British Land gives Hester good start

BRITISH LAND today gave its strongest indication yet of a return to good times in the City office letting market as it blooded its new chief executive.

Delivering a forecast-topping set of half-year results, his first figures since taking over as chief executive barely a fortnight ago, Stephen Hester said: 'It is my aim to help the company build on its fine and distinctive record for the future.'

However, chairman John Ritblat, who split his dual role as chief executive after a long tussle with minority shareholders, made it clear he is not stepping back from his hands-on approach to running the company he founded.

Immediately after welcoming Hester as his chief executive successor, he addressed investors with the simple phrase: 'We have split the roles and I am remaining as chairman of the company.'

Ritblat focused on the company's performance since 31 March, in which the highlight has been 'demand for our new developments, mainly in the City'.

A raft of major lettings pushed up British Land's net asset value per share 8.6% to 1049p, 20p above analysts' estimates, as the group's net assets rose £400m to £5.48bn.

The new lets raised the value of the City of London offices portfolio by 3.2%, accounting for £110m of the value increase. Retail warehouses rose 9% in value, representing £125.9m of the increase. Pre-tax profits rose 15.1% to £74.8m.