24.

1.3 Administrative expenses

We have continued our disciplined approach to cost

control and administrative expenses decreased £5m or 6%

to £82m. We have also capitalised on the existing British

Land platform, adding property acquisitions and

onboarding new developments with minimal incremental

cost. Fee income also increased in the year as we continue

to work closely with third party capital, earning the full fee

from managing Meadowhall whilst continuing to earn fees

on our joint venture assets and developments. As a result,

the Group’s EPRA cost ratio was 17.5% (FY24: 16.4%), with

the prior year benefitting from the one-off Arcadia

collection of arrears noted above.

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

1.4 Net financing costs

£m

Net financing costs for the year ended 31

March 2024 (108)

Net divestment 19

Developments (15)

Financing activity, market rates and other

movements 1

Net financing costs for the year ended 31

March 2025 (103)

Net financing costs decreased by £5m to £103m. Disposals

of £1bn over the last 24 months reduced costs in the year

by £33m, partially offset by the £14m impact from £0.8bn

of acquisitions, and the equity placing, made over the

same period.

Funding of our committed development pipeline and other

maintenance capex increased financing costs by £15m,

after interest on development expenditure being

capitalised. Our interest was capitalised on development

spend at an average rate of 3.4% during the year, below

our marginal cost of borrowing.

The interest rate on our debt is 97% hedged for the year

ending 31 March 2026, and 77% hedged on average over

the next 5 years, with a gradually declining profile. Our

interest rate hedging, which includes fixed rate debt,

interest rate swaps, and interest rate caps (where the strike

rates are below current SONIA) has continued to mitigate

the impact of higher market rates on our interest costs.

Our weighted average interest rate will gradually trend

towards market rates over time, as we have the benefit of

our existing hedging and our active approach to interest

rate management.

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

2025 was £338m, compared with £1m in the prior

year. IFRS basic EPS was 35.1p, compared to (0.1)p in

the prior year. The IFRS profit after tax for the year

primarily reflects the Underlying Profit of £279m, the

increase in value of the Group’s properties of £148m,

£43m capital and other finance costs being the fair

value movement on derivatives and hedge accounted

debt, a £42m loss on disposal of investment properties,

joint ventures and revaluation of investments, and

Underlying and Capital taxation for the year.

The basic weighted average number of shares in issue

during the year was 965m (31 March 2024: 927m), an

increase on the prior year following 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 2025 of 10.56p per share,

bringing the total dividend to 22.80p per share for the

year. Payment will be made on Friday 25 July 2025 to

shareholders on the register at close of business on

Friday 20 June 2025. 8.56p will be payable as a Property

Income Distribution and 2.00p 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.

Balance sheet

As at Section

31 March

2025

£m

31 March

2024

£m

Property assets 9,489 8,688

Other non-current assets 64 73

9,553 8,761

Other net current liabilities (218) (248)

Adjusted net debt 6 (3,637) (3,261)

EPRA Net Tangible Assets 5,698 5,252

EPRA NTA per share

4 567p 562p

Non-controlling interests – 13

Other EPRA adjustments

12 47

IFRS net assets 5 5,710 5,312

On a proportionally consolidated basis

1. See Note 2 of the financial statements for definition and calculation

4. EPRA net tangible assets per share

pence

EPRA NTA per share at 31 March 2024 562

Valuation performance 13

Underlying Profit 27

Dividend (23)

Other (1)

Equity placing (11)

EPRA NTA per share at 31 March 2025 567

The 1% increase in EPRA NTA per share reflects a valuation

increase of 1.6%, retained earnings and other movements,

partially offset by the earnings accretive equity placing in

October 2024.

Campus valuations were down 0.8% for the year, driven by

outward yield shift of 14 bps to 5.6% net equivalent yield

offset by ERV growth of 4.3%. The strong ERV growth

performance reflects our successful leasing activity and

the premium customers are placing on our best-in-class

London campuses. Campus valuations inflected in the

second half of the year with values up 0.8% (H1: -1.7%) as

ERV growth accelerated to 2.6% and yields remained

broadly stable.

Retail & London urban logistics valuations were up 5.0%,

driven by yield compression of 27 bps to 6.6% net

equivalent yield supported by ERV growth of 5.6%. Retail

parks were the strongest performer with values up 7.1%, as

parks remain an attractive investment proposition given

that they are the preferred physical format for many

retailers and supply remains restricted.

British Land

Annual Report and Accounts 2025

FINANCIAL REVIEW CONTINUED

5. IFRS net assets

IFRS net assets at 31 March 2025 were £5,710m, an

increase of £398m from 31 March 2024. This was primarily

due to the IFRS profit after tax of £338m, the October

2024 equity raise of £301m, partially offset by dividends

paid in the year of £221m.

Cash flow, net debt and financing

6. Adjusted net debt

£m

Adjusted net debt at 31 March 2024 (3,261)

Disposals 590

Acquisitions (738)

Proceeds from equity placing 294

Development & asset management initiatives (466)

Net cash from operations 270

Dividend (220)

Other

(106)

Adjusted net debt at 31 March 2025 (3,637)

1. Other includes financing activity, working capital and other cash movements

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 of the

financial statements and adjusted net debt is included

in Table A within the supplementary disclosures.

We have continued to actively recycle capital in the year,

with disposals and the proceeds from the equity placing,

offset by acquisitions reducing adjusted net debt by

£146m. We also continued to invest in our best-in-class

development pipeline as well as asset management

initiatives on the standing portfolio which combined,

increased adjusted net debt by £466m.

Net cash from operations offset by the dividend payment

reduced net debt by £50m and was offset by movements

in working capital and other cash movements.

7. Financing

Group

31 March

2025

31 March

2024

31 March

2025

31 March

2025

Net debt /

adjusted net

debt

1,2

£2,647m £2,081m £3,637m £3,261m

Principal

amount of

gross debt £2,740m £2,225m £3,738m £3,443m

Loan to value

31.7% 28.5% 38.1% 37.3%

Net Debt to

EBITDA

2,3

8.0x 6.8x 9.3x 8.5x

Weighted

average interest

rate 3.2% 2.6% 3.6% 3.4%

Interest cover 5.7x 5.9x 3.7x 3.5x

Weighted

average

maturity of

drawn debt 5.2 years 6.1 years 5.0 years 5.8 years

1. Group data as presented in Note 16 of the financial statements. The

proportionally 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 of 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

We have continued to be active in financing with debt

providers across a range of markets. During the year, our

total financing activity amounted to £2.2bn, comprising

£1.3bn of new finance raised, £700m of facility extensions,

and £150m of existing debentures repurchased. These

strategic transactions have maintained the diverse sources

of our finance and extended the debt maturity profile.

The new £1.3bn of unsecured debt has been raised

incorporating our standard unsecured financial covenants,

in public bond and bank markets:

– £300m Sterling bond issued in March 2025, with 7 year

maturity, at a spread 98bps above Gilts;

– £100m bi-lateral bank revolving credit facility (RCF)

signed in March 2025;

– £730m syndicated RCF with a group of 14 banks

including two new relationships, signed in October 2024.

This RCF replaced a £525m syndicated RCF due to

mature in May 2025; and

– £200m in two bi-lateral RCFs with banks who were also

new relationships for us, signed in May and July 2024.

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

Our public unsecured sterling bond, issued under our

EMTN programme, generated strong support from

debt investors, with an order book more than three

times covered at the issuance price of Gilts + 98bps

(5.25% coupon). Alongside this issuance we conducted

a tender for our legacy secured debentures, repaying

a total of £150m, including £72m of the 5.357% 2028s

and £78m of the 5.264% 2035s, with security released

accordingly from the related collateral asset pool.

The new RCFs have initial 5 year maturities and may

be extended by a further two years at our request and

with the agreement of each bank for its participation.

Sustainability KPIs are included in all these RCFs,

linked to BREEAM ratings and Energy Performance

Certificates, aligned with our Sustainability Strategy. In

British Land and our joint ventures we have now have

a total of £2.7bn (£2.4bn British Land share) of Green

and Sustainability/ESG linked loans and facilities.

Extensions by one year of a number of existing RCFs and

term loans, in total £700m, have been agreed during the

year, to maturities in 2029/30.

As a result of this activity, at March 2025 we have £1.8bn of

undrawn facilities and cash. Based on these facilities and

our current commitments we have no requirement to

refinance until late 2028. In keeping with our usual

practice, we expect to refinance or replace debt facilities

ahead of maturities and to continue to be active in

financing markets.

Our weighted average interest rate at 31 March 2025 was

3.6%, a 20 bps increase from 31 March 2024. This reflects

our interest rate hedging profile which reduces the impact

of higher market interest rates. Our debt is 97% hedged

over the year to 31 March 2026, and 77% hedged on

average over the next five years.

At 31 March 2025, our proportionally consolidated LTV

was 38.1%, up from 37.3% at 31 March 2024. Disposals

in the year, primarily our share in the Meadowhall

Shopping Centre joint venture, decreased LTV by

390 bps, whilst development spend and acquisitions,

offset by the equity placing, together added 490

bps. The net impact of property valuation and other

movements decreased LTV by a further 20 bps.

Net Debt to EBITDA for the Group increased to 8.0x

at 31 March 2025 (6.8x at March 2024) and on a

proportionally consolidated basis the ratio increased to

9.3x (8.5x at March 2024). Movements in Net Debt to

EBITDA were driven by capital activity in the year and

development spend.

We remain disciplined in our management of leverage

and whilst these metrics are at the upper end of our

internal ranges, they remain comfortable at this point

in the cycle. With values inflecting, income to come

from our development pipeline and a continued focus

on recycling capital, our expectation is these metrics

will reduce over time. For example, Group Net Debt to

EBITDA would be c.7x taking into account the annualised

impact of FY25 net purchases and upcoming financing

of joint venture developments post completion.

We have an advantageous debt structure which gives

access to diverse sources of finance through debt raised

by British Land and in our joint ventures. Our debt in

British Land (except for the debentures) is unsecured

with no interest cover covenants. At March 2025, we

retain significant headroom to our debt covenants,

meaning the Group could withstand a fall in asset

values across the portfolio of 36%, prior to taking any

mitigating actions. Joint venture debt is arranged as

required by the business of each relevant entity and

secured on its assets, non-recourse to the Group, and the

majority is “covenant light” with no LTV default limits.

Fitch ratings, as part of its annual review in July 2024

affirmed all our credit ratings, with stable outlook; Senior

Unsecured ‘A’, long term IDR ‘A-‘ and short term IDR ‘F1’.

Our strong balance sheet, established lender relationships,

access to different sources of finance and liquidity, all

provide a platform for us to deliver on our strategy.

David Walker

Chief Financial Officer

Target

on track at [XX]kg CO

per sqm in current office

developments

Target

on track at [38]% reduction

Target

FY25:

Target achieved

FY25:

Target achieved

[XX]% of our employees

and [XX]% of our supplier

employees were paid the

real Living Wage

Target

[XX,XXX] beneficiaries

since [FY21]

Target

£[xx]m generated since [FY21]

Target

on track at [XX]% reduction

Target

Targeting

£[XX]m

deployed since [FY21] including

£[XX]m cash and £[XX]m

affordable space

British Land

Annual Report and Accounts 2025

DELIVERING OUR SUSTAINABILITY STRATEGY

PROGRESS ON

OUR TARGETS

about our Greener Spaces pillar

on pages 37

about our Thriving Places pillar

on page 40

about our Responsible Choices pillar

on page 42

in our Sustainability Progress Report

www.britishland.com/SPR

Targeting:

50%

lower embodied carbon intensity at our

developments by 2030

75%

reduction in operational carbon intensity

by 2030 vs 2019 baseline

25%

improvement in operational energy

intensity by 2030 vs 2019 baseline

Targeting:

£25m

Social Impact Fund to be deployed

by 2030, including £10m of affordable

space

£15.2m deployed since FY21

66,756 beneficiaries

since FY21

£120m generated since FY21

FY25: 36%

FY25: 17.9%

FY25: 100%

on track at 39% reduction across

current office developments

on track at 38% reduction¹

on track at 19% improvement¹

£200m

direct social and economic value

generated by 2030

90,000

education and employment

beneficiaries by 2030

Targeting:

40%

(at least) female representation at senior

management levels

100%

of people working on our behalf at our

places paid at least the real Living Wage

17.5%

minoritised ethnic representation across

the Company by 2025

Targeting:

GRESB for Development and Standing

Investments

FY25: 5* Achieved

Global Sector Leader for Development

and European Sector Leader for

Standing Investments

100%

of developments on track to achieve

BREEAM Outstanding (Offices);

Excellent (Retail); Home Quality Mark

(HQM) (Residential) minimum 3*

FY25: 100%

1 Performance is versus an indexed FY19 baseline, the methodology of which is outlined in the Sustainability Progress Report

GREENER

SPACES

T H R I V I N G

PLACES

RESPONSIBLE

CHOICES

SUSTAINABILITY

LEADERSHIP

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

SUSTAINABILITY REVIEW

Average embodied carbon

(CO

e) per sqm in current

office developments

615kg

2024: 625kg

Portfolio EPC A and B

rated (by ERV)

68%

2024: 58%

Improvement in managed

portfolio energy intensity

against FY19 baseline

19%

2024: 18%

Spend on carbon efficient

interventions since FY19

£26m

2 Finsbury Avenue, Broadgate

3 Sheldon Square, Paddington Central

GREENER

SPACES

HIGHLIGHTS

British Land

Annual Report and Accounts 2025

Delivering Greener Spaces means making

choices which minimise our greenhouse gas

(GHG) emissions and our wider impact on

theenvironment.

There is clear commercial benefit to this, as our customers

increasingly demand space with excellent environmental

sustainability credentials. We know that this sustainable

space will let more quickly at higher rents and be worth

more in the investment market.

Decarbonisation

The buildings and construction sector is responsible for

c.21% of global GHG emissions and over 32% of energy

demand. Considering this and the sector’s wider

environmental impacts we have a responsibility and

opportunity to act to support the equitable transition

to a low carbon economy and to create resilient places

for ourcustomers.

In FY25, we remained on track to achieve our targets

and actions set out in our 2020 Pathway to Net Zero

(Pathway). This Pathway was created in line with best

practice guidance at the time which has since evolved in

line with climate science, technological advancements and

policies. We have been working with specialists to update

our approach and targets to reflect this latest guidance.

We are now in the process of reviewing our Science Based

Targets initiative (SBTi) targets in line with the Building

sector guidance. Our new targets are expected to extend

beyond 2030. We are a sponsor of the UK’s Net Zero

Carbon Buildings Standard (NZCBS) working group and

have submitted development projects to the pilot testing.

Reducing embodied carbon in developments

Embodied carbon covers all emissions generated in

the production, maintenance and deconstruction of

a building. This year, we reduced our average upfront

embodied carbon intensity across committed, near

and medium term office developments to 615kg CO

per sqm from 625kg CO

e per sqm in FY24. Key to

this progress is our commitment to reusing existing

building components and materials when possible,

design efficiency and specifying low carbon materials.

Circular economy

The circular economy aims to eliminate waste by keeping

materials in use for as long as possible. To facilitate this, we

look to retain, reuse and upcycle materials and structure

in existing buildings where possible. Our development

approach acknowledges circularity as a crucial part of

real estate’s future. In FY25, we published our guide

“Full Circle, Full Potential” developed in partnership with

architect and strategic consultancy 3XN GXN. The guide

details our approach to transitioning to a circular economy,

including a standardised approach for each stage of

the materials life cycle, to enhance circulation within the

built environment and maximise material potential.

Low carbon materials

In FY25, our Low Carbon Materials Working Group

continued to identify and review low carbon materials

and solutions for our development projects, as well as

challenging conventional building standards to reduce

embodied carbon. Guided by our Carbon Primer report

shared in FY24, which brings together lessons from

multiple British Land projects, this year we continued

to specify and procure lower carbon alternatives to

traditional building materials, including low carbon

steel, rebar and aluminium for integration into our

developments where commercially and technically viable.

Designing for efficient operation

For new office developments, we target whole building

operational energy efficiency of 90kWhe per sqm, in line

with UK Green Building Council (UKGBC) 2030 targets.

To deliver this, we are adopting NABERS UK Design for

Performance (DfP) on all office developments. NABERS

UK DfP is a framework which ensures accurate prediction

of energy consumption throughout a building’s life. This

year, seven of our developments are targeting NABERS UK

DfP, two of which have received their target rating. As

early as FY23, 1 Broadgate was the first building to receive

a 5* NABERS UK DfP target rating. As part of our NABERS

Working Group we have developed bespoke NABERS

guidance on implementing robust processes on British

Land developments.

Transition Vehicle

Our Transition Vehicle was established in 2020 and is a

mechanism for delivering our energy and carbon targets.

It is financed by an internal levy on the embodied carbon

in our developments which is currently set at £90 per

tonne of carbon. The majority of the Transition Vehicle

funds are used to invest in retrofitting projects and

research and development with the remainder being used

to purchase carbon credits. Annually we supplement our

Transition Vehicle with a £5m float. So far, the Transition

Vehicle has committed £20m on retrofitting projects.

Offsetting

Once we have explored reasonably practical and

economically viable steps to reduce embodied carbon

in our developments we offset the residual embodied

carbon. We pre-purchase the carbon credits for all our

committed developments, both to secure our preferred

projects and to provide greater certainty over costs, as

the rising price of carbon credits is one of our identified

climate-related risks (see page 68). Prior to purchasing

carbon credits from a new project we conduct thorough

due diligence into them. We retire half of these carbon

credits at commitment with the remainder being retired in

line with practical completion or shortly after. We continue

to consider local, certified carbon credits.

SUSTAINABILITY REVIEW CONTINUED

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

Reducing operational carbon

Operational carbon covers the emissions associated with

energy, fuel and refrigerant used to operate the building or

associated infrastructure. This year, our whole managed

portfolio energy intensity improved to 167kWhe per sqm

(19% improvement vs FY19 indexed baseline) and our

carbon intensity reduced to 42kg CO

e per sqm (38%

reduction vs indexed FY19 baseline). The managed

portfolio includes multi-let properties where there is

management influence over operations. This has been

another strong year of progress towards our 2030 targets

reflecting the positive impact our carbon efficient

interventions are having on a whole-building basis.

Most of these savings have been from our offices where for

over a decade we have been collecting whole building

utilities data, implementing carbon efficient interventions

and working closely with our customers. In retail, the

energy consumption within tenant spaces, where we lack

control over procurement decisions and usage patterns,

significantly influences our performance. We are currently

exploring the most effective methods to collaborate and

engage with our retail tenants to identify and implement

opportunities for reducing this energy consumption.

Retrofitting our portfolio

Following a programme of environmental audits, a

decarbonisation pathway has been established for nearly

all our managed assets which are a fundamental part of

their business plans. The estimated cost of these

decarbonisation pathways is £100m and we expect that a

significant part of this cost will be recovered through the

service charge as part of standard life cycle replacement.

These pathways align with the proposed Minimum Energy

Efficiency Standard (MEES) requirements for all non-

domestic buildings, where we are targeting buildings to be

either EPC A or B rated by 2030. The proportion of the

portfolio rated EPC A or B by ERV is now 68%, up from

58% in FY24.

To date, £26m

has been spent on carbon efficient

interventions across our managed assets with £9m spent

in FY25. Some of the interventions funded in FY25 include

the installation of heat pumps at 2 Kingdom Street, 1

Finsbury Avenue and 155 Bishopsgate and upgrading the

car park lighting to LED across numerous retail parks.

Renewable energy sources

Over the last two years we have undertaken two pilot

projects to deliver landlord operated solar systems;

running in-depth feasibility studies, gaining grid consent

and assessing roof conditions. However, the workstream

has paused due to challenges with the roofs demised to

occupiers and the resource-intensive conditions of

agreeing numerous power purchase agreements.

As an alternative, we are supporting our retailers with

delivering their own solar with four schemes currently

planned. We have engaged with minsters at the

Department for Energy Security and Net Zero to guide

regulatory reforms to accelerate decarbonisation of

retail assets. Our retail parks have rooftop capacity for

approximately 370,000 sqm of solar PV. If we were

able unlock this, it could add c.69MWp of renewable

capacity and generate more than 87,500MWh of

energy for our customers every year. We will review this

opportunity on an ongoingbasis and remain supportive

of our retail occupiers installing their own solar.

We are a signatory to RE100, which commits us to

procuring 100% renewable energy. We purchase our

energy from Renewable Energy Guarantees of Origin

(REGO) and Renewable Gas Guarantees of Origin (RGGO)

certified traceable sources. From April 2024, we have been

trialling a new enhanced methodology for measuring and

monitoring electricity consumption, which involves time

matching hourly electricity demand with renewable energy

production. Through understanding our renewable energy

requirements on a more granular basis, we hope to

support the transition to carbon free energy.

Nature

Climate change and nature loss are linked, so we consider

them together and prioritise the use of nature-based

solutions where relevant. Nature plays a role in supporting

the health and wellbeing of customers and visitors to

ourplaces.

We have been supporting nature at our places for more

than a decade, through the introduction of accessible

green spaces at our assets. These green spaces include

creating or retrofitting new habitats through planting and

the introduction of new species and vegetation. This has

been done in line with our Biodiversity Frameworks and

Design Guides for our campuses and retail assets.

This year, we worked with our ecologists to refine our

strategy for nature. This strategy builds on our existing

work enhancing biodiversity and improving natural capital,

focusing on embodied nature impacts in our supply chain,

achieving biodiversity net gain on our developments and

delivering nature plans for our operational assets.

on our nature strategy in our 2025 Sustainability Progress

Report www.britishland.com/SPR

Air source heat pump installation, Broadgate

1. Figure includes capital expenditure, monies recoverable through

service charge and occupier spend in demised spaces

British Land

Annual Report and Accounts 2025

SUSTAINABILITY REVIEW CONTINUED

THRIVING

PLACES

Direct social value

£11.3m

2024: £9.7m

Total beneficiaries

18,500

2024: 15,000

Direct economic value

£21.2m

2024: £20.4m

Social impact initiatives

supported

2024: 93

National Literacy Trust Young

Readers, Paddington Central

The Leith Collective, Really Local Store, Fort Kinnaird

HIGHLIGHTS

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

Our social impact strategy uses our assets

to support our customers and communities

to learn, earn and grow, generating value

through impactful use of our spaces,

employment and education programmes.

We focus on opportunities both in our

industry and at our places, and are moving

towards a focus on growth sectors in green,

science and tech skills.

The resulting programmes directly impact the communities

living in and around our places, supporting their wellbeing

and prosperity. This supports the success of our places,

helping deliver developments, managing risk, attracting

customers and protecting our licence to operate.

Social impact

Our £25m Social Impact Fund, which comprises £15m of

cash contributions and £10m of affordable space value,

is distributed across our three commitment areas of

affordable space, employment and education to 2030.

In FY25, our Social Impact Fund contributed £1.2m of

cash and £1.2m of affordable space. This brings our total

contributions since FY21 to £8.1m of cash and £7.0m of

affordable space.

Affordable space

Our strategy focuses on leveraging our space and expert

knowledge to support a broad range of local organisations.

This focuses on our strengths – our core business of

providing high quality space and commercial expertise – to

generate social, economic and commercial impact and

differentiate our places.

This year, we provided £1.2m of affordable space,

benefitting small businesses, social enterprises, community

organisations and charities. We also published a report on

the commercial return and socioeconomic impact of our

retail affordable space programme, Really Local Stores.

Applying a robust approach to reporting, we only count

space provided for free or at a significant reduction for

at least three months. Many more organisations benefit

from events and pop-ups. We actively support smaller

organisations through the process, removing barriers

to entry wherever possible.

Employment

We support local training and jobs through Bright Lights,

our skills and employment programme. Bright Lights

enables local people to access opportunities in our sector

and at our places. This helps secure the skills our business,

suppliers, customers and communities need as we work

towards an equitable low carbon future.

This year, Bright Lights delivered 32 employment initiatives

including pre-employment training, virtual programmes,

mentoring, work placements, graduate schemes,

internships and apprenticeships. 1,189 people benefitted

from meaningful employment support at our places, with

457 securing employment. This brings the number of

Bright Lights beneficiaries to 6,719 since FY21, progressing

towards our target of 10,000 by 2030. We have applied a

robust approach to reporting, only counting people who

receive meaningful life-enhancing support.

This year we began pivoting our activity to address the

UK’s fast-growing future skills needs. We have focused on

using our existing social impact initiatives to support the

development of green skills, ensuring that people can

access employment opportunities for the future.

Green skills

We recognise that the transition to net zero requires an

increasing range of skills, known as green skills, which

support a more sustainable and resource efficient society.

Research shows that green jobs are growing twice

as fast as the number of workers with the skills to fill

them.

We see an opportunity to enable people living

in our communities to access the opportunities created

by the green skills gap by introducing a green focus

to our education and employment initiatives where

appropriate. Working with experts and partners across

our business and supply chain, we are reviewing how all

elements of our 2030 Sustainability Strategy can support

an equitable transition to a low carbon economy.

Our long-standing commitment to addressing social

mobility through education and employment initiatives,

adapting our approach and programmes to suit changing

circumstances and needs, has been recognised by the

Social Mobility Index over seven consecutive years, and we

are the only listed REIT to feature in the Index’s top 75.

Education

We focus our support on needs-based education

programmes – to support curriculum learning, increase

local talent pools, raise awareness of careers in our sectors

and support young people to access career opportunities

in the future. This year, we delivered 52 education

initiatives at our places, benefitting 7,596 people, often

bringing together our customers, suppliers and local

partners. Much of this was through our partnership with

the National Literacy Trust (NLT), the UK’s largest and

longest running corporate literacy programme.

Social value

Our social value target to generate £200m of direct social

and economic value by 2030 gives a financial value to the

outcomes of our social sustainability programmes. The

elements of this target were externally validated by

external social value specialists. This further embeds social

impact into how we do business and underscores the

importance of thriving communities as linked to

commercial success for us and our customers.

Our target comprises £100m of direct social value

generated from our £25m Social Impact Fund, focusing on

affordable space, employment and education outcomes,

and £100m of direct economic value generated from our

spend with small and medium-sized enterprises (SMEs).

We are also targeting £100m of indirect social and economic

value by 2030, primarily through social impact activities

and local spend as a result of our development activity.

In FY25, we undertook a process, working with social value

specialists CHY Consultancy, to externally verify direct

social and economic value data from earlier years. Since

FY21 £120m of direct social and economic value was

generated, of which £32.5m was generated in FY25.

For a detailed breakdown, see our 2025 Sustainability

Progress Report www.britishland.com/SPR.

1. www.weforum.org/stories/2024/02/green-jobs-green-skills-growth/

British Land

Annual Report and Accounts 2025

SUSTAINABILITY REVIEW CONTINUED

RESPONSIBLE

CHOICES

% of staff proud to work

at British Land

93%

2024: 93%

Number of internal

moves/promotions

2024: 90

Employee engagement

score

79%

2024: 78%

Hours spent on employee

training

8,055

2024: 11,000

Pride installation, Paddington Central

Sports and Social Employee Network event

HIGHLIGHTS

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

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 continue to foster a diverse, inclusive and ambitious

culture so we can attract, develop and inspire the best

people to deliver our strategy. All our people-related

initiatives link back to this goal.

Empowering leadership and talent development

Leadership and professional development remain at the

core of our people agenda and we continued our mandatory

training programme for all team leaders.

Key highlights include:

– Professional Development: 8,055 hours of learning

completed, with a focus on management development.

– Nurturing Talent: committed to the career growth of our

employees, with 71 internal moves such as secondments

and promotions successfully completed in FY25.

– Coaching: we partnered with Circl for the sixth year

running. Circl is a leadership development programme

who teach coaching skills to professionals working with

young adults from underrepresented backgrounds.

– Mentoring: this year we formally matched 47 mentees

with mentors who provide them with valuable career

guidance, insight and support, but there are many more

informal mentee/mentor relationships across the business.

Commitment to diversity, equality & inclusion

Our commitment to diversity, equality & inclusion (DE&I)

continues to be a core value in our organisation.

Key achievements:

– Minoritised Ethnic Representation: we have achieved

17.9% ethnic minority representation across the business,

in line with our 2025 internal targets.

– Women Leaders: we have 50% women at Board level

and 43% women at ExCo level, exceeding our 40%

women target, and 36% women among ‘ExCo and their

direct reports’.

– DE&I Internal Audit: an independent assessment of the

design and governance of our 2030 DE&I Strategy was

carried out, and the Strategy was deemed “mature”,

“clear and well structured”, and “linked to British Land’s

purpose and values”. Being halfway to 2030, we will

update the Strategy, to make sure it continues to

challenge us.

– Social Mobility Recognition: for the seventh consecutive

year, we were listed in the Social Mobility Foundation

Index Top 75, reaffirming our commitment to recognising

talent, whatever someone’s social background.

– Company Culture: 90% of our employees agree that

diversity is a stated value or priority for British Land.

Engaging our workforce for a stronger future

Employee engagement is at the heart of British Land’s

workplace culture. By listening to our people and acting on

their feedback, we continue to strengthen our work

environment and drive positive change.

Key achievements:

– Employee Engagement Survey: for the second year in a

row we had a record 90% participation rate in our

November 2024 employee survey, with our highest ever

engagement score of 79%.

– Workplace Innovation Programme: our “Hats On”

initiative led to 35 employee-driven innovations being

implemented in daily operations since its inception in

October 2022.

– We have invested in our systems and processes to enable

our people to do their work more effectively and seen

employee engagement in this specific area increase by 5%.

– We have launched a digital skills drive to enable

everyone to maximise the technology available to them.

The aim is for everyone to make personal incremental

gains as they reduce administrative burden in daily tasks.

Financial performance and investment in people

In the past year, we allocated over £400,000 towards

comprehensive training and development initiatives.

This investment supported leadership and management

development, DE&I training and employee wellbeing

initiatives. By prioritising these areas, we have empowered

our workforce with the skills and resources needed to

thrive in a dynamic environment.

Looking ahead: Our vision for 2025 & beyond

As we look to the future, we want to sum up our business

by “small team, smart people, big ambitions” and remain

committed to fostering an agile, diverse and engaged

workforce. Our priorities for the upcoming year are ever

continuing leadership development, continuing focus on

our DE&I goals, advancing professional development and

enhancing digital skills.

Responsible procurement

A strong relationship with our supplier partners plays a key

role in the successful delivery of our strategy which is

governed by our mandatory Supplier Code of Conduct.

This sets out clear social, ethical and environmental

obligations for our supply chain partners and promotes

safe and fair working conditions.

Against modern slavery

We uphold the human rights of our employees and

throughout the supply chain. We have provided anti-

modern slavery training to all our employees. We continue

to undertake audits of our key suppliers. During FY25, 10

audits took place.

Real Living Wages

We have a strong track record of paying at least the real

Living Wage to British Land employees and people working

on our developments and encouraging our suppliers to do

the same approach. In FY24 we were accredited as a

Living Wage Employer and in FY25, all people working at

our assets on our behalf were paid at least the real Living

Wage. This includes all people working directly for British

Land and for our hard and soft service providers.

Mandating prompt payment

We are committed to paying all suppliers within 30 days. In

FY25, we settled Group invoices within 20 days on average.

327

All employees*

Senior management*

Board

304

Workforce gender diversity at March 2025

*(excludes Non-Executive Directors)

FemaleMale

British Land

Annual Report and Accounts 2025

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 magnification of

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 2025, proportionally consolidated LTV

was 38.1% and for the Group was 31.7%. The ratio of

Net Debt to EBITDA is a measure of leverage based on

earnings, rather than asset valuations, which we consider

primarily on a Group basis. At 31 March 2025, our Group

Net Debt to EBITDA was 8.0x and the proportionally

consolidated measure was 9.3x. 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. During the year

we completed £2.2bn of financing activity, including: raising

£1.0bn of new unsecured bank revolving credit facilities

(RCFs) in four transactions; issuing a new £300m unsecured

seven-year bond; alongside the bond, conducting a tender

to repay £150m of existing secured debentures; and

extending £700m of existing RCFs and bank term loans.

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.

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 ratios. 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

£1.8bn at31 March 2025. Based on our commitments

and these available facilities, the Group has liquidity

(no requirement to refinance) until late 2028.

Presented on the following page are the five guiding

principles that govern the way we structure and

managedebt.

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 2025,

the interest rate on our debt is 97% hedged for the year

ending 31 March 2026. On average over the next five years

we have interest rate hedging on 77% 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

in currencies other than Sterling, and will fully hedge the

foreign currency exposure.

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

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, and our Sustainable Finance

Framework enables us to issue Sustainable, Green, and/or Social finance, when it is

appropriate for our business. At 31 March 2025 we have £2.7bn (British Land share

£2.4bn) of Green and Sustainable/ESG linked financing.

Total drawn debt

(proportionally

consolidated)

£3.7bn

in over 25 debt instruments

2. Phase maturity of debt portfolio

The maturity profile of our debt is managed with a spread of repayment dates, currently

between one and 13 years, reducing our refinancing risk in regard to timing and market

conditions. At 31 March 2025, as a result of our financing and capital activity, based on our

commitments and available facilities we have liquidity (no requirement to refinance) until

late 2028, longer than our preferred period of not less than two years. In order to maintain

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)

5.0 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

£1.8bn

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 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). 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 facilities

£2.4bn

5. Maintain strong metrics

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.

We maintained our strong senior unsecured credit rating ‘A’, long term IDR credit rating

‘A-’, and short term IDR credit rating ‘F1’, affirmed by Fitch during the year with

Stableoutlook.

Overall, this provides a strong platform for our business strategy.

LTV (proportionally

consolidated)

38.1%

Net Debt to EBITDA

(Group)

8.0x

Senior unsecured

credit rating

British Land

Annual Report and Accounts 2025

FINANCIAL POLICIES AND PRINCIPLES CONTINUED

Group borrowings

Unsecured financing for the Group includes 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.

£2.2bn 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 are published in our

Sustainability Progress Report.

Unsecured borrowing covenants

There are two financial covenants which 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

of the unsecured debt of the Group.

The Unencumbered Assets of the Group, not subject to

any security, stood at £5.2bn as at 31 March 2025.

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 2025, these assets

generated £36m 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 the Group.

Financial covenants

As at 31 March

2025

2024

2023

2022

2021

Net Borrowings to

Adjusted Capital

and Reserves 47 40 38 36 33

Net Unsecured

Borrowings to

Unencumbered

Assets 43 38 32 30 25

Secured borrowings

Secured debt with recourse to British Land is provided

by long standing debentures with limited amortisation.

These are secured against a combined pool of assets with

common covenants: the value of the assets is required to

cover the amount of the debentures by a minimum of 1.5

times 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

with these cover ratios.

We continue to focus on unsecured finance at a Group level.

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, summarised below.

Joint venture Debt type Covenants summary

Broadgate Securitisation bonds To meet interest

and scheduled

amortisation

(onetimes cover)

No LTV covenant

Secured Green

bankloan

Interest cover ratio

LTV ratio

Paddington Secured bank loan Interest cover ratio

LTV ratio

(Cash trap only)

Canada Water Secured Green

development

loanfacility

Loan to

development cost

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.

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

RISK MANAGEMENT

MANAGING RISK

IN DELIVERING

OUR STRATEGY

Effective risk management is fundamental to our business. Our ability to identify, assess and

effectively manage current and emerging risks is critical to our strategy and how we position

the business to create value, whilst delivering positive outcomes for all our stakeholders on a

long term, sustainable basis.

Risk management framework

We maintain a comprehensive and well-established risk

management and internal control framework, focused on

proactive risk awareness and effective risk oversight across

the business. We clearly define our risk appetite, respond

quickly to changes in our risk profile and foster a strong

risk management culture across the business, with clear

roles and responsibilities. Our framework integrates a top-

down strategic perspective with a complementary bottom-

up operational process, as illustrated in the diagram below.

This approach enables us to effectively identify, assess and

manage both financial and non-financial risks – including

principal risks that could impact solvency and liquidity, as

well as emerging risks. Our objective is not to eliminate risk

entirely, but to manage exposures within our defined risk

appetite, while at the same time maximising opportunities.

Governance

The Board has ultimate responsibility for risk management

and maintaining a robust internal control framework.

It determines the nature and extent of the principal

risks the Group is willing to take to achieve its strategic

objectives, assessing risk tolerances within the context

of strategic priorities and the external environment –

referred to as our risk appetite (as detailed overleaf).

To support the Board, the Audit Committee provides

essential oversight and assurance. Throughout the year, it

specifically reviews the effectiveness of risk management

and internal control processes. At the strategic level,

this top-down approach ensures our risk management

focuses on the principal risks facing our business,

considers them collectively and identifies emerging risks.

Our integrated risk management approach

Business units

– Implement strategic

initiatives

– Report on key risk indicators

– Provide updates on current

and emerging risks

– Identify, assess and mitigate

operational risks tracked in

the risk register

Business units are responsible for the day-to-day

management of operational risks. They take

ownership by implementing appropriate

mitigations and internal controls to manage these

risks effectively

First line of defence

Risk Committee/Executive Committee

– Identify principal and

emergingrisks

– Guide strategic decision

making in line with risk

appetite

– Monitor key risk indicators

– Set risk tolerance levels

– Assess the completeness of

risk identification and the

adequacy of mitigation

measures

– Review the aggregation of

risk exposures across the

business

The internal risk and control team supports the

Risk Committee by coordinating risk

management activities. This includes ensuring

that risk management practices and internal

controls are embedded across operations, culture

and decision-making processes. The team also

provides oversight and constructive challenge

Second line of defence

Strategic risk management Operational risk management

Board/Audit Committee/ESG Committee

– Review the external risk

landscape

– Robust assessment of

principal risks

– Define risk appetite and

parameters

– Evaluate the effectiveness of

risk management and

internal control frameworks

– Report on principal and

emerging risks

Internal Audit serves as an objective assurance

function, independently evaluating the

effectiveness of our riskmanagement and

internal controlprocesses

Third line of defence

British Land

Annual Report and Accounts 2025

RISK MANAGEMENT CONTINUED

The Executive Directors and Risk Committee (comprising

the Executive Committee and senior leaders from across

the business, and chaired by the Chief Financial Officer),

oversee risk management and internal controls throughout

the business. They are supported by the internal risk and

control team, which coordinates our risk management

activities and integrates risk management and internal

controls into the Group’s operations, culture and decision-

making processes.

At the operational level, risk management is embedded

within our business units and core operations. This

bottom-up approach enables early identification and

timely escalation of potential risks. Each business

unit has designated risk representatives who ensure

operational risks are managed at source, and appropriate

mitigations including internal controls, are implemented.

These representatives maintain a detailed risk register,

which is regularly reviewed by the internal risk and

control team. Significant and emerging risks are

formally reported to the Risk and Audit Committees.

Internal Audit provides objective, independent

assurance by evaluating the effectiveness of our key

risk management and internal control processes.

This model supports a comprehensive, proactive and

resilient risk management framework across British Land.

about the Board and Audit Committee’s risk oversight,

see pages 99 to 106

Progress with our risk priorities in the year

Strengthening environmental and social sustainability

controls

We have enhanced our environmental and social

sustainability control framework, including testing of key

controls during the year. Going forward, we will continue to

refine and strengthen these controls to align with evolving

regulatory requirements and industry best practices.

Enhancing risk management practices

We conducted a survey of Risk Committee members and

key stakeholders to enhance our risk management

practices. Feedback was very positive, with all members

agreeing that the Committee adds value and supports

strategic objectives. Additionally, the Head of Risk and

Internal Control has engaged with leadership teams across

the business to clarify risk responsibilities, promote timely

risk escalation, assess key business unit risks, and foster a

strong risk-aware culture.

We have also continued to actively enhance our internal

control and risk management frameworks in preparation

for compliance with the revised UK Corporate Governance

Through this approach, the Group operates a ‘three

lines of defence’ model to manage risk effectively:

1 Operational management is responsible for the

day-to-day identification and mitigation of risks.

2 The Risk Committee and internal risk team oversee

and integrate risk management practices across

theGroup.

3 Internal Audit provides independent assurance on

the effectiveness of the Group’s risk management

and internal control processes.

Code, including the forthcoming requirements of Provision

29, which will take effect for the Group’s financial year

ending 31 March 2027.

Monitoring macroeconomic and geopolitical

uncertainties

We continue to evaluate the impact of macroeconomic

and geopolitical uncertainties on our risk profile, with a

particular focus on persistent inflation, interest rate

volatility, geopolitical challenges arising from the ongoing

conflicts in Ukraine and the Middle East and, more recently,

the potential impact of global tariffs. In response we have

maintained a risk focused approach to managing our

business, particularly in relation to capital allocation and

maintaining a strong financial position.

Tracking emerging risks including AI

We proactively monitor emerging risks, assessing

their potential impact and identifying opportunities.

Our AI working group continues to track technological

advancements, assess opportunities within our operations

and manage associated risks to ensure responsible

implementation.

Refining business continuity plans

Our business continuity plans have been further refined to

ensure the ongoing resilience of critical operations. Key

improvements include assessing IT system recovery time

objectives, identifying necessary resources, and disaster

recovery testing on key systems to strengthen our

preparedness for potential disruptions.

Improving information security framework

We have made significant progress in enhancing our

technology infrastructure, cyber security environment

and IT control framework to align with the ISO 27001

Information Security Management System (ISMS) global

standard. We intend to pursue formal ISO 27001

certification in FY26.

Our priorities for 2025/26

1 Strengthening Internal Controls and Governance:

Monitor compliance with the revised UK Corporate

Governance Code, including Provision 29. Focus on

material controls to enhance Board oversight and

formalise assurance processes. Identify opportunities

to streamline and improve processes, driving both

efficiency and added value.

2 Responding to Economic and Market Volatility:

Proactively manage the impacts of prolonged

inflation, interest rate uncertainty and geopolitical

tensions. Maintain financial resilience through

disciplined leverage, strong liquidity management

and scenario planning.

3 Enhancing Technology and Cyber Resilience:

Achieve full ISO 27001 certification to reinforce

information security practices. Leverage digital tools

to enhance decision-making and operational

efficiency. Continue to explore opportunities of

emerging technologies, particularly AI, while

assessing associated risks to ensure responsible

implementation.

4 Continued Technology Transformation: Evaluate and

oversee the risks associated with the Group’s ongoing

transformation projects, including, where feasible, the

automation and streamlining of control processes.

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

Our risk-aware culture

We seek to foster a risk-aware culture throughout our

business by emphasising risk awareness, education

and training. Guided by our values, we promote an

open and accountable culture. We actively encourage

employees to report risk weaknesses and exceptions,

enabling us to implement preventive measures. With

our flat organisational structure, senior management

is actively involved in key decisions and directly

oversees our development, asset management and

property management activities. This approach

integrates risk management principles into our daily

operations, encouraging employees to actively

contribute to risk identification and mitigation efforts.

Our internal control framework

Our internal control framework is embedded within our

risk management process, encompassing our policies,

procedures and practices. Key controls are implemented

across all business areas, including financial, operational

and compliance areas. The framework, detailed below,

incorporates risk assessment, control activities, and

continuous monitoring and testing to ensure operational

effectiveness, accurate financial reporting and adherence

to legal and regulatory requirements.

Monitors effectiveness twice a year

Reviews and approves evidence of effectiveness

of key controls twice a year

Reviews and attests to evidence of the

effectiveness of key controls

Design and operate business unit controls – attest

to and provide evidence of key control effectiveness

Board

Audit Committee

Risk Committee

Group Finance Internal Audit

Business units

Tests operating

effectiveness of key

controls annually and

continually considers

design effectiveness

Tests the design and

operating effectiveness

of key controls on

a rolling basis

Internal control framework

Our risk appetite and tolerance

Our risk appetite is at the core of our risk management

approach, guiding business planning, decision making and

strategy execution. Reviewed annually and approved by

the Board, it is embedded within our policies, procedures

and internal controls. We monitor our risk appetite using a

dashboard with key risk indicators (KRIs) for each principal

risk, with defined tolerances, helping us assess alignment

with our risk appetite and strategic priorities. These KRIs,

both leading and lagging are detailed for each principal

risk on pages 52 to 58.

Whilst our risk appetite may evolve over time and in

response to property cycle shifts, our overall risk appetite

remains balanced, with a low appetite for financial and

compliance risks, and a balanced appetite for property and

operational risks. We have established clear risk appetite

statements and tolerances for each internal principal risk,

categorised into three levels: Risk Averse, Balanced, and

Risk Taking.

Risk appetite tolerance 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 greater risk taking approach, justified by the potential

benefits in pursuit of strategic objectives, but falling within

acceptable tolerance levels.

to see our risk appetite levels for each internal principal risk,

see pages 55 to 58

Our balanced risk appetite is supported by:

– A diversified business model focused on prime,

well-located campuses, retail parks and London urban

logistics assets.

– A disciplined approach to development, managing

speculative exposure and risks through timing,

pre-lets, cost control and joint ventures.

– Strong financial discipline underpinned by a resilient

balance sheet and robust liquidity.

– A diverse and high quality occupier base with strong

covenant strength, providing income stability.

– A highly experienced leadership team, including the

Board, senior management and the Risk Committee.

British Land

Annual Report and Accounts 2025

RISK MANAGEMENT CONTINUED

Our risk focus

Throughout the year, we have maintained close focus on

both key external risks and operational risks, particularly in

the context of ongoing macroeconomic and geopolitical

uncertainties. While the UK economy has been relatively

resilient, the overall risk environment remains elevated due

to persistent inflation, higher interest rates and changes

in the global geopolitical environment, including the

potential impact of global tariffs. The Board, alongside key

committees, continues to maintain close oversight of these

risks through a measured, risk-aware approach, especially

with regard to capital allocation, financial stability, and

managing development and financing activities. Further

detail on the potential impacts and our mitigation

strategies can be found in the principal risks table.

Over the course of the year, the Risk Committee has

maintained its focus on key operational risk areas, including:

– Strengthening financial reporting, operational and

compliance processes and controls to support robust

governance.

– Overseeing health, safety and environmental risk

management, including successful re-certification under

ISO 45001.

– Actively monitoring occupier covenant strength, while

taking appropriate measures to protect and support

income resilience.

– Monitoring environmental risks and opportunities, with a

focus on energy performance ratings (EPCs).

– Reviewing development-related risks, including

inflationary pressures on construction costs and the

covenant strength of key contractors and

subcontractors.

– Managing procurement and supply chain exposures to

ensure continuity and resilience.

– Implementation of enhanced information security

controls and processes.

– Supporting Internal Audit activity and ensuring timely

implementation of control recommendations and

process enhancements.

Our robust risk management process, alongside the

Group’s continued ability to be flexible in adapting to both

principal and emerging risks, remains critical to sustaining

our long term performance and strategic objectives.

Our principal risks

Our risk management framework is structured around the

principal risks facing British Land. Using a risk scoring

matrix, we assess risks based on likelihood, financial

impact and reputational impact. This process aids in

identifying both the external and internal strategic and

operational principal risks with a higher likelihood and

potential impact on our business.

Our principal risks comprise the 11 most significant Group

risks, including four external risks primarily influenced by

market factors, and seven internal strategic and

operational risks which, while subject to external influence,

are more under the control of management. External

principal risks stem from the broader macroeconomic and

political environment, as well as our core property markets.

Internal principal risks relate to our capital allocation,

development, customers, sustainability, people and

culture, as well as key operational risks such as technology,

health and safety, and fraud and compliance. The Board,

supported by the Audit Committee conducts regular

reviews of external principal risks to inform decision

making, while internal risks are managed through strong

governance, controls and operational processes.

Emerging risks

Our risk review process includes identifying and

assessing emerging risks, which are those that are still

evolving and not fully understood in terms of impact

and likelihood. Risk representatives and Committee

members are tasked with considering these risks,

supplemented by formal horizon scans in our annual

strategy review.

While some of these risks are already reflected within

our principal risks, they are still evolving. Key emerging

risks being closely monitored include:

– Structural shifts in occupier demand

– Advancements in AI and emerging technologies

– Macroeconomic and geopolitical volatility, including

the impact of new global tariffs

– Deglobalisation pressures

– Long term climate change impacts

– Supply chain vulnerabilities

– Energy security challenges

about the impact of several evolving risk trends on our principal

risks, see pages 52 to 58

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

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

PRINCIPAL RISKS

Our principal risk assessment

The Board has undertaken a robust assessment of the

principal and emerging risks facing the Group, including

those that could impact its business model, future

performance, solvency, liquidity, or strategic priorities. The

Board considers that the fundamental nature of the

principal risks and uncertainties facing the Group have

remained broadly unchanged over the year.

However, we have seen a reduction in the likelihood of

external risks associated with the retail property market,

driven by improvements in both investment and

occupational markets, along with our strategic focus on

retail parks. As the broader risk landscape continues to

evolve, our assessment of the eleven external and internal

principal risks is shown in our risk heat map below.

The main changes in the risk profile of our principal risks

are outlined in the table on pages 52 to 58, along with the

key impacts on our business, the mitigation measures in

place, and the relevant key risk indicators to monitor these

risks.

Note: The above illustrates principal risks which by their nature are those which have the potential to significantly impact

theGroup’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 2024.

Key

Principal risks

External

1 Macroeconomic

2 Political, Legal and

Regulatory

3 Property Market

a Campuses

b Retail

c London urban logistics

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 Operational and

Compliance

British Land

Annual Report and Accounts 2025

PRINCIPAL RISKS CONTINUED

External principal risks

Macroeconomic

Changes in the macroeconomic environment and shifts in fiscal and monetary policy can pose risks and opportunities in

property and financing markets, impacting our strategy and financial performance.

Political, legal and regulatory

Significant political events and regulatory changes, along with government policies, could impact our strategy and

performance, by creating uncertainty that delays investor and occupier decisions or reduces the UK’s investment appeal,

especially affecting real estate or our customers.

Risk mitigation

– Board & Committees Oversight:

Regular assessment of strategy,

capital allocation, and risk appetite

in response to macroeconomic

conditions.

– Monitoring & Stress Testing:

Strategy team tracks key indicators,

and regular stress tests to ensure

flexibility and resilience to economic

downturns.

– Business Model Focus: Prime

portfolio targeting resilient

submarkets; active capital recycling

to maintain financial strength and

mitigate risks.

Risk assessment

The macroeconomic outlook remains

uncertain and risk elevated, influenced

by persistent inflation, higher interest

rates, and evolving geopolitical

dynamics, including the potential

impact of global tariffs. Throughout

the year, the Board and key

Risk mitigation

– Strategic Risk Consideration: Factor

political risks into business strategy,

investment and financing decisions.

– Policy & Regulatory Monitoring:

Track legislative changes and

engage public affairs consultants

for insights.

– Industry Engagement: Collaborate

with industry bodies to influence

policy and regulatory discussions.

committees have closely monitored

these macroeconomic factors and

their impact on our portfolio strategy,

market conditions and customers,

responding proactively as needed.

This has included actively managing

the business through strategic

capital allocation, maintaining

financial strength, and mitigating

development and financing risks (as

outlined under their respective risks).

Emerging risk trends:

– Macroeconomic and geopolitical

volatility, including the impact of

new global tariffs

Opportunity/approach

Our diversified business model,

financial strength and experienced

leadership team positions us well to

navigate ongoing market challenges

and capitalise on opportunities.

Risk assessment

The political, legal and regulatory risk

outlook remains uncertain and

heightened. This is primarily due to

macroeconomic conditions, ongoing

geopolitical conflicts in Ukraine and

the Middle East, renewed tensions

between India and Pakistan, the

recent prospect of significant global

tariffs, and potential shifts in

government regulations. These factors

could affect interest rates, customer

demand, supply chains, cyber security

and compliance risks.

Emerging risk trends:

– Macroeconomic and geopolitical

volatility, including the impact of

new global tariffs

Opportunity/approach

We closely track political and

regulatory changes to manage

potential impacts and engage with

Government and industry bodies on

emerging policies.

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

rateforecasts

– 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

Key

Increase

No change

Decrease

Source value-add opportunities

Develop and actively manage

Recycle capital

Leadership in sustainability

Link to strategy:

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

Property markets

A decrease in investor demand or weakening occupier demand in our property markets could adversely affect

underlying income, rental growth and capital performance. Additionally, structural changes in consumer and business

practices, such as the growth of online retailing and hybrid working, could also negatively impact demand for our assets.

Risk mitigation

– Market Outlook Assessment: The

Board, Executive Committee and

Risk Committee regularly evaluate

property market risks and

opportunities to guide strategic

decisions and capital allocation.

– Market Insights: The Strategy &

Insights team provides dashboards

tracking key investment and

occupier demand indicators,

supplemented with our market

insights.

– Business Model Focus & Stress

Testing: We focus on a prime

portfolio targeting resilient

submarkets to help withstand

potential declines in occupier and

investor demand. Stress testing is

conducted to evaluate the impact of

changes in demand, rental growth

and property yields.

– Stakeholder Engagement: We

maintain strong relationships with

occupiers, agents and investors to

stay informed about market trends.

Risk assessment

Campuses

The campus property market risk

outlook has remained generally

stable. Structural challenges persist

for secondary offices due to hybrid

working models and the potential

effects of AI on future space

requirements. Meanwhile, the prime

London office market continues to

show strong fundamentals, supported

by low vacancy rates, a reduced

development pipeline, and growing

demand for premium, sustainable

space. Investment volumes are rising,

with a particular focus on smaller lot

sizes and value add opportunities,

alongside early signs of growing

demand for larger lot sizes.

Opportunity/approach

Our campus model focuses on

well-connected, best-in-class

buildings with leading sustainability

and design credentials, surrounded by

attractive public spaces and

amenities. This strengthens our offer

as occupiers seek out the best space

for their business needs.

Retail

The retail property market risk

outlook has improved, driven by

stronger occupational markets

and positive investor sentiment

in our preferred retail park

sector. While challenges remain,

including broader macroeconomic

uncertainties, rising retailer costs

following the Autumn Budget, and

the potential implications of the

proposed Employment Rights Bill,

we anticipate the shift towards retail

parks will continue, as businesses

seek more affordable space.

Opportunity/approach

Our retail portfolio strategically

focuses on retail parks, aligned with

the growth of convenience and an

omni-channel retail strategy. We will

continue to seek acquisition

opportunities in retail parks,

leveraging our scale and asset

management expertise for

valuecreation.

London urban logistics

The risk outlook for the London urban

logistics property market has stayed

stable at a relatively low level,

reflecting its small share of our

portfolio. Although, vacancy in the

broader market has increased over

the past year, alongside weaker rental

growth expectations, the sector’s long

term fundamentals remain compelling.

Opportunity/approach

Our urban logistics portfolio

strategically focuses on development-

led initiatives, involving the

intensification and repurposing of

existing buildings in London.

Emerging risk trends:

– Evolving work patterns (e.g.

hybrid working)

– Macroeconomic and geopolitical

volatility

– Budget NI increases

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:

London urban logistics

Impact:

Low

Likelihood (post-mitigation):

Low

Change in risk assessment in year:

KRIs:

– Occupier and investor demand

indicators within our sectors

– Spread between property yields

andborrowing costs

– Online sales market trends to provide

insight into consumer behaviour

– Monitor office occupational trends

andcampus occupancy patterns to

understand occupier requirements

andvisitor patterns

Overseen by:

Executive Committee, CEO

Link to strategy:

British Land

Annual Report and Accounts 2025

PRINCIPAL RISKS CONTINUED

Major events/business disruption

Global or national events such as civil unrest, terrorism, pandemics, cyber-attacks, extreme weather, environmental

disasters or power shortages can significantly impact our business, portfolio, customers, people and supply chain. These

events could result in sustained asset value or income impairment, liquidity or business continuity challenges, share price

volatility, or loss of key customers or suppliers.

Risk mitigation

– Crisis & Business Continuity

Planning: Regularly review and test

response plans at both head office

and asset levels.

– Asset Emergency Preparedness:

Routine scenario testing and

security risk assessments across

properties and development sites.

– Cyber Resilience: 24x7 managed

detection and response; external

specialists support cyber-attack

testing, alongside ongoing

employee training.

– Robust IT Security & Disaster

Recovery: Alignment to ISO 27001

ensures strong Information Security

controls. Annual disaster recovery

testing and business continuity

plans to protect data and

operations.

– Comprehensive Insurance:

Comprehensive property damage

and business interruption coverage

across the portfolio.

Risk assessment

Global political and economic

uncertainties remain elevated,

posing potential risks to the Group’s

operations and stakeholders.

Key concerns include conflicts,

terrorism, cyber security threats,

and evolving geopolitical events,

all of which could disrupt economic

stability and supply chains.

Emerging risk trends:

– Ongoing global tensions and

trade disputes

– Increasing sophistication of cyber

security threats

Opportunity/approach

The challenges faced in recent years

have demonstrated the resilience of

our business model and the

effectiveness of our crisis

management plans. We continue to

remain vigilant in addressing ongoing

risks posed by external threats.

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:

Key

Increase

No change

Decrease

Source value-add opportunities

Develop and actively manage

Recycle capital

Leadership in sustainability

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

Internal principal risks

Portfolio strategy

Inappropriate portfolio strategy and subsequent execution could lead to income and capital underperformance. This

could result from incorrect sector selection and weighting, poor timing of investment and divestment decisions,

exposure to developments, the wrong mix of assets, 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:

Individual asset business plans to

manage asset risks and optimise

performance.

– Collaborative Joint Ventures:

Strong co-investor relationships to

ensure interests are aligned.

Risk assessment

Our portfolio strategy risk levels

remain broadly stable. Despite

ongoing uncertainty, sentiment

and liquidity in our sub-markets

improved over the year, supported by

declining inflation and interest rates.

We maintained discipline in capital

allocation – advancing asset sales

while reinvesting in retail parks and

best-in-class campus developments.

Emerging risk trends:

– Evolving work patterns (e.g.

hybrid working)

– AI and emerging technologies

Opportunity/approach

We have a diversified portfolio

strategy and invest in subsectors with

strong rental growth prospects. We

will continue to actively recycle capital

out of mature assets into targeted

acquisitions and developments in our

chosen sectors.

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 and

Investments

Link to strategy:

Development

Development offers opportunity for outperformance but carries elevated risks, including leasing exposure, construction

timing and costs, contractor failure, adverse planning decisions, and shifts in occupational or investment markets.

Risk mitigation

– Controlled Development Strategy:

Exposure managed within defined

thresholds, together with pre-

lettings 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 to

pre-empt planning risks.

– Sustainable Approach: ESG risks

embedded in decision making.

Risk assessment

Development risk remains stable. New

commitments at 2 Finsbury Avenue,

Broadgate Tower and Mandela Way,

increased our development pipeline,

but we remain within risk tolerances,

mitigating exposure through pre-lets,

fixed price contracts and joint

ventures. 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 balance

sheet capacity.

Emerging risk trends:

– Supply chain vulnerabilities

– Supply of utilities/resources

Opportunity/approach

We remain focused on driving

performance through value-accretive

development, particularly with joint

venture partners. Our strong balance

sheet, contractor relationships and

development management expertise

position us well to advance our

pipeline while effectively managing

associated risks.

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:

British Land

Annual Report and Accounts 2025

PRINCIPAL RISKS CONTINUED

Financing

Failure to manage financing risks could result in a shortage of funds to sustain operations or debt repayments. This risk

includes reduced availability of debt, higher costs, leverage impacts and covenant breaches.

Risk mitigation

– Proactive Review of Funding

Requirements: Regularly assess

funding requirements based on

business plans and commitments.

Debt and capital market conditions

are reviewed to identify suitable

financing opportunities.

– Strong Lender Relationships:

Maintain strong, long term

relationships with primary lenders.

– 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 valuation

risks. Maintain financial resilience

through cycles, considering LTV and

Net Debt to EBITDA.

– Covenant Monitoring: Regularly

review to ensure adequate

headroom.

– Joint Ventures: Spread risk through

JVs, including non-recourse debt.

Risk assessment

Our financing risk remained stable.

Despite continued volatility in

interest rates and credit markets in

FY25, we have undertaken £2.2bn

of financing activity, 97% of our

debt is hedged through to 31 March

2026, and 77% is hedged on average

over the next 5 years. Our financial

position remains strong, with £1.8bn

in undrawn facilities and cash.

Based on these facilities and current

commitments we have no requirement

to refinance until late 2028.

Emerging risk trends:

– Macroeconomic and geopolitical

volatility

Opportunity/approach

The macroeconomic environment

underscores the importance of a

strong balance sheet. Fitch reaffirmed

our ‘A’ unsecured credit rating, with a

stable outlook. With favourable

access to debt capital markets, we are

well positioned to support business

needs and emerging opportunities.

Impact:

Medium

Likelihood (post-mitigation):

Low to medium

Change in risk assessment in year:

Risk appetite:

Risk averse

KRIs:

– Period until refinancing is required

(notless than two years)

– Net Debt to EBITDA (Group and

proportionally consolidated)

– 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

Environmental and social sustainability

This risk encompasses environmental and social factors, with potential impacts on performance, reputation, operations,

assets and our 2030 sustainability goals. It includes climate-related physical risks, rising regulatory costs, declining

demand for less sustainable buildings and social impacts on communities.

Risk mitigation

– Comprehensive 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, our Net Zero Pathway,

our Local Charter and the

Sustainability Brief.

– Environmental Management:

Certified to ISO 14001 and 50001

standards.

– Integrated Strategy: Sustainability

embedded in investment and

development decisions.

– Building Standards: Targeting

BREEAM Outstanding (offices),

Excellent (retail), HMQ3* (residential),

and NABERS UK for new offices.

– Data Assurance: Independent

verification supports transparency

and credibility.

Risk assessment

Despite a shifting landscape, our

environmental and social sustainability

risk remains stable. We’re making strong

progress towards our 2030 Sustainability

Strategy, particularly in enhancing the

energy efficiency of our standing portfolio,

with 68% now rated EPC A or B.

Emerging risk trends:

– Long-term climate change

impacts

– Supply chain vulnerabilities

– Supply of utilities/resources

Opportunity/approach

We recognise both a responsibility

andan opportunity to manage our

business in an environmentally and

socially responsible manner. Our

Sustainability Strategy focuses on

three pillars - Greener Spaces, Thriving

Places, and Responsible Choices –

addressing key environmental, social

and governance 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

and COO

Link to strategy:

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

People and culture

Inability 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 aligning corporate values with employee initiatives.

Risk mitigation

– Targeted Recruitment: Direct and

trusted third party hiring.

– Talent & Performance Management:

Succession planning and outcome-

focused reviews.

– Competitive Pay & Benefits: Annual

benchmarking and a remuneration

structure which rewards

performance.

– Employee Development: Training

and mandatory learning

programmes.

– Leadership Training: Focus on

leadership that enhances team

performance whilst promoting

wellbeing.

– Flexible Working: Clear hybrid/

flexible policies which sets out our

expectations.

– Diversity & Inclusion: Embedded in

our 2030 strategy.

Risk assessment

People and culture risk remained

stable this year, underpinned by

strong employee engagement at

79% and a culture aligned with

our purpose, strategy and values.

While competition for top talent

persists, the recruitment landscape

has become more balanced.

Emerging risk trends:

– Talent and skills shortages

– AI and emerging technologies

Opportunity/approach

Our priority is ensuring we have

the right talent in place to deliver

on strategic goals, supported

by a compelling employee value

proposition. We recognise that

our people and culture are critical

to driving performance and

maintaining British Land’s position

as an employer of choice.

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

atall levels, including job applications

– Gender and ethnicity pay gaps

– Employee wellbeing indicators

– Internal job moves and promotion rates

Overseen by:

Remuneration Committee and

HRDirector

Customer

The Group’s primary source of income is rent received from our customers. This could be adversely affected by non-

payment of rent; occupier failures; evolving customer needs; leasing challenges; poor customer service; and potential

changes in lease structures.

Risk mitigation

– Diversified Customer Base: Maintain a

high quality, diversified occupier base

to mitigate individual occupier risks.

– Occupier Strength and Robust Rent

Collection: Conduct thorough covenant

checks before deals and ongoing

monitoring, with a risk watchlist

reviewed by the Risk Committee.

We proactively limit financial

exposure to high risk occupiers.

– Occupier Engagement and Market

Knowledge: Work closely with

occupiers to understand and meet

their evolving requirements.

– Portfolio Leverage and Active

Asset Management: Strategically

address lease breaks and expiries

to maintain high occupancy and

minimise vacancies.

– Customer Satisfaction: Regular

surveys assess occupier experience

and service levels.

Risk assessment

Our overall customer risk remains

broadly stable, supported by strong

rent collection and robust leasing

activity. While there has been an

increase in retailer administrations

andrestructuring plans in the market,

we have proactively limited their

financialimpact.

Emerging risk trends:

– Macroeconomic and geopolitical

volatility, including the impact of

new global tariffs

– Evolving work patterns (e.g.

hybrid working)

– AI and emerging technologies

– Budget NI increases

Opportunity/approach

Successful customer relationships are

critical to our business growth. Our

business model revolves around our

customers. Our strategic positioning

across campuses, retail parks and

London urban logistics, along with

strong collaborative relationships,

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

ofrent classified as ‘High Risk’ and

affected by insolvencies)

– Occupancy and weighted average

unexpired lease term

– Rent collection

Overseen by:

Head of Real Estate and Investments and

CFO

Link to strategy:

British Land

Annual Report and Accounts 2025

Operational and compliance

Failure to manage key operational risks, such as cyber security, health and safety, third party relationships and internal

controls, could impact reputation, income and capital values. Additionally, compliance failures such as breaches of

regulations, third party agreements, loan agreements or tax legislation could also damage reputation and our

financialperformance.

Risk mitigation

– Executive Oversight: The Executive

and Risk Committees maintain

strong focus on operational and

compliance risks.

– Technology and cyber security: The

InfoSec Steering Committee, led by

the CFO, oversees cyber security

and technology infrastructure,

reporting to the Risk and

AuditCommittees. Cyber risks are

managed through an ISO 27001

framework, supported by security

tools, policies, third party risk

assessments and mandatory cyber

awareness training.

– Health & Safety: The Health &

Safety Committee, chaired by the

Director of Operations, governs

health and safety policies and

performance in terms of KPIs and

reports to the Risk, Audit and

ESGCommittees. Annual

independent risk assessments

(including fire risks) are conducted

for all properties, with corrective

actions implemented based on risk

level. All employees complete

annual role-specific health and

safetytraining.

– Third party relationships: A robust

supplier selection process ensures

contracts include service level

agreements with regular

performance monitoring. We

maintain a portfolio of approved

suppliers to ensure resilience within

our supply chain. Joint venture risk

management through careful

partner selection, robust

governance frameworks, clear

contractual arrangements and

ongoing oversight to ensure clear

alignment on roles, responsibilities,

objectives and risk-sharing.

– Key controls: A Three Lines of

Defence model ensures oversight

and effectiveness of key financial,

operational and compliance

controls. Senior management

provides biannual attestations on

key controls, with Group Finance

conducting effectiveness testing.

Control exceptions are reported to

the Risk and Audit Committees, with

corrective actions identified. Annual

Internal Audit review of keycontrols.

Risk assessment

Operational and compliance risks

remained stable, with no significant

issues reported. We continuously

monitor risks across people, processes,

and technology, and have strengthened

our cyber security, IT infrastructure,

and internal control framework. We

also updated our enterprise-wide

risk assessments for fraud, bribery,

corruption and money laundering, to

enhance our mitigation measures.

Emerging risk trends:

– Increasing sophistication of cyber

security threats

– Legal and regulatory changes

– Supply chain vulnerabilities

Opportunity/approach

The Risk Committee oversees and

monitors our key operational and

compliance risks across the business.

Our goal is to optimise operational

capabilities, create efficiencies in

people, processes and technology,

and simultaneously establish

appropriate controls to mitigate risks.

Moving forward, we will continue

investing in enhancing our operational

risk management platform, ensuring

adaptability to the dynamic

environment, while safeguarding the

business and allowing us to seize

potential 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

– Health and safety risk assessments

– Health and safety incidents

– Risk and control exceptions

Overseen by:

Risk Committee, Health and Safety

Committee, Infosec Steering Group

andCFO

Key

Increase

No change

Decrease

Source value-add opportunities

Develop and actively manage

Recycle capital

Leadership in sustainability

Link to strategy:

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

VIABILITY STATEMENT

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 £1.8bn 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 late 2028

– In the year, British Land raised £1.3bn of new unsecured

finance and agreed extensions by one year of existing

revolving credit facilities and term loans of £700m

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 (5.3 and 5.0 years

respectively at 31 March 2025). 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 2030.

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 51 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 2030.

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 FY26 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 2025, the Group’s debt covenant headroom

is 36%, 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

31%. Under the ‘severe downside scenario’ this reduces to

19%, 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 late

2028. 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

thisdate.

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 2030.

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.

British Land

Annual Report and Accounts 2025

NON-FINANCIAL AND SUSTAINABILITY INFORMATION STATEMENT

Non-financial area/

Description of

business model

Risk

areas

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 99

to 106.

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 robust policies around financial crime

compliance reflect our zero-tolerance

approach to such activity both in and around

the business; they have been drafted to

provide for 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 decided 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

theCompany.

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 making our whole portfolio net

zero carbon as well as growing social value

and wellbeing in the communities in which

we operate

Our Sustainability Policy and Brief were

comprehensively updated in 2024. Our

overall commitment is to take decisions

which are environmentally and socially

sound and make financial sense. Our internal

carbon levy funds our Transition Vehicle, and

ensures that the environmental impact of our

developments is costed into their budgets.

The carbon levy rate is reviewed annually. As

a result of our FY24 review our internal

carbon levy was increased to £90 per tonne

of embodied carbon, applying to

developments committed after 1 April 2024.

We use some of the funds from our

Transition Vehicle to purchase carbon

credits. We conduct due diligence into

projects for all carbon credits we purchase.

We participate in key ESG indices to

demonstrate our progress and we publish

social and environmental performance data

annually.

Our Head of Developments has overall

responsibility for our Sustainability Brief, and

our Chief Operating Officer has overall

responsibility for our Sustainability Policy.

Read more about our environmental

commitments and KPIs on page 37 to 39 and

in our 2025 Sustainability Progress Report

www.britishland.com/SPR

Sustainability

Brief

– Aligns with our 2030 Sustainability Strategy

– Gives effect to our Sustainability Policy

– Sets out our sustainability ambitions and

the KPIs and standards required to

achievethem

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

Non-financial area/

Description of

business model

Risk

areas

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 Employee

Code of

Conduct

– 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; our Gender Identity and Transgender

Policy; and our Bereavement,

Compassionate and Emergency

Leave Policy

British Land remains deeply committed to

creating an environment of fairness, inclusion

and respect. Our corporate values underpin

our commitment to equality, diversity

andintegrity.

We recognise our workforce needs to reflect

the communities we serve in order to create

spaces that are welcoming to all, and our

working practices and employment policies

are underpinned by our DE&I Strategy.

Progress against the strategy can be found

on page 43.

The HR Director, General Counsel and

Company Secretary has overall responsibility

for our 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 place great importance on the way

we work with communities, suppliers and

partners. We believe that communication

is key in ensuring we meet our social

obligations, and by listening to the needs

and concerns of our staff and communities

we are better able to provide an environment

that is safe, inclusive and welcoming.

Our Chief Operating Officer has overall

responsibility for our Local Charter and

Supplier Code of Conduct; and our Head of

Development has overall responsibility for our

Health and Safety Policy. All health and safety

reports are provided to the Risk Committee.

These executives report to the ESG

Committee for their area of responsibility.

Read more about our social impact

commitments and KPIs on pages 40 and 41

and in our 2025 Sustainability Progress

Report www.britishland.com/SPR

Sustainability

Brief

See previous page

Local Charter Outlines four key focus areas where we are

active in local communities: connection with

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

Provides for necessary training around display

screen equipment and manual handling

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 has been

a signatory to the

UN Global Compact

since 2009. 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

Sustainability

Progress Report at

www.britishland.

com/SPR

6, 9, 11 Supplier

Code of

Conduct

See above British Land operates a zero-tolerance

approach to human rights infringements by

any of our suppliers, occupiers or partners.

We carry out due diligence on all parties that

we work with and require our suppliers to

demonstrate the same commitment to the

prevention of human rights abuses in their

operations. In the past year, 10 audits have

been conducted with our highest risk

suppliers. The audits returned no significant

failings and recommended a small number of

improvements. Improvement plans are in

place for any supplier scoring less than 80%

which only affects one supplier. Our Slavery

and Human Trafficking Statement can be

found on our website and is reviewed and

updated annually 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.

18,199

19,764

20,186

19,098

22,318

26,815

2,121

3,588

8,105

7,615

5,508

3,080

18,846

1,186

025

023

024

022

021

020

019

Absolute emissions Scope 1 and 2 (tonnes)

Location-based methodology

Market-based methodology

British Land

Annual Report and Accounts 2025

STREAMLINED ENERGY AND CARBON REPORTING (SECR)

FY25 in review

Context Funding the low carbon transition

This year, we made continued progress towards our

decarbonisation targets. We have now achieved a 38%

reduction in operational carbon intensity and a 19%

improvement in operational energy intensity across our

managed portfolio compared to our FY19 baselines.

We remain committed to reporting energy and carbon

emissions on a whole-building basis in alignment with our

2030 strategy. The energy consumption in occupier spaces,

where we lack control over procurement decisions and

usage patterns, significantly impacts our performance. This

whole-building approach requires us to effectively manage

the energy consumed in areas under our control whilst

continuing to engage and collaborate with our customers

on optimising energy performance in their space.

Our Transition Vehicle is funded by our internal carbon levy

and our £5m annual float. For developments committed

from FY25 we increased our levy by 50% from £60 to £90

per tonne of carbon to better reflect the true cost of carbon.

To date, £20m has been committed by the Transition

Vehicle on carbon efficient interventions and RGGO. These

projects combined are estimated tosave c.5,400tCO

e and

c.£5m annually. The Transition Vehicle’s currentbalance

available for future commitments is £14m.

In FY25, the Transition Vehicle funded the installation of a

new air source heat pump at 2 Kingdom Street which will

remove gas consumption from the building and is predicted

to reduce annual energy consumption by c.18% (vs FY19)

once it becomes operational in FY26.

All of the figures above are presented on a proportionally

consolidated basis.

Operational performance RE100 and procuring renewable energy

British Land continues to operate its energy management

system, which includes ISO 50001 accreditation, at

commercial offices, this year also extended to include major

retail assets. We made significant progress towards our

2030 targets, despite higher footfall in retail and campuses

and acquisition of £738m of retail parks. Through our

development pipeline, we are designing a path to best

practice operational efficiency. Our 2 Finsbury Avenue

modelled operational energy intensity performance is

72kWhe per sqm, outperforming building performance

benchmarks and showcasing our commitment in

energyefficiency.

British Land has been a signatory to RE100 since 2016,

which commits us to procuring 100% renewable energy.

This year, 97% of landlord procured energy was from

renewable sources. Our proportion of renewable gas

was98% this year, whilst renewable electricity was 97%.

Greenhouse gas emissions – intensity

Year ended 31March 2025 2024 2023

Total

portfolio

tCO

e per sqm

0.042 0.043

Offices tCO

e persqm 0.068 0.068

0.068

Shopping

centres

tCO

e per sqm

0.036 0.035 0.031

Retail

parks

tCO

e per sqm

0.034 0.034 0.035

Total

portfolio

tCO

e per gross rental

income (£m)

31.05 31.87

34.43

1. Restated Scope 1 emissions for increased accuracy

2. This intensity only incorporates Scope 1 and 2 emissions

GREENHOUSE

GAS REPORTING

For full details on our reporting criteria and the

calculation of our Scope 1 and 2 emissions, please see

the methodology in our 2025 Sustainability Progress

Report at www.britishland.com/SPR.

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

Scope 1 and 2 emissions and associated energy use

Year ended 31 March

Tonnes CO

e MWh

2025 2024 2023 2025 2024 2023

Scope 1 (fuel combustion): 5,300 5,446 6,902 29,179 32,222 37, 5 61

Scope 1 (refrigerant loss): 144 126 1,123 – – –

Scope 2 (purchased electricity):

Location-based

13,401 12,627 11,739 65,980 62,806 62,733

Market-based 904 1,555 3,686 – – –

Total Scope 1 and 2 emissions

andassociated energy use

Location-based

18,846 18,199 19,764 95,159 95,028 100,294

Market-based 1,186 3,080 5,508 – – –

Proportion of Scope 1 and 2

emissions assured by an

independent third party

100% 100% 100% 100% 100% 100%

Proportion that is UK based 100% 100% 100% 100% 100% 100%

1. Our external assurance covers the total energy consumption; for more details on energy and assurance see our 2025 Sustainability Progress Report

at www.britishland.com/SPR

Scope 3 emissions

Year ended 31 March

Tonnes CO

2025 2024 2023

Purchased goods and services 16,432 15,533 15,698

Capital goods 5,041 25,546 –

Fuel and energy related activities (upstream) 5,651 5,370² 5,597

Waste generated in operations 156 291 211

Business travel 274 221 236

Employee commuting and working from home 252 249 250

Downstream leased assets Location-based 93,200 93,205² 107,7 2 5

Proportion of Scope 3 emissions assured by a third party 100% 100% 100%

Total Scope 1-3 emissions Location-based 139,851 158,613 149,481

1. No developments completed in the reporting year, making this value 0

2. Restated Scope 1 emissions for increased accuracy

Scope 1 and 2 emissions cover 90% 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 Energy

Security and Net Zero 2024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FY25, this

accounts for 1% of total reported energyconsumption

and 1.5% of total reported waterconsumption.

Gross Rental Income (GRI) from the managed portfolio

comprises Group GRI of £338m (FY24: £308m), plus 100%

of the GRI generated by joint ventures and funds of £387m

(FY24: £379m), less GRI generated assets outside the

managed portfolio of £118m (FY23: £116m).

For full details on our reporting criteria and the calculation

of Scope 3 value chain emissions, please seethe

methodology in our 2025 Sustainability Progress Report

at www.britishland.com/SPR

For details of our greenhouse gas emissions boundaries,

please 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

Oemissions but zero-rates CO

e emissions due to

eabsorption that occurs during the growth of

biogasfeedstock. However, as noted below, bioenergy

feedstocks do produce CO

e emissions during combustion,

so the ‘combustion emissions’ are provided below for

fulltransparency.

Biogas

UK factor

(kg CO

perkWh)

2025 total

(tonnes

2024 total

(tonnes

Net emissions (excl CO

e) 0.00023 7 8

Combustion emissions

(incl CO

e) 0.19902 6,401 7,0 89

Our methodology

We have reported on all 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.

British Land

Annual Report and Accounts 2025

TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)

British Land Group has reported on climate-related

financial disclosures for the year ended 31 March 2025

consistent with the TCFD’s 2021 guidelines. We consider

climate change within our principal risk ‘Environmental and

Social Sustainability’ on page 56 and have therefore

complied with all four TCFD recommendations and 11

recommended disclosures:

– Governance – recommended disclosures (a) and (b).

Pages 64 to 65

– Strategy – recommended disclosures (a) to (c). Pages 66

to 71

– Risk Management – recommended disclosures (a) to (c).

Pages 71 to 72

– Metrics and Targets – recommended disclosures (a) to

(c). Pages 72 to 73

In addition, we have considered the sector-specific

guidance and recommended disclosures for Materials and

Buildings Group. The statement is consistent with the

requirements of the Financial Conduct Authority’s UK

Listing Rule 6.6.6R.

Introduction

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. These sustainability

goals are shared by our investors, customers and partners.

In FY25, we continued to make good progress

against our 2030 Sustainability Strategy. To ensure

that we remain aligned with climate science and the

evolving definition of net zero, we plan to review

our SBTi targets in line with the SBTi Building sector

guidance. Our corporate 2030 targets will remain

unchanged, as a sustained marker for our progress.

We are a signatory to numerous external climate

commitments, including the Better Buildings Partnership’s

Climate Commitment, the World Green Building Council’s

Net Zero Carbon Buildings Commitment and the RE100

commitment to procure renewable energy. Along with

these commitments we are a sponsor of the UK’s Net Zero

Carbon Building Standard (NZCBS).

Following full consistency with the TCFD guidelines over

the past few years, we are now developing a formalised

transition plan aligned to the Transition Plan Task Force

recommendations.

about our approach to decarbonisation and climate

resiliencein our Sustainability Progress Report at

www.britishland.com/SPR

Governance

(a) The Board has ultimate oversight of climate-

related risks and opportunities and (b)

delegates the responsibility for assessing and

managing our response to material climate-

related issues to the Executive Committee

Climate change is considered within our internal risk

management process captured in our principal risk

‘Environmental and Social Sustainability’, with the external

aspects of climate-related risks being incorporated within

our ‘Major Event/Business Disruption’ and ‘Political, Legal

and Regulatory’ principal risks (pages 51 to 58). The key

risk indicators we monitor within this principal risk include

EPC ratings, the portfolio flood risk vulnerability and the

future cost of carbon credits.

Our process of identifying, assessing and managing known

risks whilst identifying emerging risks is outlined in our risk

management section pages (47 to 50).

The Governance Framework for Climate-Related Issues

overleaf outlines the oversight the Board has on climate-

related issues and management’s role in assessing and

managing them.

FY25 Governance in action:

– David Walker (CFO) sustainability training: in his

previous role as the COO he led the delivery of the

Sustainability Strategy so has extensive knowledge of

our climate-related issues and has completed formal

sustainability training.

– Emma Cariaga (COO) sustainability training: our new

COO was previously Joint Head of Canada Water and a

member of our Sustainability Committee so she is

well-versed in our Sustainability Strategy and climate-

related issues.

– Implemented the increase of our internal levy from £60

per tonne of embodied carbon to £90.

– ESG Committee activities: outlined on pages 86 to 93

including the sustainability-related updates provided to

the Board by the Committee Chair.

CLIMATE-RELATED

FINANCIAL

DISCLOSURES

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

BOARD

Board of Directors

– Has ultimate accountability for the Group’s strategy and risk

management.

– Updated on climate-related issues and progress against our

science-based carbon and EPC ratings targets at least annually.

– 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.

– Sets our risk appetite for Environmental and Social Sustainability

as ‘risk averse’ signalling the nature and extent of the risk the

Group is willing to take in achieving its strategic objectives.

– Considers climate-related issues when making strategic and

investment decisions that require Board-level approval.

– Reviews and approves our TCFD disclosure as recommended by

the Audit Committee.

ESG Committee

– Meets three times a year, comprised

of four independent Non-Executive

Directors and attended by the Chief

Executive Officer (CEO), Chief

Financial Officer (CFO) and Chief

Operating Officer (COO).

– Oversees the delivery of our

Sustainability Strategy including

climate-related issues.

– Monitors our performance and

management controls against our

Sustainability Strategy (guided by

our science-based carbon targets,

Pathway to Net Zero and EPC

ratings).

Remuneration Committee

– Responsible for setting ESG targets for

executive remuneration and updated on

progress against these targets three times a

year.

– The Long-Term Incentive Plan for Executive

Directors includes KPIs linked to the

reduction of operational carbon and

improvement of operational energy

efficiency and the Annual Incentive Plan is

linked to our progress on portfolio EPC

ratings and our performance in GRESB.

– Environmental KPIs are included in the

Remuneration Policy for Executive Directors

(see page 109).

Audit Committee

– Reviews and approves

evidence of the effectiveness

of risk management and

internal control processes for

climate-related risks

throughout the year.

– Assesses significant and

emerging climate-related risks

as escalated by the Risk

Committee twice a year.

EXECUTIVE

MANAGEMENT

Executive Committee

– The Board delegates day-to-day responsibility of delivering the

Group’s overall strategy to the CEO. He in turn leads the

Executive Committee to ensure its delivery (including our

Sustainability Strategy).

– The CFO is the Board Director responsible for climate-related

issues and chairs the Risk Committee. In the CFO’s previous role

as the COO he led the Sustainability Strategy.

– The CEO and CFO (Board Directors) have both completed formal

sustainability training.

– The COO leads the delivery of our Sustainability Strategy and

chairs the Sustainability Committee and Transition Vehicle

Committee. The COO gets regular updates from the Head of

Environmental Sustainability on climate-related issues.

– Each Executive Committee member has at least one

sustainability-related annual objective and supporting objectives

are cascaded across their teams.

Sustainability Committee

– Chaired by the COO and includes

the CFO, Head of Development,

Head of Real Estate and Investment

and other senior leaders.

– Monitors progress against our

Sustainability Strategy, tracks our

climate-related issues and assesses

for emerging risks and regulation.

– Reports into the ESG Committee

and the Remuneration Committee.

– Meets at least three times a year.

Risk Committee

– Chaired by the CFO with

membership across the Executive

Committee.

– Accountable for the effective

management and reporting of our

material climate-related risks.

– Tracks our climate-related key risk

indicators and their performance.

– Identifies significant and emerging

risks which get escalated to the

Audit Committee.

Investment Committee

– Chaired by the Head of Real Estate

and Investment with membership

spanning the Executive Committee

(including the CEO and CFO).

– Climate change and sustainability

considerations are fully integrated

within our investment and

development decisions and are

reviewed by our Investment

Committee.

– Material climate-related risks and the

key risk indicators are considered

during acquisition due diligence.

Transition Vehicle (TV) Committee

– Chaired by the COO and comprised of diverse range of

senior managers.

– Meets three times a year – approving applications for

funding to complete energy savings interventions

(improving progress towards our climate-related

performance targets and reducing climate-related risks).

– The TV is our mechanism to deliver on our operational

energy and carbon targets and is financed by an internal

levy on the embodied carbon in developments.

Sustainability team

– Led by the Head of Sustainability the team is responsible for

the day-to-day assessment, monitoring and management of

climate-related issues.

– The team works with different business areas to identify

climate-related issues through a process involving formal

horizon scans, trend analysis and stakeholder engagement.

– Identified climate-related risks are incorporated into our risk

framework and managed by the appropriate business areas.

about our Group Governance Framework on page 77

Sustainability Governance Framework

British Land

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TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)

CONTINUED

Strategy

(a) Our identified climate-related risks and

opportunities (issues) over our short, medium

and long term time horizons.

Material risk and opportunities identification

TCFD separates climate-related risks into two categories

– (1) risks associated with the transition to a lower carbon

economy (e.g. policy and legal risks); and (2) risks related

to the physical impacts of climate change – both acute

(event-driven e.g. floods) and chronic (longer-term shifts

in climate patterns e.g. heat stress).

For years we have worked 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 internal key business areas. In FY24 we updated

our physical issues modelling and we are now in the

process of updating our transition issues modelling.

We used the climate exposure diagnostic metric and the

value at risk (VaR) to assess our portfolio’s risk from

climate-related physical impacts. The climate exposure

diagnostic metric assesses an asset’s level of exposure

based on its location and the severity and intensity of

potential impacts. The VaR is the financial impact

quantification of associated asset damage and business

interruption from acute physical risks. The VaR analysis

considers both the exposure to physical risks and evaluates

the potential vulnerabilities and consequences in terms of

financial impact. These results are considered as a

‘residual’ measure as risk adaptation measures could

mitigate any potential financial impacts.

Time horizons and scenarios

Transition risks were modelled in two climate scenarios (see

below) 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 begin to play an increasingly significant role in

the resulting values. These assumptions have significant

levels of uncertainty so we have only presented transition

risks in the short and medium term.

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 current potential acute risks. Post-2050 was

chosen for the long term time horizon as this is when future

climate scenarios start to meaningfully differentiate from the

current climate so when we can expect more frequent and

severe climate-related impacts. This also aligns with our

portfolio as the standard design life of a building is 60 years.

Transition risk scenarios and parameters

Time

horizon

Scenario

name

IPCC

scenarios

IEA

scenarios

NGFS

scenarios

Temperature

rise

2030 UK

carbon price

Global

net zero

achieved by

Up to

2030

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

Time

horizon

Scenario

name

IPCC

scenarios

Atmospheric

Temperature

rise

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

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

HighMediumLow

Potential financial Impact

Likelihood

Low

Low High

High

Opportunity

Risk

Cost of MEES compliance (long term risk)

Mean flood risk vulnerability (short and long term risk)

Increasing price of carbon credits (long term risk)

Opportunity

Increasing customer demand for green low carbon buildings

(ongoing opportunity)

Risk

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

Defining a material risk and/or opportunity

We define a ‘material’ risk or opportunity in line with the

combination of their potential impact, both financial and/

or reputational, and their 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 in

the heat map below, with these issues detailed in the

next section.

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. In addition, 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 foreseeable future.

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’, can open doors 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

rawmaterials

Increased costs of capital

Potential carbon taxes

andlevies

Flash flooding

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Annual Report and Accounts 2025

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)

Climate

scenario

Likelihood Description

of impact

Potential

financialimpact

Explanation and mitigation

#1 Current physical damage to assets from river and flash flooding (extreme weather events)

Current

climate

Low to high Potential loss

of revenue

from business

interruption

(closure of

operations)

Increased capital

expenditure (cost)

to repair damaged

assets

Potential increased

insurance costs

Mean loss:

<£1.5m

(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 (by British Land %

ownership). Mean losses are the average loss of

modelled events weighted by the probability of their

occurrence. These losses are fully insured against

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 risk assets.

Medium term risks (up to 2030)

Climate

scenario

Likelihood Description

of impact

Potential

financialimpact

Explanation and mitigation

#2 Increasing price of carbon credits (carbon pricing mechanisms)

Current

climate

High Increased capital

expenditure as net

zero commitments

by corporates

leads to increased

demand for carbon

credits, resulting in

higher and/or

volatile carbon

credit prices

£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

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. At our 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 95% of our committed

development pipeline. In addition, our internal carbon

levy would now cover a carbon credit price increase

of up to £90 per tonne.

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

Material climate-related risks continued

#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.

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 proposed

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 by 2030. The

estimated retrofit cost across our managed portfolio to

be MEES compliant is £100m, implying an annual cost

of £12.5m excluding assets in our near and medium term

development pipeline recovered through the service

charge as part of the standard life cycle replacement.

Our Transition Vehicle (see page 38) was established to

finance the retrofitting of our portfolio, which aligns

(but goes beyond) proposed MEES requirements. A

significant portion of this investment will be recovered

through the service charge as part of the standard life

cycle replacement process. To date £26m

has been

spent on carbon efficient interventions and 68% 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 green space.

1. Figure includes capital expenditure, monies recoverable through service charge and occupier spend in demised spaces

Long term risks (post-2050)

Climate

scenario

Likelihood Description

of impact

Potential

financialimpact

Explanation and mitigation

#4 Future physical damage to assets from river and flash flooding (extreme weather events)

RCP2.6

(2°C)

RCP8.5

(>4°C )

Low to High 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)

Mean loss: £2m

(pre-insurance)

Losses in a bad

representative

year: £61.5m

(pre-insurance)

RCP8.5 (4C)

Mean loss: £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 (by British Land % ownership).

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

Group under normal circumstances, although we

recognise that in the long term specific assets could

face cost increases or difficulty obtaining insurance.

Material climate-related opportunities

Climate

scenario

Likelihood Description

of impact

Potential

financialimpact

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

from price

premiums. As

our portfolio

decarbonises, the

most efficient,

highly rated green

buildings may let

quicker and at a

premium to market

rents.

£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.

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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 (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 while we are dependent on operating in

a tolerable and safe climate that we also have an impact on

climate-related risks and opportunities. Given this and the

recognition we have of our role in supporting the equitable

transition to a low carbon economy we have embedded

sustainability throughout our business.

Material climate-related risks and opportunities have

affected delivering 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 carbon efficient

interventions and climate resilience

actions where relevant.

– Progress against our 2030 energy

efficiency and carbon-reduction

targets monitored quarterly

(page 36).

– 2030 energy efficiency and carbon-

reduction targets included within

executive remuneration (page 109).

– Annual asset-level business plans

include capex requirements for

carbon efficient 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 funds available to

pay for 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

sets stretching targets for our

standing portfolio and major

developments and refurbishments.

– Low Carbon Materials Working Group

established to identify innovative

materials and technology to lower

embodied carbon.

– Adopting NABERS UK for all office

schemes.

– Established our Transition Vehicle

in2020 to incentivise reduction in

embodied carbon and to fund the

cost of decarbonising our portfolio.

– Sustainable building certifications

can support management of our cost

of capital by providing 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

(see page 45).

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 to i) pay for the cost of

carbon credits to offset residual

embodied carbon in developments

and ii) finance carbon efficient

interventions on the standing

portfolio, managed by our Transition

Vehicle (see page 38).

Acquisitions or

divestments

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 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,

where necessary formal flood risk

assessments are funded as part of

the acquisition’s due diligence.

1. Read our Sustainability Brief for our Places at www.britishland.com/sustainability-brief

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

climate-related scenarios and alignment with

the equitable 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 % ownership of

total insured value). Any potential losses from flooding at

our assets in high river flood risk areas are fully

insuredagainst.

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 % 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 % ownership of total insured value). 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 Group 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 investigate 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 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 seeking high quality carbon credits while

managing cost risk. In FY24 we updated our internal

carbon price to £90 per tonne of embodied carbon to

better reflect the true cost of carbon and further

incentivise development teams to reduce embodied

carbon (reducing the quantity of carbon credits needed).

We have now pre-purchased carbon credits equivalent to

95% of the embodied carbon in our committed

development pipeline.

Transition opportunities:

Our development pipeline’s use of NABERS energy star

ratings and the upgrading of standing assets as part of our

Pathway to Net Zero 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 (pages 47 to 51).

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 (pages 47 to 50). With the

Governance and Strategy sections of our TCFD disclosure

outlining this process for climate-related issues (pages 64

to 65 and 66 to 71 respectively).

In FY23 we worked with JLL to conduct a double

materiality assessment of the most material ESG issues to

our business and stakeholders

. We ensure to do these

double materiality assessments on a regular basis with the

next planned for FY26.

2 Read about our FY23 materiality review here - www.britishland.com/

materiality

British Land

Annual Report and Accounts 2025

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 (pages 52 to 58). 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

(page 65).

Our identified material climate-related risks are monitored

as key risk indicators within our principal ‘Environmental

and Social Sustainability risk’ (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, 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 checklist 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 now pre-

purchase carbon credits for our committed developments

to provide greater certainty over the costs and have

increased our internal carbon price to £90 per tonne

to greater 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, and

managing climate-related risks are integrated in

the organisation’s overall risk management

This is covered in the above sections and in our internal

risk management process (pages 47 to 51).

Metrics and targets

To enable our shareholders to make informed decisions

we set a broad range of environmental targets and detail

progress against them alongside a comprehensive set of

climate and energy performance data in our 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% lower embodied carbon intensity at our offices

developments to below 500kg CO

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% improvement in energy intensity ofmanaged assets

by 2030 vs 2019

We align to externally recognised frameworks including

the Sustainability Accounting Standards Board (SASB), the

EPRA 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

GRESB 2024: 5* Standing Investments and 5*

Development and FTSE4Good 91st 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 109.

British Land

Annual Report and Accounts 2025

STRATEGIC REPORT

(a) Our metrics to assess climate-related risks and opportunities in line with our strategy and risk

management process

Climate-related risks (KRIs)

2025 2024 2023

Policy

and legal

Risk #3 EPCs rated A (byERV) 13% 8% 3%

EPCs rated B (byERV) 55% 50% 42%

EPCs rated C (byERV) 21% 23% 30%

EPCs rated D (byERV) 5% 12% 17%

EPCs rated E (byERV) 4% 5% 6%

EPCs rated F (byERV) 0% 1% 1%

EPCs rated G (byERV) 1% 1% 1%

Certificate currently not available (by ERV) 1% nr nr

Extreme

weather

Risks #1, 4 Percentage of portfolio located in 100-year flood zones (by

British Land % ownership of total insuredvalue) 3% 3% 4%

Assets in high flood risk areas with flood management plans

(by British Land % ownership of total insuredvalue)

100% 100% 100%

1. EPC data includes retail assets located in Scotland

2. These values only include occupied British Land managed properties

Climate-related opportunities (targets and KPIs)

2025 2024 2023

Resource

efficiency

Risk #2 50% improvement in embodied carbon intensity of current

major office developments completed from April 2020 (kg

e per sqm) 615 625 608

Opportunity

75% reduction in managed portfolio whole building carbon

intensity by 2030 vs 2019 (Offices) 40% 40%

40%

25% improvement in whole building energy intensity

ofthe managed portfolio by 2030 vs 2019 (Offices) 24% 23% 22%

Energy

sources

Opportunity

Electricity purchased from renewable sources 97% 94% 88%

On site renewable energy generation (MWh) 1,411 1,772 2,043

Products

and services

Opportunity

Standing portfolio with green building ratings

(byfloor area) 33% 48% 48%

Developments on track for BREEAM Excellent or higher

(by floor area, offices) 100% 98% 98%

Percentage of gross rental income from BREEAM certified

assets (managed portfolio) 43% 62% 65%

Risk #2 Internal price of carbon (£ per tonne) £90 £60 £60

3. Restated Scope 1 emissions for increased accuracy

All environmental data above except gross rental income from BREEAM and the internal price of carbon is assured by DNV – specific details of scope of assurance can

be found in DNV’s assurance statement in our 2025 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 greenhouse gas (GHG) emissions and associated

energy consumption data are available in the Streamlined

Energy and Carbon Reporting (SECR) section of this

Report, pages 62 to 63. All our GHG emissions data is

subject to ‘limited assurance’ verification by DNV

4. Details about our reporting methodology and DNV’s assurance

statementcan be found in our 2025 Sustainability Progress Report –

www.britishland.com/SPR

risks and opportunities and performance

against targets

Our full set of sustainability targets, including our science-

based targets, are detailed in our 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 21 May 2025 and signed on its behalf by:

Simon Carter

Chief Executive

British Land

Annual Report and Accounts 2025

CORPORATE

GOVERNANCE

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 2018 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 10 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. Lynn’s significant expertise

within the field of science and technology and her role as Chair of the

Innovation Advisory Council are crucial as the Company progresses

this element of the strategy. In order to carefully monitor Lynn’s

independence going forward, the terms of her letter ofappointment

will be on the basis of a 12-month term. The Board will have particular

consideration to the circumstances relevant to Lynn’s independence

each year and report the outcome accordingly.

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

REPORTING AGAINST CODE PRINCIPLES

The table below has been included to enable shareholders to understand how the principles have been applied.

GOVERNANCE

1. Board leadership

and Company purpose

Pages

A Effective Board 76

B Purpose 4

Values and culture 88 to 92

C Governance framework 77

and Board resources

D Stakeholder engagement 16 and 17

E Workforce policies and practices 57 and 132

2. Division of responsibilities

Pages

F Board roles 82 to 85

G Independence 95

H External appointments 81 and 98

and conflicts of interest

I Board policies and processes 80 to 81

3. Composition, succession

and evaluation

Pages

J Appointments to the Board 76

K Board skills, experience and knowledge 96

L Annual Board evaluation 81

4. Audit, risk and internal control

Pages

M Financial reporting 101 to 103

External auditor 103 to 105

and Internal Audit

N Review of the 2025 Annual 102

Report and Accounts

O Internal financial controls 106

Risk management 50

5. Remuneration

Pages

P Linking remuneration with 107 to 108

purpose and strategy

Q Remuneration Policy 109

R Performance outcomes in 2025 118 to 128

Regent’s Place

British Land

Annual Report and Accounts 2025

NON-EXECUTIVE CHAIR’S INTRODUCTION

CORPORATE

GOVERNANCE

REPORT

Dear Shareholder,

It is my privilege to present this Annual Report, my first as

Chair of the Company, following a year marked by

significant Board and Executive leadership changes,

strategic execution and robust financial performance. 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 and Executive changes

Since the publication of the 2024 Annual Report, there

have been several noteworthy changes to the Board and

executive management team, as detailed below. An

overview of the selection and appointment process can be

found in the Nomination Committee report on page 95.

Board and Executive activity

July

2024

– Amanda James appointed as Non-Executive Director

– Tim Score stepped down as Chair and was succeeded

by William Rucker

– Laura Wade-Gery stepped down as Non-Executive

Director and Chair of the Remuneration Committee and

was succeeded by Amanda Mackenzie

September

2024

– Darren Richards stepped down as Head of Real Estate

– Kelly Cleveland, previously Head of Strategy and

Investment, appointed to new combined role of Head

of Real Estate and Investment

November

2024

– Bhavesh Mistry stepped down as Chief Financial Officer

and was succeeded by David Walker, previously Chief

Operating Officer

December

2024

– Emma Cariaga, previously Joint Head of Canada Water,

appointed as Chief Operating Officer. David Lockyer

assumed responsibility for Canada Water as Head of

Development, working alongside Roger Madelin

Board and Executive activity

January

2025

– Preben Prebensen stepped down as Non-Executive

Director and was succeeded by Loraine Woodhouse as

Senior Independent Director

March

2025

– Irvinder Goodhew stepped down as Non-Executive

Director

Board diversity

I am pleased to report that following Loraine Woodhouse’s

appointment as Senior Independent Director in

January, the Company now complies with its gender

diversity targets under the UK Listing Rules. However,

following the departures of Bhavesh Mistry and Irvinder

Goodhew, the Company no longer meets the UK

Listing Rule targets regarding Board ethnic diversity.

A search for a successor for Irvinder is underway. The

Nomination Committee remains committed to holding

diversity as a key aim alongside prioritising the skills and

experience of candidates to meet the Board’s needs.

Strategic oversight

As detailed in the Strategic Report, the Company

made significant progress in its strategy to recycle

capital through the disposal of interests in Meadowhall

and 2 Finsbury Avenue. Capitalising on favourable

market conditions in October 2024, we successfully

raised equity to part-fund the acquisition of a £441m

portfolio of retail parks from Brookfield, marking our

first equity raise in 10 years. The Board was pleased by

the overwhelming support from shareholders and the

wider market for this transaction which formed part

of the total £738m of retail parks acquired in the year,

solidifying these assets as our preferred retail format.

The Board has provided rigorous oversight and challenge,

both in formal meetings and through informal discussions

throughout the year. I meet regularly with Simon to discuss

the execution of strategic priorities, and Simon ensures he

meets with Non-Executive Directors ahead of Board

meetings to discuss key decision points to provide

additional context.

The case studies on page 79 offer an in-depth analysis of

principal board decision making during the year.

Remuneration Policy

The Directors’ Remuneration Report details the proposed

Remuneration Policy on pages 108 to 115 which will be

presented for approval at the 2025 AGM following a

successful programme of shareholder consultation led by

AmandaMackenzie.

AGM

I look forward to welcoming shareholders to the AGM

on 15 July 2025, which will once again be held at 100

Liverpool Street. 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 and Executive changes

– Strategic oversight

– Board diversity

– Remuneration Policy

William Rucker

Non-Executive Chair

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

Management Committees

Governance framework

The Board maintains a strong governance framework that ensures accountability and an appropriate culture whilst maintaining

a relentless focus on the successful execution of the Company’s strategy. The Board delegates appropriate responsibilities

to its Committees, which in turn report upward, allowing the Board to make well-informed and timely decisions.

Our key stakeholders

Investors People Customers Communities Suppliers and

partners

Environment Joint venture

partners

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.

Transition Vehicle

Reports to the Investment and

Sustainability Committees

Responsible for the operation and

funding of sustainability initiatives.

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.

Executive

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.

Community Investment

Reports to the Sustainability and

Investment Committees

Oversees the strategic management

of the Community Investment Fund.

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.

Sustainability

Reports to the ESG

Committee

Oversees the

Company’s

activities,

development

and progress in

achieving the 2030

Sustainability

Strategy and

beyond.

Risk

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

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

British Land

Annual Report and Accounts 2025

OUR APPROACH TO GOVERNANCE

Stakeholder engagement and

principal Board decisions

The methods used to engage with the Company’s

stakeholders are outlined on pages 16 and 17.

Beloware descriptions of how the outputs of that

engagement and the wider factors listed within s.172

of the Companies Act are taken into account by the

Board when making decisions. The following depicts

the process for all Board decisions:

Stakeholder engagement

Bottom-up stakeholder engagement assessing the

needs of 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

the impact on every s.172 stakeholder group.

Board meeting and decision

The Board ultimately makes a decision based on

shareholder benefit, whilst taking into account the

impact on all stakeholders.

The £301m equity raise and linked acquisition of a

portfolio retail parks, and the disposal of the

Company’s interest in Meadowhall Shopping Centre

are two principal decisions taken during the year.

Glasgow Fort

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

Meadowhall disposal

In May 2024, the Board approved the sale of the

Company’s interest in the Meadowhall Shopping

Centre to its joint venture partner, Norges Bank

Investment Management.

At the forefront of the decision was the Company’s

stated intention to recycle capital from mature assets

into growth sectors. The Board was confident that

there were sufficient opportunities to deploy the net

proceeds into retail parks which have been identified

by the Company as the preferred retail format of

choice due to higher retailer demand, lower capex

requirements over the long term and lower

occupational costs.

The Board considered the impact to the Company’s

workforce, specifically those colleagues who might

have been directly impacted by the disposal. As part

of the transaction, the Company was retained in its

pre-existing asset and property management capacity

which meant there was no immediate impact on the

Company’s employees working on the asset.

From an environmental perspective, Meadowhall is

situated adjacent to the River Rother resulting in a

heightened flood risk status. The Company has worked

to mitigate the flood risk to Meadowhall with flood

defences and insurance arrangements during its

ownership; however, the net impact of the disposal

was a lower overall flood risk exposure for the Group.

Overall, the Board concluded that the disposal was

aligned with the Company’s strategic ambitions and,

once the proceeds were deployed, demonstrated

earnings-accretive capital activity to shareholders.

£301m equity raise and retail

park acquisition

In October 2024, the Board approved an equity

raise of £301m through an institutional placing and

conditional retail offer in connection with the

acquisition of a portfolio of seven retail parks from

Brookfield for a total consideration of £441m.

The Board discussed the strong business

fundamentals of the acquisition, noting that the

assets were 99% occupied and all benefitted from a

major superstore anchor. The acquisition reflected a

net initial yield of 6.7% and a topped up initial yield

of 7.2%, as well as being accretive to earnings per

share. Overall, the sites offered an attractive yield

and strong rental growth prospects in line with

British Land’s guidance of 3% to 5%. The Board

considered the impact of the transaction to the key

financial metrics of the business, noting that whilst

there was a marginal negative impact on NTA per

share as a result, the overall impact to the Company

and its shareholders was positive.

Institutional and retail shareholder appetite to

participate in an equity raise was at the forefront of

the Board’s mind. The Board believed in the strong

economic fundamentals of the transaction. Through

feedback from regular investor interaction, the

Executive Directors were confident that major

investors would be supportive of the Company

raising equity to fund such a compelling acquisition.

The raise was overwhelmingly supported by both

institutional and retail investors, with both aspects

being materially oversubscribed.

Reputationally, the transaction was consistent

with the stated strategy of the business and

evidenced British Land’s ability to act decisively

when presented with an opportunity to grow

the Company.

The EPC ratings and flood risk ratings of the new

assets were considered as part of the decision-

making process. In respect of EPCs, the Board noted

that a provision had been made to upgrade the

ratings as part of the Company’s sustainability

initiatives at modest costs. The Company’s overall

flood risk tolerance remained within risk appetite.

Overall, the Board agreed that the combined

transaction of issuing equity and acquiring the

portfolio of retail parks represented good value for

the Company’s shareholders, whilst positively

impacting a broad range of wider stakeholders.

British Land

Annual Report and Accounts 2025

OUR APPROACH TO GOVERNANCE CONTINUED

Board activity

The table below presents the Board’s activities and key decisions

made throughout the year, categorised into the broad areas of

strategic focus that the Board prioritises.

Focus area Board activity Key decisions

Strategy

Equity raise Evaluated market conditions,

shareholder sentiment and

investment opportunities

required to support raising

equity

Approved the equity

raise of £301m

Retail park

acquisition

Considered at various times

during the year appropriate

opportunities to invest in

retail parks

Acquisition of a

retail parks portfolio

of £441m which was

part of a total

£738m acquired

during the year

Disposals 50% interest in Meadowhall

Shopping Centre

25% interest in 2 Finsbury

Avenue

Approved these key

disposals

Culture and stakeholders

Employee

engagement

survey results

analysis

Reviewed the employee

engagement survey results

Approved the action

plan to address

areas of lower

engagement

Risk

Risk appetite

and key risk

indicators

Considered both in the

context of the Company’s

strategy and market outlook

Approved the risk

appetite and key risk

indicators

Finance

Financial

reporting

Assessed the financial

performance of the Group by

receiving reports from the

CFO and finance team.

Received investor feedback

following the results

presentation and

engagement with investors

at the roadshows

Approved the 2024

Annual Report and

Accounts and

half-year report

Budget Considered the Company’s

performance, capital plan

and expected financial costs

Approved the FY26

budget

Dividend Considered the Group’s

reserves and capital position

Approved the

interim and final

dividends during the

year

Debt facilities Assessed the Group’s debt

position and ability to

leverage this position whilst

maintaining an acceptable

loan to value ratio in the

short to long term

Approved £1.3bn of

unsecured debt

Tax Reviewed the Group’s tax

policy

Amended and

approved our

‘Approach to Tax’

document

Governance and regulatory matters

Slavery and

human

trafficking

Considered the content of

the statement

Approved the

slavery and human

trafficking statement

Board meeting calendar

The calendar sets out the key matters

considered at each Board meeting

throughout the year.

Annual Report and Accounts

£150m revolving credit facility

AGM

Impact of UKelection result

Technology strategy

Equity raise and retail park

acquisition

Innovation deep dive

Syndicated revolving credit

facility of £730m

Canada Water update

Slavery and human

traffickingreport

Broadgate campus update

Half-year results

Interim dividend

Equity market update

Interest rate management policy

Geopolitical update

Employee survey results

Strategy offsite

Public bond transaction

Considered macroeconomic

effects of geopolitical changes

Approval of FY26 budget

MAY

JUL

SEP

NOV

JAN

FEB

MAR

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

Board and Committee evaluations

The Board reviews its performance and effectiveness

annually. During the year, the Board conducted an internal

Board evaluation following the externally facilitated

evaluation in 2023/24. 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 and ways to improve.

Progress against 2024 focus areas

During the year, the Board sought to implement the key

takeaways from last year’s externally facilitated Board

evaluation as detailed below.

Focus area Action taken

Transitioning to

the new Chair

The transition process was managed

with clear communication and planning,

ensuring continuity in leadership.

Embedding new

Non-Executive

Directors

The process of onboarding new

Directors was enhanced during the year.

Comprehensive induction programmes

were conducted with new Board

members and additional efforts to foster

collaboration and integration were made

particularly with a new Chair.

Shaping the

Board for the

future

The Board continues to focus on long

term strategic alignment including

proactive consideration of skills,

experience and diversity that will equip

the Board to navigate future challenges.

Board and

executive

succession

planning

Recent changes to the Board and

Executive Committee places the

Company in a good position for the

future. The search for a new Non-

Executive Director began during the year

following Irvinder Goodhew’s departure.

Robust succession and contingency

plans are in place for all roles.

2025 internal Board evaluation process

The internal evaluation of the Board was conducted by

the Company Secretary conducting 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 2025 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 new 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. Considerable

time was spent during the year considering the structure

of the Committees and whether it remains fit for purpose.

Ultimately, the Board agreed that the Committee structure

remained suitable and all Committees had worked

effectively. Of note, the additional fourth Audit Committee

meeting that will be held going forward will enable the

Committee to carry out its duties even more effectively.

2025 internal Board evaluation outcomes

1. The Board considered the optimum skill set for any new

members of the Board, and consequently commenced a

live search process for a new Non-Executive Director.

2. Continue to bring new external perspective into Board

meetings including potential contrarian views.

3. Given recent Executive Committee role changes,

continue the Board’s focus on the executive succession

pipeline.

Division of responsibilities

There is a clear written division of responsibilities between

the Chair (who is responsible for the leadership and

effectiveness of the Board), Chief Executive (who is

responsible for managing the Company) and Senior

Independent Director (SID). This has been agreed by

theBoard and is available to view on our website

www.britishland.com/committees. A brief overview

of their responsibilities can be found on page 77.

Board operation

Regular Board and Committee meetings are scheduled

throughout the year. Ad hoc meetings may be held

at short notice when Board-level decisions of a time

critical nature need to be made, or for exceptional

business. Care is taken to ensure that information is

circulated in good time before Board and Committee

meetings and that papers are presented clearly and

with the appropriate level of detail to assist the Board

in discharging its duties. The Secretariat assists the

Board and Committee Chairs in agreeing agendas in

sufficient time before meetings to allow for input from key

stakeholders and senior executives. Chairs of Committees

are also sent draft papers in advance of circulation to

Committee members to give time for their input.

Papers for scheduled meetings are circulated one week

prior to meetings and clearly marked as being ‘For

Decision’, ‘For Information’ or ‘For Discussion’. To enhance

the delivery of Board and Committee papers, the Board

uses a Board portal and tablets, which provide a secure

and efficient process for meeting pack distribution.

Under the direction of the Chair, the Company Secretary

facilitates effective information flows between the Board

and its Committees, and between senior management and

Non-Executive Directors.

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 Company’s procedure for managing

conflicts of interest by the Directors is as follows. 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.

British Land

Annual Report and Accounts 2025

BOARD OF DIRECTORS

O U R

LEADERSHIP

Career and experience

William is currently Chair of ICG plc and

the UK Dementia Research Institute. He

was Chair of Marston’s Plc for five and a

half years immediately before becoming

Chair of British Land. William was Chair of

Lazard in the UK, an investment bank

focused on asset management and

financial advisory businesses, which he

joined in 1987 from Arthur Andersen

where he qualified as a Chartered

Accountant. William has extensive

experience in the real estate sector having

previously been Chair of Crest Nicholson

Holdings plc and Quintain Estates and

Development PLC.

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.

Career and experience

Simon has extensive experience of finance

and the real estate sector. He joined

British Land from Logicor, the owner and

operator of European logistics real estate,

where he had served as Chief Financial

Officer since January 2017.

Prior to joining Logicor, from 2015 to 2017

Simon was Finance Director at Quintain

Estates & Development Plc. Simon

previously spent over 10 years with British

Land, working in a variety of financial and

strategic roles and was a member of our

Executive Committee from 2012 until his

departure in January 2015. Simon also

previously worked for UBS in fixed income

and qualified as a chartered accountant

with Arthur Andersen. Simon was a Board

member of Real Estate Balance, a

campaigning organisation working to

improve diversity and inclusion in the real

estate industry, until April 2025, and will

become President of the British Property

Federation in June 2025.

Skills relevant to British Land

– Strategic leadership, fostering

innovation and driving impactful

change

– Holistic and judicious approach to

decision making

– Extensive financial property knowledge

– Commitment to supporting diversity

and inclusion in the real estate sector

Significant external appointments

None.

Career and experience

David joined British Land in 2017 and

was appointed Chief Financial Officer

in November 2024. He was previously Chief

Operating Officer, having served as Interim

Chief Financial Officer between 2020 and

2021 and Head of Investor Relations. He

qualified as a Chartered Accountant with

PwC, before spending over seven years in

various roles at Deutsche Bank. Since then,

he has worked for over 15 years in Investor

Relations, Strategy, Finance and Corporate

Development roles within UK listed

businesses.

David is on the Board of Equiem, a leading

property technology business and Chance

to Shine, a cricket youth charity. He was

previously the Chair of the Investor

Relations Society, serving on the Board

from 2012 to 2022 and between 2014 and

2021 was a Board Director and member of

the Audit and Risk Committee of Glebe

Housing Association.

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

– Dedication to driving sustainable

change and growth

Significant external appointments

None.

William Rucker

Non-Executive Chair

Appointed as Non-Executive

Chair in July 2024

Simon Carter

Chief Executive

Appointed as Chief Financial

Officer in May 2018 and Chief

Executive in November 2020

David Walker

Chief Financial Officer

Appointed as Chief Financial

Officer in November 2024

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

Career and experience

Loraine has extensive experience across

all finance disciplines and has worked in

many different sectors including real

estate and retail.

Loraine is a Non-Executive Director and

member of the Audit, Nomination, ESG

and Health and Safety Committees of

Pennon Group plc. Loraine is also a

Non-Executive Director and Audit Chair of

Associated British Foods plc. Loraine was

Chief Financial Officer of Halfords Group

plc for just under four years until retiring in

June 2022. Prior to joining Halfords,

Loraine spent five years in senior finance

roles within the John Lewis Partnership,

including Acting Group Finance Director

and Finance Director of Waitrose. Prior to

that, Loraine was Chief Financial Officer of

Hobbs, Finance Director of Capital

Shopping Centres Limited (subsequently

Intu Plc) and Finance Director of Costa

Coffee Limited. Loraine’s early career

included finance and investor relations

roles at Kingfisher Plc.

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.

Career and experience

Amanda is currently a Non-Executive

Director of Lloyds Banking Group plc

where she is Chair of the Responsible

Business Committee and a member of the

Remuneration Committee, Nomination

and Governance Committee and Audit

Committee. She is also Non-Executive

Chair and Partner of OtherWise

PartnersLLP.

Amanda was Chief Executive of Business

in the Community, which promotes

responsible business and corporate

responsibility. Prior to that role, she was a

member of Aviva’s Group Executive for

seven years as Chief Marketing and

Communications Officer and was

seconded to help launch the United

Nation’s Sustainable Development Goals.

She is also a former Director of British

Airways AirMiles, BT, Hewlett Packard Inc

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.

Career and experience

Alastair has proven experience of growing

real estate companies and is a fellow of

the Royal Institution of Chartered

Surveyors.

Alastair is Chairman of Schroders Real

Estate Investment Trust Limited, and a

Non-Executive Director of Tritax Big Box

REIT and QuadReal Property Group, with

over 25 years of experience in real estate

markets.

He is a former Director of Jones Lang

LaSalle Inc. (JLL) having served as

managing director of JLL in the UK, as

CEO for Europe, Middle East and Africa

and then as 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.

Loraine Woodhouse

Senior Independent Director

Appointed as a Non-Executive

Director in March 2021 and

Senior Independent Director

inJanuary 2025

Amanda Mackenzie

Independent Non-

Executive Director

Appointed as a

Non-Executive Director

in September 2023

Alastair Hughes

Independent Non-

Executive Director

Appointed as a Non-

Executive Director

in January2018

Board Committee membership key

Audit Committee

Nomination Committee

Remuneration Committee Chair of a Board Committee

Environmental Social Governance Committee

British Land

Annual Report and Accounts 2025

BOARD OF DIRECTORS CONTINUED

Board Committee membership key

Audit Committee

Nomination Committee

Remuneration Committee Chair of a Board Committee

Environmental Social Governance Committee

Career and experience

Mary is a highly experienced real estate

professional who brings over 35 years’

experience of the UK, European and the

United States property markets. In 2023,

she stepped down as President of

Kennedy Wilson, a global real estate

investment company where she worked

for 32 years, overseeing the launch of its

European business and subsequent IPO in

London in 2014. In 2017 the European

business was taken private creating an

$8bn global real estate investment and

asset management platform listed in the

United States. Mary was Group President

of the group from 2018 to 2023, serving as

a board member with a focus on the

investment and asset management

business. Mary has set up her own family

foundation which supports 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.

Career and experience

Lynn is recognised as an authority in

working at the interface of scientific

research and industrial practice. Her

critical thinking and analytical skills bring a

unique dimension to the Board.

She is Shell Professor of Chemical

Engineering at the University of

Cambridge, alongside which she has

previously held the roles of Pro-Vice

Chancellor for Research at the University

of Cambridge and Executive Chair of the

Engineering and Physical Sciences

Research Council (UKRI).

Lynn is a member of the Council for

Science and Technology, a trustee of the

Faraday Institution and an adviser to

BeyondNetZero, a climate growth equity

fund. She is also 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.

Career and experience

Mark is Chairman of EMEA & APAC, Moelis

& Company, the global independent

advisory firm. Prior to 2009, Mark 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 and

Trustee of the HALO Trust. He is also a

Visiting Fellow at Oxford University.

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.

Mary Ricks

Independent Non-Executive

Director

Appointed as Non-Executive

Director in November 2023

Lynn Gladden

Independent Non-Executive

Director

Appointed as a Non-Executive

Director in March2015

Mark Aedy

Independent Non-Executive

Director

Appointed as Non-Executive

Director in September 2021

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

Career and experience

Amanda is an Independent Non-Executive

Director of the Board of Auto Trader

Group plc and a member of the Audit,

Remuneration, Corporate Responsibility

and Nomination Committees. She also

joined the board of Rightmove plc on

9 May 2025 as an Independent Non-

Executive Director and member of the

Corporate Social Responsibility and

Nomination Committees, and will become

Chair of the Audit Committee on 1 June

2025. Amanda was the Chief Financial

Officer of NEXT Plc (NEXT), one of the

UK’s largest FTSE 100 fashion, footwear,

and home retailers until July 2024 and

retired from NEXT group in September

2024. She has an extensive background in

finance, having been a member of the

NEXT finance team for over 28 years, and

joined the NEXT board in 2015.

Skills relevant to British Land

– Recent and relevant financial

experience

– Strong consumer, retail and multi-

channel 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.

Career and experience

Before joining British Land in January

2018 Brona spent four years at The

Co-operative Bank plc, playing a key role

in its restructuring as General Counsel and

Company Secretary, and part of the

executive committee. Prior to that, her

experience included a period as Interim

General Counsel and Secretary of the

Coventry Building Society and a variety of

roles over 13 years at Barclays, including

Global General Counsel of its Corporate

Banking division. Brona trained as a

solicitor and spent a number of years at a

large London law firm.

Skills relevant to British Land

– Extensive experience in legal and

corporate governance matters with

significant experience in navigating

complex legal landscapes

– Strong skills in leadership, strategic

thinking, analysis and delivery applied

to the people agenda helping drive a

performance culture

Significant external appointments

None.

Amanda James

Independent Non-Executive

Director

Appointed as Non-Executive

Director in July 2024

Brona McKeown

HR Director, General Counsel

and Company Secretary

Appointed as General Counsel

and Company Secretary in

January 2018 and in addition

was appointed as HR Director

in January 2022

Attendance

Director Board Audit ESG Nomination Remuneration

Mark Aedy 9/9 n/a 2/3 n/a n/a

Simon Carter 9/9 n/a n/a n/a n/a

Lynn Gladden 9/9 n/a 3/3 n/a 4/4

Irvinder Goodhew 8/8 n/a n/a 3/4 2/3

Alastair Hughes 9/9 3/3 3/3 5/5 n/a

Amanda James 7/ 7 2/2 n/a n/a n/a

Amanda Mackenzie 9/9 n/a 3/3 3/3 3/4

Bhavesh Mistry 6/6 n/a n/a n/a n/a

Preben Prebensen 7/7 2/2 n/a 4/4 3/3

Mary Ricks 9/9 2/2 n/a n/a n/a

William Rucker 6/6 n/a n/a 3/3 n/a

Tim Score 3/3 n/a n/a 2/2 n/a

Laura Wade-Gery 3/3 n/a n/a 2/2 1/1

David Walker 3/3 n/a n/a n/a n/a

Loraine Woodhouse 9/9 3/3 n/a 3/3 3/3

During the year, Irvinder Goodhew, Bhavesh Mistry, Preben Prebensen, Tim Score and Laura Wade-Gery stepped down

from the Board.

Mark Aedy was unable to attend the May ESG Committee meeting due to a long-standing travel arrangement.

Irvinder Goodhew did not attend the September Nomination and Remuneration Committee meetings due to a family

emergency. Amanda Mackenzie could not attend the May Remuneration Committee meeting due to a pre-existing

external commitment.

British Land

Annual Report and Accounts 2025

REPORT OF THE ENVIRONMENTAL SOCIAL GOVERNANCE COMMITTEE

DRIVING

POSITIVE

CHANGE

I am pleased to present the report of the ESG

Committee for the year ended 31 March 2025.

Sustainability Strategy

Driving forward our 2030 Sustainability Strategy remains

at the forefront of our efforts. This year, the Committee

was pleased to see significant progress towards our

ambitious goals, such as retaining our GRESB 5* rating and

the reduction of average embodied carbon intensity across

committed, near and medium term office developments.

Further detail on progress towards our targets is found

in the Sustainability section on pages 36 to 43.

Engaging with our workforce

Our employee-led Networks continue to be instrumental

in creating a sense of community and belonging. The

Networks play a key role in assisting the Committee in

monitoring the Company’s culture and as a mechanism of

engagement to understand the views of our workforce.

The Committee receives regular updates from our

Networks and recognises the significant efforts that

they make to bring people together. We know that

by listening to our people, our work environment

is strengthened and positive change is driven.

Diversity, Equality & Inclusion Strategy

Progress towards our 2030 Diversity, Equality & Inclusion

(DE&I) Strategy remains a key focus for the Committee,

recognising that a diverse team is more representative of

our customers and will design better products and make

better decisions. During the year, the Committee was

pleased with our progress towards our targets and with

the positive results of the DE&I Internal Audit review. See

page 43 for further detail.

Year ahead

The Committee will continue to oversee how the evolving

ESG regulatory landscape impacts the business, in

addition to monitoring progress towards our sustainability

and DE&I targets. We will also closely review our health

and safety processes to ensure that our high standards

continue to be adhered to. Overseeing the mechanisms for

engaging with our workforce and monitoring culture will

remain a priority for the Committee.

Alastair Hughes

Chair of the ESG Committee

Alastair Hughes

Independent Non-Executive Director

Engaging with our people to drive

positive change remains a key

priority for the Committee.

Alastair Hughes

Chair of the ESG Committee

Focus in the year

– Overseeing progress against our 2030

Sustainability Strategy

– Continuing to engage with our workforce

– Overseeing progress against our 2030 Diversity,

Equality & Inclusion Strategy

Role of the Committee

The primary role of the ESG Committee is 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

of the Company

– Ensuring that the Board is aware of the

processes and mechanisms used by the

Company to engage with key stakeholders

– Ensuring that those processes and mechanisms

are fit for purpose and assist in contributing to

wider society

Our Sustainability section found on pages 36 to

43 provides greater detail on the Company’s

approach to sustainability, and should be read

alongside this report.

Membership and attendance

The membership of the Committee comprises

four independent Non-Executive Directors.

Biographical details of the Committee members

are found on pages 82 to 85.

The Committee met three times in 2024/25 with

an additional joint meeting held with the

Remuneration Committee. Attendance is set out

on page 85. Senior managers from across the

business are invited to attend each Committee

meeting, together with our Executive Directors.

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

Environment

The Committee is responsible for understanding the impact

of our operations on the environment. During the year,

the Committee received updates on the Greener Spaces

pillar of the Strategy, focusing on the objectives set and

performance against relevant targets. The Committee

discussed our sustainability accreditations and how

these demonstrated that we are a leader in delivering the

low carbon real estate our customers are demanding.

Amongst these achievements, the Committee was pleased

that we retained our GRESB 5* rating. As part of this

discussion, it was agreed that the Company should aim

to prioritise accreditations of strategic importance and

value, acknowledging the significant business impact

involved in meeting the increasing reporting criteria.

about our sustainability accreditations on pages

36to 43

The Committee approved the publication of the report on

British Land’s approach to the circular economy,

recognising the importance of informing the industry

about best practices in reusing materials. The Committee

received regular updates on the Transition Vehicle, a key

mechanism for delivering our energy and carbon targets.

Social

As part of the Thriving Places pillar of the Strategy, the

Committee oversees the delivery of the Social Impact

Fund and the work of the Social Impact Committee. A key

highlight presented to the Committee was that, for the

seventh consecutive year, the Company was listed in the

Social Mobility Foundation Index Top 75. This reaffirmed

our commitment to recognising talent irrespective of

an individual’s social background. The Committee also

received updates on our social value target to generate

£200m of direct social and economic value by 2030.

Governance

As part of the Responsible Choices pillar of the Strategy,

the Committee monitors progress against our DE&I

Strategy and oversees the mechanism for engaging with

the workforce on behalf of the Board. The Committee

assesses and monitors our culture to ensure it is aligned

with our purpose, strategy and values. The Committee

oversees the work of the Sustainability Committee; see

page 65 for further information on our sustainability

governance framework. The Committee oversees the

work of the Health and Safety Committee and, during the

year, monitored our health and safety systems through

quarterly reporting. The Committee also monitored our

processes and mechanisms for building relationships

with customers, suppliers and other stakeholders.

GREENER

SPACES

THRIVING

PLACES

RESPONSIBLE

CHOICES

Deep dive into activities during the year

The Committee assists the Board in making decisions that are

environmentally and socially intelligent, as well as making sound

financial sense. This is central in delivering our purpose to create

and manage outstanding places.

The Committee operates under three pillars: Environmental;

Social; and Governance. These pillars are reflected in our 2030

Sustainability Strategy under Greener Spaces, Thriving Places and

Responsible Choices.

Activities during the year

Sustainability Strategy update

2024 sustainability reporting update

ESG Committee Report

approvalwithin the 2024 Annual

Report and Accounts

Network presentations

(Wellbeing and Pride)

Construction, health and

safetyupdate

Sustainability Strategy update

DE&I Strategy update

Network presentations

(Sports & Social and Cycling)

Construction, health and

safetyupdate

Joint meeting with the

Remuneration Committee to review

the employee engagement survey

results through a diversity lens

Sustainability Strategy update

Network presentations

(NextGen and Sustainable)

Construction, health and

safetyupdate

Supplier Code of Conduct review

MAY

NOV

MAR

INCOME

FOCUSED

8-10%

TOTAL ACCOUNTING

RETURN THROUGH

THE CYCLE

British Land

Annual Report and Accounts 2025

REPORT OF THE ENVIRONMENTAL SOCIAL GOVERNANCE COMMITTEE

CONTINUED

Focus on culture

The Board sets the tone from the top to foster a culture that aligns with our purpose, strategy and values. Our culture

shapes how we achieve our strategy and embodies how we operate as a business.

The Board has delegated oversight of assessing and monitoring our culture to the ESG Committee. The Chair of the

Committee provides updates to the Board, allowing the Board to stay informed on cultural developments and ensure

alignment with our strategic objectives.

OUR

PURPOSE

DRIVES OUR

STRATEGY

TO SHAPE OUR

CULTURE

UNDERPINNED

BY OUR VALUES

Our purpose is to create and manage

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 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

tothrive.

Deliver at Pace, Listen and

Understand, Build for the Future,

Bring your Whole Self and Be

Smarter Together.

We have a diverse, inclusive and

ambitious culture so we can

develop, attract and inspire the

best people to deliver our strategy.

For more information please see our Business Model on pages 14 to 15

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

8,055

training hours across

the business

How the Board monitors culture

The snapshot below highlights some of the key metrics for FY25, which are aligned to our values, and that are visible to

the Non-Executive Directors through our Governance structure. For further information on our Governance structure,

see page 77.

The Board, through the ESG Committee, will continue to focus on using our employee-led Networks and engagement

survey results as key cultural indicators.

79%

employee engagement

score in FY25

90%

of employees agree

that diversity is a

stated value or priority

for the Company

100%

of people working at

our places on our

behalf paid at least the

real Living Wage (see

page 43 for further

detail)

BE SMARTER

TOGETHER

LISTEN AND

UNDERSTAND

BRING YOUR

WHOLE SELF

BUILD FOR

THE FUTURE

DELIVER

AT PACE

£2.2bn

of financing activity

in the year

staff meetings with all

employees invited to

attend and members

of our Executive

Committee presenting

employee-led

Networks

80%

of employees felt that

they are encouraged

to be innovative even

though some of their

initiatives may not

succeed

93%

of employees are

proud to work for the

Company

90%

participation rate in

employee engagement

survey in FY25

83%

of employees felt they

can be their authentic

self at work

36%

female representation

at senior management

level

13.6%

gender pay gap

20%

ethnicity pay gap

100%

of Risk Committee

members agree or

strongly agree that the

Risk Committee adds

value to our risk

management process

85%

of employees felt they

have access to the

necessary learning and

development needed

to do their job well

93%

of employees stated

they are able to

arrange time out of

work when needed

Business

transformation

Improved efficiency

across the business

by launching our

end-to-end lease

approval application

£11.3m

of direct social value

generated in FY25 (see

page 41 for further

detail on social value)

people early on in their

careers participated in

our work experiences

programmes

internal job

movements or

promotions

Digital skills drive

launched

Encouraging new

technology and

targeting improved

productivity

days

was the average number

of days in which we

settled Group invoices

during FY25

weeks

to complete £301m

equity raise

weeks

to complete joint

venture with Modon

Holding to deliver 2

Finsbury Avenue

British Land

Annual Report and Accounts 2025

REPORT OF THE ENVIRONMENTAL SOCIAL GOVERNANCE COMMITTEE

CONTINUED

Workforce engagement statement

Our key engagement mechanisms are described in this

section, including a review of the effectiveness and

relevant impact and outcomes.

The ESG Committee is our prescribed mechanism for

workforce engagement in accordance with Provision 5 of

the Code. We believe that having a committee responsible

for engagement with the workforce provides greater

resource at Board level dedicated to engagement than

designating a single Non-Executive Director.

Further information on workforce engagement can be

found on pages 17 and 43.

Employee engagement survey

– We regularly survey to assess employee

engagement levels and identify any areas of

concern.

– The ESG Committee and Remuneration Committee

hold an annual joint meeting to assess the results

of the survey through a diversity lens. Trends are

analysed over time and used to monitor the impact

of initiatives.

Director engagement

– Our ‘NED Breakfast’ programme offers employees

an opportunity to have an informal breakfast with

our Non-Executive Directors, allowing the Board to

have direct engagement with employees.

– The NextGen Network hosts the Fireside Chats

series, featuring Executive Committee and

Board members. These sessions are open to all

employees, providing an opportunity for direct

engagement with leadership.

Linking remuneration

– Our Company-wide Share Incentive Plan and SAYE

schemes operate for the benefit of our employees,

with 95% of eligible employees investing in British

Land shares through these schemes.

– There is a link between the formulaic calculation of

outcomes in respect of the financial targets for

Executive Director bonuses and the bonus

outcomes of the wider workforce.

Employee-led Networks

– Network chairs regularly present 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.

Internal communications

– Our Internal Communications team sends a

fortnightly Company-wide email that highlights key

business activities.

– We have a biweekly Network News feature

detailing upcoming events.

– There are monthly staff meetings led by our

Executive Committee that feature updates from

across the business.

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

Review of effectiveness

– Employee engagement was strong, with a survey

participation rate of 90%, and an overall engagement

score of 79% which was 12% higher than the national

benchmark.

– As a workforce engagement mechanism, having

the detailed survey responses, which can be

analysed through a diversity perspective, provides

management and the Board with rich data through

which to ensure cultural cohesion.

Impact and outcomes

– The outcome of the responses to our 2024

survey indicated that enhancing our systems and

processes, as well as improving the quality of

career conversations, will remain key focus areas

for the business.

– From a diversity perspective, we will continue to

focus on reducing the gender and ethnicity pay gaps

and ensure support is provided for inclusion

initiatives.

Review of effectiveness

– The Committee noted the success of the Fireside

Chats series in providing an insight into the role

of the Board and Executive.

– The Committee decided to implement regular

employee listening sessions (outside the employee-

led Network process), led by Non-Executive

Directors, to further strengthen our engagement

with our workforce and monitor our culture.

– The Committee Chair will report to the Committee

and the Board on any key themes and priorities

identified.

Impact and outcomes

– The NED Breakfast programme and Fireside Chats

series will continue to allow the Board to engage with

the workforce and understand employee views when

making decisions.

– Two members of the Committee held the first

employee listening session and reported back on

key themes.

– The Committee agreed to hold employee listening

sessions ahead of each meeting, covering topics on

culture, recognition in the workplace, DE&I and

communication from leadership.

Review of effectiveness

– The Remuneration Committee oversees the overall

remuneration strategy and ensures it aligns with our

purpose, culture and the long term strategic delivery

of the business.

– Encouraging the involvement of employees in the

Company’s financial performance through share

ownership continues to be an effective mechanism

ofengagement.

Impact and outcomes

– Our Chief Executive reports on our full-year results

at our May staff meeting, allowing employees to

understand our financial performance and outlook.

– The link between the financial targets and bonuses

helps promote a unified approach to achieving

corporate objectives and rewarding our employees.

Review of effectiveness

– Our Networks are instrumental to many of the

employee initiatives overseen by the Committee.

– The Committee recognises that hearing from the

Networks provides a valuable opportunity to

understand how employees are collaborating and

influencing the broader inclusion and equality

agenda within the Company.

Impact and outcomes

– The Committee heard from seven Networks, with

four example case studies featured on pages 92

to93. In addition to those highlighted in the case

studies, the Committee also heard from the Sports

&Social, Cycling, and Sustainable Networks.

Review of effectiveness

– The monthly staff meetings serve as a vital platform

for communication, ensuring that employees are

aligned with our objectives.

– The Committee recognises the importance of our

internal communications methods in fostering a

cohesive work environment and promoting

transparency across all levels of the business.

Impact and outcomes

– Executive Committee members’ regular engagement

with employees continues to have a positive impact

and contribute to the collaborative culture.

British Land

Annual Report and Accounts 2025

REPORT OF THE ENVIRONMENTAL SOCIAL GOVERNANCE COMMITTEE

CONTINUED

REACH Network

The Committee received an update from the

Co-Chairs of the REACH (Race, Equality, and

Celebrating Heritage) Network. The Network’s

purpose was to increase the wellbeing and success

of minoritised ethnic colleagues throughout the

Company. Key initiatives included having guest

speaker events, collaborations with external

businesses for Black History Month and celebrating

diversity and inclusion through various cultural

events. The Committee noted the various challenges

that the Network faced such as, maintaining

momentum, planning and resource, and attendance.

The Co-Chairs were keen that the REACH Network

supported the business in reviewing the 2030 DE&I

Strategy at its halfway point.

Wellbeing Network

The Committee received an update from the Chair

of the Wellbeing Network. It was reported to the

Committee that the Network had adopted a holistic

approach to employee wellbeing, encompassing

mental, physical and financial aspects. The goal of the

Network was to create an environment where mental,

physical and financial wellbeing is integrated into

all aspects of the Company. Key initiatives included

events and discussions for Stress Awareness Month,

World Mental Health Day and World Wellbeing

Week, alongside financial education workshops.

Outcome:

The Committee noted the importance of the role the

Network was having in supporting our DE&I Strategy.

The Committee agreed the key actions were to

support the Network through continued monitoring

of our DE&I targets and ensuring the communication

of our strategy remained prominent.

Outcome:

The Committee acknowledged the role of the Network

in supporting employees and promoting a transparent

and healthy work environment. After discussion, the

Committee agreed on the importance of empowering

managers to recognise signs of employee pressure and

being able to have wellbeing conversations with their

teams. It was agreed this message would be reinforced

through refreshed manager training.

EMPLOYEE-LED NETWORK

CASE STUDIES

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

Pride Network

The Committee received an update from the

Co-Chairs of the Pride Network. The Network’s

purpose encompasses community, education and

celebration. It is dedicated to providing a supportive

Network for LGBT+ employees, creating a sense of

belonging and inclusion. Through its educational

initiatives, the Network highlights critical issues

and promotes awareness of relevant charities.

In addition, it commemorates significant events

such as LGBT+ History Month and Pride Month,

enhancing visibility and recognition of the LGBT+

community. The Committee noted that several

Company policies had been reviewed to ensure they

used inclusive language for LGBT+ individuals.

NextGen Network

The Committee received an update from the

Chair of the NextGen Network. The mission of the

Network was to represent and support the next

generation of property professionals by helping

early career starters develop necessary skills.

They do this by supporting the integration of new

employees, providing networking opportunities, and

creating a community of support for colleagues.

The Committee noted the challenges around

event attendance and turnover of members.

The Network Chair outlined their strategy to

address these challenges, emphasising the

importance of organising more focused events

and developing succession plans for members.

Outcome:

The Committee recommended that HR consider

collaborating with the Pride Network to expand the

reverse mentoring scheme, following the success the

REACH Network achieved with piloting the scheme in

2024. The Committee agreed that including reverse

mentoring by LGBT+ employees would continue to

promote inclusivity.

Outcome:

The Committee recognised the need for more

tailored and focused events to ensure employee

engagement at an early stage of careers. The

Committee members expressed their willingness to

participate in the Fireside Chats series hosted by the

NextGen Network, acknowledging its proven

effectiveness as a workforce engagement tool.

REACH Network event, celebrating Black History Month and

embracing the theme for the year, Reclaiming Narratives

British Land

Annual Report and Accounts 2025

REPORT OF THE NOMINATION COMMITTEE

ENSURING A

BALANCED AND

DIVERSE BOARD

I am pleased to present the report of the

Nomination Committee for the year ended

31 March 2025.

As detailed in the opening of the Governance Report

on page 76, there have been material changes to the

composition of the Board and Executive Committee during

the year. The appointments of Amanda James as a Non-

Executive Director and myself as Chair were disclosed

in the 2024 report.

Selection and appointment of David Walker as CFO

During the year ended 31 March 2025, the Board approved

the appointment of David Walker as Chief Financial Officer

with effect from 20 November 2024 and the appointment

of Loraine Woodhouse as Senior Independent Director

with effect from 31 January 2025.

David’s appointment followed a thorough search process

that considered both internal and external candidates and

was closely aligned with the selection and appointment

process detailed on the following page.

Non-Executive Director succession planning

The Nomination Committee considered the appointment

of Loraine Woodhouse as Senior Independent Director

in January 2025. Loraine, already Chair of the Audit

Committee and member of the Remuneration and

Nomination Committees, has an in-depth knowledge

of the business and appropriate remaining tenure as

an independent Non-Executive Director. The Board

was pleased to approve Loraine’s appointment as Senior

Independent Director.

Board diversity

The Committee continuously 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 Committee is pleased that as at 31 March 2025, the

Board met and exceeded its targets in respect of gender.

Following the departure of Bhavesh Mistry and Irvinder

Goodhew during the year, the Board did not meet its

target in respect of ethnicity as at the reporting date. A full

description of the Board’s diversity, and areas of focus for

the year ahead, are included on page 97.

William Rucker

Chair of the Nomination Committee

William Rucker

Non-Executive Chair

The Nomination Committee

supports the Board on composition,

succession and diversity matters.

William Rucker

Chair of the Nomination Committee

Focus in the year

– Selection and appointment of David Walker

asCFO

– Non-Executive Director succession planning

– Board diversity

Role of the Committee

The primary role of the Nomination Committee is to:

– Review the structure, composition and diversity

of the Board

– Develop succession plans for Directors and

senior management

– Review the time commitments required from

Non-Executive Directors

Membership and attendance

The membership of the Committee comprises

four independent Non-Executive Directors. In

particular, Chairs of the Audit, Remuneration and

ESG Committees are members thus ensuring the

Committee most efficiently takes account of the

risk, remuneration and diversity priorities of other

Board Committees.

Biographical details of the Committee members

can be found on pages 82 to 85.

The Committee met five times during the year

with attendance set out on page 85. The CEO,

Company Secretary and Head of Secretariat are

invited to attend each Committee meeting.

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

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, the

executive search firm was appointed in the search

for the CFO and has no other relationship with the

Company or individual Directors. The firm has 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 Head of Secretariat 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 experience.

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,

their alignment with the Company’s strategic objectives

and the need for progressive refreshing of the Board.

The Committee is satisfied that, following the Board

effectiveness evaluation, the Board and its Committees

continue to maintain the appropriate balance of skills and

experience required to fulfil their roles effectively.

Details of significant external appointments taken on by

Directors during the year can be found on page 98. 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 81.

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.

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.

In consideration of the reappointment of Lynn Gladden,

the Committee made a recommendation to the Board

that notwithstanding her tenure of over nine years,

she remains independent in accordance with the other

circumstances listed in Provision 10 of the Code. Lynn’s

significant expertise in the field of science and technology

is unique to the Board’s skill set and provides crucial

insight into this relatively new area of the Company’s

strategy. The reappointment will be on a rolling year

basis, whereby the Committee and Board will be able to

consider regularly whether Lynn remains independent.

The Committee recommended to the Board that all

serving Directors be put forward for appointment and

reappointment at the 2025 AGM.

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.

93%

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

88%

87%

88%

80%

71%

77%

79%

77%

75%

70%

67%

65%

63%

62%

60%

56%

58%

Marketing

Skills matrix

20252024

10.0

Lynn Gladden

7.2

Alastair Hughes

4.1

Loraine Woodhouse

3.6

Mark Aedy

1.6

Amanda Mackenzie

1.4

Mary Ricks

0.8

Amanda James

0.7

William Rucker

Non-Executive tenure as at 31 March 2025 (years)

British Land

Annual Report and Accounts 2025

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.

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 of

Directors 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

Committee. The wider Board are invited to be involved as

appropriate. 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 to

which the business is developing a diverse pipeline for

succession to senior management roles.

Demonstrating our skills

Our skills matrix has been updated to show the additional skills brought to the Board with the appointment of Amanda

James and William Rucker, as well as the impact of the departures of Laura Wade-Gery, Tim Score, Preben Prebensen

and Irvinder Goodhew during the year.

The percentage shows the outcome as a proportion of the maximum score available. The Committee uses this data when

considering Non-Executive Director appointments.

Following the significant recent changes to the Board and

the Executive Committee, a succession planning review will

be held in July 2025.

REPORT OF THE NOMINATION COMMITTEE CONTINUED

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

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. We believe

that in order to achieve our strategy we need a diverse

Board that reflects the places we develop and manage.

The policy notes that appointments will continue to be

made on merit against a set of 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 decision making.

The policy applies to the Board and its Committees.

The policy aligns with the recommendation of the 2023

Parker Review to introduce a percentage target for ethnic

minorities in senior management, and 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 2025 included:

– the intention to maintain a balance such that at least

40% of the Board are women;

– the intention to maintain at least two Directors from

aminoritised ethnic background;

– the intention for at least one of the Chair, Chief Executive

Officer, Chief Financial Officer or Senior Independent

Director to be a woman;

– to achieve a gender split such that at least 40% of senior

management are women and an ethnic diversity split

such that 15% of senior management are from a

minoritised ethnic background (senior management is

defined as the Executive Committee and its direct

reports); and

– to ensure that there is 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.

As at 31 March 2025, which is our chosen reference date in

accordance with the UK Listing Rules, the Board had a

gender balance of 50% women and is pleased to have

appointed Loraine Woodhouse as Senior Independent

Director during the year. The methodology for calculating

this is the same as that used to calculate the ethnic

background and gender identity of the Board and

Executive Committee on the following page.

As at the reference date, there are no Directors from a

minoritised ethnic background appointed to the Board.

Bhavesh Mistry stepped down as CFO in November and

Irvinder Goodhew stepped down in January as a Non-

Executive Director in order to avoid a potential conflict of

interest, having taken up an Executive position at CBRE,

which is one of the Company’s property valuers. Both

departures were unforeseen at the beginning of the year, and

the Nomination Committee 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 for two Directors from

a minoritised ethnic background, notwithstanding the

current Board composition.

As at 31 March 2025, the gender diversity for senior

management, as previously defined, was 36.0% women,

upfrom 35.6% in 2024. The Board and management are

acutely aware of the need for more senior women. This

year we have continued our targeted development

programmes for women at the mid-level of the

organisation to help them achieve their full potential

and develop our talent pipeline.

As at 31 March 2025, 10% of our senior management team

were from a minoritised ethnic background.

Clear accountability for diversity and inclusion is delivered

through the ESG Committee, which monitors progress

against diversity and inclusion objectives and relevant

initiatives at British Land. Progress towards our 2030

Diversity, Equality and Inclusion Strategy is a core focus as

we 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.

Board gender balance

31 March 2025

Male

Female

31 March 2024

Male

Female

31 March 2023

Male

Female

British Land

Annual Report and Accounts 2025

The table above sets out the ethnic background and

gender identity of the Board and Executive Committee

as at 31 March 2025, which is our chosen reference

date in accordance with the UK Listing Rules. The

data was collected by the Head of Secretariat 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 81.

The Committee also reviewed its terms of reference during

the year and no changes were recommended. 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.

External appointments

During the year, the Board defined significant

appointments to include the appointment to the Board

of any listed company, or any appointment where the

expected time commitment is more than five days a year.

Further detail about the Board Conflicts of Interest Policy

can be found on page 81.

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 5 50 3 4 57

Women 5 50 1 3 43

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) 10 100 4 7 100

Mixed/Multiple ethnic groups – – – – –

Asian/Asian British – – – – –

Black/African/Caribbean/Black British – – – – –

Other ethnic group – – – – –

Not specified/prefer not to say – – – – –

During the year under review two Non-Executive Directors

received prior approval in respect of significant external

appointments. They were:

– Loraine Woodhouse was appointed as Non-Executive

Director and member of the Audit and Remuneration

Committees of Associated British Foods plc with effect

from 1 October 2024 and Chair of the Audit Committee

from 24 April 2025; and

– Amanda James was appointed as a Non-Executive

Director and member of the Audit, Nomination and

Corporate Social Responsibility Committees of

Rightmove plc with effect from 9 May 2025 and

Chair of the Audit Committee from 1 June 2025.

In each case, the Board considered that the appointments

would not impact Loraine’s or Amanda’s ability to dedicate

sufficient time to their commitments at British Land. The

appointments will also provide them with valuable

exposure to diverse strategic challenges and enable them

to bring fresh insight to their roles at British Land.

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 Non-Executive Director.

The Committee will continue to monitor the skills and

experiences of Board members to ensure that the Board is

equipped 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ofthat process.

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

REPORT OF THE AUDIT COMMITTEE

MONITORING

QUALITY AND

INTEGRITY

Committee changes

During the year, Preben Prebensen and Bhavesh Mistry

stepped down from the Board. I would like to thank

both for their tenure and significant contributions to the

Committee and Board, and wish them the best in their

future endeavours. Meanwhile, Amanda James and Mary

Ricks joined the Committee, bringing fresh perspectives

from their financial and global real estate background

respectively, and their insight has enhanced our collective

ability to critically analyse matters brought to the

Committee. We also welcomed David Walker as CFO,

whose extensive experience at British Land complements

the skill set of the Committee. Together, Amanda,

Mary and David’s contributions have strengthened

and diversified the Committee’s strategic approach.

Canada Water valuation tender

A valuation tender was carried out due to policy

requirements that necessitate the regular rotation of

valuers of portfolio assets. The tender involved Cushman &

Wakefield (C&W), CBRE and Knight Frank. As part of the

tender process, C&W and CBRE conducted a Phase 1

valuation for Canada Water and following a review, C&W

were chosen as the new valuer as they were thought to be

best placed to appropriately assess the value of the

campus and future of the development. In December, C&W

conducted a shadow valuation of Canada Water alongside

the current valuers to ensure an effective transition. PwC,

our external auditor, reviewed the shadow valuation and

performed year end testing on the final valuation.

Technology

The Committee received detailed updates on our

technology strategy and technology risk during the year.

The strategy covers four pillars: modernising the Company’s

applications and upskilling our employees, implementing

artificial intelligence and new technologies, optimising data

processes, and creating efficiencies in our technology

services. The Committee was pleased with the significant

progress made against each of the pillars and was reassured

that the correct priorities are in place for the upcoming year.

In addition, the Committee was content with the robust

controls and processes around our technology risks.

Year ahead

– Continue to enhance our key ESG reporting and

technology controls

– Monitor the implementation of investment in our technology

– Monitor key risk areas, particularly those scheduled for

review by the internal auditor

– Continue to plan and prepare for corporate governance

reforms and take appropriate action in a timely manner

Loraine Woodhouse

Chair of the Audit Committee

Loraine Woodhouse

Independent Non-Executive Director

Collectively, Amanda, Mary

and David’s contributions have

enhanced and diversified the

Committee’s strategic approach.

Loraine Woodhouse

Chair of the Audit Committee

Focus in the year

– Committee changes

– Canada Water valuation tender

– Technology

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

– 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

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.

Biographical details of the Committee members

are found on pages 82 to 85.

The Committee met three times in 2024/25 with

attendance set out on page 85.

100

British Land

Annual Report and Accounts 2025

REPORT OF THE AUDIT COMMITTEE CONTINUED

Investment and development property

valuations

The external valuation of British Land’s property portfolio

is a significant area of judgement 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,

Jones Lang LaSalle and C&W. As at 31 March 2025, the

portfolio was valued at £9.5bn.

Key matters discussed in the year:

– yield movements, current and future rental levels,

and benchmarking;

– costs to complete developments;

– trends affecting occupational and investment retail and

office sectors, logistics market and Canada Water;

– availability of comparable market evidence;

– tender and change of valuer for Canada Water; and

– biannual qualitative review of valuers’ service level.

The valuers present their reports which include details

of the valuation process, market conditions and any

significant judgements 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.

- Valuation outliers are reviewed on our valuation

movements with any variances analysed.

From 1 April 2025 the Committee will increase the

number of meetings to four per year to assist in

the effective and consistent oversight of our areas

of responsibility.

Activities during the year

Valuer reports and effectiveness

2024 Annual Report and Accounts,

preliminary announcement and

FBU assessment

Going concern and viability

assessments

Sustainability assurance, Internal

and External Audit reports

Corporate Governance Code

compliance

Principal risk and internal control

effectiveness review

Reappointment of BDO

Valuer reports and effectiveness

Going concern and viability

assessments

2025 half-year results and

preliminary announcement and

financial reporting judgements

Technology risk and strategy

update

Principal risk and internal control

effectiveness review

Internal and External Audit reports

External Audit plan, fees and

engagement letter

Risk and internal control update

Insurance update

Going concern and viability

assessments

Sustainability Progress Report

Financial reporting judgements

Principal and emerging risks

assessment and review of risk

appetite

Whistleblowing report

Data privacy compliance report

Effectiveness of the Committee,

Internal and External Audit

Tax and Compliance updates

MAY

NOV

MAR

101

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

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,

the Committee considered the following:

- accounting policies and practices including any new

standards introduced during the year;

- 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

- 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

businessmodel.

Once the Committee completes its overarching review,

it considers 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

andstrategy.

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 to provide the

FBU confirmation to shareholders. In particular, the

Committee contemplated the specific considerations

in the 2025 Annual Report and Accounts found

overleaf 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 134 that it believes

that the Annual Report and Accounts, taken as a

whole, is FBU. An overview of the FBU review process

and its key considerations is provided opposite.

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.

Management then come together to

discuss and determine any suitable

changes which are overseen by the

Committee.

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.

VERIFICATION

A group of individuals from across the

business verify all factual content and

provide assurance that all information

iscorrect.

EXTERNAL AUDITOR REVIEW

PwC consider whether there are any

material inconsistencies in the

information provided in the Annual

Report and Accounts and reports its

findings to the Committee.

RECOMMENDATION TO THE

BOARD

The Board considers the Committee’s

recommendation that the Annual Report

and Accounts as a whole is FBU.

102

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REPORT OF THE AUDIT COMMITTEE CONTINUED

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.

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 51

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 136 to 142 and the significant accounting policies

disclosed in the notes to the financial statements.

Fair, balanced and understandable review considerations

FAIR

Is the Annual Report open and honest?

Do we show our progress over time and is there

consistency in our metrics and measurements?

BALANCED

Do we report weaknesses, difficulties and

challenges alongside successes?

UNDERSTANDABLE

Do we explain our business model, strategy and

accounting policies simply, using precise, clear

language?

Are we clearly signposting to where additional

information can be found?

Do we have a consistent tone?

Do we break up lengthy narrative with quotes,

tables, case studies and graphics?

SPECIFIC CONSIDERATIONS IN THE

2025 ANNUAL REPORT

Appropriate metrics that will allow investors and

other stakeholders to assess the Company’s

performance.

Appropriateness of setting a Total Accounting Return

target of 8% to 10% based on past performance.

Ensuring statements included in the report are

useful in assisting the understanding of the business.

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 judgements

made in preparing these valuations were highlighted by

the external valuers and discussed by the Committee.

The Committee analysed the reports and reviewed the

valuation outcomes, challenging whether the key

assumptions made by the external valuers were

appropriate. The Committee queried the valuers on how

the challenging macroeconomic environment, including

heightened interest rates, 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.

103

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CORPORATE GOVERNANCE

External Audit

Audit firm PricewaterhouseCoopers

Original date of appointment 18 July 2014

Tender completed February 2024

Lead partner, tenure Saira Choudhry, 1 year

FY25 non-audit fee as % of

total audit fee 56%

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.

Change of External Audit partner

During the year, Sandra Dowling rotated off the audit

engagement and Saira Choudhry was appointed as lead

audit engagement partner as per the requirement for a

rotation every five years. The Committee is grateful for

Sandra’s keen oversight and guidance during her tenure

and welcomes Saira to her new position, noting her

immediate role of overseeing the implementation

of the new External Audit plan.

Changes to the External Audit plan

During the year, PwC reallocated audit resources due to

the 50% disposal of 2 Finsbury Avenue into a new joint

venture. The Committee was satisfied with the PwC team’s

timely adjustment of time and focus. The risk assessment

and scope of the audit remained unchanged, and no

update to the External Audit plan was necessary.

Non-audit services and fees

The Committee discussed the audit fee for the 2025

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 Committee Chair

£100,001 and above Committee

Significant issues considered continued

Significant matters Outcome

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. In particular, the Committee

considered the accounting treatment of the formation of a

joint venture with Modon Holding in respect of 2 Finsbury

Avenue. The external auditor separately reviewed

management’s judgements in relation to these transactions

and determined that the approach was appropriate.

The Committee was satisfied that the accounting

treatment and related financial disclosure of significant

transactions was appropriate.

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

and released by the Group during the period. It considered

papers prepared by management and discussed the views

of the external auditor to obtain assurance that amounts

held were commensurate with the associated 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,

is available at www.britishland.com/taxstrategy.

104

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REPORT OF THE AUDIT COMMITTEE CONTINUED

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 significant 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 £0.36m, which

represents 56% of the total Group audit fees payable for

the year ended 31 March 2025. Details of fees charged by

the external auditor during the year are set out on page

156. 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.

024/25

023/24

Total auditor fees

37%

Total fee

£1.01

£0.95

Non-audit fees

Audit fees

£0.69m

£0.26m

56%

£0.36m

£0.65m

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 and the lead audit engagement

partner and senior members of the audit team were

rotated in the year. For the year ended 31 March 2025, as

for the prior year, the external auditor made the following

confirmations:

– at each Committee meeting, that it remains independent;

– that PwC complies with the FRC’s Ethical Standards; and

– an annual letter of confirmation stating its independence

and that it maintains appropriate internal safeguards to

ensure its independence and objectivity.

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, including that no partners or staff held

any financial interest in British Land.

After taking the above factors into consideration, the

Committee concluded that PwC remained independent

during the year.

Effectiveness

The Committee held private sessions with the external

and internal auditor three times during the year. These

meetings are held without management present to enable

the auditors to raise any issues of concern. In addition, the

Chair of the Committee holds private meetings with the

external auditor and internal 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 2025. The auditor

completes a self-assessment paper and key stakeholders

also complete a questionnaire, including senior members

of the Finance, Tax, Strategy and Secretariat teams as

well as members of the Committee, the Chief Executive,

CFO and Chair. 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

– quality of the people including their experience and

technical knowledge.

The scores and feedback are shared with the external

auditor and compared against their self-assessment, and

proposed actions for the coming year are curated. The

main areas of focus in the upcoming year include ensuring

proactivity in project management of less critical matters

and ensuring subsidiary statutory accounts are agreed in

good time.

The feedback received from the survey included good

communication from the external auditor and improved

efficiency in finalising joint venture statutory accounts.

Each category was rated ‘good’, being the highest rating

obtainable. Overall, the Committee was impressed with the

External Audit team’s efficiency in how it understands the

Company and its systems and processes, their strength

of expertise, nature and quality of the external auditors’

report, and robustness and perceptiveness of the team

in its handling of key accounting and audit judgements.

The Committee uses Audit Quality Indicators (AQIs) to

assess PwC’s audit quality which are extremely useful to

aid the assessment of the external auditor. The AQIs used

during the half and year end include:

1. Experience and continuity of the audit team.

2. Percentage of total hours spent on the engagement by

the audit partner, director and specialists.

3. Number of audit misstatements, both adjusted and

unadjusted.

The Committee monitored any developments against the

AQIs and was satisfied that no risks to the audit quality

were identified. The Committee also reviewed the auditor’s

management letter which it thought was based on a good

understanding of the business. In addition, the Committee

was impressed with the continuous implementation and

improvement of the use of technology in the audit process.

105

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CORPORATE GOVERNANCE

The Committee considered the FRC’s Audit Quality Review

report in relation to the Group’s audit. Following challenge

from the Committee about the report, PwC highlighted

that it had retained strong scores in each of the areas

relevant to the audit of the Group.

In assessing the auditor’s professional scepticism and

quality of challenge, the Committee considered the insight

and feedback provided by the auditor, particularly the

usefulness of their assessment of valuations and oversight

of the Annual Report and Accounts.

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.

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

British Land. Deloitte, in their second 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.

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 financial and operational controls

2. Corporate procurement

3. Group health and safety management

4. GDPR

5. IT disaster recovery/business continuity planning

6. Retail key operational controls

7. Diversity and inclusion (2030 strategy)

8. Joint venture governance

9. ESG social reporting

10. Lead to lease system operation

Overall, no significant control issues were identified

although several process and control improvements

wereproposed.

Effectiveness

The annual effectiveness review of the internal auditor

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 the Head

of Strategy and Investor Relations, Head of Secretariat,

HR Director, General Counsel and Company Secretary,

Head of Information Security and Head of Risk and

Internal Control, 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 previous

page. The results showed that the internal auditor

had improved in robustness of processes, being rated

‘good’ in each category, the highest rating obtainable.

The Committee concluded that Deloitte had discharged its

duties as internal auditor effectively throughout the year.

In particular, the Committee was impressed with their

pragmatic and communicative approach.

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.

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 50.

The Group has adopted the 2018 Corporate Governance

Code, best practice recommendations in the FRC

‘Guidance on risk management, internal control and

related financial and business reporting’ and the

Company’s internal control framework operates in line

with the recommendations set out in the internationally

recognised COSO Internal Control Integrated Framework.

The Committee has spent significant time considering

recent and upcoming corporate governance reforms.

The Company will comply with the 2024 Corporate

Governance Code in next year’s Annual Report and the

new Provision 29 in the following year as it is effective

for financial years beginning on or after 1 January 2026.

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. Both external and internal risks are

reviewed and their effect on the Company’s strategic aims

considered. The assessment of emerging risks includes

a bottom-up review of all business units and a deep dive

by the Risk Committee. The Audit 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 provides particularly significant oversight

of the Company’s technology risk and strategy, recognising

that this is an area of relative immaturity among companies

more broadly, and therefore requires detailed oversight.

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.

106

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Annual Report and Accounts 2025

At the request of the Remuneration Committee, the Audit

Committee considers biannually the level of risk taken by

management and whether this affects the performance of

the Company. The Remuneration Committee takes this

confirmation into account when determining incentive

awards granted to the Executive Directors and senior

management. Taking into account reports received on

internal key controls and risk management, and the results

of the Internal Audit reviews, the Committee concluded

that for the year ended 31 March 2025 there was no

evidence of excessive risk taking by management which

ought to be taken into account by the Remuneration

Committee when determining incentive awards.

For the first time this year, to assist in ensuring the

robustness of the Company’s risk culture, the Risk

Committee conducted an effectiveness survey which

showed that all Risk Committee members agreed or

strongly agreed that the Risk Committee adds value to

risk management and supports the Company’s strategic

objectives. Following the outcome of the survey, action

was taken to enhance risk culture across the business

involving the Head of Risk and Internal Control presenting

to various teams across the business, clarifying the key risk

roles in the business and encouraging escalation of risk

issues or exceptions and discussing key business unit risks.

Internal controls

Half yearly, in conjunction with the internal auditor,

management reports to the Committee on the

effectiveness of internal controls, highlighting control

issues identified through the exceptions reporting and key

controls testing across all key operational and financial

controls. Risk areas identified are considered for

incorporation in the Internal Audit plan and the findings of

internal audits are taken into account when identifying and

evaluating risks within the business. Key observations and

management actions are reported to, and debated by, the

Committee. For the year ended 31 March 2025, the

Committee has not identified, nor been advised of, a failing

or weakness which it has deemed to be significant.

The operational risk management framework operates to

reduce the risk of financial misstatement. Key controls are

owned by senior managers who report on compliance

biannually to the Risk Committee. All high and medium

risk-rated key financial and operational controls are

reviewed by Internal Audit across a three-year cycle

as a minimum. The Head of Risk and Internal Control

also performs biannual sample testing across key financial

and operational controls, and reports exceptions to the

AuditCommittee.

Effectiveness

The effectiveness of the risk management and internal

control framework is consistently reviewed by the

Committee throughout the year. The Committee receives

detailed reports on the operation and effectiveness

of the internal controls from the internal auditor and

management team. The External Audit provides an

additional layer of assurance at the half-year and full-

year end where any remarks relating to potential

enhancements to internal controls are considered.

The Committee also received reports from across the

business throughout the year to assist it in its assessment

of the robustness and effectiveness of the risk

management and internal control framework, including:

1. Internal Audit reports on the programme of internal

audits completed.

2. External auditor’s recommendations on the Group

financial control environment.

3. Whistleblowing and anti-bribery policies and

whistleblowing reports.

4. Reviewing the activities of the Risk Committee,

receiving minutes of all its meetings and discussing any

significant matters raised.

5. Technology risk and strategy.

6. Other updates relating to insurance, data privacy and

compliance, including any suspected fraudulent

activities and relevant investigations.

On recommendation by the Committee, the Board

confirms that the framework has been in place for the year

under review and up to the date of approval of the Annual

Report and Accounts including all material controls

consisting of financial, operational, compliance and

reporting controls, which have been regularly reviewed

throughout the year.

REPORT OF THE AUDIT COMMITTEE CONTINUED

107

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

DIRECTORS’ REMUNERATION REPORT

ALIGNING

INCENTIVE

WITH STRATEGY

Company performance

Management has delivered another strong year of

operational performance against varying levels of

macroeconomic uncertainty. As discussed in detail on

pages 8 to 11, there were periods during the year where

market conditions enabled the Company to recycle capital,

raise equity and grow the business. The market retracted

sharply during the second half of the financial year, and

management focused on the controllables, ran the

business efficiently and made preparations to take

advantage when favourable market conditions return.

The Executive Directors have performed strongly

against the Annual Incentive Plan performance measures.

Development profit remains behind target, however this is

driven by the materially different economic conditions that

existed at the commencement of the developments that

are completing now. Management expects development to

be a source of profit for the business in the coming years.

Underlying Profit for the year is at the stretch level of

£279m which represents extremely strong financial

performance amidst a challenging market backdrop.

At the same time as maintaining a core focus on earnings,

the management team has also exceeded expectations

on the ESG related AIP measures, both in maintaining a

GRESB 5* rating and in the overall improvement in the

EPC accreditations across our estate.

2025 remuneration outcomes

The Committee considered that the 2022 Remuneration

Policy has 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, Simon Carter’s AIP outcome resulted

in a bonus of 122% of salary.

David Walker was appointed as CFO on 20 November

2024. All aspects of his remuneration for the year ended

31 March 2025 as reported within this report relate only to

the portion of the year that he served as CFO. Accordingly,

David’s AIP outcome for the period from 20 November

2024 to the year-end resulted in a pro-rated bonus of 44%

of his annual salary.

Bhavesh Mistry stepped down from the Board as CFO on

20 November 2024. The remuneration he received for the

period of the year that he served as CFO is reported within

this Directors’ Remuneration Report. He was not eligible to

participate in the AIP for the year ending 31 March 2025

and all unvested share awards, including the 2022 LTIP

grant, lapsed upon his resignation.

The 2022 LTIP grant will vest on 21 July 2025 at a rate of 50%.

The Committee notes that performance is driven by Total

Property Return outperformance relative to the sector

weighted MSCI index, as well as the achievement of the

stretch performance targets for energy and carbon reduction.

Amanda Mackenzie

Independent Non-Executive Director

Scrutinising performance against

remuneration targets and aligning

remuneration policy with strategy,

culture and shareholder interests

Amanda Mackenzie

Chair of the Remuneration Committee

Focus in the year

– Assessing Executive performance during the

year against remuneration performance

measures

– Setting performance measures and

remuneration levels for the year ahead

– Agreeing remuneration packages for the new

CFO and Executive Committee role changes

– Developing the 2025 Remuneration Policy and

engaging with shareholders

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

appropriate remuneration is commensurate with

performance outcomes

Membership and attendance

The membership of the Committee comprises

three independent Non-Executive Directors.

Biographical details of the Committee members

are found on pages 82 to 85.

The Committee met four times in 2024/25 with an

additional joint meeting held with the ESG

Committee. Attendance is set out on page 85.

Aswell as Committee members, the Chair of the

Board, CEO, CFO, GC Co Sec & HR Director,

Reward, Talent and Performance Director and Head

of Secretariat are invited to attend each meeting.

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Annual Report and Accounts 2025

New 2025 Remuneration Policy

The proposed 2025 Policy, which remains largely

unchanged from the 2022 Policy, will take effect,

subject to shareholder approval, from the conclusion

of the AGM on 15 July 2025.

Review process and shareholder consultation

The Committee, with input from the Company’s

Remuneration Consultant and executive management,

reviewed the Policy in detail, considering the strategy

of the business, shareholder feedback and market

practice. The Committee considered that the 2022

Policy remained structurally appropriate and

proposed no changes to the Policy when the

shareholder consultation process began.

The Committee Chair wrote to major shareholders

seeking feedback on the proposed Policy and how it

is operated. The Company Secretary and Committee

Chair met with a number of shareholders at their

request during the consultation process. Following

feedback from a number of shareholders, a change

was made to the performance measures in the

operation of the Long-Term Incentive Plan.

Proposed changes

The only material change is in the operation

of the 2025 Policy in comparison to the 2022

Policy. This is the addition of a 25% weighted

element within the LTIP which measures relative

Total Shareholder Return performance against a

market cap weighted index of FTSE 350 property

companies. It is proposed that this measure replaces

the 25% weighted relative Total Property Return

element from the 2022 Policy. We have also recast

the headings of the strategic objectives under

the AIP to align with our five levers of growth.

All other aspects of the AIP and LTIP remain

unchanged, although the Committee has

highlighted its intention to continue to monitor

the appropriateness of GRESB as an external ESG

benchmark in relation to the AIP at the beginning

of each performance year. The Committee has also

proposed a minor amendment to the Policy to be

able to provide Non-Executive Board members with

a small retirement gift as detailed on page 112.

2024 remuneration outcomes

The AIP outcomes published in the 2024 Annual Report

were final and not subject to change following publication.

The 2021 LTIP vested at 40% as disclosed in the 2024

Annual Report. The vesting performance in the 2024

Report included an estimated outcome of nil vesting for

the Total Accounting Return performance measure as the

results of the full FTSE 350 comparator group were not

available. The final outcome was below the threshold level

relative to the comparator group and therefore the portion

of the LTIP subject to the Total Accounting Return

performance measure lapsed asforecasted.

Gender and ethnicity pay gaps

The British Land gender pay gap has decreased to 13.6%

from 19.4% during the year and the ethnicity pay gap has

increased from 17.4% to 20%. The Committee was

reassured by the employee engagement survey where

scores agreeing that “I believe my total compensation is

fair, relative to similar roles at other companies” were

virtually the same for males, females, minoritised ethnic

and white employees.

The improvement in the gender pay gap follows the

reconstitution of the Executive Committee, the gender

balance of which has improved from 33% to 43% female

representation year-on-year.

The ethnicity pay gap has increased during the year

following both the departure of Bhavesh Mistry as CFO

and increased diversity among our most junior and

therefore lowest paid entry level hires. As a result of the

Company’s relatively small number of employees, very

senior leavers have a disproportionate impact on our

gender and ethnicity pay gaps. We remain committed to

our stretching ethnicity targets at all levels as detailed on

page 97 of the Nomination Committee report.

CFO remuneration

The Committee considered third party benchmarking,

relative comparisons to industry peers and the

remuneration level of the departing CFO when agreeing

the remuneration package for David Walker ahead of his

appointment as CFO.

David’s salary was set at £490,000 on appointment

and in accordance with the Policy, he receives a cash

pension allowance of 15% of salary. David’s bonus

opportunity for 2025 following his appointment was 150%

of salary, pro-rated for the period of the year in which

he served as CFO. David was not CFO when the 2024

LTIP award was granted and he therefore received an

award commensurate with his COO role at that time.

2025 Remuneration Policy

The Committee believes that the 2022 Policy remains

largely appropriate and continues to incentivise

management to deliver attractive shareholder returns.

Following a period of shareholder consultation, the

Committee, with the full support of the Executive

Directors, was pleased to incorporate requests from a

number of shareholders for a Total Shareholder Return

performance measure within the LTIP. The proposed 25%

weighted measure replaces the equally weighted Total

Property Return measure for the 2025 LTIP awards. TSR

will be measured on a relative basis against a market cap

weighted index of FTSE 350 property companies.

The Committee recognises that this change further aligns

Executive Director performance with shareholder interests.

Recommendation

On behalf of the Board, the Committee recommends the

2025 Remuneration Policy as set out on pages 108 to 115

and the full Directors’ Remuneration Report to

shareholders for approval at the 2025 AGM.

Amanda Mackenzie

Chair of the Remuneration Committee

DIRECTORS’ REMUNERATION REPORT CONTINUED

109

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

2022 Policy (existing) compared to 2025 Policy (proposed)

2022 2025

Salary and pension Salary and pension

Salary

– Set with reference to benchmarking and experience of

the candidate

– Subject to annual review

Pension

– 15% of basic salary aligned with the majority of the

workforce

Salary

– Set with reference to benchmarking and experience of

the candidate

– Subject to annual review

Pension

– 15% of basic salary aligned with the majority of the

workforce

Operation of AIP Operation of AIP

Profitability

– Total Property Return vs MSCI 20%

(weighted by sector)

– Annual Profitability 30%

– Development Profit 10%

Environmental

– The Global Real Estate ESG Benchmark 10%

(GRESB)

– Improvement in EPC ratings across estate 10%

Profitability

– Total Property Return vs MSCI 20%

(weighted by sector)

– Annual Profitability 30%

– Development Profit 10%

Environmental

– The Global Real Estate ESG Benchmark 10%

(Currently GRESB)

– Improvement in EPC ratings across estate 10%

Strategic objectives 20%

– Realising the potential of our campuses

– Progressing value accretive development

– Targeting the opportunities in Retail & Fulfilment

– Active capital recycling

– People and sustainability

Strategic objectives 20%

– Like-for-like growth

– Developments

– Cost control

– Capital recycling

– Fee income

Operation of LTIP Operation of LTIP

Total Property Return vs MSCI 25%

– Relative performance against sector weighted

benchmark

Total Accounting Return 50%

– Absolute performance over the 3-year performance

period

ESG

– Reduction in operational carbon 12.5%

– Reduction in operational energy 12.5%

Total Shareholder Return 25%

– Relative performance against a market cap

weighted index of FTSE 350 property companies

Total Accounting Return 50%

– Absolute performance over the 3-year performance

period

ESG

– Reduction in operational carbon 12.5%

– Reduction in operational energy 12.5%

Approach to GRESB

The Committee continues to believe that GRESB remains the most relevant third party measure through which to assess

the Company’s ESG performance on a relative basis. Given the changing ESG landscape however, the Committee will

continue to assess the relevance of GRESB and reserves the ability to select a different third party index at the beginning

of each performance year.

Approach to strategic objectives

The Committee maintains flexibility to recast the headings of the strategic objectives at the beginning of each

performance year, in order that they align with the strategic priorities of the business on an annual basis.

New 2025 Directors’ Remuneration Policy

110

British Land

Annual Report and Accounts 2025

DIRECTORS’ REMUNERATION REPORT CONTINUED

New 2025 Directors’ Remuneration Policy

Fixed remuneration

Operation (and strategic purpose) Maximum opportunity Performance

conditions

Basic salary

To attract, motivate and retain talented Executive Directors.

The level of basic salary is set taking into account the

scope and responsibilities of the role and the level of

remuneration paid at companies of broadly similar size.

Basic salaries are normally reviewed annually by the

Remuneration Committee, with increases usually taking

effect on 1 April for the subsequent year. Employment

conditions and salary increases throughout the Group

are taken into account when basic salaries are reviewed.

Changes in the scope of an Executive Director’s role

may result in a review of salary.

The maximum level of basic salary will not be

greater than the current salary as increased,

typically in line with the market and general

salary increases throughout the Group.

If an individual is appointed at a lower salary,

for example, to reflect inexperience as a listed

company Director, larger increases may be

awarded over future years as they prove

theircapability.

Not

applicable.

Car allowance, benefits and all-employee share schemes

To provide a car allowance and set of benefits which support the Executive Director and encourage

participation in the all-employee share schemes.

A car allowance may be paid or a company car may be

provided to Executive Directors.

Executive Directors are eligible to receive other taxable

and non-taxable benefits, that may include:

– private medical insurance (covering the Director

andfamily)

– life assurance cover

– permanent health insurance

– access to independent actuarial, financial and legal

advice when necessary

– gym membership, subsidised by the Company

– annual medical checks

– relevant professional subscription fees

– other benefits on substantially the same basis as

otheremployees.

The maximum car allowance is £20,000

perannum.

The maximum cost of other taxable and

non-taxable benefits permitted under the Policy

is the amount required to continue providing

benefits at a similar level year-on-year.

Not

applicable.

Executive Directors are eligible to participate in British

Land’s Share Incentive Plan (SIP), Sharesave Scheme

and any other future plans on the same basis as other

eligible employees.

The Company provides Directors’ and Officers’ Liability

Insurance and may provide an indemnity to the fullest

extent permitted by the Companies Act.

The maximum opportunities under the SIP,

Sharesave Scheme and any subsequent plans

are set by the rules of the schemes and may be

determined by statutory limits.

Pension or pension allowance

To provide an appropriate level of pension in retirement for Executive Directors.

Executive Directors may receive pension benefits

through a defined contribution scheme or cash

allowance in lieu of pension contributions.

Cash allowances in lieu of pension contributions would

typically be paid at the same level of salary as Company

contributions under the defined contribution

arrangement.

Unless already a member of the legacy defined benefit

scheme, Directors will not be able to participate in it.

Employer pension contributions to Executive

Directors under the defined contribution

arrangement and cash allowances in lieu of

pension are made at a fixed percentage of

salary, no higher than the rate available to the

majority of the workforce, which is currently

15% of salary.

Not

applicable.

111

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CORPORATE GOVERNANCE

New 2025 Directors’ Remuneration Policy (continued)

Variable remuneration

Operation (and strategic purpose) Maximum

opportunity

Performance

conditions

Annual Incentive

To reward performance against quantitative and strategic objectives that are set annually.

Annual Incentive awards may be granted to Executive

Directors each year, with the level of award reflecting

strategic aims of the Company. Objectives are set by the

Board and measures set by the Remuneration Committee.

Awards are granted following the financial year end,

when actual performance over that year is measured.

A portion of the Annual Incentive Award is paid in cash

and the remaining portion (net of tax) is used to

purchase British Land shares on behalf of the Executive

Director (Annual Incentive Shares).

Currently, one third of any Annual Incentive Award

willbe required to be used to purchase Annual

IncentiveShares.

Annual Incentive Shares must be held for three years

from the date of grant of the Annual Incentive award

before they may be transferred or sold, regardless of

whether or not the individual remains an employee of

British Land throughout this period. Executive Directors

are entitled to the dividends paid in respect of the

Annual Incentive Shares during the holding period.

The Annual Incentive award (cash and shares) may be

clawed back during the three-year period following

determination of the award in certain circumstances.

These are set out on page 115.

The maximum

level of Annual

Incentive which

may be granted is

equivalent to

150% of basic

salary.

The objectives are set by the main Board

and the measures by the Remuneration

Committee normally at the beginning of

the financial year over which performance

will be assessed and following the end of

the financial year when performance can

be determined.

At least 60% of the Annual Incentive will be

based on financial performance conditions,

with the remainder based on non-financial

/strategic performance conditions.

No more than 25% of any part of the award

will be earned for threshold performance.

Up to or equal to half of the maximum

potential award is payable for target

performance that is in line with expectations.

If the stretch target is met the maximum

potential award will be earned.

The Committee has the discretion to

adjust the outturn to ensure it reflects

underlying performance.

No further performance conditions are

attached to the Annual Incentive Shares

during the holding period.

Long Term Incentive Plan (LTIP)

To link the level of reward to Company performance against specified long term measures, promoting and rewarding

activities that support our strategy and create sustainable long term value for shareholders.

LTIP awards may be granted annually by the Remuneration

Committee to Executive Directors. Awards are in the form

of performance shares (conditional rights to receive shares).

LTIP awards typically vest after three years. The number

of performance shares vesting is dependent on the

degree to which performance conditions attached to the

LTIP have been met over this three-year performance

period. The Committee has the discretion to adjust the

outturn to ensure it reflects underlying performance. A

payment equivalent to the dividends accrued on vesting

performance shares is paid at the point of vesting normally

in shares but in exceptional circumstances cash.

On vesting, sufficient performance shares may be sold to

cover an individual’s liability to income tax and National

Insurance contributions and related costs of sale. The

remaining performance shares must be held for two years

following vesting before they are permitted to be transferred

or sold, regardless of whether or not the individual remains

an employee of British Land throughout this period.

LTIP awards may be forfeited and/or clawed back from

the date of grant until three years after the determination

of the vesting level of an award in certain circumstances.

These are set out on page 115. If it is discovered that an

LTIP award was granted or vested on the basis of

materially misstated accounts or other data the

Committee may require some or all of the performance

shares to be forfeited or clawed back during a period of

up to six years following the grant date.

The maximum

value (using the

share price at the

time of award

multiplied by the

number of shares)

of an LTIP award

which may be

granted is

equivalent to

300% of basic

salary.

The LTIP performance conditions are

chosen to reward performance that is

aligned with British Land’s strategy. At

least 75% of the award will be based on

financial related performance conditions,

with the remainder based on non-financial/

strategic performance conditions.

Within these limits, the relative weighting

and nature of the performance conditions

may be varied by the Committee to ensure

the LTIP best supports British Land’s

strategy and to meet investor preferences.

For relative metrics, the Committee may

amend the comparator groups during the

performance period if there is a corporate

event affecting any member of the group.

The Committee may also amend a target

or performance benchmark if a different

target or benchmark is deemed

moreappropriate.

Performance conditions are challenging,

requiring significant outperformance for

100% of the LTIP award to vest. No more

than 20% of the award will vest if the

minimum performance threshold is

achieved; performance below the

minimum threshold for a performance

condition will result in the LTIP award in

respect of that condition lapsing.

112

British Land

Annual Report and Accounts 2025

DIRECTORS’ REMUNERATION REPORT CONTINUED

Variable remuneration

Operation (and strategic purpose) Maximum

opportunity

Performance

conditions

Policy on shareholdings of Executive Directors

To encourage Executive Directors to build and maintain a shareholding in the Company, including post-cessation

of employment.

The Company has a policy that Executive Directors will

be required to build and retain a level of shareholding in

the Company, including post-cessation of employment.

The shareholding requirement is 225% of salary for the

CEO and 200% of salary for the CFO with this level

being required to be held for two years following

cessation. The Committee retains discretion to operate

the shareholding requirement as appropriate in

specificcircumstances.

The Policy

requirement is that

the Executive

Directors are

expected to build

up a shareholding

of at least 200% of

salary (in practice

the operation of

the Policy may be

at a higher level).

Not applicable.

Chair and Non-Executive Directors’ fees

No element of the Chair and Non-Executive Directors’ fees or other arrangements are subject to performance

conditions.

Operation (and strategic purpose) Maximum opportunity

Chair’s fee

To attract and retain an individual with the appropriate degree of expertise and experience.

The Chair’s annual fee is set by the Remuneration

Committee and reviewed annually. The level of the

Chair’s annual fee is set taking into account fees paid at

companies of broadly similar size.

Typically increases, if required, will be in line with market.

Non-Executive Directors’ fees

To attract and retain Non-Executive Directors with the appropriate degree of expertise and experience.

Remuneration of the Non-Executive Directors is a

matter for the Executive Directors and Chair, and fees

are reviewed annually.

Non-Executive Directors receive a basic annual fee plus

additional fees if they are members of a Committee, and

if they hold the position of Senior Independent Director,

Chair of a Committee, perform additional roles or have a

greater time commitment.

The Company’s Policy is to deliver a total fee at a level in

line with similar positions.

Upon retirement from the Board, Non-Executive

Directors and the Chair are eligible to receive a gift from

the Company which shall not exceed £500. Where a tax

liability is incurred on such a gift, the Committee has the

discretion to approve the payment of such liability on

behalf of the Non-Executive Directors in addition to the

value of the gift.

The maximum aggregate amount of basic fees payable to all

Non-Executive Directors shall not exceed the limit set in the

Company’s Articles of Association, which is £900,000.

Basic fees do not include the Chair’s fee or fees for being

Senior Independent Director, member or Chair of a

Committee.

Other arrangements for the Chair and the Non-Executive Directors

The Company may reimburse expenses reasonably

incurred by the Chair and the Non-Executive Directors

in fulfilment of the Company’s business, together with

any taxes thereon.

The Company provides the Chair and the Non-Executive

Directors with Directors’ and Officers’ Liability Insurance

and may provide an indemnity to the fullest extent

permitted by the Companies Act 2006.

The maximum reimbursement is expenses reasonably

incurred, together with any taxes thereon.

The maximum value of the Directors’ and Officers’ Liability

Insurance and the Company’s indemnity is the cost at the

relevant time.

113

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Annual Report and Accounts 2025

CORPORATE GOVERNANCE

Remuneration Policy for other employees

Salary reviews across the Group are carried out on the

same basis as salary reviews for the Executive Directors;

consideration is given to the individual’s role, duties,

experience and performance, along with consideration of

typical salary levels of employees in similar roles in

comparable companies, where the data is available.

Employees are entitled to taxable and non-taxable benefits

including pension contributions, with executives being

entitled to substantially the same benefits as the

ExecutiveDirectors.

The Company’s all-employee share schemes (the Share

Incentive Plan and the Sharesave Scheme) are also open to

eligible employees.

The Company operates annual incentive arrangements

throughout the business which are cascaded from the

AIPobjectives, and tailored where appropriate to the

specific functions and individuals. Senior employees may

also participate in the LTIP and/or Restricted Share

awardschemes.

The Committee did not consult with the wider employee

population when designing the Policy. The Committee

does however consider the wider pay context when

designing and operating the Policy to ensure appropriate

alignment on remuneration across the Group.

Choice of performance measures

At least 60% of the Annual Incentive will be based on

financial performance conditions, with the remainder

based on non-financial/strategic performance conditions.

The specific performance conditions are determined in

line with the strategic priorities.

At least 75% of an LTIP award will be based on financial

related performance conditions, with the remainder

based on non-financial/strategic performance conditions.

The LTIP performance conditions are chosen to reward

performance that is aligned with British Land’s strategy.

The AIP and LTIP targets are set taking into account

the business plan and investor expectations, with the

Committee ensuring there is a robust and appropriate

link between payouts and performance.

Illustration of application of the New 2025 Remuneration Policy

The bar charts below illustrate the levels of remuneration receivable by the Executive Directors in the first year of

operation of the proposed Remuneration Policy for varying levels of performance.

18%

23%

48%

100%

23%

29%

31% 21%

39%

48%

20%

£5,113k

£4,118k

£1,930k

£936k

Maximum (with share price growth)

Maximum

Minimum

In line with expectations

Chief Executive Officer (£’000)

Key

Fixed pay

Annual bonus

LTIP

LTIP value with 50% share price growth

£0k £1,000k £2,000k £3,000k £4,000k £5,000k £6,000k

19%

23%

49%

100%

23%

29%

31% 20%

39%

48%

19%

£3,158k

£2,546k

£1,198k

£586k

Maximum (with share price growth)

Maximum

Minimum

In line with expectations

Chief Financial Officer (£’000)

Fixed pay

Annual bonus

LTIP

LTIP value with 50% share price growth

£0k £500k £1,000k £1,500k £2,000k £2,500k £3,000k £3,500k

Basis of calculation:

The above charts have been calculated using (a) salaries for the year ending 31 March 2026; (b) benefit values for the

year ending 31 March 2025; and (c) pension policy as applicable for the year ending 31 March 2026, i.e. 15% of salary.

Assumptions:

Minimum: Fixed pay only consisting of salary, pension and benefits. No payouts under the AIP or LTIP.

In line with expectations: Fixed pay plus 50% of maximum under the AIP and threshold vesting at 20% of maximum

under the LTIP.

Maximum: Fixed pay plus 100% of maximum under the AIP and LTIP.

Maximum with share price growth: As for the “Maximum” scenario but illustrating the impact of a 50% share price

increase on the LTIP.

Notes to the New 2025 Directors’ Remuneration Policy table

114

British Land

Annual Report and Accounts 2025

DIRECTORS’ REMUNERATION REPORT CONTINUED

Approach to recruitment remuneration

Executive Directors

Basic salary is set at a level appropriate to recruit a

suitable candidate, taking into account external market

competitiveness and internal equity. The level of basic

salary may initially be positioned below the mid-market

of the chosen comparator group, with the intention of

increasing it to around the mid-market of the comparator

group after an initial period of satisfactory service.

Individuals will be able to receive a contribution to a

pension plan, or cash in lieu thereof, and the Company

contribution will not be greater than the rate available to

the majority of the workforce (currently 15% of salary).

Annual Incentive opportunity and Long Term Incentive

award levels will be in line with the Policy.

Where a recruit is forfeiting incentive awards granted by

their existing employer, compensation in the form of a

Restricted Share Plan (RSP) award or otherwise may be

made (in accordance with UKLR 9.3.2), the maximum

value of which will be that which the Committee, in its

reasonable opinion, considers to be equal to the value

of remuneration forfeited.

The vesting of the award may be subject to additional

performance measures being met over the same

period. The Committee will determine the most relevant

measures to use at the time of award, bearing in mind

the responsibilities of the individual being appointed

and the Company’s strategic priorities at the time.

The Company’s Policy is to give notice periods of no longer

than 12 months.

Chair and Non-Executive Directors

On recruitment, the Chair will be offered an annual fee in

accordance with the Policy. The level of the annual fee may

initially be positioned below the mid-market level, with the

intention of increasing it to around the mid-market level of

the comparator group after an initial period of satisfactory

service. Non-Executive Directors will be offered Non-

Executive Directors’ fees in accordance with the Policy.

Appointment of internal candidates

If an existing employee of the Group is appointed as an

Executive Director, Chair or Non-Executive Director, any

obligation or commitment entered into with that individual

prior to his or her appointment can be honoured in

accordance with the terms of those obligations or

commitments, even where they differ from the terms

of the Policy.

Policy on loss of office

Executive Directors

The Executive Directors’ service contracts can be lawfully

terminated by either party giving 12 months’ notice, or by

the Company making a lump sum payment in lieu of notice

(PILON) equal to the Executive Director’s base salary for

the notice period. Additionally, when the Company makes

a PILON, it may either pay a lump sum equal to the value of

any benefits for the notice period or continue to provide

benefits until the notice period expires or the Executive

Director starts new employment (whichever is the earlier).

These lawful termination mechanisms do not prevent the

Company, in appropriate circumstances, from terminating

an Executive Director’s employment in breach of their

service contract and seeking to apply mitigation in

determining the damages payable. Where this is

achievable in negotiation with the outgoing Director,

settlement arrangements are structured so that the

termination payment is paid in instalments and the

instalments are reduced by an amount equal to any

earnings received from the outgoing Director’s new

employment, consultancy or other paid work.

For departing Executive Directors and Executive Directors

that have already left British Land the Committee may

agree to cash commutation of pension benefits under

the defined benefit scheme (including EFRBS benefits)

and other pension arrangements entered into prior to

the adoption of the new 2025 Remuneration Policy. Any

commutation would take into account valuations provided

by independent actuarial advisers so as to be undertaken

on a basis considered by the Committee to be cost neutral

to the Company.

The circumstances of the loss of office dictate whether

the individual is treated as a good leaver or otherwise,

in accordance with the Company’s Policy. The Committee

uses its discretion to form a view taking into account the

circumstances. Good leavers typically receive pro-rata

Annual Incentive and long term incentive awards, subject

to performance measurement, and other leavers forfeit

their entitlements. In the event of a change of control the

rules of the share plans generally provide for accelerated

vesting of awards, subject (where applicable) to time

apportionment and achievement of performance targets.

115

British Land

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CORPORATE GOVERNANCE

Malus and clawback

In relation to both Annual Incentive Plan and LTIP awards

under this 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;

– 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

– 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.

Discretion

The Committee has discretion in several areas of Policy

as set out in this Report. This includes the ability

to set different performance conditions from year

to year within the AIP and LTIP. The Remuneration

Committee may also exercise operational and

administrative discretions under relevant plan rules

approved by shareholders as set out in those rules. In

addition, the Committee has discretion to amend the

Policy with regard to minor or administrative matters

where it would be, in the opinion of the Committee,

disproportionate to seek or await shareholder approval.

In addition, the Committee retains the discretion to

override the formulaic outcomes of incentive schemes.

The purpose of this discretion is to ensure that the incentive

scheme outcomes are consistent with overall Company

performance and the long term experience of shareholders.

Pre-existing obligations and commitments

It is a provision of this Policy that the Company can honour

all pre-existing obligations and commitments that were

entered into prior to this new 2025 Remuneration Policy

taking effect. The terms of those pre-existing obligations

and commitments may differ from the terms of the

Remuneration Policy and may include (without limitation)

obligations and commitments under service contracts,

long term incentive schemes (including previous Long

Term Incentive Plans), pension and benefit plans.

New 2025 Directors’ Remuneration Policy (continued)

116

British Land

Annual Report and Accounts 2025

DIRECTORS’ REMUNERATION REPORT CONTINUED

How we intend to apply our Remuneration Policy during the year ending

31 March 2026

Executive Director salaries

The Executive Directors’ salaries for the year beginning 1 April 2025 are set out in the table below. The increase to the

Chief Executive’s salary is 3% reflecting the average workforce increase. The Chief Financial Officer’s salary will not

increase as it was set on his appointment during the year.

Director

2024/25

£000

2025/26

£000

Simon Carter 773 796

David Walker 490 490

Annual Incentive Plan

The maximum bonus opportunity for Executive Directors remains 150%. The detailed targets the Committee sets are

considered to be commercially sensitive and will be disclosed in the 2026 Annual Report.

Measure

Vesting range for minimum to

maximum expectations Weighting

Total Property Return

TPR vs Sector Weighted MSCI Universe 17% to 100% 20%

Annual Profitability

Underlying Profit 0% to 100% 30%

Development Profit 0% to 100% 10%

Environmental Measures

GRESB Ranking 25% to 100% 10%

EPC Ratings 20% to 100% 10%

Strategic Objectives

0% to 100% 20%

Long Term Incentive Plan

The maximum award level in the year commencing 1 April 2025 will remain at 250% for Executive Directors

Target Weighting

Total Accounting Return Threshold: 4% p.a.

Maximum: 10% p.a.

Performance is calculated on a straight line basis.

50%

Total Shareholder Return Threshold: Equal to FTSE 350 REIT index

Maximum: Index + 3% p.a. 25%

Environmental Measures

Operational Carbon Reduction Threshold: 55% 12.5%

Intermediate: 60%

Maximum: 65%

Operational Energy Reduction Threshold: 23% 12.5%

Intermediate: 24%

Maximum: 25%

All Long Term Incentive Plan measures vest across a range of 20% to 100%

Non-Executive Director fees

Role

2024/25

£000

2025/26

£000

Chair 375 375

Non-Executive Director 66 66

Senior Independent Director 10 10

Audit or Remuneration Committee Chair 20 20

Audit or Remuneration Committee Member 8 8

ESG Committee Chair 14 14

Nomination or ESG Committee Member 5 5

Innovation Advisory Council Chair 50 50

Innovation Advisory Council Member 30 30

INCOME

FOCUSED

8-10%

TOTAL ACCOUNTING

RETURN THROUGH

THE CYCLE

117

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

How we intend to apply our Remuneration Policy in the year ending

31 March 2026

New 2025 Remuneration Policy applied to the year ending 31 March 2026

Annual Incentive Weighting Link to business model

Profitability 60% We are an earnings driven business. 60% of our annual

incentive is focused on profitability, both in absolute terms

and relative to the wider property sector.

Annual Profit 30%

Total Property Return vs MSCI 20%

Development Profit 10%

Environment 20% We are a responsible business. Our priority is to create

returns for our shareholders, but we do so in a way that

considers our environmental impact.

GRESB Benchmark 10%

EPC Rating 10%

Strategic Objectives 20% Our strategic objectives are centred around the delivery of

an 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

2026 Annual Report.

Long Term Incentive

Total Accounting Return 50% Aligns with our central ambition and drives longterm

priority for an income focused 8-10% Total Accounting

Return for our shareholders, through the cycle.

Total Shareholder Return 25% Drives behaviours to ensure that on a long term basis,

British Land remains an attractive investment relative to

the wider listed property market.

Carbon reduction 25% Maintains a long term focus on our carbon footprint.

How we align remuneration with 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. 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, to create Places

PeoplePrefer.

118

British Land

Annual Report and Accounts 2025

How we applied our current Remuneration Policyduring theyear ended

31 March 2025

Single total figure of remuneration (audited)

The following tables detail all elements of remuneration receivable by British Land’s Executive Directors in respect ofthe

year ended 31 March 2025 and show comparative figures for the year ended 31 March 2024.

Simon Carter David Walker

Bhavesh Mistry

2024

£000

2025

£000

2024

£000

2025

£000

2024

£000

2025

£000

Salary 773 773 – 178 505 336

Taxable benefits 20 20 – 8 20 14

Pension or pension allowance 116 116 – 27 76 51

Other items in the nature of remuneration 14 12 – 2 11 8

Fixed remuneration 923 921 – 215 612 409

Annual incentive 919 941 – 213 – –

Long term incentives 718

884

– 213

– –

Variable remuneration 1,637 1,825 – 426 – –

Total 2,560 2,746 – 641 612 409

Notes to the single total figure of remuneration table (audited)

Pensions

Simon Carter David Walker Bhavesh Mistry

2024

£000

2025

£000

2024

£000

2025

£000

2024

£000

2025

£000

DC Pension Contribution 9 10 – 1 10 7

Pension Allowance 107 106 – 26 66 44

Total 116 116 – 27 76 51

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.

Taxable benefits

Simon Carter David Walker Bhavesh Mistry

2024

£000

2025

£000

2024

£000

2025

£000

2024

£000

2025

£000

Car allowance 17 17 – 6 17 11

Private medical 3 3 – 2 3 3

Total 20 20 – 8 20 14

Other items in the nature of remuneration

Simon Carter David Walker Bhavesh Mistry

2024

£000

2025

£000

2024

£000

2025

£000

2024

£000

2025

£000

Insurances 6 5 – 1 3 2

Subscriptions 1 1 – 0 1 1

Share Incentive Plan 7 6 – 1 7 5

Total 14 12 – 2 11 8

1. David Walker and Bhavesh Mistry’s remuneration for 2025 is pro-rated to reflect the amount of time each of them served on the Board as CFO during the year.

Bhavesh stepped down and David joined the Board on 20 November 2024

2. Bhavesh Mistry was not eligible to receive an award under the Annual Incentive Plan in respect of the year ended 31 March 2025 and his outstanding LTIPs lapsed

upon his resignation. Bhavesh resigned before the 2024 Annual Incentive award was paid and LTIP vesting date. As a result, the Annual Incentive amount reported in

the 2024 Annual Report was not paid to him and the 2021 LTIP award that would have vested on 22 June 2024, lapsed

3. Confirmed outcome. A forecast estimated figure was published in the 2024 Annual Report on the basis of a Volume Average Weighted Price for the quarter ended

31 March 2024. The actual outcome is reflected in the table above on the basis of the share price achieved upon vesting of 412p. The vesting level remained at 40%

as estimated within the 2024 Annual Report

4. Estimated vesting outcomes. Values are based on the Volume Weighted Average Price of 361p in respect of the last quarter of the year ended 31 March 2025. Final

vesting outcomes will be confirmed in the 2026 Annual Report

DIRECTORS’ REMUNERATION REPORT CONTINUED

119

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

Measure Weighting Threshold

Maximum Outcome

Weighting (%

of max bonus

available)

Total Property Return

TPR vs Sector Weighted MSCI Universe 20% 0bps +125bps +224bps 20%

Annual Profitability

Underlying Profit 30% £260m £276m £279m 30%

Development Profit 10% £110m £160m £21m 0%

Environmental Measures

GRESB Ranking 10% 5*-1pt 5*+3pts 5*+2.5pts 9.17%

EPC Ratings 10% 61% 67% 68% 10%

Strategic Objectives

Simon Carter 20% 0% 20% 12.00% 12.00%

David Walker 20% 0% 20% 11.67% 11.67%

Total payout % of max % of salary

Simon Carter 81.17 121.75

David Walker

80.84 121.25

1. 0% payable for threshold performance for Underlying Profit and Development Profit. 20% payable for threshold performance, 50% payable for in-line (being GRESB

5 star) 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

2. The percentages for David Walker are based on a full year. His Annual Incentive Plan award has been pro-rated for the time served as CFO since joining the Board on

20 November 2024 and is equal to 43.52% of his annual rate of salary

In line with the current Policy, one third of the Annual Incentive payout will be used to purchase Annual Incentive Shares

which must be held for a period of three years.

AIP scorecards (audited)

Simon Carter

Measure Weighting Outcome % award achieved

Active Capital

Recycling

6.0% Good progress on sales: £540m sales overall 1.8% ahead of book

value including exchanged and under offer. In addition, 2FA JV sale to

Modon Holdings, reducing our stake to 25%.

£738m retail park purchases despite a competitive market. 75% of

Meadowhall proceeds redeployed, followed by £441m Brookfield

portfolio deal in conjunction with equity raise in October.

3.7%

Realising the

potential of our

campuses

3.5% Cultural scheme at the Printworks at Canada Water approved and

planning on Euston Tower approved.

Space delivered at Regents Place in partnership with the Crick and

operating agreement in place. Fully let The Optic at Peterhouse to

ARM.

1.6%

Progressing value

accretive

development

3.0% Practical completion achieved at Aldgate, The Priestley Centre and

The Optic, and continuing to progress 1 Broadgate, Mandela Way and

1 Triton Square.

2.0%

Building our

exposure in

urbanlogistics

1.5% Mandela Way progressing well and should practically complete in Q2

FY26.

Planning achieved on Verney Road.

0.5%

Delivering our

residential strategy

2.0% Aldgate achieved practical completion on programme and on budget.

Canada Water residential sales prices above targeted level and sales

velocity consistent with other schemes, albeit slower than targeted.

0.7%

People &

Sustainability

4.0% Gender pay gap improved by c.5%, although ethnicity pay gap

increased due to movements in the senior management team.

Engagement survey completed with a Group engagement score of

79%, in line with last year and outperforming the benchmark.

3.5%

Performance Outcomes for the year ended 31 March 2025

Annual Incentive Plan (audited)

120

British Land

Annual Report and Accounts 2025

David Walker

Measure Weighting Outcome % award

Active Capital

Recycling

3.5% Maintained refinancing date of greater than two years.

Fitch Ratings, as part of their annual review in July 2024,

affirmed all our credit ratings with a stable outlook,

including the Senior Unsecured rating at ‘A’.

3.0%

Realising the

valueopportunities

in Retail

2.5% Exchanged £30m of long term deals including £13m of new

lettings. Deals exchanged at an average of more than 10%

ahead of ERV.

1.7%

Realising the

potential of our

campuses

2.5% Exchanged £43m of long term deals.

Storey occupancy at 97% and retentions at 70%.

0.3%

Delivering

operational

efficiency and

effectiveness

5.5% FY25 Cost Ratio of 17.5% achieving target driven by good

cost control and driving fee income.

New lead to lease system delivered with further

enhancement phase going well.

Further improvements in systems, technology and

processes underway.

3.2%

Progressing value

accretive

development

2.0% Progress on leasing recently completed space behind plan;

however, signs of improving demand and increase in

viewing levels looking ahead to FY26.

0.0%

People &

Sustainability

4.0% Gender pay gap improved by c.5%, although ethnicity pay

gap increased due to movements in the senior management

team.

Engagement survey completed with a Group engagement

score of 79%, in line with last year and outperforming the

benchmark.

3.5%

Long Term Incentive Plan (audited)

The figure in the long term incentives column of the single total figure of remuneration table on page 118 relates to

the vesting of awards granted in 2022 under the Long Term Incentive Plan. The below tables outline the performance

conditions attached to the awards, final performance outcomes and the forecast vesting position. Final vesting

outcomes will be reported within the 2026 Annual Report.

Measure (weighting) Threshold

Vesting at

threshold Maximum Outcome

% of

award

vesting

Profitability

Total Accounting Return (50%) 4% p.a. 20% 10% p.a. -4.4% p.a. 0%

Total Property Return vs MSCI (25%) -4.1% 20% -3.1% p.a. -0.4% p.a. 25%

Environmental Measures

Operational Carbon Reduction (12.5%) -10 % 20% -30% -38% 12.5%

Operational Energy Reduction (12.5%) -7% 20% -14% -19% 12.5%

Vesting outcome 50%

DIRECTORS’ REMUNERATION REPORT CONTINUED

121

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

Long Term Incentive Plan (audited)

Executive Director

Grant date Vesting date

Number of

performance

awarded

Number of

performance

vesting

Estimated

value of award

on vesting

£000

Estimated

dividend

equivalent value

£000

Increase in

value as a result

of share price

movement

between grant

and vesting

£000

Simon Carter 1 9/07/2 02 2 21 /07/2 0 2 5 411,121 205,560 742 142 0

David Walker 1 9/07/2 0 2 2 21 /07/2 0 2 5 98,806 49,403 179 34 0

1. Values are based on the Volume Weighted Average Price of 361p in respect of the last quarter of the year ended 31 March 2025

2. The share price used to calculate the value of the awards on grant was 456.07p

Share scheme interests awarded during the year (audited)

The total face value of LTIP awards made to Simon Carter for the year ended 31 March 2025 was equivalent to250% of

his basic salary at grant. David Walker was not CFO at the point that his 2024 LTIP was granted and therefore the value

of his award was calculated in accordance with arrangements for Executive Committee members.

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 fordetermining the number of performance shares awarded

to Executive Directors was 429.07p. The performance conditions attached to these awards are summarised below.

Performance shares

Executive Director

Grant date

Number of

performance

granted

Face value

£000

End of

performance

period

Vesting

date

Percentage vesting on

achievement of minimum

performance threshold

Simon Carter 20/06/24 450,101 1,931 31/03/27 21/06/27 20%

David Walker 20/06/24 122,357 525 31/03/27 21/06/27 20%

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 ifthe 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: relative TPR performance

against the MSCI March Annual Universe Benchmark: equal to the benchmark for threshold performance and +1.00% 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: 53% reduction for threshold performance and 63%

reduction for maximum performance (12.5% weighting); and Operational Energy Reduction: 19% reduction for threshold

performance and 23% reduction for maximum performance (12.5% weighting).

TARwill be measured on the basis of a three-year average over the performance period. TPR will be measured

onastraight-line basis between the index and stretch performance. Both sustainability metrics will be measured

againstthe 31 March 2019 base level disclosed within our 2030 Sustainability Strategy, which can be found at

www.britishland.com/sustainability.

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 March 2025.

Bhavesh Mistry was not eligible to receive an award under the Annual Incentive Plan in respect of the year ended

31 March 2025 and his outstanding LTIPs, unvested joining awards and SIP shares either lapsed or were forfeited upon

his resignation.

Bhavesh resigned before the 2024 Annual Incentive award was paid and the LTIP vesting date. As a result, the Annual

Incentive amount reported in the 2024 Annual Report was not paid to him and the 2021 LTIP award that would have

vested on 22 June 2024, lapsed.

122

British Land

Annual Report and Accounts 2025

Directors’ shareholdings and share interests (audited)

The table below shows the Directors’ shareholdings, including shares held by connected persons, as at year end or,

ifearlier, the date of retirement from the Board.

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 2025, Mark Aedy, Irvinder Goodhew and Tim Score have each

received shares in full or part satisfaction of their fees.

Director

Outstanding scheme interests as at 31 March 2025 Shares held

Total of all share

plan awards and

shareholdings

as at

31 March 2025

or departure

date

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

2024

As at

31March

2025

Simon Carter 1,432,597 5,258 4,275 1,442,130 390,369 548,945 1,991,075

Bhavesh Mistry

– – – – 221,155 235,213 235,213

David Walker

363,544 5,258 4,771 373,573 – 59,958 433,531

Tim Score (former Chair)

153,004 159,480 159,480

William Rucker (Chair)

– 50,000 50,000

Mark Aedy 19,841 53,022 53,022

Lynn Gladden 18,339 18,339 18,339

Irvinder Goodhew

38,074 52,733 52,733

Alastair Hughes 7,3 7 1 7,371 7, 371

Amanda James

– 11,848 11,848

Amanda Mackenzie – – –

Preben Prebensen

20,000 20,000 20,000

Mary Ricks – 11,848 11,848

Laura Wade-Gery

9,585 9,585 9,858

Loraine Woodhouse 17,72 5 20,094 20,094

1. Bhavesh Mistry, Tim Score, Irvinder Goodhew, Preben Prebensen and Laura Wade-Gery stepped down from the Board during the year. Their shareholdings reflect

the holdings as at their departure date

2. William Rucker, David Walker and Amanda James joined the Board during the year which means they have no shareholding to disclose as at 1 April 2024

Acquisitions of ordinary shares after the year end

In addition, on 8 April 2025, Mark Aedy was allotted 2,617 shares at a price of 373.07 pence pershare in satisfaction of

his 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

Matching

Simon Carter 14/04/25

14/05/25

354p

395p

David Walker 14/04/25

14/05/25

354p

395p

Other than as set out above, there have been no further changes from 31 March 2025 up to the date this Annual Report

was approved by the Board on 21 May 2025.

DIRECTORS’ REMUNERATION REPORT CONTINUED

123

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

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. In addition, Executive Directors are required to retain shares equal to the level of this

guideline (or if 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 counttowards the requirement

on a net of tax basis. Any LTIP performance shares or share options do not count.

The guideline shareholdings for the year ended 31 March 2025 are shown below based on the Volume Weighted Average

Price for 31 March 2025 of 370.5p:

Executive Director

Guideline as

percentage of

basic salary

Guideline

holding

Holding counting

towards guidelines at

31March 2025

% of salary held

(based on 31March

2025 shareholding)

Simon Carter 225 469,432 548,945 263

David Walker 200 264,507 59,958 45

Unvested share awards (subject to performance)

Executive Director

LTIP performance shares

Date of

grant

Number

outstanding at

31March 2025

Subject to

performance

measures

End of

performance

period

Vesting

date

Simon Carter 1 9/07/2 2

15/06/23

20/06/24

411,121

571,375

450,101

Yes

31/03/25

31/03/26

31/03/27

21 /07/2 5

15/06/26

21/06/27

David Walker 19/0 7/2 2

15/06/23

20/06/24

98,806

142,381

122,357

Yes

31/03/25

31/03/26

31/03/27

21 /07/2 5

15/06/26

21/06/27

Unvested option awards (not available to be exercised)

Executive Director

Sharesave options

Date of grant

Number

outstanding at

31March 2025

Option price

pence

Subject to

performance

measures

End of

performance

period

Date becomes

exercisable

Exercisable

until

Simon Carter 22/06/22 4,275 421 No N/A 01/09/25 28/02/26

David Walker 22/06/22 2,137 421 No N/A 01/09/25 28/02/26

David Walker 03/07/24 2,634 352 No N/A 01/09/27 28/02/28

124

British Land

Annual Report and Accounts 2025

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 2025 and 31 March 2024. Thetotal cost of

remunerating employees reduced by 2.4% during the year, driven largely by a smaller Executive Committee in 2025

compared to the prior year. The total cost of paying distributions toshareholders for the year ended 31 March 2025

increased by 1% compared with the prior year.

2024/25

£81

£216

22518045 90 135

2023/24

£83

£213

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

Distribution

to shareholders:

PID tax withholding

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

2015/16 2016/17 2017/ 1 8 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24

2024/25

Chris

Grigg

Chris

Grigg

Chris

Grigg

Chris

Grigg

Chris

Grigg CEO

Simon

Carter

Simon

Carter

Simon

Carter

Simon

Carter

Chief Executive’s single total

figure ofremuneration (£000)

3,623 1,938 2,279 1,653 1,534 1,644 1,919 1,658 2,560 2,746

Annual Incentive awards

against maximum

opportunity (%)

67 33 63 36 28 53 91 58 79 81

Long term incentive awards

vesting rate against maximum

opportunity (%)

54 15 16 0 0 0 0 11 40 50

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. Estimated outcome

DIRECTORS’ REMUNERATION REPORT CONTINUED

125

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

Total shareholder return

The graph below shows British Land’s total shareholder return for the 10 years to 31 March 2025, which assumes that

£100 was invested on 1 April 2015. 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 (£)

31 March

2015

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

250

200

150

100

The British Land Company PLC

FTSE All-Share REIT’s sector

87.3

79.7

88.0

85.0

48.9

78.4

83.9

64.6

70.6

69.9

94.7

94.9

101.2

102.6

84.2

104.2

127.7

88.1

97.1

89.9

CEO pay ratio

The 2024/25 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 2025 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 slightly increased in the

year to 31 March 2025 driven primarily by the LTIP vesting level increasing to 50% this year under the 2022 LTIP,

compared to 40% last year under the 2021 LTIP. The annual incentive payout level has remained broadly unchanged

compared to last year and the CEO did not receive a salary increase from 1 April 2024. The lower ratios in prior years

represent overall lower payouts under the annual incentive and LTIP. 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 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 107.

CEO pay ratio

2019/20 2020/21

2021/22 2022/23 2023/24 2024/25

Method C A A A A A

CEO single figure (£000) 1,534 1,644 1,919 1,736 2,512 2,746

Upper quartile 14:1 16:1 17:1 15:1 20:1 21:1

Median 22:1 23:1 26:1 22:1 30:1 32:1

Lower quartile 33:1 35:1 38:1 33:1 44:1 47:1

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

fortherespective 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

2024/25 are set out below. Having reviewed the pay levels of these individuals it is felt that these are representative

ofthe structure and quantum of pay at these points in the distribution of employees’ pay.

2024/25 Employee pay

Salary

Total pay

Upper quartile 86,021 129,338

Median 67, 926 86,473

Lower quartile 46,300 58,068

126

British Land

Annual Report and Accounts 2025

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 2024 and 2025 is

provided below, with the explanation of changes in prior periods available in the relevant Annual Report and Accounts.

– Simon Carter’s salary did not change between 2024 and 2025.

– Non-Executive Director fees have not changed, those with a change below have other Board roles such as Committee

membership and chairing roles, the fees for which were not increased. The Chair’s fee remained unchanged.

– 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. Mary Ricks and Amanda Mackenzie joined the Board during the previous year, and William Rucker,

David Walker and Amanda James 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

Loraine

Woodhouse

Average

employees

2025 vs 2024

Base salary/fees

% change

0% n/a n/a 0% 3% 0% n/a n/a n/a 12% 6%

Benefits %

change

3% n/a n/a 0% -25% 0% n/a n/a n/a 0% 6%

Annual Bonus %

change

2% n/a n/a n/a n/a n/a n/a n/a n/a n/a -1%

2024 vs 2023

Base salary/fees

% change

3% n/a n/a 3% 61% 2% n/a n/a n/a 2% 7%

Benefits %

change

1% n/a n/a 0% 62% 0% n/a n/a n/a -100% 14%

Annual Bonus %

change

41% n/a n/a n/a n/a n/a n/a n/a n/a n/a 31%

2023 vs 2022

Base salary/fees

% change

0 n/a n/a n/a 0% 0% n/a n/a n/a 0% 9%

Benefits %

change

-2% n/a n/a n/a 98% 0% n/a n/a n/a 0% -7 %

Annual Bonus %

change

-32% n/a n/a n/a n/a n/a n/a n/a n/a n/a -17%

2022 vs 2021

Base salary/fees

% change

35% n/a n/a n/a 7% 9% n/a n/a n/a n/a 6%

Benefits %

change

-2.8% n/a n/a n/a 100% 0% n/a n/a n/a n/a -7 %

Annual Bonus %

change

117% n/a n/a n/a n/a n/a n/a n/a n/a n/a 50%

2021 vs 2020

Base salary/fees

% change

n/a n/a n/a n/a -6% -3% n/a n/a n/a n/a 2%

Benefits %

change

n/a n/a n/a n/a 0% 0% n/a n/a n/a n/a 1%

Annual Bonus %

change

n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 84%

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.

DIRECTORS’ REMUNERATION REPORT CONTINUED

127

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Annual Report and Accounts 2025

CORPORATE GOVERNANCE

Non-Executive Directors’ remuneration (audited)

The table below shows the fees paid to our Non-Executive Directors for the years ended 31 March 2025 and31 March

2024.

Chair and Non-Executive Directors

Fees

Taxable benefits

Total

2025

£000

2024

£000

2025

£000

2024

£000

2025

£000

2024

£000

Tim Score (former Chair)

103 375 – – 103 375

William Rucker (Chair)

273 – – – 273 –

Mark Aedy 71 71 – – 71 71

Lynn Gladden 128 124 5 6 133 30

Irvinder Goodhew

73 79 – – 73 79

Alastair Hughes 98 98 – – 98 98

Amanda James

56 – 9 – 65 –

Amanda Mackenzie 97 46 – – 97 46

Preben Prebensen

81 97 – – 81 97

Mary Ricks

72 28 13 8 85 36

Laura Wade-Gery

27 99 1 1 28 100

Loraine Woodhouse 105 94 – – 105 94

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. Tim Score stepped down and William Rucker joined the Board on 9 July 2024. Their fees are pro-rated to reflect their time spent on the Board during the year

4. Irvinder Goodhew stepped down from the Board on 1 March 2025 and her fee is pro-rated to reflect her time spent on the Board during the year

5. Amanda James joined the Board on 1 July 2024 and her fee is pro-rated to reflect her time spent on the Board during the year

6. Preben Prebensen stepped down from the Board on 31 January 2025 and his fee is pro-rated to reflect his time spent on the Board during the year

7. Mary Ricks lives in the USA and her taxable benefits relate to hotel accommodation at the time of Board and Committeemeetings

8. Laura Wade-Gery stepped down from the Board on 9 July 2024 and her fee is pro-rated to reflect her time spent on the Board during the year

Remuneration Committee meeting governance

As at 31 March 2025, 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 85.

During the year ended 31 March 2025, Committee meetings were also part attended by Tim Score (former Chair), William

Rucker (Chair), Simon Carter (Chief Executive), Bhavesh Mistry (former Chief Financial Officer), David Walker (Chief

Financial Officer), Brona McKeown (HR Director, General Counsel and Company Secretary), Kelly Barry (Reward, Talent

and Performance Director) and Gavin Bergin (Head of Secretariat) other thanforany 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 theChair, Chief Executive and HR Director, General Counsel and

Company Secretary to discuss all aspects of remuneration within British Land. She also meets Korn Ferry prior toeach

substantive meeting to discuss matters of governance, Remuneration Policy and any concerns theymay have.

128

British Land

Annual Report and Accounts 2025

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

2022 Directors’ Remuneration Policy, 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 theGroup;

– 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 2025, the Committee also

considered the following matters:

– reviewing and recommending to the Board the 2025 Remuneration Policy and Remuneration Report to be presented

for shareholder approval; 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;

– reviewing the Committee’s terms of reference;

– the Committee was made aware of the results of engagement surveys and any general themes that are impacting

employees. 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 during the year and no changes weremade.

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 £95,868 (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 AGMs in July 2024 and July 2022 respectively.

Resolution

Votes

for

Votes

against

Total votes

cast

Total votes

withheld

Directors’ Remuneration Report (2024) 654,074,361 92.75 51,112,558 7. 2 5 705,186,919 4 07,824

Directors’ Remuneration Policy (2022) 63 1,747,8 07 96.24 24,675,598 3.76 656,423,405 695,944

DIRECTORS’ REMUNERATION REPORT CONTINUED

129

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

Service contracts and letters of appointment

The letters of appointment of Non-Executive Directors are generally subject to renewal on a triennial basis. As described

on page 74, Lynn Gladden’s letter of appointment is subject to annual review as her tenure exceeds nine years. In

accordance withthe UK Corporate Governance Code, all Directors stand for appointment or reappointment by the

Company’s shareholders on an annual basis. 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 on

either side.

Director

Length of

service contract

Date of

service contract

Normal notice period to

begiven 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

ofappointment

Effective date of

appointment in most recent

letter of appointment

Unexpired term at

21 May 2025

(months)

William Rucker (Chair) 9 July 2024 9 July 2024 28

Loraine Woodhouse (SID) 1 March 2021 9 July 2024 28

Mark Aedy 1 September 2021 1 September 2021 3

Lynn Gladden 20 March 2015 9 July 2024 3

Alastair Hughes 1 January 2018 9 July 2024 28

Amanda James 1 July 2024 1 July 2024 26

Amanda Mackenzie 1 September 2023 1 September 2023 28

Mary Ricks 1 November 2023 1 November 2023 28

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 reappointed 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. In

addition, 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 21 May 2025.

Amanda Mackenzie

Chair of the Remuneration Committee

130

British Land

Annual Report and Accounts 2025

DIRECTORS’ REPORT AND ADDITIONAL DISCLOSURES

AGM

The 2025 AGM will be held at 11:30am on 15 July 2025 at

100 Liverpool Street, EC2M 2RH.

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.

The articles are available on the Company’s website

www.britishland.com/governance

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 2025.

The Directors’ Report also encompasses the entirety of our Corporate Governance Report from pages 74 to 134 and

Other Information section from pages 222 to 224 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

2025 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 following sections:

Information Section in Annual Report Page

Future developments of the business of the Company Strategic Report 8 to 11

Dividends Strategic Report 33

Financial instruments – risk management objectives

andpolicies Strategic Report 47 to 58

Engagement with stakeholders Strategic Report 16 to 17

Employment policies and employee involvement Strategic Report 43

Greenhouse gas emissions, energy consumption

andefficiency Strategic Report 62 to 63

Long term incentive schemes (UKLR 6.6.1 (3)) Directors’ Remuneration Report 120 to 121

Share capital Directors Report 131

Capitalised interest (UKLR 6.6.1 (1)) Financial Statements 157 and 163

Exposure to risks Financial Statements 176 to 186

Additional unaudited financial information (UKLR 6.6.1 (2)) Other Information (unaudited) 214 to 224

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 82 to 85 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 76. 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 Code and the Company’s current practice, all

continuing Directors offer themselves for election or

re-election, as required, at the AGM.

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 122 to 123. 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.

131

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

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.

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. The maximum possible number of

Directors under the Articles is 20. 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.

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 Companies Act 2006) were in force

during the course of the year ended 31 March 2025 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 2024 AGM to

allot relevant securities up to a nominal amount of

£77,292,668 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 2025 AGM

or the close of business on 30 September 2025, whichever

is the sooner. At this year’s AGM, shareholders will be

asked to renew the authority to allot relevant securities.

At the 2024 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 £23,187,801. 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 2024 AGM a special resolution was passed to

permit the purchase of up to 92,751,202 ordinary shares.

This authority will expire at the earlier of the conclusion

of the 2025 AGM or close of business on 30 September

2025. 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 2025 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 the financial statements on pages 188 to 189.

Events after the balance sheet date

Details of subsequent events, if any, can be found in Note

24 on page 192.

Political donations and expenditure

The Company and its subsidiaries did not make any

political donations or incur any expenditure during the

year ended 31 March 2025 (previous year ended 31 March

2024: £nil).

Equity placing

In October 2024, the Board approved an equity raise of

£301m through an institutional placing, conditional retail

offer and Directors’ subscription, in connection with the

acquisition of a portfolio of seven retail parks from

Brookfield, for a total consideration of £441m.

For the purpose of UKLR 6.6.1R(6), as a result of the

equity placing, retail offer and Directors’ subscription,

the Company allotted 71,227,309 new ordinary shares

of 25p each with an aggregate nominal value of

£17,806,827.25. The terms of the placing and placing price

of 422p per share were fixed on 2 October 2024. 422p

represented a discount of 3.6% to the closing price on

2 October 2024 of 437.80p. The consideration received

by the Company for the allotment of the shares was

£300,579,244. The allotments were made on a non-

pre-emptive basis to existing and new shareholders.

For more information please read the post-transaction report in

the Company’s announcement on 3 October 2024 in accordance

with the Pre-Emption Group’s Statement of Principles (2022). A

copy of the announcement is available on the Company’s website

at www.britishland.com/investors/shareholder-information/

regulatory-news/

132

British Land

Annual Report and Accounts 2025

DIRECTORS’ REPORT AND ADDITIONAL DISCLOSURES CONTINUED

Rights under an employee share scheme

Employee Benefit Trusts (EBTs) operate in connection

with some of the Company’s employee share plans. The

trustees of the EBTs may exercise all rights attached to

the 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. We

manage dealings with suppliers in a fair, consistent and

transparent manner.

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 2025,

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

Percentage

holding

disclosed %

BlackRock, Inc. 73,048,930 7.8 6 %

Bank of America Corporation 4 3,017,9 9 0 4.30%

APG Asset Management N.V. 55,244,122 5.96%

Invesco Ltd. 45,871,686 4.95%

Schroders 39,6 6 7,822 3.97%

Janus Henderson Group PLC 50,582,134 5.06%

Since the year end, and up to 21 May 2025, 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

Percentage

holding

disclosed %

Bank of America Corporation 39,857,785 3.99%

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.

133

British Land

Annual Report and Accounts 2025

CORPORATE GOVERNANCE

Community investment

During the year, our financial commitment to social impact

totalled £1.2m (for the year ended 31 March 2024: £1.4m).

Of this, £0.9m was allocated from the Social Impact Fund,

which is managed by the Social Impact Committee and

overseen by the ESG Committee.

The Company also supports employee fundraising and

payroll giving, which are included in the figures above.

For the year ended 31 March 2025 this encompassed:

– an uplift of 50% in British Land staff payroll giving

contributions (capped at £5,000 per person and

£40,000 per annum for the whole organisation); and

– a staff matched funding pledge, matching money raised

for community organisations by British Land staff up to

£500 per person per year.

Our social impact efforts are guided by our Local

Charter, working with local partners to make a lasting

positive difference:

– connecting with local communities;

– supporting educational initiatives for local people;

– supporting local training and jobs; and

– supporting local businesses.

Through our social impact initiatives and Local Charter

activities, we engage with the communities where we

operate, make positive local contributions, help individuals

fulfil their potential, support businesses growth, and

promote wellbeing and enjoyment.

Auditor and disclosure of information

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 2025 AGM.

The Directors’ Report was approved by the Board on

21 May 2025 and signed on its behalf by:

Brona McKeown

HR Director, General Counsel and Company Secretary

The British Land Company PLC

Company number: 621920

134

British Land

Annual Report and Accounts 2025

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

IN RESPECT OF THE FINANCIAL STATEMENTS

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, confirms 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 includes 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

21 May 2025

135

British Land

Annual Report and Accounts 2025

FINANCIAL STATEMENTS

CONTENTS

FINANCIAL

STATEMENTS

Independent auditors’ report 136

Primary statements and notes 143

Company balance sheet 195

Supplementary disclosures 207

Other information (unaudited) 214

EPRA best practice recommendations

on sustainability reporting 220

10-year record 221

Shareholder information 222

Paddington Central

136

British Land

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INDEPENDENT AUDITORS’ REPORT

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 2025 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

Act 2006.

We have audited the financial statements, included within

the Annual Report and Accounts 2025 (the “Annual

Report”), which comprise: the Consolidated and Company

Balance Sheets as at 31 March 2025; the Consolidated

Income Statement, the Consolidated Statement of

Comprehensive Income, the Consolidated Statement of

Cash Flows, and the Consolidated and Company Statements

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: £88.8 million

(2024: £79.7 million) based on 1% of Total Assets.

– Specific group materiality: £14.0 million

(2024: £13.5 million) based on 5% of the group’s

Underlying Profit before tax.

– Overall company materiality: £79.9 million

(2024: £71.8 million) based on 1% of Total Assets.

– Performance materiality: £66.6 million

(2024: £59.8 million) (group) and 59.9 million

(2024: £53.8 million) (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.

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,

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF THE

BRITISH LAND COMPANY PLC

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FINANCIAL STATEMENTS

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 £6,065m

(2024: £5,130m) and for the group’s share of joint ventures

was £3,421m (2024: £3,568m) as at 31 March 2025.

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.

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 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.

Valuations where there was a rotation of the Valuer during

the year under audit were an area of focus, in particular

for Canada Water due to its size and complexity. 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.

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.

Taxation, which was a key audit matter last year, is no

longer included because of the absence of findings,

including limited history of findings, with respect to the

group’s compliance with the UK REIT regime. Otherwise,

the key audit matters below are consistent with last year.

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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 £7,811m

(2024: £8,794m) as at 31 March 2025 after recognising

a reversal of impairment of £12m (2024: provision for

impairment of £275m). The company has loans to

subsidiaries of £15,018m (2024: £13,992m) as at 31 March

2025 after recognising a provision for impairment of £55m

(2024: provision for impairment of £68m).

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 and joint ventures 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 2025 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 or joint venture company,

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

and investment in joint ventures as at 31 March 2025. We

assessed the accounting policies for investments and loans

in subsidiaries and investment in joint ventures 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 and joint ventures 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 and investments in

joint ventures to be the underlying valuation of investment

and development property held by the subsidiaries and

joint ventures. 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.

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FINANCIAL STATEMENTS

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, Canada Water and 1 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. We assessed the

consideration of the cost of delivering the group’s climate

change and sustainability strategy within the going

concern and viability forecasts.

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 £88.8 million

(2024: £79.7 million).

£79.9 million

(2024: £71.8 million).

How we determined it 1% of Total Assets 1% of Total Assets

Rationale for

benchmarkapplied

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.

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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% (2024: 75%) of overall

materiality, amounting to £66.6 million (2024: £59.8 million)

for the group financial statements and 59.9 million

(2024: £53.8 million) 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.

In addition, we set a specific materiality level of

£14.0 million (2024: £13.5 million) for items within the

underlying column of the Income Statement which is

based on 5% of the group’s Underlying Profit before tax.

We agreed with the Audit Committee that we would report

to them misstatements identified during our audit above

£4.4 million (group audit) (2024: £4.0 million) and

£3.9 million (company audit) (2024: £3.6 million) as well as

misstatements below those amounts that, in our view,

warranted reporting for qualitative reasons.

In addition we agreed with the Audit Committee that

we would report to them misstatements identified during

our group audit above £1.0 million (2024: £1.0 million)

for misstatements related to Underlying Profit within the

financial statements, as well as misstatements below that

amount 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.

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 2025 is consistent with the financial

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FINANCIAL STATEMENTS

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

and the audit

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 do so.

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.

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INDEPENDENT AUDITORS’ REPORT CONTINUED

Based on our understanding of the group and industry,

we identified that the principal risks of non-compliance

with laws and regulations related to compliance with the

REIT status 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 specialists 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 and post close entries.

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

Following the recommendation of the Audit Committee,

we were appointed by the members on 18 July 2014 to

audit the financial statements for the year ended 31 March

2015 and subsequent financial periods. The period of total

uninterrupted engagement is 11 years, covering the years

ended 31 March 2015 to 31 March 2025.

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

21 May 2025

143

CONSOLIDATED INCOME STATEMENT

For the year ended 31 March 2025

			2025			2024
			Capital			Capital
		Underlying 1	and other	Total	Underlying 1	and other	Total
	Note	£m	£m	£m	£m	£m	£m
Revenue	3	454	–	454	401	174	57 5
Costs 2	3	(123)	–	(123)	(92)	(54)	(146)
	3	331	–	331	309	120	429
Joint ventures (see also below) 3	11	90	–	90	100	(179)	(79)
Administrative expenses		(82)	–	(82)	(85)	–	(85)
Valuation movements on property	4	–	148	148	–	(131)	(131)
Loss on disposal of investment properties, j oint ventures and revaluation of investments		–	(42)	(42)	–	(23)	(23)
Net financing charges
financing income	6	2	–	2	1	–	1
financing charges	6	(62)	(43)	(105)	(56)	(41)	(97)
	6	(60)	(43)	(103)	(55)	(41)	(96)
Profit (loss) before taxation		279	63	342	269	(254)	15
Taxation	7	(4)	–	(4)	(3)	(11)	(14)
Profit (loss) for the year after taxation		275	63	338	266	(265)	1
Attributable to non-controlling interests		–	–	–	1	1	2
Attributable to shareholders of the Company		27 5	63	338	265	(266)	(1)
Earnings per share:
basic	2			35.1p			(0.1)p
diluted	2			35.0p			(0.1)p
All results derive from continuing operations.			2025			2024
			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		90	–	90	100	–	100
Share of joint venture result 4		–	11	11	–	–	–
Valuation movements on property	4	–	(14)	(14)	–	(179)	(179)
Capital financing charges		–	(3)	(3)	–	(5)	(5)
Profit on disposal of properties		–	6	6	–	5	5
	11	90	–	90	100	(179)	(79)

1. See definition in Note 2 and a reconciliation between Underlying Profit and IFRS profit in Note 20.

2. Included within ‘Costs’ is a credit relating to provisions for impairment of tenant debtors, accrued income and tenant incentives

and contracted rent increases of £2m (2023/24: £14m credit).

3. Included within ‘Joint ventures’ is a credit relating to the movement of provision for impairment of equity investments and loans

to joint ventures of £18m (2023/24: £42m 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.

144

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 March 2025

	2025	2024
	£m	£m
Profit for the year after taxation	338	1
Other comprehensive income (expense):
Items that may be reclassified subsequently to profit or loss:
Gains (losses) on cash flow hedges
– Joint ventures	–	(1)
	–	(1)
Reclassification of foreign exchange differences to the income statement	–	(1)
Other comprehensive income (expense) for the year	–	(2)
Total comprehensive income (expense) for the year	338	(1)
Attributable to non-controlling interests	–	2
Attributable to shareholders of the Company	338	(3)

145

CONSOLIDATED BALANCE SHEET

As at 31 March 2025

		2025	2024
	Note	£m	£m
ASSETS
Non-current assets
Investment and development properties	10	6,130	5,229
		6,130	5,229
Other non-current assets
Investments in joint ventures	11	2,462	2,429
Other investments	12	48	54
Property, plant and equipment		16	19
Interest rate and currency derivative assets	16	73	79
		8,729	7,810
Current assets
Trading properties	10	22	22
Debtors	13	36	34
Interest rate and currency derivative assets	16	9	20
Cash and cash equivalents	16	57	88
		124	164
Investment properties held-for-sale	10	22	–
		146	164
Total assets		8,875	7,974
LIABILITIES
Current liabilities
Short term borrowings and overdrafts	16	(311)	(10)
Creditors	14	(263)	(260)
Corporation tax		(6)	(8)
Interest rate and currency derivative liabilities	16	(2)	–
		(582)	(278)
Non-current liabilities
Debentures and loans	16	(2,417)	(2,202)
Other non-current liabilities	15	(107)	(121)
Deferred tax liabilities		(3)	(5)
Interest rate and currency derivative liabilities	16	(56)	(56)
		(2,583)	(2,384)
Total liabilities		(3,165)	(2,662)
Net assets		5,710	5,312
EQUITY
Share capital		253	235
Share premium		1,589	1,310
Merger reserve		213	213
Other reserves		13	13
Retained earnings		3,642	3,528
Equity attributable to shareholders of the Company		5,710	5,29 9
Non-controlling interests		–	13
Total equity		5,710	5,312
EPRA Net Tangible Assets per share 1	2	567p	562p

1. See definition in Note 2 and a reconciliation between EPRA Net Tangible Assets and IFRS net assets in Note 20.

Simon Carter David Walker

Chief Executive Chief Financial Officer

The financial statements on pages 143 to 194 were approved by the Board of Directors and signed on its behalf

on 21 May 2025.

Company number 621920.

146

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 March 2025

		2025	2024
	Note	£m	£m
Income received from tenants		414	367
Surrender premia received 1		–	149
Fees and other income received		57	47
Operating expenses paid to suppliers and employees		(211)	(177)
Cash generated from operations		260	386
Interest paid		(57)	(51)
Interest received		2	3
Corporation taxation payments		(7)	(6)
Distributions and other receivables from joint ventures	11	72	77
Net cash inflow from operating activities		270	409
Cash flows from investing activities
Development and other capital expenditure		(216)	(312)
Purchase of investment properties		(726)	(58)
Sale of investment properties 2		292	390
Purchase of investments		(4)	(7)
Indirect taxes paid in respect of investing activities		(2)	1
Loan repayments from joint ventures 3	11	93	–
Investment in and loans to joint ventures		(292)	(186)
Capital distributions from joint ventures	11	2	–
Net cash outflow from investing activities		(853)	(172)
Cash flows from financing activities
Issue of ordinary shares	19	295	1
Dividends paid	18	(220)	(213)
Dividends paid to non-controlling interests		–	(2)
Capital payments in respect of interest rate derivatives		(8)	(31)
Repayment of lease liabilities		(3)	(3)
Purchase of non-controlling interests		(13)	–
Proceeds from new borrowings	16	297	–
Repayment of bank and other borrowings		(132)	(385)
Drawdowns on bank and other borrowings		138	361
Net drawdown (repayment) of revolving credit facilities		198	(2)
Net cash inflow (outflow) from financing activities		552	(274)
Net decrease in cash and cash equivalents		(31)	(37)
Cash and cash equivalents at 1 April		88	125
Cash and cash equivalents at 31 March	16	57	88
Cash and cash equivalents consists of:
Cash and short term deposits		21	58
Tenant deposits		36	30

1. Surrender premia received includes £nil (2023/24: £149m) of the consideration for the surrender of 1 Triton Square. Refer to Note 3

for further information.

2. Includes the sale of investment in Meadowhall Shopping Centre joint venture of £158m (2023/24: £nil) and the sale of investment

properties to 1 Triton Square joint venture of £nil (2023/24: £193m). Refer to Note 11 for further information.

3. Loan repayments from joint ventures of £93m (2023/24: £nil) relates to a repayment of joint venture loan from Broadgate REIT

Limited as part of the 2 Finsbury Avenue joint venture transaction. Refer to Note 11 for further information.

147

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 March 2025

			Hedging
			and	Re-				Non-
	Share	Share	translation	valuation	Merger	Retained		controlling	Total
	capital	premium	reserve	reserve	reserve	earnings	Total	interests	equity
	£m	£m	£m	£m	£m	£m	£m	£m	£m
Balance at 1 April 2024	235	1,310	–	13	213	3,528	5,299	13	5,312
Profit for the year after taxation	–	–	–	–	–	338	338	–	338
Other comprehensive income	–	–	–	–	–	–	–	–	–
Total comprehensive income
for the year	–	–	–	–	–	338	338	–	338
Shares issued in the year 1	18	279	–	–	–	–	297	–	297
Fair value of share and share
option awards	–	–	–	–	–	(3)	(3)	–	(3)
Purchase of non-controlling interests 2	–	–	–	–	–	–	–	(13)	(13)
Dividends payable in year
(22.88p per share)	–	–	–	–	–	(221)	(221)	–	(221)
Balance at 31 March 2025	253	1,589	–	13	213	3,642	5,710	–	5,710
Balance at 1 April 2023	234	1,308	2	13	213	3,742	5,512	13	5,525
(Loss) profit for the year
after taxation	–	–	–	–	–	(1)	(1)	2	1
Losses on cash flow hedges –
j oint ventures	–	–	–	(1)	–	–	(1)	–	(1)
Reclassification of foreign
exchange differences to the income statement	–	–	(2)	1	–	–	(1)	–	(1)
Other comprehensive expense	–	–	(2)	–	–	–	(2)	–	(2)
Total comprehensive
(expense) income for the year	–	–	(2)	–	–	(1)	(3)	2	(1)
Shares issued in the year	1	2	–	–	–	–	3	–	3
Fair value of share and share
option awards	–	–	–	–	–	2	2	–	2
Dividends payable in year
(23.20p per share)	–	–	–	–	–	(215)	(215)	–	(215)
Dividends payable by subsidiaries	–	–	–	–	–	–	–	(2)	(2)
Balance at 31 March 2024	235	1,310	–	1 3	213	3,528	5,299	13	5,312

1. 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 422 pence per share, resulting in an increase in share capital of £1 8m and share premium of £277m. See Note 19 for

further information.

2. 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 has £nil

non-controlling interests as at 31 March 2025 (2023/24: £1 3m).

148

NOTES TO THE ACCOUNTS

1 Basis of preparation, material accounting

policies and accounting judgements

Basis of preparation

The financial statements for the year ended 31 March 2025

have been 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.

The Group has applied the following minor amendments

to standards to the financial statements for the first time

for the year ended 31 March 2025: IAS 1 ‘Presentation of

Financial Statements’ on the classification of liabilities and

non-current liabilities with covenants, IFRS 16 ‘Leases’ on

sale and leaseback arrangements and IFRS 8 ‘Operating

Segments’ Agenda Decision. The amendments did not have

any material impact on amounts recognised in prior years

and are not expected to materially affect current and

future years.

The standards and amendments which have been issued

but are not yet effective include IFRS 18 ‘Presentation and

Disclosure in Financial Statements’ and amendments to

both IFRS 9 ‘Financial Instruments’ and IFRS 7 ‘Financial

Instruments: Disclosures’ in respect of the classification and

measurement of financial instruments. With the exception

of IFRS 18, which the Group is still assessing and the impact

to the financial statements is not yet known, these

amendments to standards that are not yet effective are not

expected to have a material impact on the Group’s results.

These financial statements are presented in Pounds

Sterling which is the functional currency of the Group,

to the nearest million.

Going concern

The financial statements are prepared on a going concern

basis. The consolidated balance sheet shows that the

Group is in a net current liability position, predominantly

due to short term borrowings and overdrafts of £311m and

current creditors of £263m. The Group has access to

£1.8bn of undrawn facilities and cash, which provides the

Directors with a reasonable expectation that the Group

will be able to meet these current liabilities as they fall

due. In making this assessment the Directors took into

account forecast cash flows and covenant compliance,

including stress testing through the impact of sensitivities

as part of a ‘severe but plausible downside scenario’.

Before factoring in any income receivable, the undrawn

facilities and cash would also be sufficient to cover

forecast capital expenditure, property operating costs,

administrative expenses, maturing debt and interest for

a minimum of 12 months from the approval date of these

financial statements.

Having assessed the principal risks, the Directors believe

that the Group is well placed to manage its financing and

other business risks satisfactorily despite the uncertain

economic climate, and have a reasonable expectation that

the Company and the Group have 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.

Subsidiaries and joint ventures

The consolidated accounts include the accounts of

The British Land Company PLC (the Company) and all

subsidiaries (entities controlled by British Land). Control is

assumed where the Company is exposed, or has the rights,

to variable returns from its involvement with investees and

has the ability to affect those returns through its power

over those investees.

The results of subsidiaries and joint ventures acquired

or disposed of during the year are included from the

effective date of acquisition or up to the effective date

of disposal. Accounting policies of subsidiaries and joint

ventures which differ from Group accounting policies are

adjusted on consolidation.

All intra-Group transactions, balances, income and

expenses are eliminated on consolidation. Joint ventures

are accounted for under the equity method, whereby the

consolidated balance sheet incorporates the Group’s share

(investor’s share) of the net assets of its joint ventures.

The consolidated income statement incorporates the

Group’s share of joint ventures profits after tax. Their

profits include revaluation movements on properties.

Where joint ventures generate losses after tax, these are

recognised initially against the Group’s equity investment.

If the Group’s equity investment is nil, these are

subsequently then recognised against other long term

interests, principally long term loans.

Distributions and other receivables from joint ventures

are classed as cash flows from operating activities, except

where they relate to a cash flow arising from a capital

transaction, such as a property or investment disposal.

In this case they are classed as cash flows from

investing activities.

The Group assesses the recoverability of investments in

and loans to joint ventures against the joint venture’s net

asset value. Amounts due are expected to be recovered

by a joint venture selling its properties and investments

and settling financial assets, net of financial liabilities.

The net asset value of a joint venture 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.

Impairment of investments in joint ventures is calculated

in accordance with IAS 36 ‘Impairment of Assets’, and

impairment of loans to joint ventures is calculated in

accordance with IFRS 9 ‘Financial Instruments’.

149

1 Basis of preparation, material accounting

policies and accounting judgements continued

Properties

Properties are externally valued at the balance sheet date.

Investment properties are recorded at valuation whereas

trading properties are stated at the lower of cost and net

realisable value.

Any surplus or deficit arising on revaluing investment

properties is recognised in the Capital and other column

of the income statement.

The cost of properties in the course of development

includes attributable interest and other associated

outgoings including attributable development personnel

costs. Interest is calculated on the development

expenditure by reference to specific borrowings, where

relevant, and otherwise on the weighted average interest

rate of the Group’s borrowings. Interest is not capitalised

where no development activity is taking place. A property

ceases to be treated as a development property on

practical completion.

Investment property disposals are recognised on

completion. Profits and losses arising are recognised

through the Capital and other column of the income

statement. The profit or loss on disposal is determined as

the difference between the net sales proceeds and the

carrying amount of the asset at the commencement of the

accounting period plus capital expenditure in the period.

Where properties are disposed into a joint venture owned

by the Group, the profit recognised in the Capital and

other column of the income statement is limited to the

extent of the unrelated party’s interest. Any loss is

recognised in the Capital and other column of the

income statement in full.

Trading properties are initially recognised at cost and then

are subsequently measured at the lower of cost and net

realisable value. Trading property disposals are recognised

in line with the Group’s revenue accounting policies.

Where investment properties are appropriated to trading

properties, they are transferred at market value. If

properties held for trading are appropriated to investment

properties, they are transferred at book value.

Transfers to or from an investment property occur when,

and only when, there is evidence of change in use.

Where a right-of-use asset meets the definition of

investment property under IFRS 16 ‘Leases’, the right-of-

use asset will initially be calculated as the present value

of minimum lease payments under the lease and

subsequently measured under the fair value model, based

on discounted cash flows of net rental income earned

under the lease.

The Group leases out investment properties under

operating leases with rents generally payable monthly or

quarterly. The Group is exposed to changes in the residual

value of properties at the end of current lease agreements,

and mitigates this risk by actively managing its tenant mix

in order to maximise the weighted average lease term,

minimise vacancies across the portfolio and maximise

exposure to tenants with strong financial characteristics.

The Group also grants tenant incentives to encourage high

quality tenants to remain in properties for longer lease

terms. Tenant incentives, such as rent-free periods and

cash contributions to tenant fit-out, and contracted rent

increases are recognised as part of the investment

property balance. The Group calculates the expected

credit loss for tenant incentives and contracted rent

increases based on lifetime expected credit losses under

the IFRS 9 simplified approach.

Surrender premia payable relating to investment properties

are recognised in the income statement, through the

Underlying column, except where the surrender premia

payable are deemed to be unusual or significant by virtue

of their size or nature, where they are recognised through

the Capital and other column. Surrender premia payable

relating to development properties are capitalised as a

property addition providing they are a directly attributable

and necessary development expense.

Financial assets and liabilities

Debtors and creditors are initially recognised at fair value

and subsequently measured at amortised cost and

discounted as appropriate. On initial recognition the

Group calculates the expected credit loss for debtors

based on lifetime expected credit losses under the IFRS 9

simplified approach.

Other investments include investments classified as

amortised cost and investments classified as fair value

through profit or loss. Loans and receivables classified as

amortised cost are measured using the effective interest

method, less any impairment. Interest is recognised by

applying the effective interest rate. Investments classified

as fair value through profit or loss are initially recorded at

fair value and are subsequently externally valued on the

same basis at the balance sheet date. Any surplus or

deficit arising on revaluing investments classified as fair

value through profit or loss is recognised in the Capital

and other column of the income statement.

150

NOTES TO THE ACCOUNTS CONTINUED

1 Basis of preparation, material accounting

policies and accounting judgements continued

The liability associated with investment property which

is held under a lease, is initially calculated as the present

value of the minimum lease payments. The lease liability

is subsequently measured at amortised cost, unwinding

as finance lease interest accrues and lease payments

are made.

Debt instruments are stated at their fair value on issue.

Finance charges including premia payable on settlement

or redemption and direct issue costs are spread over the

period to maturity, using the effective interest method.

Exceptional finance charges incurred due to early

redemption (including premia) are recognised in the

income statement when they occur.

As defined by IFRS 9, cash flow and fair value hedges are

initially recognised at fair value at the date the derivative

contracts are entered into, and subsequently remeasured

at fair value. Changes in the fair value of derivatives that

are designated and qualify as effective cash flow hedges

are recognised directly through other comprehensive

income as a movement in the hedging and translation

reserve. Changes in the fair value of derivatives that are

designated and qualify as effective fair value hedges are

recorded in the Capital and other column of the income

statement, along with any changes in the fair value of the

hedged item that is attributable to the hedged risk. Any

ineffective portion of all derivatives is recognised in the

Capital and other column of the income statement.

Changes in the fair value of derivatives that are not in

a designated hedging relationship under IFRS 9 are

recorded directly in the Capital and other column of the

income statement. These derivatives are carried at fair

value on the balance sheet.

Cash equivalents include short term deposits that are

instruments with a maturity of less than three months,

and tenant deposits.

Revenue

Revenue comprises rental income and surrender premia,

service charge income, management and performance

fees and proceeds from the sale of trading properties.

Rental income and surrender premia are recognised in

accordance with IFRS 16. For leases where a single

payment is received to cover both rent and service

charge, the service charge component is separated out

and reported as service charge income.

Rental income, including fixed rental uplifts, from

investment property leased out under an operating lease

is recognised as revenue on a straight-line basis over the

lease term. Tenant incentives, such as rent-free periods

and cash contributions to tenant fit-out, are recognised on

the same straight-line basis being an integral part of the

net consideration for the use of the investment property.

Any rent adjustments based on open market estimated

rental values are recognised, based on management

estimates, from the rent review date in relation to

unsettled rent reviews. Contingent rents, being those lease

payments that are not fixed at the inception of the lease,

including for example turnover rents, are recognised in the

period in which they are earned.

Lease modifications are defined as a change in the scope

of a lease, or the consideration of a lease, that was not

part of the original terms and conditions of the lease.

Modifications to operating leases the Group holds as a

lessor are accounted for from the effective date of the

modification. Modifications take into account any prepaid

or accrued lease payments relating to the original lease as

part of the lease payments for the new lease. The revised

remaining consideration under the modified lease is then

recognised in rental income on a straight-line basis over

the remaining lease term.

Concessions granted to tenants for operating lease

receivables where prior demanded lease payments have

been reduced or waived for a specified period are

accounted for as an expected credit loss. Concessions

granted to tenants for future lease payments are

accounted for as a lease modification.

Surrender premia for the early termination of a lease are

recognised as revenue when the amounts become

contractually due, net of dilapidations and non-

recoverable outgoings relating to the lease concerned.

The Group applies the five-step-model as required by IFRS

15 ‘Revenue from Contracts with Customers’ in recognising

its service charge income, management and performance

fees and proceeds from the sale of trading properties.

Service charge income is recognised as revenue in the

period to which it relates.

Management fees are recognised as revenue in the period

to which they relate and include the provision of asset

management, property management, development

management and administration services to joint ventures.

Performance fees are recognised at the end of the

performance period when the performance obligations are

met, the fee amount can be estimated reliably and it is

highly probable that the fee will be received. Performance

fees are based on property valuations compared to

external benchmarks at the end of the reporting period.

Proceeds from the sale of trading properties are recognised

when control has been transferred to the purchaser. This

generally occurs on completion. Proceeds from the sale of

trading properties are recognised as revenue in the Capital

and other column of the income statement.

All other revenue described above is recognised in the

Underlying column of the income statement, except where

revenue items are deemed to be unusual or significant by

virtue of their size or nature, where they are recognised

through the Capital and other column.

151

1 Basis of preparation, material accounting

policies and accounting judgements continued

Taxation

Current tax is based on taxable profit for the year and

is calculated using tax rates that have been enacted or

substantively enacted at the balance sheet date. Taxable

profit differs from net profit as reported in the income

statement because it excludes items of income or expense

that are not taxable (or tax deductible).

Deferred tax is provided on items that may become

taxable in the future, or which may be used to offset

against taxable profits in the future, on the temporary

differences between the carrying amounts of assets and

liabilities for financial reporting purposes, and the amounts

used for taxation purposes on an undiscounted basis.

On business combinations, the deferred tax effect of fair

value adjustments is incorporated in the consolidated

balance sheet.

Deferred tax assets and liabilities are netted off against

each other in the consolidated balance sheet when they

relate to income taxes levied by the same tax authority

on different taxable entities which intend to settle current

tax assets and liabilities on a net basis.

Employee costs

The fair value of equity-settled share-based payments

to employees is determined at the date of grant and is

expensed on a straight-line basis over the vesting period,

based on the Group’s estimate of shares or options that will

eventually vest. For all schemes except the Group’s Long

Term Incentive Plan and Save As You Earn schemes, the fair

value of awards are equal to the market value at grant date.

For options and performance shares granted under the

Long Term Incentive Plan, the fair values are determined

by Monte Carlo and Black-Scholes models. A Black-Scholes

model is used for the Save As You Earn schemes.

Defined benefit pension scheme assets are measured using

fair values. Pension scheme liabilities are measured using the

projected unit credit method and discounted at the rate of

return of a high quality corporate bond of equivalent term to

the scheme liabilities. The net surplus (where recoverable by

the Group) or deficit is recognised in full in the consolidated

balance sheet. Any asset resulting from the calculation is

limited to the present value of available refunds and

reductions in future contributions to the plan. The current

service cost and gains and losses on settlement and

curtailments are recognised in the Underlying column of the

income statement. Actuarial gains and losses are recognised

in full in the period in which they occur and are presented in

the consolidated statement of comprehensive income.

Critical accounting judgements and key sources

of estimation uncertainty

In applying the Group’s accounting policies, the Directors

are required to make critical accounting judgements and

assess key sources of estimation uncertainty that affect

the financial statements.

Key sources of estimation uncertainty

Valuation of investment and development properties and

the net realisable value of trading properties: The Group

uses external professional valuers to determine the

relevant amounts. The primary source of evidence for

property valuations should be recent, comparable market

transactions on an arm’s length basis. However, the

valuation of the Group’s property portfolio is inherently

subjective, as it is based upon valuer assumptions and

estimations that form part of the key unobservable inputs

of the valuation, which may prove to be inaccurate.

Further details on the valuers’ assumptions, estimates and

associated key unobservable inputs and sensitivity

disclosures, have been provided in Note 10. Additionally,

the Group’s investment in joint ventures can be materially

impacted by the joint venture property portfolio, and as

such sensitivity disclosures of the joint venture property

portfolio have been provided in Note 10.

Other sources of estimation uncertainty that would not

result in a material movement in the carrying amount in

the next financial year include the valuation of interest rate

derivatives, the determination of share-based payments,

the actuarial assumptions used in calculating the Group’s

retirement benefit obligations, the fair value of pension

scheme assets and taxation provisions.

Critical accounting judgements

The Directors do not consider there to be any critical

accounting judgements in the preparation of the Group’s

financial statements.

The following items are ongoing areas of accounting

judgement, however, the Directors do not consider

these accounting judgements to be critical and material

accounting judgement has not been required for any of

these items in the current financial year.

REIT status: British Land is a Real Estate Investment

Trust (REIT) and does not pay tax on its tax adjusted

property income or gains on investment property sales,

provided that at least 90% of the Group’s tax adjusted

property income is distributed as a dividend to

shareholders, which becomes taxable in their hands. In

addition, the Group has to meet certain conditions such as

ensuring the property rental business represents more than

75% of total profits and assets. Any potential or proposed

changes to the REIT legislation are monitored and

discussed with HMRC. It is management’s intention that the

Group will continue as a REIT for the foreseeable future.

152

NOTES TO THE ACCOUNTS CONTINUED

1 Basis of preparation, material accounting

policies and accounting judgements continued

Accounting for joint ventures: In accordance with IFRS 10

‘Consolidated Financial Statements’, IFRS 11 ‘Joint

Arrangements’ and IFRS 12 ‘Disclosure of Interests in Other

Entities’, an assessment is required to determine the degree

of control or influence the Group exercises and the form of

any control to ensure that the financial statement treatment

is appropriate. The assessment undertaken by management

includes consideration of the structure, legal form,

contractual terms and other facts and circumstances relating

to the relevant entity. This assessment is updated annually

and there have been no changes in the judgement reached in

relation to the degree of control the Group exercises within

the current or prior year. An assessment was performed for

the 2 Finsbury Avenue joint venture transaction within the

Broadgate joint venture that occurred in the current year, and

the 1 Triton Square joint venture transaction that occurred in

the prior year (see Note 11). No critical accounting judgement

was identified in the assessment of the 2 Finsbury Avenue

joint venture transaction within the Broadgate joint venture

in the current financial year, owing to the ownership structure

of the joint venture. As previously disclosed, no critical

accounting judgement was identified in the assessment of

the 1 Triton Square joint venture transaction in the prior year.

Joint ventures are accounted for under the equity method,

whereby the consolidated balance sheet incorporates the

Group’s share of the net assets of its joint ventures. The

consolidated income statement incorporates the Group’s

share of joint ventures profits after tax. The Group’s share

of joint ventures results and net assets are disclosed in

Note 11 to the financial statements.

Accounting for transactions: Property transactions are

complex in nature and can be material to the financial

statements. Judgements made in relation to transactions

include whether an acquisition is a business combination

or an asset; whether held for sale criteria have been met

for transactions not yet completed; accounting for

transaction costs and contingent consideration; and

application of the concept of linked accounting.

Management considers each transaction separately in

order to determine the most appropriate accounting

treatment, and, when considered necessary, seeks

independent advice. Management considered the

accounting of the Meadowhall Shopping Centre joint

venture disposal and the 2 Finsbury Avenue joint venture

transaction within the Broadgate joint venture in the

current year, as well as the 1 Triton Square joint venture

transaction in the prior year (see Note 11).

Consideration of climate change

In preparing the financial statements, the impact of

climate change has been considered, particularly in the

context of the Task Force on Climate-related Financial

Disclosures (TCFD) included within the Sustainability

section of the Strategic Report. Whilst noting the Group’s

commitment to sustainability, there has not been a

material impact on the financial reporting judgements and

estimates arising from our considerations, which include

physical climate and transitional risk assessments

conducted by the Group. This is consistent with our

assessment that climate change is not expected to have

a material impact on the cash flows of the Group, including

those included within the going concern and viability

assessments in the medium term. Notwithstanding this,

the following should be noted, which is relevant to

understanding the impact of climate change on the

financial statements:

• As part of the Group’s 2030 Sustainability Strategy,

the Group’s Transition Vehicle applies an internal levy

of £90 per tonne to the embodied carbon within

developments. Two-thirds of the internal levy is

available to finance carbon efficient interventions

which improve energy efficiency and reduce carbon

emissions from our standing portfolio. The remaining

third is used to purchase carbon credits to mitigate

the residual embodied carbon in our developments.

The Group committed £1m to carbon efficient

interventions in the year to 31 March 2025 (2023/24:

£5m). The Group spent £3m (2023/24: £1m) in the

year to 31 March 2025 on carbon efficient

interventions, of which £2m is recoverable through

the service charge.

• The Group has purchased and retired carbon credits

in the year to offset the residual embodied carbon

in developments. This is the embodied carbon that

remains once we have done everything economically

and practically viable to reduce embodied carbon

through material reuse, design efficiency and

materials specification. The cost of purchasing these

credits was capitalised as part of the cost of the

development. The cost of purchasing these credits

was £1m for the year ended 31 March 2025

(2023/24: £1m).

• As part of the valuation process, the Group has

discussed the impact of sustainability and

Environmental, Social and Governance factors with

the external valuers who value the investment and

development properties of the Group. The physical

climate and transitional risk analysis conducted by

the Group has been shared with, and discussed with,

the valuers as part of the six-monthly valuation

process (see Note 10 for further details). As such,

the impact of sustainability and Environmental,

Social and Governance factors is considered as part

of the valuation process, to the extent possible

market participants would, and is included within

the derived valuation as at the balance sheet date.

The Group ensures that to the fullest extent possible,

the four valuers are materially consistent in their

application of the consideration of these factors

on the property valuations.

153

2 Performance measures

Management considers the business on a proportionally consolidated basis when reviewing performance. This includes

the Group’s share of joint ventures on a line-by-line basis and excludes non-controlling interests in the Group’s

subsidiaries. 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 and

their related taxation.

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 2025. In the prior

year to 31 March 2024, £25m of rent receivable, £149m of surrender premia receivable, and £54m of tenant incentive

impairment were excluded from the calculation of Underlying Profit (see Note 3 for further details).

		2025			2024
		Relevant			Relevant
	Relevant	number	Earnings	Relevant	number	Earnings
	earnings	of shares	per share	earnings	of shares	per share
Earnings per share	£m	million 1	pence	£m	million	pence
Underlying
Underlying basic	275	962	28.6	265	927	28.6
Underlying diluted	275	965	28.5	265	929	28.5
EPRA
EPRA basic	275	962	28.6	385	927	41.5
EPRA diluted	275	965	28.5	385	929	41.4
IFRS
Basic	338	962	35.1	(1)	927	(0.1)
Diluted	338	965	35.0	(1)	927	(0.1)

1. 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 422 pence per share, resulting in a 71,227,309 increase in the number of shares. See Note 19 for further information.

154

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 Reinvestment 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.

		2025			2024
		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 1	pence	£m	million	pence
EPRA
EPRA NTA	5,698	1,005	567	5,252	934	562
EPRA NRV	6,283	1,005	625	5,782	934	619
EPRA NDV	5,768	1,005	574	5,389	934	577
IFRS
Basic	5,710	999	572	5,312	927	573
Diluted	5,710	1,005	568	5,312	934	569

1. 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 422 pence 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.

		2025			2024
	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	5	22.9	5.0%	(26)	23.2	(0.5%)

155

3 Revenue and costs

		2025			2024
		Capital			Capital
	Underlying	and other	Total	Underlying	and other	Total
	£m	£m	£m	£m	£m	£m
Rent receivable 1	317	–	317	284	25	309
Spreading of tenant incentives and contracted
rent increases	3	–	3	10	–	10
Surrender premia 1	10	–	10	3	149	152
Gross rental income	330	–	330	297	174	471
Service charge income	77	–	77	59	–	59
Management and performance fees (from j oint ventures and assets under management)	20	–	20	17	–	17
Other fees and commissions	27	–	27	28	–	28
Revenue	454	–	454	401	174	575
Service charge expenses	(68)	–	(68)	(48)	–	(48)
Property operating expenses	(35)	–	(35)	(36)	–	(36)
Movement in impairment of trade debtors and accrued income	(5)	–	(5)	14	–	14
Movement in impairment of tenant incentives and contracted rent increases 1	7	–	7	–	(54)	(54)
Other fees and commissions expenses	(22)	–	(22)	(22)	–	(22)
Costs	(123)	–	(123)	(92)	(54)	(146)
	331	–	331	309	120	429

1. In the prior year, on 25 September 2023, the Group completed a deed of surrender in relation to an in-force lease of one of its

investment properties. The consideration for the surrender was a £149m premium paid by the tenant on the completion date. In line

with the requirements of IFRS 16, the surrender transaction was treated as a modification to the lease, with the surrender premium

received recognised in full through the income statement at the point of completion, which represented the modified termination date

of the lease. At the point of modification, the lease had associated tenant incentive balances of £54m, and as the right to receive

these amounts was extinguished through the lease modification, an impairment was recognised in full through the income statement

at the point of completion. Also at the point of modification, the lease had an associated deferred lease premium balance of £25m,

which in line with the surrender premium received, was recognised in full through the income statement at the point of completion.

Owing to the unusual and significant size and nature of this transaction, and in line with the Group’s accounting policies, all elements

of the transaction have been included within the Capital and other column of the income statement.

Net rental income (gross rental income less property operating expenses) recognised during the year ended 31 March

2025 from properties which were not subject to a security interest was £238m (2023/24: £222m). Property operating

expenses relating to investment properties that did not generate any rental income were £2m (2023/24: £2m).

Contingent rents of £5m (2023/24: £9m) that contain a variable lease payment were recognised in the year.

156

NOTES TO THE ACCOUNTS CONTINUED

4 Valuation movements on property

	2025	2024
	£m	£m
Consolidated income statement
Revaluation of properties	148	(131)
Revaluation of properties held by joint ventures accounted for using the equity method	(14)	(179)
	134	(310)

5 Auditors’ remuneration

PricewaterhouseCoopers LLP

	2025	2024
	£m	£m
Fees payable to the Company’s auditor for the audit of the Company’s annual accounts and consolidated financial statements	0.6	0.5
Fees payable to the Company’s auditor for the audit of the Company’s subsidiaries, pursuant
to legislation	–	0.2
Total audit fees	0.6	0.7
Audit related assurance services	0.3	0.2
Total audit and audit related assurance services	0.9	0.9
Other fees	–	–
Other services	0.1	–
Total	1.0	0.9

157

6 Net financing charges

	2025	2024
	£m	£m
Underlying
Financing charges
Facilities and overdrafts	(36)	(46)
Derivatives	50	51
Other loans	(106)	(83)
Obligations under head leases	(3)	(3)
	(95)	(81)
Development interest capitalised	33	25
	(62)	(56)
Financing income
Deposits, securities and liquid investments	2	1
	2	1
Net financing charges – Underlying	(60)	(55)
Capital and other Financing charges
Capital financing costs	–	(1)
Valuation movement on fair value hedge accounted derivatives	9	12
Valuation movement on fair value hedge accounted debt	(12)	(14)
Valuation movement on non-hedge accounted derivatives	(40)	(38)
	(43)	(41)
Net financing charges – Capital and other	(43)	(41)
Total financing income	2	1
Total financing charges	(105)	(97)
Net financing charges	(103)	(96)

Interest payable on unsecured bank loans and related interest rate derivatives was £55m (2023/24: £25m). The Group’s

weighted average interest rate was 3.2% (2023/24: 2.6%), and on a proportionally consolidated basis was 3.6%

(2023/24: 3.4%).

158

NOTES TO THE ACCOUNTS CONTINUED

7 Taxation

	2025	2024
	£m	£m
Taxation expense
Current taxation
Underlying Profit
Current period UK corporation taxation (25%)	(3)	(2)
Underlying Profit adjustments in respect of prior periods	(1)	(1)
Total current Underlying Profit taxation expense	(4)	(3)
Capital and other profit
Current period UK corporation taxation (25%)	–	(5)
Capital and other profit adjustments in respect of prior periods	(1)	(5)
Total current Capital and other profit taxation expense	(1)	(10)
Total current taxation expense	(5)	(13)
Deferred taxation on revaluation of derivatives	1	(1)
Group total taxation expense	(4)	(14)
Attributable to joint ventures	–	–
Total taxation expense	(4)	(14)
Taxation reconciliation
Profit before taxation	342	15
Less: (Profit) loss attributable to joint ventures	(90)	79
Group profit before taxation	252	94
Taxation on profit at UK corporation taxation rate of 25%	(63)	(24)
Effects of:
– REIT exempt income and gains	72	30
– Taxation losses	(12)	(13)
– Deferred taxation on revaluation of derivatives	1	(1)
– Adjustments in respect of prior years	(2)	(6)
Group total taxation expense	(4)	(14)

Corporation tax liability as at 31 March 2025 was £6m (2023/24: £8m liability) as shown on the consolidated balance

sheet. The credit to the consolidated income statement for the year in relation to the deferred taxation movement on

the revaluation of derivatives was £1m (2023/24: £1m debit).

At 31 March 2025 the Group had capital losses of £730m (2023/24: £718m) available to offset future capital gains giving

rise to an unrecognised deferred tax asset calculated at 25% (2023/24: 25%) of £183m (2023/24: £180m).

At 31 March 2025 the Group had UK revenue tax losses from previous years of £182m (2023/24: £195m) giving rise to an

unrecognised deferred tax asset calculated at 25% (2023/24: 25%) of £46m (2023/24: £49m).

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.

159

8 Staff costs

	2025	2024
Staff costs (including Directors)	£m	£m
Wages and salaries	61	63
Social security costs	9	9
Pension costs	7	6
Equity-settled share-based payments	4	5
	81	83

Of the £81m (2023/24: £83m) total staff costs for the year, £52m (2023/24: £56m) is included within administrative

expenses, £9m (2023/24: £8m) within service charge expenses, £4m (2023/24: £4m) within property operating

expenses and £16m (2023/24: £15m) within other fees and commissions expenses.

The average monthly number of employees of the Company during the year was 349 (2023/24: 353). The average

monthly number of Group employees, including those employed directly at the Group’s properties and their costs

recharged to tenants, was 646 (2023/24: 645).

For the year ended 31 March 2025, the average monthly number of employees of the Company within each category of

persons employed was as follows: Campuses: 36; Retail & London Urban Logistics: 29; Developments: 31; Storey: 6; and

Support Functions: 247. The average monthly number of employees of the Group within each category of persons

employed was as follows: Campuses: 36; Retail & London Urban Logistics: 29; Developments: 31; Storey: 6; Support

Functions: 247; and Property Management: 297.

For the year ended 31 March 2024, the average monthly number of employees of the Company within each category of

persons employed was as follows: Campuses: 39; Retail & London Urban Logistics: 32; Developments: 32; Storey: 6; and

Support Functions: 244. The average monthly number of employees of the Group within each category of persons

employed was as follows: Campuses: 39; Retail & London Urban Logistics: 32; Developments: 32; Storey: 6; Support

Functions: 244; and Property Management: 292.

The Executive Directors and Non-Executive Directors are the key management personnel. Their emoluments are

disclosed in the Remuneration Report on pages 107 to 129.

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.

160

NOTES TO THE ACCOUNTS CONTINUED

8 Staff costs continued

During the year and the 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.

		20 June 2024		15 June 2023
	Awards with	Awards with no	Awards with	Awards with no
	holding period	holding period	holding period	holding period
Share price	£4.17	£4.17	£3.35	£3.35
Exercise price	£0.00	£0.00	£0.00	£0.00
Expected volatility	30.7%	30.7%	32.7%	32.7%
Expected term (years)	3	3	3	3
Dividend yield	5.5%	5.5%	6.8%	6.8%
Risk free interest rate	3.9%	3.9%	4.6%	4.6%
Fair value – TPR and TAR Tranches	£3.63	£4.17	£2.90	£3.35
Fair value – ESG Tranche	£3.63	£4.17	£2.90	£3.35

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 these schemes are at a flat rate of salary and are paid by the Company.

The total net pension cost charged for the year was £7m (2023/24: £6m), all of which relates to defined

contribution plans.

The last full actuarial valuation of the scheme was performed by the scheme actuary, First Actuarial LLP, as at 31 March

2021. The employer does not expect to make any payments during the year to 31 March 2026. The major assumptions

used for the actuarial valuation were:

	2025	2024	2023	2022	2021
	% p.a.	% p.a.	% p.a.	% p.a.	% p.a.
Discount rate	5.8	4.9	4.7	2.7	2.0
Salary inflation	–	–	–	–	–
Pensions increase	3.2	3.3	3.4	3.7	3.4
Price inflation	3.4	3.5	3.5	3.9	3.5

The assumptions are that a member currently aged 60 will live on average for a further 27.2 years if they are male and

for a further 29.0 years if they are female. For a member who retires in 2045 at age 60, the assumptions are that they

will live on average for a further 28.7 years after retirement if they are male and for a further 30.5 years after retirement

if they are female.

The weighted average duration of the defined benefit obligation as at 31 March 2025 is 12 years (2023/24: 13 years).

161

9 Pensions continued

Composition of scheme assets

	2025	2024
	£m	£m
Equities	18	24
Diversified growth funds	13	5
Other assets	62	79
Total scheme assets	93	108

69% of the scheme underlying assets are quoted in an active market. Unquoted scheme assets sit within equities and

other assets.

The amount included in the consolidated balance sheet arising from the Group’s obligations in respect of its defined

benefit schemes is as follows:

	2025	2024	2023	2022	2021
	£m	£m	£m	£m	£m
Present value of defined scheme obligations	(74)	(85)	(87)	(125)	(152)
Fair value of scheme assets	93	108	117	178	178
Irrecoverable surplus 1	(19)	(23)	(30)	(53)	(26)
Amount recognised on the consolidated balance sheet	–	–	–	–	–

1. The net defined benefit asset must be measured at the lower of the surplus in the defined benefit schemes and the asset ceiling. The

asset ceiling is the present value of any economic benefits available in the form of refunds from the schemes or reductions to future

contributions to the schemes. The asset ceiling of the Group’s defined benefit schemes is £nil (2023/24: £nil), therefore the surplus

in the defined benefit schemes of £19m (2023/24: £23m) is irrecoverable.

The sensitivities of the defined benefit obligation in relation to the major actuarial assumptions used to measure scheme

liabilities are as follows:

			(Decrease) increase in
			defined scheme obligations
	Change in	2025	2024
Assumption	assumption	£m	£m
Discount rate	+0.5%	(4)	(5)
Salary inflation	+0.5%	–	–
RPI inflation	+0.5%	3	4
Assumed life expectancy	+1 year	2	2

History of experience gains and losses

	2025	2024	2023	2022	2021
	£m	£m	£m	£m	£m
Total actuarial gain (loss) recognised in the consolidated
statement of comprehensive income 1,2	–	–	–	–	(13)
Percentage of present value on scheme liabilities	–	–	–	–	(8.6%)

1. Movements stated after adjusting for irrecoverability of any surplus.

2. Cumulative loss recognised in the statement of comprehensive income is £53m (2023/24: £53m).

162

NOTES TO THE ACCOUNTS CONTINUED

9 Pensions continued

Movements in the present value of defined benefit obligations were as follows:

	2025	2024
	£m	£m
At 1 April	(85)	(87)
Interest cost	(4)	(4)
Actuarial gain
Gain from change in financial assumptions	10	2
Gain on scheme liabilities arising from experience	1	–
Benefits paid	4	4
At 31 March	(74)	(85)

Movements in the fair value of the scheme assets were as follows:

	2025	2024
	£m	£m
At 1 April	108	117
Interest income on scheme assets	5	5
Contributions by employer	–	–
Actuarial loss	(16)	(10)
Benefits paid	(4)	(4)
At 31 March	93	108

Through its defined benefit plans, the Group is exposed to a number of risks, the most significant of which are

detailed below:

Asset volatility

The liabilities are calculated using a discount rate set with reference to corporate bond yields; if assets underperform

this yield, this will create a deficit. The scheme holds a significant portion of growth assets (equities and diversified

growth funds) which, although expected to outperform corporate bonds in the long term, create volatility and risk

in the short term. The allocation to growth assets is monitored to ensure it remains appropriate given the scheme’s

long term objectives.

Changes in bond yields

A decrease in corporate bond yields will increase the value placed on the scheme’s liabilities for accounting purposes,

although this will be partially offset by an increase in the value of the scheme’s bond holdings.

Inflation risk

The majority of the scheme’s benefit obligations are linked to inflation, and higher inflation will lead to higher liabilities

(although, in most cases, caps on the level of inflationary increases are in place to protect against extreme inflation).

The majority of the assets are either unaffected by or only loosely correlated with inflation, meaning that an increase

in inflation will also decrease the surplus.

Life expectancy

The majority of the scheme’s obligations are to provide benefits for the life of the member, so increases in life

expectancy will result in an increase in the liabilities.

163

10 Property

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	–	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						6,065
Non-controlling interests 4						–
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.

4. On 12 June 2024, the Group acquired the remaining 12.5% interest in Speke Unit Trust. As a result of this acquisition, the Group has

£nil property non-controlling interests as at 31 March 2025 (2023/24: £14m).

Additions include £1m of capital expenditure in response to climate change (2023/24: £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.

164

NOTES TO THE ACCOUNTS CONTINUED

10 Property continued

Property reconciliation for the year ended 31 March 2024

		Retail &
		London		Investment and
		Urban		development
	Campuses	Logistics	Developments	properties	Trading
	Level 3	Level 3	Level 3	Level 3	properties	Total
	£m	£m	£m	£m	£m	£m
Carrying value at 1 April 2023	2,233	2,611	833	5,677	22	5,699
Additions
– property purchases	–	58	–	58	–	58
– development expenditure	16	4	124	144	–	144
– capitalised interest and staff costs	7	1	12	20	–	20
– capital expenditure on asset
management initiatives	15	31	2	48	–	48
– head lease assets and right-of-use assets 1	54	–	–	54	–	54
	92	94	138	324	–	324
Disposals	(579)	(83)	–	(662)	–	(662)
Reclassifications 1	346	–	(346)	–	–	–
Revaluations included in income statement	(115)	61	(77)	(131)	–	(131)
Movement in tenant incentives and contracted
rent uplift balances	18	3	–	21	–	21
Carrying value at 31 March 2024	1,995	2,686	548	5,229	22	5,251
Lease liabilities (Notes 14 and 15) 2						( 1 2 3 )
Less valuation surplus on right-of-use assets 3						(4)
Valuation surplus on trading properties						6
Group property portfolio valuation
at 31 March 2024						5 , 1 3 0
Non-controlling interests						(14)
Group property portfolio valuation at 31 March 2024 attributable to shareholders						5,116

1. The £54m head lease assets addition and £346m reclassification from Developments to Campuses relates to the Norton Folgate

development which completed in the year ended 31 March 2024.

2. The £4m difference between lease liabilities of £123m and £127m 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 £5,130m above.

In the prior year, on 15 March 2024, the Group entered into a new 50:50 joint venture agreement with Royal London

Mutual Insurance Society Limited in relation to 1 Triton Square, resulting in the disposal of £450m of investment

property with a resulting loss in the Capital and other column of the consolidated income statement of £68m for the

year ended 31 March 2024. The £54m of tenant incentives impairment arising from the surrender transaction of 1 Triton

Square forms part of the £68m loss on disposal (see Note 3 for further information). The remaining £14m loss on

disposal has been accounted for within the loss on disposal of investment property line within the Capital and other

column of the consolidated income statement. As at 30 September 2023, the fair value of the related investment

property was £353m, with a corresponding revaluation loss recognised within the valuation movement of £43m in the

Capital and other column of the consolidated income statement.

165

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 99 to 106.

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.

166

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:

		2025			2024
		Joint			Joint
	Group	ventures	Total	Group	ventures	Total
	£m	£m	£m	£m	£m	£m
Knight Frank LLP	713	69	782	682	58	740
CBRE	2,368	139	2,507	1,580	821	2,401
Jones Lang LaSalle	2,753	632	3,385	2,612	613	3,225
Cushman & Wakefield	231	2,581	2,812	256	2,076	2,332
Total property portfolio valuation	6,065	3,421	9,486	5,130	3,568	8,698
Non-controlling interests 1	–	–	–	(14)	–	(14)
Total property portfolio valuation attributable to shareholders 2	6,065	3,421	9,486	5,116	3,568	8,684

1. On 12 June 2024, the Group acquired the remaining 12.5% interest in Speke Unit Trust. As a result of this acquisition, the Group has

£nil property non-controlling interests as at 31 March 2025 (2023/24: £14m).

2. The £96m difference between the total property portfolio valuation for joint ventures of £3,421m (2023/24: £3,568m) and the total

investment and trading properties of £3,325m (2023/24: £3,593m) disclosed in Note 11 relates to £115m of property included within

investments in joint ventures, £17m (2023/24: £18m) of headleases and a £2m (2023/24: £7m) trading property deficit, both at

Group share.

Information about fair value measurements using unobservable inputs (Level 3) as at 31 March 2025

				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	49
at fair value
Group property
portfolio
valuation	6,065

167

10 Property continued

Information about fair value measurements using unobservable inputs (Level 3) as at 31 March 2024

				ERV per sq ft				Equivalent yield			Costs to complete per sq ft
	Fair
	value at
	31 March
	2024	Valuation	Min	Max	Average	Min	Max	Average	Min	Max	Average
Investment	£m	technique	£	£	£	%	%	%	£	£	£
Campuses		Investment
	1,892	methodology	23	136	68	5	8	6	–	158	39
Retail & London		Investment
Urban Logistics	2,662	methodology	2	38	20	4	22	7	–	24	4
Developments		Residual
	548	methodology	33	107	67	4	7	5	33	628	171
Total	5 , 1 0 2
Trading
p r o p e r t i e s
a t f a i r v a l u e	2 8
Group property
portfolio
valuation	5 , 1 3 0

Information about the impact of changes in unobservable inputs (Level 3) on the fair value of the

total property portfolio as at 31 March 2025

		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)

1. Includes trading properties at fair value.

2. Includes held-for-sale properties at fair value.

168

NOTES TO THE ACCOUNTS CONTINUED

10 Property continued

Information about the impact of changes in unobservable inputs (Level 3) on the fair value of the

total property portfolio as at 31 March 2024

		Impact on valuations			Impact on valuations	Impact on valuations
	Fair
	value at
	31 March			-25bps	+25bps
	2024	+5% ERV	-5% ERV	NEY	NEY	-5% costs	+5% costs
	£m	£m	£m	£m	£m	£m	£m
Campuses 1	1,920	83	(83)	97	(89)	–	–
Retail & London Urban Logistics	2,662	112	(111)	114	(116)	5	(5)
Developments	548	57	(56)	68	(60)	36	(36)
Group property portfolio valuation	5,130	252	(250)	279	(265)	41	(41)
Share of joint venture property portfolio valuation	3,568	200	(197)	237	(215)	62	(62)
Total property portfolio valuation	8,698	452	(447)	516	(480)	103	(103)

1. Includes trading properties at fair value.

All other factors being equal:

• a higher equivalent yield or discount rate would lead to a decrease in the valuation of an asset;

• an increase in the current or estimated future rental stream would have the effect of increasing the capital value;

and

• an increase in the costs to complete would lead to a decrease in the valuation of an asset.

However, there are interrelationships between the unobservable inputs which are partially determined by market

conditions, which would impact on these changes. The sensitivity ranges used are deemed appropriate based on

industry experience.

Additional property disclosures – including covenant information

At 31 March 2025, the Group property portfolio valuation of £6,065m (2023/24: £5,130m) comprised of freeholds of

£3,113m (2023/24: £2,522m); virtual freeholds of £473m (2023/24: £450m); long leaseholds of £2,043m (2023/24:

£1,794m); and short leaseholds of £436m (2023/24: £364m). The historical cost of properties was £5,036m

(2023/24: £4,246m).

Cumulative interest capitalised against investment, development and trading properties amounted to £155m

(2023/24: £141m).

Properties valued at £905m (2023/24: £1,137m) were subject to a security interest.

Included within the property valuation was £1m (2023/24: £2m) in respect of accrued contracted rental uplift income

and £129m (2023/24: £128m) in respect of other tenant incentives. The balance arises through the IFRS treatment of

leases containing such arrangements, which requires the recognition of rental income on a straight-line basis over the

lease term, with the difference between this and the cash receipt changing the carrying value of the property against

which revaluations are measured.

169

11 Joint ventures

Summary movement for the year of the investments in joint ventures

	Equity	Loans	Total
	£m	£m	£m
At 1 April 2024	1,362	1,067	2,429
Additions	59	219	278
Disposals	(99)	(6)	(105)
Disposal of investment in Meadowhall Shopping Centre joint venture	(64)	(92)	(156)
Capitalisation of loans	63	(63)	–
Share of profit after taxation 1	84	6	90
Distributions and dividends:
– Capital	(2)	–	(2)
– Revenue	(68)	(4)	(72)
Hedging and exchange movements	(1)	1	–
At 31 March 2025	1,334	1,128	2,462

1. The share of profit after taxation includes equity accounted profits of £72m (2023/24: £121m losses) and a credit relating to the

movement of provision for impairment of equity investments and loans of £18m (2023/24: £42m credit) excluding the Meadowhall

Shopping Centre joint venture disposal. The Group’s net closing investments in and loans to joint ventures, the associated closing

provision for impairment and movement in provision for impairment in the year are included in Note 22.

Meadowhall Shopping Centre joint venture disposal

On 12 July 2024, the Group completed the disposal of its 50% shareholding in the Meadowhall Shopping Centre joint

venture to the joint venture partner, Norges Bank Investment Management, for a total consideration of £158m. The

carrying amount of the investment in the joint venture on the disposal date was £156m, resulting in a loss on disposal

after transaction costs of £1m which has been accounted for within the Loss on disposal of investment properties, joint

ventures and revaluation of investments line within the Capital and other column of the consolidated income statement.

2 Finsbury Avenue joint venture transaction

On 24 January 2025, Broadgate REIT Limited (‘Broadgate’) entered into a new 50:50 joint venture arrangement with

Modon Holding PSC in relation to a wholly owned development property, 2 Finsbury Avenue. All of the following figures

are at 100% from the perspective of the new 2 Finsbury Avenue joint venture. The transaction value of the development

property transferred by Broadgate on the formation of the new joint venture was £401m. This created a total gain on

disposal of £34m of which £17m related to Modon Holding PSC’s interest in the joint venture and was realised on the

transaction date. Broadgate recognised a gain on disposal of £10m net of transaction costs of £7m (British Land Group

share of gain on disposal: £5m).

For the year ended 31 March 2025, Broadgate recognised a total share of the joint venture profit of £22m (British Land

Group share: £11m). This included the remaining £17m gain on disposal of property into the new joint venture which was

unrealised at the transaction date. Between 24 January 2025 and 31 March 2025, Broadgate provided further loan

funding of £26m into the joint venture and recognised an investment in joint ventures of £232m as at 31 March 2025

(British Land Group share: £116m). Broadgate received £190m of cash consideration in relation to the sale of the

property to the joint venture (net of transaction costs of £7m) and used £93m of this to repay capital to the British

Land Group.

1 Triton Square joint venture transaction

In the prior year, on 15 March 2024, the Group entered into a new 50:50 joint venture arrangement with Royal London

Mutual Insurance Society Limited in relation to a wholly-owned investment property, 1 Triton Square. The transaction

value of the assets transferred by the Group on the formation of the joint venture at 100% was £385m of investment

property with a resulting loss on disposal of £68m in the year ended 31 March 2024. The £54m of tenant incentives

impairment arising from the surrender transaction of 1 Triton Square, forms part of the £68m loss on disposal (see Note

3 for further information). The remaining £14m loss on disposal has been accounted for within the loss on disposal of

investment property line within the Capital and other column of the consolidated income statement.

The Group recognised a share of the joint venture’s loss of £2m and share of net assets less shareholder loans of £79m

in relation to the 1 Triton Square joint venture for the year ended 31 March 2024. The Group received £190m of cash

consideration in relation to the sale of the investment and development properties to the joint venture (net of

transaction costs of £3m).

170

NOTES TO THE ACCOUNTS CONTINUED

11 Joint ventures continued

The summarised income statements and balance sheets below and on the following page show 100% of the results,

assets and liabilities of joint ventures to the nearest million.

Joint ventures’ summary financial statements as at 31 March 2025

See page 174 for additional information on each joint venture	Broadgate 1	Meadowhall 2	WOSC	BL West End
Group share	50%	0% 2	25%	25%
Summarised income statements
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
Investment 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

1. On 24 January 2025, Broadgate REIT Limited (‘Broadgate’) entered into a new 50:50 joint venture arrangement with Modon Holding

PSC in relation to Broadgate’s wholly-owned development property, 2 Finsbury Avenue. For further details, refer to page 169 of

Note 11.

2. On 12 July 2024 the Group completed the disposal of its 50% shareholding in the Meadowhall Shopping Centre joint venture. The

summarised income statement therefore includes 100% of the results of Meadowhall up to the date of disposal, 12 July 2024. The

summarised balance sheet as at 31 March 2025 reflects the resulting nil Group share of Meadowhall following the disposal.

3. In accordance with the Group’s accounting policies detailed in Note 1, the Group recognises a nil equity investment in joint ventures

in a net liability position at year end.

4. Included in the column headed ‘Other joint ventures’ are contributions from the following: BL Goodman Limited Partnership,

Bluebutton Property Management UK Limited, City of London Office Unit Trust, Reading Gate Retail Park Co-Ownership, Eden Walk

Shopping Centre Unit Trust and the Whiteley Shopping Centre Unit Trust.

5. Revenue includes gross rental income at 100% share of £332m (2023/24: £375m).

171

11 Joint ventures continued

							Total
				Hercules Unit	Other joint	Total	Group share
Canada Water	Paddington 3	1 Triton Square	SouthGate	Trust JV	ventures 4	2025	2025
50%	25%	50%	50%	50%
9	62	1	17	18	19	430	190
(8)	(19)	(1)	(4)	(3)	(5)	(130)	(57)
1	43	–	13	15	14	300	133
(1)	(1)	–	–	–	–	1	–
1	(26)	–	(1)	–	–	(104)	(43)
1	16	–	12	15	14	197	90
–	–	–	–	–	–	22	11
(55)	(17)	(8)	21	16	20	(51)	(14)
–	(5)	–	–	–	–	(9)	(3)
–	–	–	–	–	4	13	6
(54)	(6)	(8)	33	31	38	172	90
–	–	–	–	–	–	–	–
(54)	(6)	(8)	33	31	38	172	90
–	–	–	–	–	–	1	–
(54)	(6)	(8)	33	31	38	173	90
(27)	(1)	(4)	16	15	18	90
–	2	–	4	7	8	74
759	855	419	164	215	219	7,351	3,325
–	–	–	–	–	–	232	116
–	14	–	–	–	–	41	14
2	4	4	1	1	5	51	18
6	22	4	6	8	5	228	108
767	895	427	171	224	229	7,903	3,581
(25)	(25)	(8)	(6)	(2)	(8)	(239)	(105)
(126)	(512)	–	–	–	–	(2,327)	(996)
–	(451)	(271)	–	–	(101)	(2,563)	(1,152)
–	–	–	(28)	–	–	(46)	(18)
(151)	(988)	(279)	(34)	(2)	(109)	(5,175)	(2,271)
616	(93)	148	137	222	120	2,728	1,310
308	–	74	69	110	61	1,334

The borrowings of joint ventures and their subsidiaries are non-recourse to the Group. All joint ventures are

incorporated in the United Kingdom, with the exception of Broadgate REIT Limited, Eden Walk Shopping Centre Unit

Trust and Southgate Property Unit Trust which are incorporated in Jersey.

These financial statements include the results and financial position of the Group’s interest in BL Goodman Limited

Partnership. Accordingly, advantage has been taken of the exemptions provided by Regulation 7 of the Partnership

(Accounts) Regulations 2008 not to attach the partnership accounts to these financial statements.

172

NOTES TO THE ACCOUNTS CONTINUED

11 Joint ventures continued

The summarised income statements and balance sheets below and on the following page show 100% of the results,

assets and liabilities of joint ventures to the nearest million.

Joint ventures’ summary financial statements as at 31 March 2024

See page 174 for additional information on each joint venture	Broadgate	Meadowhall 1	WOSC	BL West End
Group share	50%	50%	25%	25%
Summarised income statements
Revenue 3	254	86	8	28
Costs	(88)	(16)	(2)	(8)
	166	70	6	20
Administrative expenses	(1)	–	–	–
Net interest payable	(68)	(23)	–	(6)
Underlying Profit	97	47	6	14
Net valuation movements on property	(258)	24	(14)	(19)
Capital financing (charges) income	(9)	–	–	–
(Loss) profit on disposal of investment properties
and investments	(1)	12	–	–
(Loss) profit before taxation	(171)	83	(8)	(5)
Taxation	–	–	–	(2)
(Loss) profit after taxation	(171)	83	(8)	(7)
Other comprehensive income (expense)	3	(2)	–	(3)
Total comprehensive (expense) income	(168)	81	(8)	(10)
British Land share of total comprehensive (expense) income	(84)	41	(2)	(3)
British Land share of distributions payable	46	5	1	3
Summarised balance sheets
Investment and trading properties	4,151	729	123	446
Other non-current assets	24	–	–	17
Current assets	32	22	2	2
Cash and cash equivalents	184	59	5	13
Gross assets	4,391	810	130	478
Current liabilities	(142)	(52)	(5)	(13)
Bank and securitised debt	(1,565)	(443)	–	(159)
Loans from joint venture partners	(1,268)	(638)	(58)	(15)
Other non-current liabilities	–	(3)	(4)	(15)
Gross liabilities	(2,975)	(1,136)	(67)	(202)
Net assets (liabilities)	1,416	(326)	63	276
British Land share of net assets less shareholder loans 1	708	–	16	69

1. In accordance with the Group’s accounting policies detailed in Note 1, the Group recognises a nil equity investment in joint ventures

in a net liability position at year end.

2. Included in the column headed ‘Other joint ventures’ are contributions from the following: BL Goodman Limited Partnership,

Bluebutton Property Management UK Limited, City of London Office Unit Trust, Reading Gate Retail Park Co-Ownership, Eden Walk

Shopping Centre Unit Trust and Whiteley Shopping Centre Unit Trust.

3. Revenue includes gross rental income at 100% share of £375m (2022/23: £359m).

173

11 Joint ventures continued

							Total
				Hercules Unit	Other joint	Total	Group share
Canada Water	Paddington 1	1 Triton Square	SouthGate	Trust JV	ventures 2	2024	2024
50%	25%	50%	50%	Various
9	51	1	16	18	18	489	222
(7)	(13)	(1)	(5)	(2)	(4)	(146)	(67)
2	38	–	11	16	14	343	155
(1)	(1)	–	–	(1)	(1)	(5)	(2)
1	(26)	–	(1)	–	–	(123)	(53)
2	11	–	10	15	13	215	100
(89)	(36)	(4)	–	8	(2)	(390)	(179)
1	(2)	–	–	–	–	(10)	(5)
–	–	–	–	–	–	11	5
(86)	(27)	(4)	10	23	11	(174)	(79)
–	–	–	–	–	–	(2)	–
(86)	(27)	(4)	10	23	11	(176)	(79)
–	–	–	–	–	–	(2)	(1)
(86)	(27)	(4)	10	23	11	(178)	(80)
(43)	(7)	(2)	5	12	3	(80)
–	–	–	5	8	9	77
677	861	381	140	196	198	7,902	3,593
–	21	–	–	–	–	62	21
5	6	4	1	–	5	79	34
10	27	8	4	11	6	327	152
692	915	393	145	207	209	8,370	3,800
(40)	(30)	(3)	(7)	(4)	(9)	(305)	(138)
(85)	(511)	–	–	–	–	(2,763)	(1,214)
–	(455)	(232)	–	–	(101)	(2,767)	(1,252)
–	(1)	–	(28)	–	–	(51)	(19)
(125)	(997)	(235)	(35)	(4)	(110)	(5,886)	(2,623)
567	(82)	158	110	203	99	2,484	1,177
283	–	79	55	102	50	1,362

The borrowings of joint ventures and their subsidiaries are non-recourse to the Group. All joint ventures are

incorporated in the United Kingdom, with the exception of Broadgate REIT Limited, Eden Walk Shopping Centre Unit

Trust and Southgate Property Unit Trust which are incorporated in Jersey.

These financial statements include the results and financial position of the Group’s interest in BL Goodman Limited

Partnership. Accordingly, advantage has been taken of the exemptions provided by Regulation 7 of the Partnership

(Accounts) Regulations 2008 not to attach the partnership accounts to these financial statements.

174

NOTES TO THE ACCOUNTS CONTINUED

11 Joint ventures continued

Summary of joint venture details

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	WOSC	Norges Bank Investment	Shopping Centre	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		Limited (GIC)
One Triton Holding Limited	1 Triton Square	The Royal London Mutual	West End Campuses	50%
		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

1. On 12 July 2024 the Group completed the disposal of its 50% shareholding in the Meadowhall Shopping Centre joint venture.

Operating cash flows of joint ventures (Group share)

	2025	2024
	£m	£m
Income received from tenants	176	228
Operating expenses paid to suppliers and employees	(70)	(80)
Cash generated from operations	106	148
Interest paid	(46)	(59)
Interest received	5	8
UK corporation tax paid	(1)	–
Cash inflow from operating activities	64	97
Cash inflow from operating activities deployed as:
(Deficit) surplus cash retained within joint ventures	(8)	20
Revenue distributions per consolidated statement of cash flows	72	77
Revenue distributions split between controlling and non-controlling interests
Attributable to non-controlling interests	–	–
Attributable to shareholders of the Company	72	77

12 Other investments

		2025				2024
	Fair value				Fair value
	through	Amortised	Intangible		through	Amortised	Intangible
	profit or loss	cost	assets	Total	profit or loss	cost	assets	Total
	£m	£m	£m	£m	£m	£m	£m	£m
At 1 April	46	–	8	54	48	2	8	58
Additions	2	–	3	5	–	–	3	3
Capital distribution	(3)	–	–	(3)	–	–	–	–
Revaluation and foreign
currency translation	(4)	–	–	(4)	(2)	–	–	(2)
Amortisation	–	–	(4)	(4)	–	(2)	(3)	(5)
At 31 March	41	–	7	48	46	–	8	54

The amount included in the fair value through profit or loss relates to private equity/venture capital investments

of £41m (2023/24: £46m) which are categorised as Level 3 in the fair value hierarchy. The fair values of private

equity/venture capital investments are determined by the Directors.

175

13 Debtors

	2025	2024
	£m	£m
Trade and other debtors	28	22
Prepayments and accrued income	8	12
	36	34

Trade and other debtors are shown after deducting a provision for impairment against tenant debtors of £12m

(2023/24: £11m). Accrued income is shown after deducting a provision for impairment of £nil (2023/24: £nil). The

provision for impairment is calculated as an expected credit loss on trade and other debtors in accordance with IFRS 9

as set out in Note 1.

The debit to the consolidated income statement for the year in relation to the impairment of trade debtors and accrued

income was £5m (2023/24: £14m credit), as disclosed in Note 3. This is equal to the increase in provision for impairment

of trade debtors and accrued income of £1m (2023/24: £18m decrease) and write-offs of trade debtors of £4m

(2023/24: £4m).

The Directors consider that the carrying amount of trade and other debtors is approximate to their fair value. Further

details about the Group’s credit risk management practices are disclosed in Note 16.

14 Creditors

	2025	2024
	£m	£m
Trade creditors	69	85
Accruals	77	72
Deferred income	47	42
Other taxation and social security	27	25
Lease liabilities	7	6
Tenant deposits	36	30
	263	260

Trade creditors are interest-free and have settlement dates within one year. The Directors consider that the carrying

amount of trade and other creditors is approximate to their fair value.

15 Other non-current liabilities

	2025	2024
	£m	£m
Lease liabilities	107	121
	107	121

176

NOTES TO THE ACCOUNTS CONTINUED

16 Net debt

		2025	2024
	Footnote	£m	£m
Secured on the assets of the Group
5.264% First Mortgage Debenture Bonds 2035	1	250	321
5.0055% First Mortgage Amortising Debentures 2035		83	85
5.357% First Mortgage Debenture Bonds 2028	1	164	217
		497	623
Unsecured
2.375% Sterling Unsecured Bond 2029		299	299
5.25% Sterling Unsecured Bond 2032	1	297	–
2.67% Senior Notes 2025		37	37
2.75% Senior Notes 2026		37	37
3.81% Senior Notes 2026		99	98
3.97% Senior Notes 2026		99	97
4.16% Senior US Dollar Notes 2025	2	76	76
5.003% Senior US Dollar Notes 2026	2	63	63
Floating Rate Senior Notes 2028		80	80
Floating Rate Senior Notes 2034		101	101
Facilities and overdrafts	3	568	351
Term loans	3	475	350
		2,231	1,589
Gross debt	4	2,728	2,212
Interest rate and currency derivative liabilities	5	58	56
Interest rate and currency derivative assets	6	(82)	(99)
Cash and cash equivalents	7	(57)	(88)
Total net debt		2,647	2,081
Net debt attributable to non-controlling interests		–	1
Net debt attributable to shareholders of the Company		2,647	2,082
Total net debt		2,647	2,081
Amounts payable under leases (Notes 14 and 15)		114	127
Total net debt (including lease liabilities)		2,761	2,208
Net debt attributable to non-controlling interests (including lease liabilities)		–	1
Net debt attributable to shareholders of the Company (including lease liabilities)		2,761	2,209

1. On 13 March 2025 the Group 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. Facilities and overdrafts have been represented for the year ended 31 March 2024 to exclude term loans. Term loans of £350m are

now disclosed separately. As a result, facilities and overdrafts are disclosed as £351m, previously £701m.

4. The principal amount of gross debt at 31 March 2025 was £2,740m (2023/24: £2,225m). Included in this is the principal amount

of secured borrowings and other borrowings of non-recourse companies of £501m (2023/24: £633m).

5. Interest rate and currency derivative liabilities includes non-current interest rate and currency derivative liabilities of £56m (2023/24:

£56m) and current interest rate and currency derivative liabilities of £2m (2023/24: £nil).

6. Interest rate and currency derivative assets includes non-current interest rate and currency derivative assets of £73m (2023/24:

£79m) and current interest rate and currency derivative assets of £9m (2023/24: £20m).

7. Cash and cash equivalents includes tenant deposits of £36m (2023/24: £30m) and cash and short term deposits not subject to

a security interest amount to £21m (2023/24: £58m).

177

16 Net debt continued

Maturity analysis of net debt

		2025	2024
		£m	£m
Repayable:	within one year and on demand	311	10
Between:	one and two years	98	314
	two and five years	1,386	991
	five and ten years	531	306
	ten and fifteen years	402	591
		2,417	2,202
Gross debt		2,728	2,212
Interest rate and currency derivatives		(24)	(43)
Cash and cash equivalents		(57)	(88)
Net debt		2,647	2,081

Fair value and book value of net debt

		2025			2024
	Fair value	Book value	Difference	Fair value	Book value	Difference
	£m	£m	£m	£m	£m	£m
Debentures and unsecured bonds	1,643	1,685	(42)	1,459	1,511	(52)
Bank debt and other floating rate debt	1,054	1,043	11	707	701	6
Gross debt	2,697	2,728	(31)	2,166	2,212	(46)
Interest rate and currency derivative liabilities	58	58	–	56	56	–
Interest rate and currency derivative assets	(82)	(82)	–	(99)	(99)	–
Cash an d cash equivalents	(57)	(57)	–	(88)	(88)	–
Net debt	2,616	2,647	(31)	2,035	2,081	(46)
Net debt attributable to non-controlling interests	–	–	–	1	1	–
Net debt attributable to shareholders
of the Company	2,616	2,647	(31)	2,036	2,082	(46)

The fair values of debentures and unsecured bonds have been established by obtaining quoted market prices from

brokers. The bank debt and other floating rate debt has been valued assuming it could be renegotiated at contracted

margins. The derivatives have been valued by calculating the present value of expected future cash flows, using

appropriate market discount rates, by an independent treasury adviser or a third party.

Short term debtors and creditors and other investments have been excluded from the disclosures on the basis that

the fair value is equivalent to the book value. The fair value hierarchy level of debt held at amortised cost is Level 2

(as defined in Note 10).

178

NOTES TO THE ACCOUNTS CONTINUED

16 Net debt continued

Loan to value (LTV)

LTV is the ratio of principal amount of gross debt less cash, short term deposits and liquid investments to the aggregate

value of properties and investments, excluding non-controlling interests. EPRA LTV has been disclosed in Table E.

Group LTV

	2025	2024
	£m	£m
Group LTV	31.7%	28.5%
Principal amount of gross debt	2,740	2,225
Less cash and short term deposits (consolidated statement of cash flows) 1	(21)	(58)
Plus cash attributable to non-controlling interests	–	1
Total net debt for LTV calculation	2,719	2,168
Group property portfolio valuation (Note 10)	6,065	5,130
Investments in joint ventures (Note 11)	2,462	2,429
Other investments and property, plant and equipment (consolidated balance sheet) 2	50	56
Less property and investments attributable to non-controlling interests	–	(14)
Total assets for LTV calculation	8,577	7,601

Proportionally consolidated LTV

	2025	2024
	£m	£m
Proportionally consolidated LTV	38.1%	37.3%
Principal amount of gross debt	3,738	3,443
Less cash and short term deposits 3	(101)	(183)
Plus cash attributable to non-controlling interests	–	1
Total net debt for proportional LTV calculation	3,637	3,261
Group property portfolio valuation (Note 10)	6,065	5,130
Share of property of joint ventures (Note 10)	3,421	3,568
Other investments and property, plant and equipment (consolidated balance sheet) 2	50	56
Less property attributable to non-controlling interests	–	(14)
Total assets for proportional LTV calculation	9,536	8,740

1. Cash and short term deposits exclude tenant deposits of £36m (2023/24: £30m).

2. The £14m (2023/24: £17m) difference between other investments and plant, property and equipment per the consolidated balance

sheet totalling £64m (2023/24: £73m) relates to a right-of-use asset recognised under a lease which is classified as property, plant

and equipment which is not included within total assets for the purposes of the LTV calculation.

3. Cash and short term deposits exclude tenant deposits of £64m (2023/24: £57m).

179

16 Net debt continued

Net Debt to EBITDA

Net Debt to EBITDA is the ratio of principal amount of gross debt less cash, short term deposits and liquid investments

to earnings before interest, tax, depreciation and amortisation (EBITDA).

The Group ratio excludes joint venture borrowings and includes distributions and other receivables from joint ventures.

Group Net Debt to EBITDA

	2025	2024
	£m	£m
Group Net Debt to EBITDA	8.0x	6.8x
Principal amount of gross debt	2,740	2,225
Less cash and short term deposits (consolidated statement of cash flows) 1	(21)	(58)
Plus cash attributable to non-controlling interests	–	1
Total net debt for Group Net Debt to EBITDA calculation	2,719	2,168
Underlying Profit (Table A)	279	268
Plus Net financing charges (Note 6)	60	55
Less Underlying Profit due to joint ventures 2	(90)	(100)
Plus distributions and other receivables from joint ventures 3	84	88
Plus depreciation and amortisation (Table A)	8	8
Total EBITDA for Group Net Debt to EBITDA calculation	341	319

Proportionally consolidated Net Debt to EBITDA

	2025	2024
	£m	£m
Proportionally consolidated Net Debt to EBITDA	9.3x	8.5x
Principal amount of gross debt	3,738	3,443
Less cash and short term deposits 4	(101)	(183)
Plus cash attributable to non-controlling interests	–	1
Total net debt for proportional Net Debt to EBITDA calculation	3,637	3,261
Underlying Profit (Table A)	279	268
Plus Net financing charges (Table A)	103	108
Plus depreciation and amortisation (Table A)	8	8
Total EBITDA for proportional Net Debt to EBITDA calculation	390	384

1. Cash and short term deposits exclude tenant deposits of £36m (2023/24: £30m).

2. Underlying Profit due to joint ventures of £90m (2023/24: £100m) (consolidated income statement).

3. Includes distributions and other receivables from joint ventures of £72m (2023/24 £77m) (consolidated statement of cash flows) and

fees and other income received from joint ventures of £12m (2023/24: £11m).

4. Cash and short term deposits exclude tenant deposits of £64m (2023/24: £57m).

180

NOTES TO THE ACCOUNTS CONTINUED

16 Net debt continued

British Land Unsecured Financial Covenants

The two financial covenants applicable to the Group unsecured debt are shown below:

	2025	2024
	£m	£m
Net Borrowings not to exceed 175% of Adjusted Capital and Reserves	47%	40%
Principal amount of gross debt	2,740	2,225
Less cash and short term deposits (consolidated statement of cash flows) 1	(21)	(58)
Plus the relevant proportion of cash and deposits of the partly owned subsidiary/non- controlling interests	–	1
Net Borrowings	2,719	2,168
Share capital and reserves (consolidated balance sheet)	5,710	5,312
Deferred tax liabilities (Table A)	4	6
Trading property surplus (deficit) (Table A)	3	(1)
Exceptional refinancing charges (see below)	107	147
Fair value adjustments of financial instruments (Table A)	(23)	(55)
Less reserves attributable to non-controlling interests (consolidated balance sheet)	–	(13)
Adjusted Capital and Reserves	5,801	5,396

In calculating Adjusted Capital and Reserves for the purpose of the unsecured debt financial covenants, there is an

adjustment of £107m (2023/24: £147m) to reflect the cumulative net amortised exceptional items relating to the

refinancings in the years ended 31 March 2005, 2006 and 2007.

	2025	2024
	£m	£m
Net Unsecured Borrowings not to exceed 70% of Unencumbered Assets	43%	38%
Principal amount of gross debt	2,740	2,225
Less cash and short term deposits not subject to a security interest	(21)	(58)
Plus cash attributable to non-controlling interests	–	1
Less principal amount of secured and non-recourse borrowings	(501)	(633)
Net Unsecured Borrowings	2,218	1,535
Group property portfolio valuation (Note 10)	6,065	5,130
Investments in joint ventures (Note 11)	2,462	2,429
Other investments and property, plant and equipment (consolidated balance sheet) 2	50	56
Less investments in joint ventures (Note 11)	(2,462)	(2,429)
Less encumbered assets (Note 10)	(905)	(1,137)
Unencumbered Assets	5,210	4,049

1. Cash and short term deposits exclude tenant deposits of £36m (2023/24: £30m).

2. The £14m (2023/24: £17m) difference between other investments and plant, property and equipment per the balance sheet totalling

£64m (2023/24: £73m) relates to a right-of-use asset recognised under a lease which is classified as property, plant and equipment

which is not included within unencumbered assets for the purposes of the covenant calculation.

181

16 Net debt continued

Reconciliation of movement in Group net debt for the year ended 31 March 2025

						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 2	(43)	29	–	6	(16)	–	(24)
Total liabilities from financing activities 3	2,169	530	–	–	5	–	2,704
Cash and cash equivalents	(88)	31	–	–	–	–	(57)
Net debt	2,081	561	–	–	5	–	2,647

Reconciliation of movement in Group net debt for the year ended 31 March 2024

						Arrangement
				Foreign		cost
	2023	Cash flows	Transfers 1	exchange	Fair value	amortisation	2024
	£m	£m	£m	£m	£m	£m	£m
Short term borrowings	402	(384)	10	–	(20)	2	10
Long term borrowings	1,865	355	(10)	(7)	1	(2)	2,202
Derivatives 4	(77)	(15)	–	7	42	–	(43)
Total liabilities from financing activities 5	2,190	(44)	–	–	23	–	2,169
Cash and cash equivalents	(125)	37	–	–	–	–	(88)
Net debt	2,065	(7)	–	–	23	–	2,081

1. Transfers comprises debt maturing from long term to short term borrowings.

2. Cash flows on derivatives include £37m of net receipts on derivative interest.

3. Cash flows of £530m includes repayment of bank and other borrowings of £132m, proceeds from new borrowings of £297m,

drawdowns on bank and other borrowings of £138m, which includes £9m of issue costs, net drawdown of revolving credit facilities of

£198m and capital payments in respect of interest rate derivatives of £8m as shown in the consolidated statement of cash flows, along

with £37m of net receipts on derivative interest.

4. Cash flows on derivatives include £16m of net receipts on derivative interest.

5. Cash flows of £44m includes capital payments in respect of interest rate derivatives of £31m, repayment of bank and other

borrowings of £385m, drawdowns on bank and other borrowings of £361m and net repayment of revolving credit facilities of £2m

shown in the consolidated statement of cash flows, along with £16m of net receipts on derivative interest and £3m of issue costs.

Fair value hierarchy

The table below provides an analysis of financial instruments carried at fair value, by the valuation method. The fair

value hierarchy levels are defined in Note 10.

		2025				2024
	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	–	(82)	–	(82)	–	(99)	–	(99)
Other investments – fair value through profit or loss (Note 12)	–	–	(41)	(41)	–	–	(46)	(46)
Assets	–	(82)	(41)	(123)	–	(99)	(46)	(145)
Interest rate and currency
derivative liabilities	–	58	–	58	–	56	–	56
Liabilities	–	58	–	58	–	56	–	56
Total	–	(24)	(41)	(65)	–	(43)	(46)	(89)

182

NOTES TO THE ACCOUNTS CONTINUED

16 Net debt continued

Categories of financial instruments

	2025	2024
	£m	£m
Financial assets
Amortised cost
Cash and cash equivalents	57	88
Trade and other debtors (Note 13)	28	22
Fair value through profit or loss
Derivatives in designated fair value hedge accounting relationships 1,2	14	15
Derivatives not in designated hedge accounting relationships	68	84
Other investments (Note 12)	41	46
	208	255
Financial liabilities
Amortised cost
Creditors (Note 14)	(182)	(187)
Gross debt	(2,728)	(2,212)
Lease liabilities (Notes 14 and 15)	(114)	(127)
Fair value through profit or loss
Derivatives in designated fair value hedge accounting relationships 1,2	(6)	(17)
Derivatives not in designated hedge accounting relationships	(52)	(39)
	(3,082)	(2,582)
Total	(2,874)	(2,327)

1. Derivative assets and liabilities in designated hedge accounting relationships sit within the derivative assets and derivative liabilities

balances of the consolidated balance sheet.

2. The fair value of derivative assets in designated hedge accounting relationships represents the accumulated amount of fair value

hedge adjustments on hedged items.

Gains and losses on financial instruments, as classed above, are disclosed in Note 6 (net financing charges), Note 13

(debtors), the consolidated income statement and the consolidated statement of comprehensive income. The Directors

consider that the carrying amounts of other investments are approximate to their fair value, and that the carrying

amounts are recoverable.

Capital risk management

The capital structure of the Group consists of net debt and equity attributable to the equity holders of The British Land

Company PLC, comprising issued capital, reserves and retained earnings. Risks relating to capital structure are

addressed within Managing risk in delivering our strategy on pages 47 to 58. The Group’s objectives, policies and

processes for managing debt are set out in the Financial policies and principles on pages 44 to 46.

Interest rate risk management

The Group uses interest rate swaps and caps to hedge exposure to the variability in cash flows on floating rate debt,

such as revolving bank facilities, caused by movements in market rates of interest. The Group’s objectives and processes

for managing interest rate risk are set out in the Financial policies and principles on pages 44 to 46.

At 31 March 2025, the fair value of these derivatives is a net asset of £63m (2023/24: £74m). Interest rate swaps with

a fair value of £nil (2023/24: £nil) have been designated as cash flow hedges under IFRS 9.

The ineffectiveness recognised in the consolidated income statement on cash flow hedges in the year ended 31 March

2025 was £nil (2023/24: £nil).

183

16 Net debt continued

The cash flows occur and are charged to profit and loss until the maturity of the hedged debt. The table below

summarises variable rate debt hedged at 31 March.

Variable rate debt hedged

	2025	2024
	£m	£m
Outstanding: at one year	2,020	1,175
at two years	1,670	1,520
at five years	950	700

Fair value hedged debt

The Group uses interest rate swaps to hedge exposure on fixed rate financial liabilities caused by movements in market

rates of interest.

At 31 March 2025, the fair value of these derivatives is a net liability of £39m (2023/24: net liability of £32m). Interest

rate swaps with a fair value asset of £8m have been designated as fair value hedges under IFRS 9 (2023/24: liability

of £2m).

The cross-currency swaps of the 2025/2026 US Private Placements fully hedge the foreign exchange exposure at an

average floating rate of 150 basis points above SONIA. These have been designated as fair value hedges of the US

Private Placements.

Interest rate profile – including effect of derivatives

	2025	2024
	£m	£m
Fixed or capped rate	2,647	2,081
	2,647	2,081

All the debt is effectively Sterling denominated except for £33m of USD debt of which £33m is at a variable rate

(2023/24: £30m).

At 31 March 2025 the weighted average interest rate of the Sterling fixed rate debt is 4.3% (2023/24: 4.2%).

The weighted average period for which the rate is fixed is 5.5 years (2023/24: 6.3 years).

Sensitivity table – market rate movements

	2025		2024
	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	424	(424)	424	(424)
Impact on cash flow hedge and non-hedge accounted derivative
valuations (£m)	164	(185)	189	(203)

1. The movement used for sensitivity analysis is a 1% change in interest rates.

2. This movement used for sensitivity analysis represents the largest annual change in the seven-year Sterling swap rate over the last

10 years.

184

NOTES TO THE ACCOUNTS CONTINUED

16 Net debt continued

Foreign currency risk management

The Group’s policy is to have no material unhedged net assets or liabilities denominated in foreign currencies. The

currency risk on overseas investments may be hedged via foreign currency denominated borrowings and derivatives.

The Group has adopted net investment hedging in accordance with IFRS 9 and therefore the portion of the gain or loss

on any hedging instrument that is determined to be an effective hedge is recognised directly in equity. The ineffective

portion of the gain or loss on any hedging instrument is recognised immediately in the income statement.

The table below shows the carrying amounts of the Group’s foreign currency denominated assets and liabilities.

Provided contingent tax on overseas investments is not expected to occur it will be ignored for hedging purposes.

Based on the 31 March 2025 position, a 28% appreciation (largest annual change over the last 10 years) in the USD

relative to Sterling would result in a £1m change (2023/24: £2m) in reported profits.

	Assets 1		Liabilities
	2025	2024	2025	2024
	£m	£m	£m	£m
USD denominated	35	37	33	30

1. The USD denominated asset of £35m (2023/24: £37m) is an other investment accounted for as fair value through profit of loss

as disclosed in Note 12. The remaining £6m (2023/24: £9m) other investment accounted for as fair value through profit or loss

is a Sterling denominated other investment.

Credit risk management

The Group’s approach to credit risk management of counterparties is referred to in Financial policies and principles on

pages 44 to 46 and the risks addressed within Managing risk in delivering our strategy on pages 47 to 58. The carrying

amount of financial assets recorded in the financial statements represents the Group’s maximum exposure to credit risk

without taking account of the value of any collateral obtained.

Banks and financial institutions

Cash and cash equivalents at 31 March 2025 amounted to £57m (2023/24: £88m). Cash and cash equivalents were

placed with financial institutions with BBB+ or better credit ratings.

At 31 March 2025, the fair value of all interest rate derivative assets was £82m (2023/24: £99m).

At 31 March 2025, prior to taking into account any offset arrangements, the largest combined credit exposure to a single

counterparty arising from money market deposits, liquid investments and derivatives was £42m (2023/24: £34m). This

represents 0.5% (2023/24: 0.4%) of gross assets.

The deposit exposures are with UK banks and UK branches of international banks.

Trade debtors

Trade debtors are presented net of provisions for impairment for expected credit losses. Expected credit losses are

calculated on initial recognition of trade debtors and subsequently in accordance with IFRS 9, taking into account

historic and forward-looking information.

Tenant incentives

Tenant incentives and the associated tenant incentive provisions for impairment for expected credit losses are both

recognised within investment property. Expected credit losses are calculated on initial recognition of tenant incentives

and subsequently in accordance with IFRS 9, taking into account historic and forward-looking information.

185

16 Net debt continued

Liquidity risk management

The Group’s approach to liquidity risk management is discussed in Financial policies and principles on pages 44 to 46,

and the risks addressed within Managing risk in delivering our strategy on pages 47 to 58.

The following table presents a maturity profile of the contracted undiscounted cash flows of financial liabilities based on

the earliest date on which the Group can be required to pay. The table includes both interest and principal flows. Where

the interest payable is not fixed, the amount disclosed has been determined by reference to the projected interest rates

implied by yield curves at the reporting date. For derivative financial instruments that settle on a net basis (e.g. interest

rate swaps) the undiscounted net cash flows are shown and for derivatives that require gross settlement (e.g. cross-

currency swaps) the undiscounted gross cash flows are presented. Where payment obligations are in foreign currencies,

the spot exchange rate ruling at the balance sheet date is used. Trade creditors which are repayable within one year

have been excluded from the analysis.

The Group expects to meet its financial liabilities through the various available liquidity sources, including a secure rental

income profile, asset sales, undrawn committed borrowing facilities and, in the longer term, debt refinancings.

The future aggregate minimum rentals receivable under non-cancellable operating leases are shown in the table on the

following page. Income from joint ventures is not included. Additional liquidity will arise from letting space in properties

under construction as well as from distributions received from joint ventures.

			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)

			2024
	Within one	Following	Three to five	Over five
	year	year	years	years	Total
	£m	£m	£m	£m	£m
Gross debt 1	12	318	999	911	2,240
Interest on debt	112	101	223	211	647
Derivative payments	15	93	88	17	213
Lease liability payments	10	10	30	342	392
Total payments	149	522	1,340	1,481	3,492
Derivative receipts	(56)	(103)	(85)	(1)	(245)
Net payment	93	419	1,255	1,480	3,247
Operating leases with tenants	260	234	503	556	1,553
Liquidity surplus (deficit)	167	(185)	(752)	(924)	(1,694)
Cumulative liquidity surplus (deficit)	167	(18)	(770)	(1,694)

1. Gross debt of £2,728m (2023/24: £2,212m) represents the total of £2,753m (2023/24: £2,240m), less unamortised issue costs of £17m

(2023/24: £10m), less fair value adjustments to debt of £8m (2023/24: £18m).

186

NOTES TO THE ACCOUNTS CONTINUED

16 Net debt continued

Any short term liquidity gap between the net payments required and the rentals receivable can be met through other

liquidity sources available to the Group, such as committed undrawn borrowing facilities of £1,775m (2023/24: £1,845m)

and cash and cash equivalents of £57m (2023/24: £88m), of which £21m (2023/24: £58m) is not subject to a security

interest. As a result, the Group has no requirement to refinance until late 2028. Further liquidity can be achieved through

sales of property assets or investments and financing activity.

The Group’s property portfolio is valued externally at £6,065m (2023/24: £5,130m) and the share of joint ventures’

property is valued at £3,421m (2023/24: £3,568m). The committed undrawn borrowing facilities available to the Group

are a further source of liquidity. The maturity profile of committed undrawn borrowing facilities is shown below.

Maturity of committed undrawn borrowing facilities

	2025	2024
	£m	£m
Maturity date: over five years	140	145
between four and five years	1,055	310
between three and four years	6	149
Total facilities available for more than three years	1,201	604
Between two and three years	24	450
Between one and two years	450	625
Within one year	100	166
Total	1,775	1,845

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 (2023/24: six years). The future aggregate minimum rentals receivable under non-cancellable operating leases are

as follows:

	2025	2024
	£m	£m
Less than one year	307	260
Between one and two years	271	234
Between three and five years	583	503
Between six and ten years	364	355
Between eleven and fifteen years	164	147
Between sixteen and twenty years	48	39
After twenty years	8	15
Total	1,745	1,553

187

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.

		2025			2024
	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	10	4	6
Between one and two years	10	2	8	10	3	7
Between two and five years	30	8	22	30	9	21
More than five years	319	242	77	342	249	93
Total	368	254	114	392	265	127
Less future finance charges	(254)			(265)
Present value of lease obligations	114			127

18 Dividends

The final dividend payment for the six-month period ended 31 March 2025 will be 10.56p. Payment will be made on

25 July 2025 to shareholders on the register at close of business on 20 June 2025.

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	2025	2024
Payment date	Dividend		share	£m	£m
Current year dividends
25.07.2025	2025	Final	10.56
15.01.2025	2025	Interim	12.24	122
			22.80
Prior year dividends
26.07.2024	2024	Final	10.64	99
05.01.2024	2024	Interim	12.16		113
			22.80
28.07.2023	2023	Final	11.04		102
Dividends disclosed in consolidated statement of changes in equity				221	215
Dividends settled in cash				221	215
Timing difference relating to payment of withholding tax				(1)	(2)
Dividends disclosed in consolidated statement of cash flows				220	213

188

NOTES TO THE ACCOUNTS CONTINUED

19 Share capital and reserves

	2025	2024
Number of ordinary shares in issue at 1 April	938,764,023	938,334,977
Share issues	71,656,481	429,046
At 31 March	1,010,420,504	938,764,023

Of the issued 25p ordinary shares, nil shares were held in the ESOP trust (2023/24: 7,376), 11,266,245 shares were held

as treasury shares (2023/24: 11,266,245) and 999,154,259 shares were in free issue (2023/24: 927,490,402). No treasury

shares were acquired by the ESOP trust during the year. All issued shares are fully paid.

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 422 pence 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.

Hedging and translation reserve

The hedging and translation reserve comprises the effective portion of the cumulative net change in the fair value

of cash flow and foreign currency hedging instruments, as well as all foreign exchange differences arising from the

translation of the financial statements of foreign operations. The foreign exchange differences also include the

translation of the liabilities that hedge the Company’s net investment in a foreign subsidiary. In the current year to

31 March 2025, £nil (2023/24: £2m) was reclassified from the hedging and translation reserve to the income statement.

Revaluation reserve

The revaluation reserve relates to investments in joint ventures. In the current year to 31 March 2025, £nil was

transferred from the revaluation reserve to retained earnings (2023/24: £1m).

Merger reserve

This comprises the premium on the share placing in the year ended 31 March 2013. No share premium is recorded in the

Company’s financial statements, through the operation of the merger relief provisions of the Companies Act 2006.

At 31 March 2025, options over 1,172,159 ordinary shares were outstanding under employee share option plans.

The options had a weighted average life of 2.42 years. Details of outstanding share options and shares awarded

to employees, including Executive Directors, are set out below and on the following page:

							Exercise dates
					At	Exercise
	At 1 April		Exercised/	Lapsed/	31 March	price
Date of grant	2024	Granted	Vested	Forfeited	2025	(pence)	From	To
Share options Sharesave Scheme
18.06.19	5,516	–	–	(4,827)	689	435	01.09.24	01.03.25
07.07.20	11,782	–	(11,782)	–	–	336	01.09.23	01.03.24
07.07.20	154,002	–	–	(8,928)	145,074	336	01.09.25	01.03.26
06.07.21	55,801	–	(10,865)	(40,938)	3,998	414	01.09.24	01.03.25
06.07.21	19,849	–	–	–	19,849	414	01.09.26	01.03.27
22.06.22	68,000	–	–	(14,533)	53,467	421	01.09.25	01.03.26
22.06.22	8,476	–	–	(1,781)	6,695	421	01.09.27	01.03.28
21.06.23	604,044	–	(4,842)	(68,337)	530,865	287	01.09.26	01.03.27
21.06.23	290,141	–	–	(21,322)	268,819	287	01.09.28	01.03.29
03.07.24	–	107,821	–	(19,596)	88,225	352	01.09.27	01.03.28
03.07.24	–	61,210	–	(6,732)	54,478	352	01.09.29	01.03.30
	1,217,611	169,031	(27,489)	(186,994)	1,172,159
Total	1,217,611	169,031	(27,489)	(186,994)	1,172,159
Weighted average exercise price
of options (pence)	311	352	358	342	311

189

19 Share capital and reserves continued

						Share price
	At 1 April		Exercised/	Lapsed/	At 31 March	at grant date
Date of grant	2024	Granted	Vested	Forfeited	2025	(pence)	Vesting date
Performance Shares Long Term Incentive Plan
22.06.21	800,679	–	(320,267)	(480,412)	–	516.80	22.06.24
02.08.21	238,945	–	–	(238,945)	–	519.60	02.08.24
01.09.21	41,294	–	(16,517)	(24,777)	–	542.00	01.09.24
19.07.21	28,209	–	(28,209)	–	–	482.50	12.05.24
19.07.21	9,403	–	–	(9,403)	–	482.50	12.05.25
19.07.22	1,602,503	–	–	(441,818)	1,160,685	470.70	19.07.25
15.06.23	2,130,159	–	–	(614,037)	1,516,122	334.70	15.06.26
20.06.24	–	1,406,400	–	(189,642)	1,216,758	416.60	20.06.27
	4,851,192	1,406,400	(364,993)	(1,999,034)	3,893,565
Restricted Share Plan
22.06.21	761,432	–	(741,291)	(20,141)	–	516.80	22.06.24
19.07.22	631,795	–	–	(36,999)	594,796	470.70	19.07.25
29.07.22	21,926	–	–	(21,926)	–	492.00	19.07.25
15.06.23	885,612	–	–	(89,988)	795,624	334.70	15.06.26
20.06.24	–	688,895	–	(23,306)	665,589	416.60	20.06.27
01.08.24	–	11,653	–	–	11,653	411.00	20.06.27
	2,300,765	700,548	(741,291)	(192,360)	2,067,662
Total	7,151,957	2,106,948	(1,106,284)	(2,191,394)	5,961,227
Weighted average price
of shares (pence)	426	417	516	439	401

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 and excludes non-controlling interests in the Group’s subsidiaries.

The chief operating decision maker for the purpose of segment information is the Executive Committee.

Gross rental income is derived from the rental of buildings. 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.

190

NOTES TO THE ACCOUNTS CONTINUED

20 Segment information continued

Segment result

				Retail & London
	Campuses			Urban Logistics	Unallocated		Total
	2025	2024	2025	2024	2025	2024	2025	2024
	£m	£m	£m	£m	£m	£m	£m	£m
Gross rental income
British Land Group	95	85	235	210	–	–	330	295
Share of joint ventures	111	111	35	59	–	–	146	170
Total	206	196	270	269	–	–	476	465
Net rental income
British Land Group	79	71	222	207	–	–	301	278
Share of joint ventures	98	95	32	56	–	–	130	151
Total	177	166	254	263	–	–	431	429
Operating result
British Land Group	93	89	222	206	(52)	(56)	263	239
Share of joint ventures	89	85	30	54	–	(2)	119	137
Total	182	174	252	260	(52)	(58)	382	376

	2025	2024
Reconciliation to Underlying Profit	£m	£m
Operating result	382	376
Net financing charges	(103)	(108)
Underlying Profit	279	268
Reconciliation to profit before taxation
Underlying Profit	279	268
Capital and other	63	(254)
Underlying Profit attributable to non-controlling interests	–	1
Total profit before taxation	342	15
Reconciliation to Group revenue
Gross rental income per operating segment result	476	465
Less share of gross rental income of joint ventures	(146)	(170)
Plus share of gross rental income attributable to non-controlling interests	–	2
Gross rental income (Note 3)	330	297
Service charge income	77	59
Management and performance fees (from joint ventures and assets under management)	20	17
Other fees and commissions	27	28
Revenue (consolidated income statement)	454	401

A reconciliation between net financing charges in the consolidated income statement and net financing charges

of £103m (2023/24: £108m) in the segmental disclosures above can be found within Table A in the supplementary

disclosures. Of the total revenues above, £nil (2023/24: £nil) was derived from outside the UK.

191

20 Segment information continued

Segment assets

			Retail & London
	Campuses		Urban Logistics		Total
	2025	2024	2025	2024	2025	2024
	£m	£m	£m	£m	£m	£m
Property assets
British Land Group	2,397	2,360	3,671	2,760	6,068	5,120
Share of joint ventures	3,107	2,922	314	646	3,421	3,568
Total	5,504	5,282	3,985	3,406	9,489	8,688

Reconciliation to net assets

	2025	2024
British Land Group	£m	£m
Property assets	9,489	8,688
Other non-current assets	64	73
Non-current assets	9,553	8,761
Other net current liabilities	(310)	(331)
EPRA net debt 1	(3,545)	(3,178)
EPRA NTA	5,698	5,252
Non-controlling interests	–	13
EPRA adjustments	12	47
Net assets (consolidated balance sheet)	5,710	5,312

1. A reconciliation between EPRA net debt and IFRS net debt can be found within Table A in the supplementary disclosures.

21 Capital commitments

The aggregate capital commitments to purchase, construct or develop investment property, for repairs, maintenance

or enhancements, or for the purchase of investments which are contracted for but not provided, are set out below:

	2025	2024
	£m	£m
British Land Group	38	148
Share of joint ventures	250	174
	288	322

As part of the Group’s 2030 Sustainability Strategy, the Group’s Transition Vehicle applies an internal levy of £90 per

tonne to the embodied carbon within developments. Two-thirds of the internal levy is available to finance carbon

efficient interventions which improve energy efficiency and reduce carbon emissions from our standing portfolio. The

remaining third is used to purchase carbon credits to mitigate the residual embodied carbon in our developments. The

Group committed £1m to carbon efficient interventions in the year to 31 March 2025 (2023/24: £5m). The Group spent

£3m in the year to 31 March 2025 (2023/24: £1m) on carbon efficient interventions, of which £2m is recoverable through

the service charge.

192

NOTES TO THE ACCOUNTS CONTINUED

22 Related party transactions

Directors are the key management personnel and have the authority and responsibility for planning, directing and

controlling the activities of the entity. Details of Directors’ remuneration are given in the Remuneration Report on

pages 107 to 129. Details of transactions with The British Land Group of Companies Pension Scheme, and other smaller

pension schemes, are given in Note 9. Details of transactions with joint ventures are given in Notes 3 and 11 and outlined

below.

		Joint	Joint
		ventures	ventures
		2025	2024
Summarised income statement	Note	£m	£m
Management and performance fees (from joint ventures and assets under management)	3	20	17
Share of distributions	11	72	77
Capital return	11	2	–
Summarised balance sheet
Loans	11	(1,152)	(1,252)

The Group’s net closing investments in and loans to joint ventures, the associated closing provision for impairment and

movement in provision for impairment in the year are outlined below. The provision for impairment of investments in

joint ventures is calculated in accordance with IAS 36, and provision for impairment of loans to joint ventures is

calculated in accordance with IFRS 9 as set out in Note 1.

Provision for impairment of investments in joint ventures

				2025						2024
				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	835	634	–	(12)	–	20	634	708	–	(32)	–	97
Meadowhall 1	–	–	–	–	174	199	145	–	(174)	(199)	18	(6)
WOSC	11	17	(3)	(21)	–	1	12	16	(3)	(22)	19	(22)
BL West End	3	61	–	(30)	–	(10)	4	69	–	(20)	–	(7)
Canada Water	–	308	–	(101)	–	(31)	–	283	–	(70)	–	(47)
Paddington Central	102	–	(11)	–	(3)	–	106	–	(8)	–	(8)	–
1 Triton Square	135	74	–	(3)	–	(1)	116	79	–	(2)	–	(2)
SouthGate	–	69	–	(38)	–	12	–	55	–	(50)	–	–
Hercules Unit Trust JV	–	110	–	–	–	–	–	102	–	–	–	–
Other joint ventures	42	61	(10)	(50)	(10)	4	50	50	–	(54)	–	–
Total	1,128	1,334	(24)	(255)	161	194	1,067	1,362	(185)	(449)	29	13

1. On 12 July 2024 the Group completed the disposal of its 50% shareholding in the Meadowhall Shopping Centre joint venture. The net

closing investment and closing provision for impairment as at 31 March 2025 reflects the resulting nil Group share of Meadowhall. The

movement in provision for impairment in the year is due to the disposal.

23 Contingent liabilities

Group and joint ventures

The Group and joint ventures have 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 these contingent liabilities.

24 Subsequent events

There have been no significant subsequent events post the balance sheet date.

193

25 Audit exemptions taken for subsidiaries

The following subsidiaries are exempt from the requirements of the Companies Act 2006 relating to the audit

of individual accounts by virtue of Section 479A of that Act.

	Company
Entity Name	Number
17-19 Bedford Street Limited	07398971
18-20 Craven Hill Gardens Limited	07667839
20 Brock Street Limited	07401697
Aldgate Place (GP) Limited	07829315
Ashband Limited	04409592
B.L.Holdings Limited	00000529
Bayeast Property Co Limited	00635800
BF Propco (No.3) Limited	05270196
BF Propco (No.5) Limited	05270219
BL 5KS Holdings Limited	13398992
BL Aldgate Development Limited	05070564
BL Aldgate Holdings Limited	05876405
BL Aldgate Investment Holdings Limited	15314977
BL Bluebutton 2014 Limited	09048771
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 Doncaster Wheatley Limited	07780272
BL Drummond Properties Limited	09806622
BL Eden Walk Limited	10620935
BL Euston Tower Holding Company Limited	11612398
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 Holding
Company Limited	06002148
BL Innovation Properties 2 Limited	05070554
BL Innovation Properties Limited	12293278
BL Intermediate Holding Company 2 Limited	12462158
BL Leisure And Industrial Holding
Company Limited	05995024
BL Newport Limited	04967720
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 Residual Holding Company Limited	05995030
BL Retail Holding Company Limited	05995033
BL Retail Indirect Investments Limited	12288466

	Company
Entity Name	Number
BL Retail Investment Holdings Limited	11612693
BL Retail Properties 3 Limited	04869976
BL Retail Properties Limited	13215893
BL Retail Warehousing Holding Company Limited	06002154
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 West End Investments Limited	07793483
BL Whiteley Limited	11253224
BL Whiteley Retail Limited	11254281
BL Woolwich Limited	11079254
BLD Property Holdings Limited	00823907
BLMH 1 Limited	02261117
BLMH Centre Limited	03918066
BLSSP (PHC 5) Limited	04104061
BLU Securities Limited	03323061
British Land (Joint Ventures) Limited	04682740
British Land Acquisitions Limited	05464168
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
Broadgate Adjoining Properties Limited	07580963
Cavendish Geared Limited	02779045
Clarges Estate Property Management Co Limited	08418875
Drake Circus Centre Limited	09069182
Drake Circus Leisure Limited	09190208
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
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 GP Limited	13843749
Paddington 5KS Holdings Limited	13843365
Paddington Box Limited	14782912
Pillar Denton Limited	02982293

194

NOTES TO THE ACCOUNTS CONTINUED

25 Audit exemptions taken for subsidiaries continued

	Company
Entity Name	Number
Pillar Property Group Limited	02570618
Plymouth Retail Limited	10368557
Regent's Place Holding 2 Limited	11864307
Regents Place Residential Limited	11241644
Solartron Retail Park Limited	13060834

	Company
Entity Name	Number
St. Stephens Shopping Centre Limited	04931198
Storey Offices Limited	11417071
TBL (Bromley) Limited	03840206
Tollgate Centre Colchester Limited	10461649
Topside Street Limited	11253428

The following partnerships are exempt from the requirements to prepare, publish and have audited individual accounts

by virtue of regulation 7 of The Partnerships (Accounts) Regulations 2008. The results of these partnerships are

consolidated within these Group consolidated financial statements.

Name

The Hercules Property Limited Partnership

Power Court Luton Limited Partnership

Hereford Shopping Centre Limited Partnership

The Aldgate Place Limited Partnership

Name

BL Lancaster Limited Partnership

BL Shoreditch Limited Partnership

Paddington 5KS Property Limited Partnership

BL Fixed Uplift Fund Limited Partnership

195

COMPANY BALANCE SHEET

As at 31 March 2025

Note

2025

£m

2024

£m

Fixed assets

Investments and loans to subsidiaries D 22,829 22,786

Investments in joint ventures D 1 157

Other investments D 23 27

Interest rate and currency derivative assets E 73 79

22,926 23,049

Current assets

Debtors G 3 1

Interest rate and currency derivative assets E 9 20

Cash and cash equivalents E 2 46

14 67

Creditors: amounts falling due within one year

Short term borrowings and overdrafts E (311) (10)

Creditors H (108) (131)

Amounts due to subsidiaries D (15,265) (16,237)

Interest rate and currency derivative liabilities E (2) –

(15,686) (16,378)

Net current liabilities (15,672) (16,311)

Total assets less current liabilities 7,254 6,738

Creditors: amounts falling due after more than one year

Debentures and loans E (2,417) (2,202)

Lease liabilities (19) (21)

Deferred tax liabilities (3) (5)

Interest rate and currency derivative liabilities E (56) (56)

(2,495) (2,284)

Net assets 4,759 4,454

Equity

Called up share capital I 253 235

Share premium 1,589 1,310

Other reserves (5) (5)

Merger reserve 213 213

Retained earnings 2,709 2,701

Total equity 4,759 4,454

The profit after taxation for the year ended 31 March 2025 for the Company was £232m (2023/24: £353m loss).

Simon Carter David Walker

Chief Executive Chief Financial Officer

The financial statements on pages 195 to 206 were approved by the Board of Directors and signed on its behalf

on 21 May 2025.

Company number 621920

196

COMPANY STATEMENT OF CHANGES IN EQUITY

For the year ended 31 March 2025

capital

£m

premium

£m

Other

reserves

£m

Merger

reserve

£m

Retained

earnings

£m

Total

equity

£m

Balance at 1 April 2024 235 1,310 (5) 213 2,701 4,454

Shares issued in the year

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

Balance at 1 April 2023 234 1,308 (5) 213 3,267 5,017

Shares issued in the year 1 2 – – – 3

Dividend paid – – – – (215) (215)

Fair value of share and share option awards – – – – 2 2

Loss for the year after taxation – – – – (353) (353)

Balance at 31 March 2024 235 1,310 (5) 213 2,701 4,454

1. 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 422 pence per share, resulting in an increase in share capital of £18m and share premium of £277m. See Note I for

further information.

The value of distributable reserves within retained earnings is £1,822m (2023/24: £1,859m) (unaudited). An explanation

of how distributable reserves are determined, and any limitations, is set out on page 198 of Note A, within the

distributable reserves section.

197

(A) Accounting policies

The British Land Company PLC is a public limited company, limited by shares, incorporated, domiciled and registered

in England under the Companies Act. The address of the registered office is given on page 202 and the back cover.

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 2025 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;

(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 £15,265m 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. The net current liability position also

results from the £311m of facilities that are reaching maturity within the next 12 months and current creditors of £108m.

The Company has access to £1.8bn 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. Accordingly,

they believe the going concern basis is an appropriate one.

198

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 and joint

ventures. 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 or joint ventures 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 and joint ventures. Amounts due to the Company from subsidiaries and joint ventures are recovered

through the sale of properties and investments held by subsidiaries and joint ventures and through settling financial

assets, net of financial liabilities, that the subsidiaries and joint ventures hold with counterparties other than the

Company. This is essentially equal to the net asset value of the subsidiary or joint venture and therefore the net asset

value of the subsidiary or joint venture 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 or joint venture in excess

of the subsidiary or joint venture’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

Included in the retained earnings the Company had distributable reserves of £1,822m as at 31 March 2025 (2023/24:

£1,859m) (unaudited). 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.

Employee costs include wages and salaries of £37m (2023/24: £40m), social security costs of £6m (2023/24: £6m)

and pension costs of £5m (2023/24: £5m). Details of the Executive Directors’ remuneration are disclosed in the

Remuneration Report on pages 107 to 129. 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 £0.6m (2023/24: £0.5m).

199

(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 2024 8,794 13,992 157 27 22,970

Additions 127 1,270 – 3 1,400

Disposals (305) (189) (156) – (650)

Capital distributions

(817) – – – (817)

Amortisation – – – (7) (7)

Reversal of (provision for) impairment 12 (55) – – (43)

As at 31 March 2025 7,811 15,018 1 23 22,853

1. The Company received a capital distribution of £817m (2023/24: £nil) as a result of winding down one of its subsidiaries, BL

Bluebutton 2014 Limited.

Following a corporate simplification and restructuring exercise across current and prior years, the Company recognised

a disposal of £305m of shares in subsidiaries. The exercise also resulted in a net £60m decrease in loans to subsidiaries.

The historical cost of shares in subsidiaries is £8,706m (2023/24: £9,723m). The historical cost of investments in joint

ventures is £2m (2023/24: £539m) net of provision for impairment of £1m (2023/24: £382m) and includes £1m

(2023/24: £157m) of loans to joint ventures by the Company. Results of the joint ventures are set out in Note 11 of the

consolidated financial statements. The historical cost of other investments is £55m (2023/24: £56m). The investments

in joint ventures of £1m (2023/24: £157m) consists of loans of £1m (2023/24: £157m) and equity of £nil (2023/24: £nil).

Amounts due to subsidiaries is £15,265m (2023/24: £16,237m), 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.

200

NOTES TO THE ACCOUNTS CONTINUED

(E) Net debt

2025

£m

2024

£m

Secured on the assets of the Company

5.264% First Mortgage Debenture Bonds 2035

250 321

5.0055% First Mortgage Amortising Debentures 2035 83 85

5.357% First Mortgage Debenture Bonds 2028

164 217

497 623

Unsecured

2.375% Sterling Unsecured Bond 2029 299 299

5.25% Sterling Unsecured Bond 2032

297 –

2.67% Senior Notes 2025

37 37

2.75% Senior Notes 2026 37 37

3.81% Senior Notes 2026 99 98

3.97% Senior Notes 2026 99 97

4.16% Senior US Dollar Notes 2025

76 76

5.003% Senior US Dollar Notes 2026

63 63

Floating Rate Senior Notes 2028 80 80

Floating Rate Senior Notes 2034 101 101

Facilities and overdrafts

568 351

Term loans

475 350

2,231 1,589

Gross debt 2,728 2,212

Interest rate and currency derivative liabilities

58 56

Interest rate and currency derivative assets

(82) (99)

Cash and cash equivalents (2) (46)

Net debt 2,702 2,123

1. 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. Facilities and overdrafts have been represented for the year ended 31 March 2024 to exclude term loans. Term loans of £350m are

now disclosed separately. As a result, facilities and overdrafts are disclosed as £351m, previously £701m.

4. Interest rate and currency derivative liabilities includes non-current interest rate and currency derivative liabilities of £56m (2023/24:

£56m) and current interest rate and currency derivative liabilities of £2m (2023/24: £nil).

5. Interest rate and currency derivative assets includes non-current interest rate and currency derivative assets of £73m (2023/24:

£79m) and current interest rate and currency derivative assets of £9m (2023/24: £20m).

201

(E) Net debt continued

Maturity analysis of net debt

2025

£m

2024

£m

Repayable within one year and on demand 311 10

between: one and two years 98 314

two and five years 1,386 991

five and ten years 531 306

ten and fifteen years 402 591

2,417 2,202

Gross debt 2,728 2,212

Interest rate and currency derivatives (24) (43)

Cash and cash equivalents (2) (46)

Net debt 2,702 2,123

(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

2025

£m

2024

£m

Trade and other debtors 2 1

Corporation tax 1 –

3 1

Trade and other debtors are shown after deducting a provision for impairment against tenant debtors of £nil (2023/24:

£nil). The provision for impairment is calculated as an expected credit loss on trade and other debtors in accordance

with IFRS 9.

(H) Creditors

2025

£m

2024

£m

Trade creditors 31 58

Corporation tax 7 8

Other taxation and social security 21 20

Accruals and deferred income 49 45

108 131

202

NOTES TO THE ACCOUNTS CONTINUED

(I) Called up share capital

£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

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 422 pence 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.

£m

Number of

ordinary shares

of 25p each

Issued, called and fully paid

At 1 April 2023 234 938,334,977

Share issues 1 429,046

At 31 March 2024 235 938,764,023

(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 2025, the Company has £nil of capital commitments (2023/24: £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 as at 31 March 2025 are listed on the next page. All Group

entities are included in the consolidated financial statements.

Unless otherwise stated, the Company holds 100% of the voting rights and beneficial interests in the subsidiaries

and related undertakings. 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. In recent

years we have reduced the number of overseas companies in the Group.

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. 540 Herengracht, 1017CG, Amsterdam, Netherlands.

3. 80 Fenchurch Street, London, EC3M 4AE.

4. First Names House, Victoria Road, Douglas, Isle of Man, IM2 4DF.

5. 45 Gresham Street, London, EC2V 7BG.

6. 28 Esplanade, St Helier, Jersey, JE4 2QP.

7. IFC 1, The Esplanade, St Helier, Jersey, JE1 4BP.

8. 26 New Street, St Helier, Jersey, JE2 3RA.

* Companies with an active proposal to be struck off the register or are undergoing liquidation.

** Companies with a pending application to be liquidated as at 31 March 2025.

203

(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

B.L.C.T. (12697) Limited

UK Tax Resident

B.L.C.T (38209a) Limited

UK Tax Resident

Barnclass Limited UK Tax Resident

Barndrill Limited UK Tax Resident

Bayeast Property Co Limited UK Tax Resident

BF Propco (No 3) Limited UK Tax Resident

BF Propco (No 5) 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 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

204

NOTES TO THE ACCOUNTS CONTINUED

(K) Disclosures relating to subsidiary undertakings continued

Name

UK/Overseas Tax

Resident Status

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

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

(Partnership interest) (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 Newport 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 UK Tax Resident

Name

UK/Overseas Tax

Resident Status

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

BL Retail Warehousing Holding

Company Limited

UK Tax Resident

BL Sainsbury Superstores Limited

(50% interest)

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 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 Warwickshire Limited UK Tax Resident

BL Wellington Limited 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

205

(K) Disclosures relating to subsidiary undertakings continued

Name

UK/Overseas Tax

Resident Status

British Land City Offices Limited UK Tax Resident

British Land Fund Management Limited UK Tax Resident

British Land Hercules Limited UK Tax Resident

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

Services 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)

UK Tax Resident

Broughton Retail Park Limited

UK Tax Resident

Broughton Unit Trust

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

UK Tax Resident

Chrisilu Nominees Limited UK Tax Resident

City of London Office Unit Trust (Units)

(35.94% interest)

Overseas Tax

Resident

City Residential Holdings Limited* UK 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

Deepdale Co-Ownership Trust

(Member interest) (50% interest)

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 (50% interest)

UK Tax Resident

Eden Walk Shopping Centre Unit Trust

(50% interest) (Units)

Overseas Tax

Resident

Name

UK/Overseas Tax

Resident Status

Elk Mill Oldham Limited UK Tax Resident

Euston Tower Limited UK Tax Resident

Finsbury Square BV

Overseas Tax

Resident

Fort Kinnaird GP Limited (50% interest) UK Tax Resident

Fort Kinnaird Limited Partnership

(Partnership interest) (50% interest)

UK Tax Resident

FRP Group Limited UK Tax Resident

Garamead Properties Limited UK Tax Resident

Gibraltar General Partner Limited

(50% interest)*

UK Tax Resident

Gibraltar Nominees Limited (50% interest)* 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)

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

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

206

NOTES TO THE ACCOUNTS CONTINUED

(K) Disclosures relating to subsidiary undertakings continued

Name

UK/Overseas Tax

Resident Status

Paddington 5KS Unit Trust (Units)

Overseas Tax

Resident

Paddington Box Limited UK Tax Resident

Paddington Property Investment GP Limited UK Tax Resident

Paddington Property Investment Limited

Partnership (Partnership interest)

(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

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

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)

UK Tax Resident

Southgate Property Unit Trust (50% interest)

(Units)

Overseas Tax

Resident

Shoreditch Support Limited UK Tax Resident

Solartron Retail Park Limited UK Tax Resident

Speke Unit Trust (Units)

Overseas Tax

Resident

St. Stephens Shopping Centre Limited UK Tax Resident

Stockton Retail Park Limited UK Tax Resident

Storey Offices Limited UK Tax Resident

Name

UK/Overseas Tax

Resident Status

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 (Partnership

interest) (50% interest)

UK Tax Resident

The Hercules Property Limited Partnership

(Partnership interest)

UK Tax Resident

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 (Units)

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)

Overseas Tax

Resident

WOSC GP Limited (25% interest) UK Tax Resident

WOSC Partners LP (Partnership interest)

(25% interest)

UK Tax Resident

207

SUPPLEMENTARY DISCLOSURES

Unaudited unless otherwise stated

Table A: Summary income statement and balance sheet (Unaudited)

Summary income statement based on proportional consolidation for the year ended 31 March 2025

The following pro forma information is unaudited and 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 and excluding non-controlling interests.

Year ended 31 March 2025 Year ended 31 March 2024

Group

£m

Share of

joint

ventures

£m

Less non-

controlling

interests

£m

Proportionally

consolidated

£m

Group

£m

Share of

joint

ventures

£m

Less non-

controlling

interests

£m

Proportionally

consolidated

£m

Gross rental income

1,2

338 146 – 484 308 170 (2) 476

Property operating expenses

(32) (13) – (45) (22) (15) 1 (36)

Net rental income 306 133 – 439 286 155 (1) 440

Administrative expenses

(82) – – (82) (85) (2) – (87)

Net fees and other income 25 – – 25 23 – – 23

Ungeared income return 249 133 – 382 224 153 (1) 376

Net financing charges (60) (43) – (103) (55) (53) – (108)

Underlying Profit 189 90 – 279 169 100 (1) 268

Underlying taxation (4) – – (4) (3) – – (3)

Underlying Profit after taxation 185 90 – 275 166 100 (1) 265

Valuation movements on

property (Note 4) 134 (310)

Other capital and taxation (net)

(71) 42

Result attributable to

shareholders of the Company 338 (3)

1. Group gross rental income includes £8m (2023/24: £11m) of all-inclusive rents relating to service charge income.

2. Group gross rental income in the prior year excludes £25m of rent receivable and £149m of surrender premia received within the

Capital and other column of the income statement (see Note 3).

3. Group property operating expenses in the prior year excludes £54m of provisions for impairment of tenant incentives and contracted

rent increases within the Capital and other column of the income statement (see Note 3).

4. Administrative expenses includes £8m (2023/24: £8m) of depreciation and amortisation.

5. Includes other comprehensive income.

208

Table A: continued

Summary balance sheet based on proportional consolidation as at 31 March 2025

The following pro forma information is unaudited and does not form part of the consolidated primary 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, excluding non-controlling interests, and assumes full dilution.

Group

£m

Share of

joint

ventures

£m

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

2025

£m

EPRA NTA

31 March

2024

£m

Campuses properties

2,476 3,110 – – (85) 3 – 5,504 5,282

Retail & London Urban

Logistics properties 3,698 330 – – (43) – – 3,985 3,406

Total properties

6,174 3,440 – – (128) 3 – 9,489 8,688

Investments in

oint ventures 2,462 (2,462) – – – – – – –

Other investments 48 – – – – – (7) 41 46

Other net (liabilities)

assets

(324) (102) 11 – 128 – – (287) (304)

Deferred tax liability (3) (1) – – – – 4 – –

Net debt

(2,647) (875) – (23) – – – (3,545) (3,178)

Net assets 5,710 – 11 (23) – 3 (3) 5,698 5,252

EPRA NTA per share

(Note 2)

567p 562p

1. Included within the total property value of £9,489m (2023/24: £8,688m) are right-of-use assets net of lease liabilities of £3m

(2023/24: £4m), 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 £3,545m represents adjusted net debt used in proportionally consolidated LTV and Net Debt to EBITDA

calculations of £3,637m (see Note 16), less tenant deposits of £64m and issue costs and fair value hedge adjustments of £28m.

EPRA Net Tangible Assets movement

Year ended

31 March 2025

Year ended

31 March 2024

£m

Pence per

share £m

Pence per

Opening EPRA NTA 5,252 562 5,487 588

Income return 275 27 265 28

Capital and other return 95 11 (285) (31)

Dividend paid (221) (23) (215) (23)

Dilution due to issue of shares 297 (10) – –

Closing EPRA NTA 5,698 567 5,252 562

209

SUPPLEMENTARY DISCLOSURES CONTINUED

Table B: EPRA Performance measures (Unaudited)

EPRA Performance measures summary table

2025 2024

£m

Pence per

share £m

Pence per

EPRA Earnings – basic 275 28.6 385 41.5

– diluted 275 28.5 385 41.4

Percentage Percentage

EPRA Net Initial Yield 5.0% 5.1%

EPRA ‘topped-up’ Net Initial Yield 5.5% 5.8%

EPRA Vacancy Rate 10.0% 10.0%

EPRA Cost Ratio (including direct vacancy costs) 17.5% 16.4%

EPRA Cost Ratio (excluding direct vacancy costs) 10.5% 9.2%

2025 2024

Net assets

£m

Net asset

value per

(pence)

Net assets

£m

Net asset

value per

(pence)

EPRA NTA 5,698 567 5,252 562

EPRA NRV 6,283 625 5,782 619

EPRA NDV 5,768 574 5,389 577

Percentage Percentage

EPRA LTV 40.7% 40.5%

Calculation and reconciliation of Underlying/EPRA/IFRS Earnings and Underlying/EPRA/IFRS

Earnings per share (Audited)

2025

£m

2024

£m

Profit (loss) attributable to the shareholders of the Company 338 (1)

Exclude:

Group – Underlying taxation (Note 7) 4 3

Group – Capital and other taxation (Note 7) – 11

Group – valuation movements on property (Note 4) (148) 131

Group – loss on disposal of investment properties, joint ventures and revaluation of investments 42 23

Group – Capital and other revenue and costs (Note 3) – (120)

Joint ventures – share of joint venture result

(11) –

Joint ventures – valuation movements on property (Note 4) 14 179

Joint ventures – capital financing charges 3 5

Joint ventures – profit on disposal of properties (6) (5)

Changes in fair value of financial instruments and associated close-out costs (Note 6) 43 41

Non-controlling interests in respect of the above – 1

Underlying Profit 279 268

Group – Underlying taxation (Note 7) (4) (3)

Underlying Earnings – basic and diluted 275 265

Group – Capital and other revenue and costs (Note 3) – 120

EPRA Earnings – basic and diluted 275 385

Profit (loss) attributable to the shareholders of the Company 338 (1)

IFRS Earnings – basic and diluted 338 (1)

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.

210

Table B continued

2025

Number

million

2024

Number

million

Weighted average number of shares

973 938

Adjustment for treasury shares (11) (11)

IFRS/EPRA/Underlying Weighted average number of shares (basic) 962 927

Dilutive effect of share options – –

Dilutive effect of ESOP shares 3 2

EPRA/Underlying Weighted average number of shares (diluted) 965 929

Remove anti-dilutive effect – (2)

IFRS Weighted average number of shares (diluted) 965 927

1. 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 422 pence per share, resulting in a 71,227,309 increase in the number of shares. See Note 19 for further information.

Net assets per share (Audited)

2025 2024

£m

Pence per

share £m

Pence per

IFRS net assets 5,710 5,312

Deferred tax arising on revaluation movements 4 6

Mark-to-market on derivatives and related debt adjustments (23) (55)

Dilution effect of share options 11 11

Surplus (deficit) on trading properties 3 (1)

Intangible assets (7) (8)

Less non-controlling interests – (13)

EPRA NTA 5,698 567 5,252 562

Intangible assets 7 8

Purchasers’ costs 578 522

EPRA NRV 6,283 625 5,782 619

Deferred tax arising on revaluation movements and the (surplus) deficit

on trading properties (5) (6)

Purchasers’ costs (578) (522)

Mark-to-market on derivatives and related debt adjustments 23 55

Mark-to-market on debt 45 80

EPRA NDV 5,768 574 5,389 577

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, based on the Group’s track record and

tax structuring. 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.

2025

Number

million

2024

Number

million

Number of shares at year end

1,010 938

Adjustment for treasury shares (11) (11)

IFRS/EPRA number of shares (basic) 999 927

Dilutive effect of share options 1 3

Dilutive effect of ESOP shares 5 4

IFRS/EPRA number of shares (diluted) 1,005 934

1. 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 422 pence per share, resulting in a 71,227,309 increase in the number of shares. See Note 19 for further information.

211

SUPPLEMENTARY DISCLOSURES CONTINUED

Table B continued

EPRA Net Initial Yield and ‘topped-up’ Net Initial Yield (Unaudited)

2025

£m

2024

£m

Group property portfolio valuation (Note 10) 6,065 5,116

Share of property of joint ventures (Note 10) 3,421 3,568

Less developments, residential and land (1,590) (1,460)

Completed property portfolio 7,896 7,224

Allowance for estimated purchasers’ costs 534 484

Gross up completed property portfolio valuation (A) 8,430 7,708

Annualised cash passing rental income 450 422

Property outgoings (28) (32)

Annualised net rents (B) 422 390

Rent expiration of rent-free periods and fixed uplifts

39 55

‘Topped-up’ net annualised rent (C) 461 445

EPRA Net Initial Yield (B/A) 5.0% 5.1%

EPRA ‘topped-up’ Net Initial Yield (C/A) 5.5% 5.8%

Including fixed/minimum uplifts received in lieu of rental growth 5 5

Total ‘topped-up’ net rents (D) 466 450

Overall ‘topped-up’ Net Initial Yield (D/A) 5.5% 5.8%

‘Topped-up’ net annualised rent 461 445

ERV vacant space 56 51

Reversions 27 8

Total ERV (E) 544 504

Net Reversionary Yield (E/A) 6.5% 6.5%

1. The weighted average period over which rent-free periods expire is one year (2023/24: 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 2025, 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.

EPRA Vacancy Rate (Unaudited)

31 March

2025

£m

31 March

2024

£m

Annualised potential rental value of vacant premises 56 51

Annualised potential rental value for the completed property portfolio 555 512

EPRA Vacancy Rate 10.0% 10.0%

The above is stated for the UK portfolio only. A discussion of significant factors affecting vacancy rates is included

within the Strategic Report (pages 8 to 13).

212

Table B continued

EPRA Cost Ratios (Unaudited)

2025

£m

2024

£m

Property operating expenses 32 21

Administrative expenses 82 85

Share of joint ventures expenses 13 17

Less: Performance and management fees (from joint ventures and assets under management) (13) (17)

Net other fees and commissions (12) (6)

Ground rent costs and operating expenses de facto included in rents (22) (27)

EPRA Costs (including direct vacancy costs) (A) 80 73

Direct vacancy costs (32) (32)

EPRA Costs (excluding direct vacancy costs) (B) 48 41

Gross Rental Income less ground rent costs and operating expenses de facto included in rents 320 277

Share of joint ventures (GRI less ground rent costs) 138 168

Total Gross rental income less ground rent costs (C) 458 445

EPRA Cost Ratio (including direct vacancy costs) (A/C) 17.5% 16.4%

EPRA Cost Ratio (excluding direct vacancy costs) (B/C) 10.5% 9.2%

Overhead and operating expenses capitalised (including share of joint ventures) 8 6

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 (Audited)

2025

£m

2024

£m

Rent receivable

466 463

Spreading of tenant incentives and contracted rent increases (2) 7

Surrender premia 20 6

Gross rental income 484 476

1. Group gross rental income includes £8m (2023/24: £11m) of all-inclusive rents relating to service charge income.

The current and prior year information is presented on a proportionally consolidated basis, excluding non-

controlling interests.

213

SUPPLEMENTARY DISCLOSURES CONTINUED

Table D: Property related capital expenditure (Unaudited)

Year ended 31 March 2025 Year ended 31 March 2024

Group

£m

Share of

joint

ventures

£m

Total

£m

Group

£m

Share of

joint

ventures

£m

Total

£m

Acquisitions 730 – 730 58 – 58

Development 105 205 310 144 210 354

Investment properties

Incremental lettable space 2 – 2 1 – 1

No incremental lettable space 43 39 82 23 26 49

Tenant incentives 6 1 7 24 7 31

Other material non-allocated types

of expenditure 4 4 8 3 3 6

Capitalised interest 14 19 33 17 8 25

Total property related capital expenditure 904 268 1,172 270 254 524

Conversion from accrual to cash basis (7) 35 28 40 (11) 29

Total property related capital expenditure

on cash basis

897 303 1,200 310 243 553

The above is presented on a proportionally consolidated basis, excluding non-controlling interests and business

combinations. The ‘Other material non-allocated types of expenditure’ category contains capitalised staff costs of

£8m (2023/24: £6m).

Table E: EPRA LTV (Unaudited)

Year ended 31 March 2025 Year ended 31 March 2024

Proportionally

consolidated

Proportionally

consolidated

Group

£m

Share of

joint

ventures

£m

Non-

controlling

interests

£m

Total

£m

Group

£m

Share of

joint

ventures

£m

Non-

controlling

interests

£m

Total

£m

Include:

Gross debt 2,740 998 – 3,738 2,225 1,218 – 3,443

Net payables 224 87 – 311 227 104 – 331

Exclude:

Cash and cash equivalents (57) (108) – (165) (88) (152) 1 (239)

EPRA Net Debt (A) 2,907 977 – 3,884 2,364 1,170 1 3,535

Include:

Property portfolio valuation 6,065 3,421 – 9,486 5,130 3,568 (14) 8,684

Other financial assets 43 – – 43 46 – – 46

Intangibles 7 – – 7 8 – – 8

EPRA Total Property Value (B) 6,115 3,421 – 9,536 5,184 3,568 (14) 8,738

EPRA LTV (A/B) 47.5% 40.7% 45.6% 40.5%

214

British Land

Annual Report and Accounts 2025

Data includes Group’s share of Joint Ventures.

FY25 rent collection

Rent due between 25 March 2024 and 24 March 2025 Campuses

Retail &

London

Urban

Logistics Total

Received 99.7% 99.9% 99.8%

Outstanding 0.3% 0.1% 0.2%

Total 100.0% 100.0% 100.0%

£189m £219m £408m

March quarter 2025 rent collection

Rent due between 25 March 2025 and 15 May 2025 Campuses

Retail &

London

Urban

Logistics Total

Received 98.6% 93.4% 95.9%

Outstanding 1.4% 6.6% 4.1%

Total 100.0% 100.0% 100.0%

£46m £51m £96m

Purchases

12 months to 31 March 2025 Sector

Price

(100%)

£m

Price

(BL Share)

£m

Annualised

Net Rents

£m

Completed

New Mersey Shopping Park, Speke (non-controlling interest) Retail Park 13 13 2

Southampton Road Retail Park, Salisbury Retail Park 23 23 2

M7 Portfolio (Three Assets)

Retail Park 47 47 4

Brookfield Portfolio (Two Assets)

Retail Park 158 158 11

Inshes Retail Park, Inverness Retail Park 28 28 2

Brookfield Portfolio (Seven Assets)

Retail Park 441 441 29

Orbital Retail Park, Cannock Retail Park 28 28 2

Total 738 738 52

1. British Land share of annualised rent topped up for rent frees

2. Enham Arch Retail Park, Andover; Queen’s Drive Retail Park, Kilmarnock; and St David’s Retail Park, Bangor

3. Orchard Centre, Didcot, and Cyfarthfa Shopping Park, Merthyr Tydfil

4. Elliott’s Field Shopping Park, Rugby; Central Retail Park, Falkirk; Wellington Retail Park, Waterlooville; Ravenhead Retail Park, St Helens; Cleveland Retail Park

Middlesbrough; Telford Forge Shopping Park, Telford; and Chilwell Retail Park, Nottingham. Annualised net rent based off NIY

Sales

12 months to 31 March 2025 Sector

Price

(100%)

£m

Price

(BL Share)

£m

Annualised

Net Rents

£m

Completed

Meadowhall Shopping Centre 720 360 26

New Century Park Land Other 2 2 –

Homebase Derby Retail Park 8 8 1

Tesco Plymouth Other 5 5 –

Homebase portfolio (Feltham, Frome & Reigate) Retail Park 37 37 3

Wells Street 19-23 West End 19 19 2

158-164 Bishopsgate Other 26 26 2

Woking Lion Retail Park Retail Park 40 40 2

2 Finsbury Avenue Joint Venture City 401 100 –

33-37 New George St Plymouth Other – – –

Exchanged

International House Standalone Office 23 23 –

Total 1,281 620 36

1. British Land share of annualised rent topped up for rent frees

OTHER INFORMATION (UNAUDITED)

215

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OTHER INFORMATION

Portfolio valuation by sector

1,2

As at 31 March 2025

Group

£m

Joint

Ventures

£m

Total

£m

FY Value

Growth

FY Value

Growth

£m

2025

Portfolio

Weighting

2024

Portfolio

Weighting

City 441 2,205 2,646 0.2 6 27.9 29.1

West End 1,572 525 2,097 (1.2) (25) 22.1 24.0

Other Campuses 228 377 605 (3.1) (19) 6.4 5.9

Residential

153 – 153 (5.4) (9) 1.6 1.8

Campuses 2,394 3,107 5,501 (0.8) (47) 58.0 60.8

Retail Parks 2,817 201 3,018 7.1 207 31.8 24.5

Shopping Centres 322 113 435 1.6 12 4.6 8.7

London Urban Logistics 324 – 324 (4.9) (17) 3.4 3.6

Other Retail 208 – 208 4.0 8 2.2 2.4

Retail & London

Urban Logistics 3,671 314 3,985 5.0 210 42.0 39.2

Total 6,065 3,421 9,486 1.6 163 100.0 100.0

Standing Investments 5,675 2,253 7,9 2 8 1.7 140 83.6 83.3

Developments 390 1,168 1,558 1.4 23 16.4 16.7

1. Property valuation as at 31 March 2025, including capital expenditure in the year. On a proportionally consolidated basis including the Group’s share of joint ventures

and excluding non-controlling interests

2. Valuation movement during the year (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

Annualised as at 31 March 2025

Accounting Basis £m Group

Joint

ventures Total

City 16 81 97

West End 61 17 78

Other Campuses 12 – 12

Residential 2 – 2

Campuses 91 98 189

Retail Parks 192 14 206

Shopping Centres 39 9 48

London Urban Logistics 8 – 8

Other Retail 14 – 14

Retail & London Urban Logistics 253 23 276

Total

344 121 465

On a proportionally consolidated basis including the Group’s share of joint ventures and excluding non-controlling interests

1. Annualised accounting rent as at 31 March 2025, which differs from the gross rental income seen in the year as a result of leasing activity, capital activity, properties

moving from and to development and other movements

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Portfolio net yields

1,2

As at 31 March 2025

EPRA

NIY

(%)

EPRA

TUNIY

(%)

Overall

TUNIY

(%)

EPRA

NEY

(%)

NEY

Movement

(bps)

EPRA

NRY

(%)

ERV

Growth

(%)

City Offices 3.9 4.2 4.3 5.5 14 6.0 6.0

West End Offices 4.5 4.8 4.8 5.7 14 6.4 3.1

Other Campuses 1.4 4.0 4.3 6.3 39 7. 3 (5.0)

Residential 1.0 1.2 1.2 5.5 n/a 5.9 5.5

Campuses 3.9 4.3 4.4 5.6 14 6.3 4.3

Retail Parks 6.1 6.6 6.7 6.4 (32) 6.4 6.0

Shopping Centres 8.1 8.7 8.9 8.4 (12) 8.6 4.4

London Urban Logistics 3.5 3.5 3.6 5.0 13 5.2 0.8

Other Retail 5.9 6.3 6.3 7.0 (48) 7.0 10.2

Retail & London Urban

Logistics 6.1 6.6 6.7 6.6 (27) 6.7 5.6

Total Portfolio 5.0 5.5 5.5 6.1 (4) 6.5 4.9

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 and fixed uplifts not in lieu of rental growth

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

6. As calculated by MSCI

Total property return (as calculated by MSCI)

12 months to 31 March 2025 Campuses

Retail & London

Urban Logistics Total

% British Land MSCI British Land MSCI British Land MSCI

Capital Return (0.1) (2.1) 6.0 3.1 2.3 1.5

ERV Growth 4.3 3.1 5.6 2.6 4.9 3.7

Yield Movement

14 bps 12 bps (27) bps (19) bps (4) bps (5) bps

Income Return 3.2 4.1 6.8 6.0 4.5 4.8

Total Property Return 3.1 1.9 13.2 9.3 6.9 6.4

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

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OTHER INFORMATION

Top 20 occupiers by sector

As at 31 March 2025

Share of Retail & London

Urban Logistics Rent

(%)

Next 5.2

M&S 4.8

Walgreens Boots Alliance 4.2

TJX (TK Maxx) 3.5

Currys 3.1

Kingfisher 3.1

JD Sports 2.7

DFS 2.6

Frasers Group 2.2

Matalan 2.1

J Sainsbury 1.8

Hutchison Whampoa 1.7

Pets at Home 1.6

River Island 1.4

Smyths Toys 1.4

Asda Group 1.3

SCS Properties 1.3

Tapi 1.2

Tesco 1.2

B&M 1.2

Total Top 20 47.6

1. Excludes occupiers who have entered administration or CVA

As at 31 March 2025

Share of

Campus Rent

(%)

Meta 12.8

Dentsu 5.1

Softbank 4.7

Reed Smith 4.6

Herbert Smith Freehills 3.8

SEFE Energy 3.4

Sumitomo Mitsui 2.9

TP ICAP 2.3

Janus Henderson 2.3

Interpublic Group 2.0

Bank of Montreal 1.9

Mayer Brown 1.9

Mimecast 1.6

Accor 1.6

Marex Spectron Group 1.6

Credit Agricole 1.6

Milbank LLP 1.4

Visa 1.4

Dimensional Fund Advisors 1.1

LGC Investments 1.1

Total Top 20 59.1

Lease length & occupancy

Average Lease Length (Yrs) Occupancy Rate (%)

As at 31 March 2025 To Expiry To Break

EPRA

Occupancy Occupancy

1,2,3

City 8.1 6.5 83.7 97.4

West End 6.1 5.0 89.0 96.4

Other Campuses 13.6 11.7 64.0 86.2

Residential 11.0 10.7 30.4 100.0

Campuses 7.6 6.2 82.5 96.5

Retail Parks 6.1 4.6 97.4 98.6

Shopping Centres 6.0 4.4 94.5 98.4

London Urban Logistics 2.9 2.3 100.0 100.0

Other Retail 7.7 6.2 96.9 96.9

Retail & London Urban Logistics 6.1 4.6 97. 1 98.6

Total 6.7 5.3 90.0 97.7

1. EPRA Occupancy vs Occupancy: Occupancy excludes recently completed developments at Norton Folgate, Aldgate, The Priestley Centre, The Optic and Dock Shed

at Canada Water

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 96.5% to 96.8% 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, then

the occupancy rate for Retail & London Urban Logistics would reduce from 98.6% to 97.4%, and total occupancy would reduce from 97.7% to 97.0%

218

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OTHER INFORMATION (UNAUDITED) CONTINUED

Valuation basis: annualised rent & estimated rental value (ERV)

Annualised rent (valuation basis)

£m

ERV

£m

Average rent

£psf

As at 31 March 2025 Group

Joint

ventures Total Total Contracted

ERV

City

13 75 88 130 61 69

West End

67 14 81 110 72 84

Other Campuses 6 – 6 20 37 41

Residential 2 – 2 9 37 60

Campuses 88 89 177 269 59 67

Retail Parks 189 13 202 216 22 20

Shopping Centres 39 9 48 51 23 20

London Urban Logistics 8 – 8 12 17 25

Other Retail 14 – 14 16 17 16

Retail & London Urban Logistics 250 22 272 295 21 20

Total 338 111 449 564 29 30

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 2025

2026

£m

2027

£m

2028

£m

2029

£m

2030

£m

2026-28

£m

2026-30

£m

City 29 4 1 14 5 34 53

West End 9 1 2 1 1 12 14

Other Campuses – – – – 1 – 1

Campuses 38 5 3 15 7 46 68

Retail Parks 16 19 11 15 13 46 74

Shopping Centres – 2 2 1 1 4 6

London Urban Logistics – – 1 – – 1 1

Other Retail 1 1 1 1 1 3 5

Retail & London Urban

Logistics 17 22 15 17 15 54 86

Total 55 27 18 32 22 100 154

On a proportionally consolidated basis including the Group’s share of joint ventures and excluding non-controlling interests, and excluding committed, near term and

assets held for development

Rent subject to lease break or expiry

For year to 31 March

As at 31 March 2025

2026

£m

2027

£m

2028

£m

2029

£m

2030

£m

2026-28

£m

2026-30

£m

West End 9 6 7 11 30 22 63

City 9 7 4 18 3 20 41

Other Campuses 1 1 1 1 – 4 5

Campuses 19 14 12 30 33 46 109

Retail Parks 37 29 26 27 27 91 146

Shopping Centres 6 8 9 7 5 23 34

London Urban Logistics 3 – 5 – – 7 7

Other Retail 2 1 1 – 1 5 6

Retail & London Urban

Logistics 48 38 41 34 33 126 193

Total 67 52 53 64 66 172 302

% of contracted rent 14 11 11 13 13 36 62

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

219

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Annual Report and Accounts 2025

OTHER INFORMATION

Recently completed & committed developments

As at 31 March 2025 Sector

100%

sq ft

‘000

Calendar

Year

Current

Value

£m

Cost to

come

£m

ERV

£m

Let &

under

offer

£m

Gross Yield

on Cost

Aldgate Place: Phase 2 Residential 100 148 Q2 2024 148 6 6.9 1.7 5.1

The Priestley Centre Science & Technology 100 86 Q2 2024 41 1 3.5 2.1 7.9

Norton Folgate Office 100 335 Q3 2024 381 20 26.3 14.6 5.5

Canada Water: Dock Shed

(Plot A2) Mixed Use 50 245 Q1 2025 51 8 5.6 – 6.9

The Optic Science & Technology 100 101 Q1 2025 70 2 4.5 4.5 6.3

Total Recently Completed 915 691 37 46.8 23.3 5.8

1 Broadgate Office 50 546 Q2 2025 310 47 20.2 17. 4 5.8

Canada Water: Plot A1

Mixed Use 50 264 Q2 2025 97 22 3.6 0.1 7.3

1 Triton Square Science & Technology 50 306 Q3 2025 210 38 17. 3 0.2 6.8

Mandela Way

London Urban

Logistics 100 144 Q3 2025 48 16 4.2 – 5.8

The Broadgate Tower Office 50 396 Q4 2026 149 73 18.5 6.0 8.3

2 Finsbury Avenue

Office 25 749 Q2 2027 115 134 19.7 6.2 7.8

Total Committed 2,405 929 330 83.5 29.9 7.0

On a proportionally consolidated basis including the Group’s share of joint ventures (except area which is shown at 100%)

1. From 31 March 2025. 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. Canada Water Plot A1 includes Three Deal Porters Way and The Founding

4. Pre-let & under offer excludes 121,000 sq ft of office space under option

5. 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

Near term development pipeline

As at 31 March 2025 Sector

100%

sq ft

‘000

Earliest

Start

on Site

Current

Value

£m

Cost to

come

£m

ERV

£m

Planning

status

1 Appold Street Office 50 404 Q1 2026 58 190 19.8 Consented

West One Office 25 92 Q1 2026 30 36 3.6 Consented

Verney Road London Urban Logistics 100 202 Q2 2026 28 83 7.7 Consented

Total Near Term 698 116 309 31.1

On a proportionally consolidated basis including the Group’s share of joint ventures (except area which is shown at 100%)

1. From 31 March 2025. 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)

220

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Annual Report and Accounts 2025

Medium term development pipeline

As at 31 March 2025 Sector

100%

sq ft

‘000 Planning Status

Euston Tower Office 100 563 Consented

5 Kingdom St Office 100 214 Consented

Botley Road Science & Technology 100 235 Consented

Hannah Close, Wembley London Urban Logistics 100 668 Pre-submission

The Box, Paddington London Urban Logistics 100 122 Consented

Finsbury Square London Urban Logistics 100 81 Pre-submission

Canada Water: Future Phases

Mixed Use 50 4,770 Outline Consent

Canada Water: Printworks (Plots H1 & H2) Mixed Use 50 387 Consented

Total Medium Term 7,040

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 British

Land 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),

13 years running. Selected data in the Sustainability Progress Report 2025 has been independently assured by DNV

inaccordance 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 82 to 85

Tenures of Non-Executive Directors page 96

Nominating and selecting the highest governance body Appointment process for new Directors page 95

Process for managing conflicts of interest Board procedure for managing conflicts of interest page 81

This year, full disclosure against the EPRA Sustainability Best Practice Recommendations

can be found in the Sustainability Progress Report 2025 at www.britishland.com/SPR

OTHER INFORMATION (UNAUDITED) CONTINUED

221

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Annual Report and Accounts 2025

OTHER INFORMATION

10-year record

The table below summarises the last ten years’ results, balance sheets and cash flows.

2025

£m

2024

£m

2023

£m

2022

£m

2021

£m

2020

£m

2019

£m

2018

£m

2017

£m

2016

£m

Summarised income statement

Gross rental income 484 476 493 493 509 560 576 613 643 654

Net rental income 439 440 446 425 359 478 532 576 610 620

Net fees and other income 25 23 18 13 11 13 10 15 17 17

Net financing charges (103) (108) (111) (102) (103) (111) (121) (128) (151) (180)

Administrative expense (82) (87) (89) (89) (74) (74) (81) (83) (86) (94)

Underlying Profit 279 268 264 247 193 306 340 380 390 363

Summarised balance sheets

Total properties at valuation

9,489 8,688 8,907 10,476 9,140 11,177 12,316 13,716 13,940 14,648

EPRA net debt (3,545) (3,178) (3,127) (3,397) (2,877) (3,854) (3,521) (3,973) (4,223) (4,765)

Other assets and liabilities (246) (258) (293) (273) (221) (110) (146) (183) (219) 191

EPRA NTA/NAV (fully diluted)

5,698 5,252 5,487 6,806 6,080 7, 2 1 3 8,649 9,560 9,498 10,074

Cash flow movement –

Grouponly

Cash generated from

operations 260 386 238 256 218 404 617 351 379 341

Other cashflows from

operations 10 23 2 (11) (69) (29) (4) 2 (16) (47)

Net cash inflow from

operatingactivities 270 409 240 245 149 375 613 353 363 294

Cash (outflow) inflow from

capital expenditure,

investments, acquisitions

anddisposals (853) (172) 326 (385) 910 (361) 187 346 470 230

Equity dividends paid (220) (213) (213) (155) (76) (295) (298) (304) (295) (235)

Cash inflow (outflow) from

management of liquid

resources and financing 772 (61) (339) 215 (1,022) 232 (365) (40 4) (538) (283)

(Decrease) increase in cash

(31) (37) 14 (80) (39) (49) 137 (9) – 6

Capital returns

Growth in net assets

8.5% (4.3)% (19.4)% 11.9% (15.7)% (16.6)% (9.5)% 0.7% (5.7)% 11.5%

Total accounting return 5.0% (0.5)% (16.3)% 14.6% (14.6)% (11.0)% (3.3)% 8.9% 2.7% 14.2%

Per share information

EPRA NTA/NAV per share

567p 562p 588p 730p 651p 774p 905p 967p 915p 919p

Memorandum

Dividends declared in the year 22.80p 22.80p 22.64p 21.92p 15.0p 16.0p 31.0p 30.1p 29.2p 28.4p

Dividends paid in the year 22.9p 23.2p 23.2p 16.96p 8.4p 31.5p 30.5p 29.6p 28.8p 28.0p

Diluted earnings

Underlying earnings per share 28.5p 28.5p 28.3p 27.0 p 18.0p 32.7p 34.9p 37.4 p 37. 8 p 34.1p

IFRS earnings (loss) per share 35.0p (0.1)p (112.0)p 103.5p (108.0)p (110.0)p (30.0)p 48.5p 14.7p 119.7p

1. Including share of joint ventures

2. Represents movement in diluted EPRA NTA in 2025 to 2021 and movement in diluted EPRA NAV from 2020 to 2016

3. Including surplus over book value of trading properties

4. Represents movement in cash and cash equivalents under IFRS

5. EPRA NTA is disclosed in 2025 to 2021 and EPRA NAV is disclosed from 2020 to 2016

6. EPRA NTA per share is disclosed in 2025 to 2021 and EPRA NAV per share is disclosed from 2020 to 2016

222

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Annual Report and Accounts 2025

OTHER INFORMATION (UNAUDITED) CONTINUED

Shareholder information

Analysis of shareholders – 31 March 2025

Number of

Number

of holdings %

Balance

as at

31 March

2025

1–1,000 3,114 5 7. 8 8 1,141,665 0.11

1,001–5,000 1,227 22.80 2,734,889 0.27

5,001–

20,000 373 6.93 3,692,880 0.37

20,001–

50,000 139 2.58 4,399,628 0.44

50,001–

highest 527 9.81 998,451,442 98.81

Total 5,380 100 1,010,420,504 100

Holder type

Individuals 4,403 81.84 8,731,267 0.86

Nominee

and

institutional

investors 977 18.16 1,001,689,237 99.14

Total 5,380 100 1,010,420,504 100

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:

Aspect House

Spencer Road

Lancing, West Sussex 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.

Equiniti is also the Registrar for the BLD Property Holdings

Limited Stock.

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 to

4.30pm, 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 financial

services

Website and shareholder communications

The British Land corporate website contains a wealth

ofmaterial 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

Honorary President

In recognition of his work building British Land into the

industry-leading company it is today, Sir John Ritblat was

appointed as Honorary President on his retirement from

the Board in December 2006.

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.

223

British Land

Annual Report and Accounts 2025

OTHER INFORMATION

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. If it sounds too good

to be true, it often is. 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

sameyear.

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 to

Tax Strategy at www.britishland.com/governance

224

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Annual Report and Accounts 2025

OTHER INFORMATION (UNAUDITED) CONTINUED

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

Principal Risks on pages 51 to 58 for a discussion of certain

of the 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 on the British Land

website 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 is

not a guarantee 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

information, 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.

CBP031071

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Environmental Management System certified to ISO 14001. This product

is made using recycled materials limiting the impact on our precious

forest resources, helping reduce the need to harvest more trees.

This publication has been manufactured using 100% offshore wind

electricity sourced from UK wind.

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

York House

45 Seymour Street

London

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www.britishland.com

BRITISH LAND Annual Report and Accounts 2025