British Land is the second largest property company in the UK with a market capitalisation of L3.68bn (31st March 2008). The company’s primary objective is to “produce superior, sustained and secure long-term shareholder returns” from management of their chosen real estate activities and their financing. This objective strives to maximise earnings per share in comparison to its competitors and achieves this through a focus on customer needs, with investment in prime assets in the office and retail sectors (British Land, 2008).
British Land’s strategy is to conduct asset specific repositioning in order to take advantage of customer demand and therefore meet customer needs enabling them to maintain secure long-term returns (British Land, 2008). However, the market conditions which initially impacted the business and finance sector have now affected sentiment throughout the economy leading to a reduction in tenant and investor activity. This has had a particularly strong impact on the property sector.
However, British Land is well positioned to weather the current economic storm. With 100% of net debt at fixed or capped interest rates, a low weighted average interest rate of 5.27% and an average debt maturity of nearly 15 years (British Land, 2008), British Land’s debt structure is a very big strength in the current market. As the company will not need to refinance large amounts of loans in the near future, has L2,500m undrawn committed facilities (British Land, 2008) and can maintain a low interest rate for the short to medium term, British Land are in a secure position to enable long-term returns.
British Land SWOT Analysis
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2010-04-06, 00:00
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2025-09-29, 16:57
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