![img-0.jpeg](img-0.jpeg) British Land ANNUAL REPORT AND ACCOUNTS 2026 --- ![img-1.jpeg](img-1.jpeg) # PLACES PEOPLE PREFER This year British Land celebrates: # 170 YEARS since incorporation in 1856 ## Presentation of financial information The financial statements for the year ended 31 March 2026 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, no new standards or amendments have been applied to the financial statements for the first time for the year ended 31 March 2026. As such, the accounting policies used are consistent with those contained in the Group's previous Annual Report and Accounts for the year ended 31 March 2025. 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. 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 191 for reconciliations, in addition to Note 2 of 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 READ MORE about our approach to sustainability on our website at www.britishland.com --- British Land Annual Report and Accounts 2026 # WHAT'S INSIDE THIS REPORT ## Strategic Report 2 Highlights and key performance indicators (KPIs) 4 British Land at a glance 6 Chair's statement 7 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 81 Board of Directors 84 Report of the Environmental Social Governance Committee 88 Report of the Nomination Committee 93 Report of the Audit Committee 100 Directors' Remuneration Report 115 Directors' Report and additional disclosures 118 Statement of Directors' Responsibilities ## Financial Statements 120 Independent auditors' report 127 Primary statements and notes 179 Company balance sheet 191 Supplementary disclosures 198 Other information (unaudited) 204 EPRA best practice recommendations on sustainability reporting 205 10-year record 206 Shareholder information ![img-2.jpeg](img-2.jpeg) CAMPUSES FUND OF THE ACADEMY ![img-3.jpeg](img-3.jpeg) --- British Land Annual Report and Accounts 2026 # HIGHLIGHTS AND KPIS ## FINANCIAL HIGHLIGHTS | Underlying EPS (diluted) | Dividend per share | EPRA NTA per share | Refinance date | | --- | --- | --- | --- | | 28.9p 2025: 28.5p | 23.12p 2025: 22.80p | 590p 2025: 567p | 2029 2025: 2028 | | IFRS EPS (diluted) | IFRS profit after tax | IFRS net assets | Senior unsecured credit rating | | 45.3p 2025: 35.0p | £454m 2025: £338m | £5,932m 2025: £5,710m | A 2025: A | ![img-4.jpeg](img-4.jpeg) ## OPERATIONAL HIGHLIGHTS Leasing activity 3.8m sq ft 2025: 3.3m sq ft ERV growth 4.9% 2025: 4.9% Gross capital activity £0.5bn 2025: £1.7bn Occupancy¹ 97% 2025: 98% 1. Occupancy excludes space under offer or subject to asset management initiatives and recently completed developments. --- British Land Annual Report and Accounts 2026 STRATEGIC REPORT # FINANCIAL KPIs Links to remuneration: LTR Long Term Incentive Plan AR Annual Incentive Plan | Underlying Profit AR | Net Debt to EBITDA (Group) | Loan to value (proportionally consolidated) | | --- | --- | --- | | £294m 2025: £279m | 7.7x 2025: 8.0x | 39.2% 2025: 38.1% | | Total property return LTR AR | Total shareholder return LTR | Total accounting return LTR | | 7.4% 2025: 6.9% | 1.8% 2025: (1.0)% | 8.1% 2025: 5.0% | # NON-FINANCIAL KPIs | GREENER SPACES | THRIVING PLACES | RESPONSIBLE CHOICES | | --- | --- | --- | | GRESB rating AR | Direct social value generated | Staff engagement | | 5* GRESB for Development and Standing Investments 2025: 5* | £8.8m 2025: £11.3m | 64% 2025: 79% | | Total portfolio EPC rated A or B¹ AR | Number of social impact beneficiaries | Ethnicity pay gap | | 75% 2025: 68% | 12,999 2025: 18,500 | 17.4% 2025: 20.0% | | Reduction in whole building operational energy intensity² LTR | Value of affordable space provided | Gender pay gap | | 24% 2025: 19% | £1.5m 2025: £1.2m | 6.9% 2025: 13.6% | | → READ MORE on page 37 and at www.britishland.com/SPR | → READ MORE on page 40 and at www.britishland.com/SPR | → READ MORE on page 42 and at www.britishland.com/SPR | 1. Measured by ERV. 2. Managed portfolio since FY19. --- British Land Annual Report 2014-2015, 2016 # BRITISH LAND AT A GLANCE Our purpose of Places People Prefer is delivered by creating and managing 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 thrive. ## OUR PORTFOLIO Our portfolio of high quality UK commercial property is focused on office-led campuses in Central London and retail parks across the UK. We own or manage a portfolio valued at £15.8bn (British Land share: £10.1bn). ![img-5.jpeg](img-5.jpeg) - Campuses £5.9bn - Retail & London Urban Logistics £4.2bn → BUSINESS REVIEW from page 18 --- British Land Annual Report and Accounts 2026 ![img-6.jpeg](img-6.jpeg) ## WHAT WE DO We are a diversified real estate business and invest in subsectors with strong occupational fundamentals, where we can leverage our strengths to generate an income focused 8-10% total accounting return (TAR) through the cycle. ![img-7.jpeg](img-7.jpeg) ## BUSINESS MODEL from page 14 ## 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. → SUSTAINABILITY REVIEW from page 36 ## Total shareholder return (as at 31 March 2026) | 1 year | 1.8% | | --- | --- | | 3 years | 10.2% | | 5 years | (7.9)% | → CHIEF EXECUTIVE'S REVIEW from page 7 --- British Land Annual Report and Accounts 2026 # CHAIR'S STATEMENT ![img-8.jpeg](img-8.jpeg) William Rucker Chair "Whilst we remain cognisant of the volatile geopolitical environment, the business is well placed with quality assets, an experienced team and a value-add mindset. The Board continues to assess how best the business can continue to scale and grow, in a disciplined way." Dear shareholders, In what has been an active year and strong occupational market, your Board has continued to support the disciplined delivery of our strategy, as the market leader in London campuses and retail parks around the UK. This year in particular, occupational markets have continued to move our way, and I'm pleased that our focus on two core sectors with strong occupational fundamentals has delivered income focused total accounting returns within our target 8-10% range. It is clear to me that our subsector focus, clear equity story, and attractive returns outlook, underpinned by sustainable earnings growth, is resonating with investors. Whilst we remain cognisant of the volatile geopolitical environment, the business is well placed with quality assets, an experienced team and a value-add mindset. As your company celebrates its 170th anniversary, having been founded in 1856, I am struck by how it has continued to evolve. As part of this, I have once again enjoyed engaging with shareholders throughout the year and ensured that their views and thoughts are brought into the boardroom. As we deliver against our plan, the Board also continues to consider how best the business can grow in a disciplined and value-accretive way, ensuring we remain relevant to customers, investors and partners. The acquisition of Life Science REIT plc, completed in April 2026, is a clear example of this. While modest in scale relative to the Group's overall portfolio, the transaction was both strategically and financially compelling, and we expect it to generate excellent relative value for shareholders over the coming years. During the year, Simon Carter notified the Board of his intention to step down as CEO to take up the same role at P3 Logistics Parks, a major European developer backed by Singaporean wealth fund GIC. I would like to thank him for the significant contribution made during his tenure of over 18 years, with the last five years as CEO. Under his leadership, British Land has successfully repositioned its portfolio and strategy, leaving the business well placed for its next phase of growth. The Board is well progressed in a comprehensive search for a successor and is focused on appointing a leader with the experience and strategic capability to continue to deliver our strategy and long term value for shareholders. Meanwhile, Simon and the Executive team have continued to operate effectively and with momentum, as set out in this Report. At the Board level, I was delighted to welcome Raj Shah as Non-Executive Director in January 2026. Raj brings extensive investment experience in science focused companies through his private equity background, which will be invaluable as we develop exceptional spaces at the intersection of technology, AI and medicine, as exemplified by our Regent's Place campus, and particularly One Triton Square which has performed so well for us this year. On related matters, following 11 years on the Board, Lynn Gladden has decided to step down from the end of the 2026 annual general meeting (AGM), and we will miss her strategic counsel, humour and impeccable judgement. You can read more about our Board's skills, committees and activity in the year on pages 76 to 83. Our performance is a result of the hard work and dedication of the British Land team, and the ongoing support of shareholders and partners. On behalf of the Board, I would like to express gratitude to both. With strong momentum in our core sectors, a focused strategy and an experienced team, we enter the year ahead with confidence in our ability to deliver sustainable shareholder value. ![img-9.jpeg](img-9.jpeg) William Rucker Chair --- British Land Annual Report and Accounts 2026 STRATEGIC REPORT # CHIEF EXECUTIVE'S REVIEW ![img-10.jpeg](img-10.jpeg) Simon Carter Chief Executive "We are well positioned in these tightening markets, with the scale, quality and a value-add mindset to deliver sustainable EPS growth of 3-6% per annum and 8-10% total returns across the cycle." # Overview Our London campuses and retail park portfolio across the UK are market leading in both scale and quality. These are markets seeing strong net absorption with constrained supply which translated into a record year of leasing and delivery of strong ERV growth, like-for-like net rental growth and an attractive earnings outlook. Across London the return to the office debate is over and occupiers continue to expand. There is a new wave of demand from high growth AI and innovation-led businesses for whom our campus offering particularly resonates. On retail parks, existing and new retailers are expanding into this preferred out-of-town format, attracted by their lower occupational costs, good accessibility, and growing footfall. Supply remains highly constrained and rents remain affordable in both markets, supporting further rental growth. ERV growth for the year was 4.9%, at the top end of our 3-5% guidance range. Alongside stable yields, portfolio values grew 2.3%, with growth evenly distributed across both sectors. This, alongside earnings performance ahead of guidance, resulted in a total accounting return of 8.1%. Across the portfolio leasing performance reflects the strength of the occupational fundamentals, completing 3.8m sq ft of deals, 7.2% ahead of ERV. We have continued to lease up vacancy across our London campuses, much of which is newly delivered space, whilst maintaining high levels of occupancy on standing investments across our three core London assets. At Broadgate we have set new rents for the campus and signed Herbert Smith Freehills Kramer at Broadgate's newest development, 1 Appold Street. Across London there is new demand from AI and innovation-led businesses from which our Regent's Place campus, in the heart of London's Knowledge Quarter, is well-placed to benefit. One Triton Square is a prime example of this, where lease up of the building has been accelerated by this new incremental demand taking the building to 94% let within seven months of launch. In retail parks, our portfolio remains virtually full, with 99% occupancy across our c.1,200 unit portfolio and we have seen an acceleration of leasing ahead of previous passing rents in the second half of the year, with deals on average 6.3% ahead of previous passing in H2. We delivered Underlying earnings per share (EPS) of 28.9p with like-for-like net rental growth of 6%. This, coupled with development leasing, and a reduction in administrative costs, more than offset higher finance costs. In our trading update on 21 April 2026 we increased Underlying EPS guidance for FY27 from at least 30.2p to at least 30.5p, reflecting the completion of the acquisition of Life Science REIT. With inflation likely to increase in the near term, we have looked back on how the British Land portfolio has performed since the invasion of Ukraine in 2022. Over this period, reflecting our focus on well-located, high-quality assets in supply-constrained markets ERV growth has tracked inflation and we have delivered total shareholder returns in the top-quartile of the FTSE 350 Real Estate Index. Importantly, conditions in our markets are tighter today than they were in 2022 with vacancy c.300 bps lower for prime London offices and retail parks. Against this backdrop, we expect to outperform inflation over the medium term, supported by ERV growth of 3-5% per annum. Whilst geopolitical and macroeconomic uncertainty remains, our market leading positions in sectors with the strongest occupational fundamentals, combined with our value-add approach and expert team, gives us confidence in our ability to deliver 8-10% total accounting return through the cycle, underpinned by sustainable EPS growth of 3-6% per annum. --- British Land Annual Report and Accounts 2026 # CHIEF EXECUTIVE'S REVIEW CONTINUED ## Operational update Operationally the business performed very well over the year, with leasing activity building to a particularly active fourth quarter, which accounted for approximately half of total campus leasing for the year. Across the campuses, we completed 1.7m sq ft of leasing at 6.3% ahead of ERV and 20.0% ahead of previous passing rent. 1.1m sq ft of new deals were completed with renewals and regears accounting for the balance. Activity was concentrated at Broadgate and Regent's Place where newly delivered and good existing space attracted strong demand. Norton Folgate also leased well and is now 94% let or under offer. Campus occupancy ended the year at 95%, with EPRA occupancy at 91%. Market conditions remain favourable, with limited availability of high-quality space and sustained occupier demand supporting rental growth and we finished the year with a further c.0.3m sq ft under offer, 17.0% ahead of ERV. Activity continued to be strong in the six weeks post year end with a further 228k sq ft going under offer and viewing levels remain elevated. Our retail parks are virtually full at 99% occupancy, being the format of choice for many retailers. We completed c.1.5m sq ft of leasing in the year, 9.0% ahead of ERV. Leasing spreads strengthened through the year and, with the portfolio now largely re-based to market rents, future ERV growth is expected to translate more directly into income progression. Deals were 3.4% ahead of previous passing rent for the year, with an acceleration in H2 with deals 6.3% ahead. Occupier demand remains good with a further c.0.5m sq ft under offer at 10.4% ahead of ERV and 12.5% ahead of previous passing rent. ![img-11.jpeg](img-11.jpeg) ## Strategy In 2021 we set out a value-add strategy focused on segments with the strongest occupational fundamentals. Our strategy is delivering because it is built on two core strengths: - Market leading positions, both in scale and quality, in sectors with the strongest occupational fundamentals, namely London campuses and retail parks; and - Active, hands-on asset management, enabling us to capture reversion and drive income growth. We believe performance is driven by great execution and, in this vein, our platform, expertise and focus on asset management position us well to outperform. ## Campuses ### Resetting the office debate The outlook for office demand continues to be debated, particularly in the context of rapid advances in AI. Much has been written about the impact of AI on white-collar jobs. There are different schools of thought. On the one hand, will this be like previous waves of technological change, the computer, the smartphone, where new jobs were created faster than old ones disappeared, with associated productivity gains? Or will it be different this time? The reality is that nobody knows for sure, but as ever we will stay very close to our customers to be the first to understand what is happening. In the meantime, I think we can say that soft skills will be at a premium, and a new generation of companies will want the best physical environments for those skills to flourish - the type of space we provide on our campuses. Looking at the facts as they are today, net absorption of space (one of the best indicators of the health of demand) is at its strongest level since records began, while in 2025 four times as many businesses across London were expanding as downsizing. Looking forward, despite ongoing macroeconomic and political volatility, a clear return-to-office trend has driven demand to 57% above the long-term average and under offers as at March 2026 are 50% higher year on year. Professional and financial services occupiers also continue to expand in London, reinforcing London's position as the leading financial centre in Europe. Firms including Citadel, Jane Street and JPMorgan have all committed to significant new office space, with financial services occupiers continuing to drive prime rental growth across London submarkets. Alongside demand from AI and innovation-led businesses, this supports a broad-based and resilient market for high-quality space. Demand from AI and innovation-led companies is particularly strong: we have seen this build through the year and we are tracking 2.5m sq ft of active requirements. These occupiers are looking to establish or expand their presence in London, with its attractive and dynamic workforce, often following significant leasing activity in the US, particularly in the San Francisco Bay Area, which recently reported 3.8m sq ft of leasing in Q1 2026, its highest quarter of leasing since 2014. 1. Cushman & Wakefield 2. Savills 3. Knight Frank --- British Land Annual Report and Accounts 2026 We are seeing this first-hand across our campuses. Anthropic, for example, has continued to expand at Regent's Place. It has now signed its sixth deal with British Land, taking 158,000 sq ft at One Triton Square, expanding its space in London more than 20x in less than 12 months. Science and Technology occupiers now represent 35% of our campus rent roll (pro forma for the Life Science REIT acquisition), up from 23% in 2024. ## London is facing a supply crunch This demand is meeting a supply crunch. Development starts have reduced across London driven by sentiment around hybrid working, higher construction costs, higher yields and more demanding return requirements. Across London it is estimated that there is a 10.4m sq ft shortfall of new or substantially refurbished space to 2030.¹ This is particularly acute in the City, where vacancy for new and refurbished space is forecast to fall below 2% and remain there for the next four years.¹ Historically, such conditions have supported strong rental growth at around 10% per annum.² ## Why our campuses win The scale and flexibility of the campus model allows businesses to expand over time, access adjacent space, and benefit from a dense cluster of like-minded occupiers, amenities and transport connectivity, all of which are critical for successful businesses. All of our campuses are well placed to benefit from the innovation demand in London, particularly Regent's Place given its location in the Knowledge Quarter, surrounded by leading institutions like The Francis Crick Institute, University College London, University College London Hospital and The Alan Turing Institute. Our campuses provide high-quality real estate in prime London locations, with a wide range of amenity and public spaces. Rents remain affordable relative to salary levels, and the offer continues to resonate with occupiers. We estimate we are capturing a disproportionate share of what is a strong market. We represent around 5% of the London office market but accounted for 15% of total leasing recorded last year, and 33% of the last quarter.¹ Our differentiated product offering also enables us to capture growth while actively managing covenant risk. We offer a range of space, from flexible, fitted and work-ready through to traditional HQ, allowing us to support occupiers at every stage of their growth. This is particularly important when targeting high-growth businesses. Through our Storey platform, which we have operated for almost nine years, we provide fitted space on short leases, with minimal incentives, supported by rental deposits. This structure allows us to manage risk effectively, while retaining the upside from fast-growing occupiers. Although we have seen very few failures, when they have occurred generic fitouts have enabled rapid re-letting, minimising downtime, often to the period covered by rent deposits. By combining flexibility with discipline, we are able to attract a broad range of occupiers, capture a disproportionate share of demand and translate this into sustainable rental growth. ## Retail Parks Our decision in 2021 to increase our exposure to retail parks is continuing to deliver. Since then, we have increased the portfolio from 15% of the Group to 32% today and in that time retail parks have been the best performing subsector in UK real estate. Our portfolio has delivered a total property return of 12.3% per annum, outperforming the wider retail park sector by 410 bps over the last five years. ## Three "A's" continue to drive demand **Affordability**: The affordability proposition of parks remains compelling. The occupancy cost ratio (rent, rates and service charge as a share of sales) has halved from 18% in 2016 to around 9% today and at these rental levels a very broad range of retailers can trade profitably. With footfall and sales continuing to grow, this supports further rental growth. We have also seen a c.5% decline in business rates across our parks since 1 April 2026. While rateable values have increased, this has been offset in many areas by a reduction in the multiplier, providing a small benefit for our retailers. **Accessibility**: Parks are highly accessible, located on major arterial routes on the edges of towns and cities. With generous free parking, they are well suited for click-and-collect, returns, and ship from store. **Adaptability**: Finally, the adaptability of a retail park unit, which is essentially a simple steel framed "box", offers flexibility to retailers at comparatively low cost, especially when contrasted with the difficulty and expense of reworking high street or shopping centre units. This also enables click and collect and in-store fulfilment as the retailers are able to easily adapt these boxes to provide more back of house space to be used as a local distribution centre. Demand remains robust, with retailers continuing to expand on parks as well as several new entrants coming into the retail park format. The result is low market vacancy on retail parks at 3% in contrast to shopping centres at 9% and the high street at 13%. Looking back over time there is a strong correlation between market vacancy and rental growth, with rents growing when vacancy falls below 5%. Today our retail parks have just 1% vacancy, and delivered 4.4% ERV growth in the year. ## Limited new supply of retail parks expected We can currently acquire retail parks significantly below their replacement cost, and therefore any material new supply is unlikely to make economic sense. Only 1% of new supply has been added to the market over the past five years and planning constraints, particularly as local authorities seek to protect high streets, provide an additional barrier to development. Consequently, with demand and affordability remaining strong and the supply picture constrained, we expect strong rental growth. 1. Knight Frank 2. Cushman & Wakefield 3. Trevor Wood / MSCI 4. MSCI 5. Trevor Wood --- British Land Annual Report and Accounts 2026 # CHIEF EXECUTIVE'S REVIEW CONTINUED ## Market leadership driving performance We are one of the UK's leading owner and operator of retail parks, with a portfolio of scale serving catchments covering around half of the UK population within a 30-minute drive. Our market leading position, combined with deep retailer relationships and operational expertise, enables us to capture rental growth and source attractive investment opportunities. Our occupancy is now 99%, and we delivered 4.4% rental growth over the last 12 months. Importantly the over rent that emerged post Covid has largely burned off through market rental growth, and in the second half we leased space 6.3% ahead of previous passing rents. ## Investment market The strength of the London office and retail park occupational markets led to increased investor interest in these sectors as the year progressed. However, the macroeconomic backdrop has become more uncertain since March, with elevated interest rates and heightened geopolitical tensions, which will likely impact sentiment in the near term. Investment activity in London's office market strengthened over 2025, with volumes increasing materially to approximately £9bn, up 52% on 2024.¹ Larger lot size transactions returned, with over 57% of transactions above £100m in 2025 compared to 29% in 2024,¹ reflecting confidence in occupational fundamentals. Encouragingly, core and institutional capital was also returning to the market, supported by stabilising yields and improved debt market conditions. The impacts of recent events in the Middle East are likely to result in a pause in the recovery as investors seek more visibility on cost of capital, however, ultimately it will be occupational fundamentals that determine investor appetite and liquidity for prime London offices. Retail parks continue to attract a broad range of investors, underpinned by their strong income characteristics, affordability and low capital expenditure requirements. In 2025 c.£2.7bn of UK retail parks transacted across 90 deals, broadly in line with the 10-year average.² Investor demand remains supported by a diverse mix of UK and international capital. Many institutional investors are looking for high quality parks with limited asset management and a strong covenant backed cash flow. These parks are attracting tight yields. However, given our active approach to asset management and strong retailer relationships we tend to focus on higher-yielding opportunities with more occupational risk on entry. We then utilise our expertise to deliver the asset management required and drive future returns. ## Capital allocation Active recycling of capital is an important way we create value and one of the levers of future earnings growth within the business. We dispose of mature assets where we have completed our asset and development management activities and redeploy capital into opportunities with higher returns, ahead of our cost of capital. Today, we see the strongest fundamentals and most attractive returns in retail parks and best-in-class developments on our campuses. Such deployment is tested against the returns and EPS accretion available from other uses of capital such as share buybacks. We will continue to be rigorous in our assessment of the use of any surplus proceeds. Strong occupational fundamentals, low capital expenditure requirements, pricing below replacement cost, 7%+ day-one cash yields and growing rents continue to make retail parks an attractive investment. Our leading scalable platform means that when we acquire retail parks, minimal additional overheads are required to operate more assets. Retail parks now make up 32% of our portfolio, up from 15% when we set out our strategy in 2021. Development on our campuses remains a key driver of long term value creation but requires discipline in the current environment. While higher build and funding costs limit viability in many locations, opportunities remain compelling in core markets where supply is extremely constrained. We are advancing developments on a de-risked and capital-light basis, securing major pre-lets, achieving a high degree of cost certainty at commitment, and partnering with others to accelerate delivery and enhance returns. We are also opportunistic in seeking inorganic growth where it enhances earnings. The acquisition of Life Science REIT, which completed on 20 April 2026, is a clear example, providing access to quality assets in key innovation clusters at an attractive valuation. The transaction is immediately earnings accretive and is expected to deliver 0.3p of EPS accretion in FY27, with further upside to come from leasing newly delivered space and capturing reversion in future years, while importantly being NTA per share neutral. We have made good initial progress since the acquisition, including repaying the legacy debt with cheaper British Land facilities, integrating the five assets into our portfolio with minimal incremental cost, and have 56k sq ft of leasing under offer on newly delivered space at Oxford Technology Park. Our resilient balance sheet, alongside the diversity and duration of sources of finance underpins this approach, providing flexibility to invest through the cycle. Loan to value (LTV) on a proportionally consolidated basis was 39.2% at 31 March 2026 (38.1% at 31 March 2025) and Group Net Debt to EBITDA was 7.7x (8.0x at 31 March 2025). We consider these metrics through the cycle and are comfortable with their level at this point; they will reduce over time through valuation and earnings growth, and recycling capital from mature assets. Post year end we have exchanged or are under offer on £176m of asset sales and are in active negotiations on a number of other disposals. Based on our policy of setting the dividend at 80% of Underlying EPS, the Board have proposed a final dividend of 10.80p, bringing the total dividend for the year to 23.12p. 1. Knight Frank 2. CBRE --- British Land Annual Report and Accounts 2026 STRATEGIC REPORT # Attractive total return profile and outlook Our market leading position in sectors where demand is healthy, supply is constrained, and rents are affordable, combined with the quality of our assets, our experienced team and our value-add approach, provides for an attractive total return profile. We target total accounting returns of 8-10% through the cycle and we achieved an 8.1% return this year. Our total return profile is underpinned by a sustainable annual EPS growth of 3-6%. This is driven by our five levers of earnings growth, and the indicative building blocks are: - Like-for-like rental growth, where delivering in the middle of our guided range of 3-5% translates through to c.5% EPS growth p.a. when applied to our gross standing assets - Growing fee income by 10% p.a. delivers c.1% EPS p.a. - Our continued focus on cost control means that we expect to deliver further administrative cost savings to fully offset inflationary pressures over the medium term - We expect a continued gradual increase in finance costs towards market rates, at c.10-20 bps p.a., which reduces EPS by c.2% p.a. over the next few years Taking these items together, this delivers an indicative core EPS growth rate of c.4%. Further upside to deliver at the top end of the range at 6% then comes from capital activity, be that via developments or recycling capital, and whilst the timing and phasing will vary year to year: - Future development commitments, for example £200m of completions p.a. at a c.2% spread to funding costs, delivers c.1% EPS growth - And £300m of capital recycled at a c.1% spread (i.e. sales at c.6% yield, purchases at c.7% yield), would deliver a further c.1% EPS growth Looking ahead to FY27, while macroeconomic and geopolitical uncertainty remains, given the occupational strengths of our markets we expect to deliver at the top end of our like-for-like net rental growth range of 3-5%. This, alongside continued focus on cost control, near term visibility into development lease up, and the acquisition of Life Science REIT, means we expect Underlying EPS of at least 30.5p (previously at least 30.2p). ![img-12.jpeg](img-12.jpeg) --- British Land Annual Report and Accounts 2026 # OUR PORTFOLIO Our portfolio of high quality UK commercial property is focused on office-led campuses in Central London and retail parks across the UK. We own or manage a portfolio valued at £15.8bn (British Land share: £10.1bn). # OFFICE-LED CAMPUSES IN CENTRAL LONDON (58% OF TOTAL PORTFOLIO BY VALUE) ## 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% ![img-13.jpeg](img-13.jpeg) ## 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 one of London's leading science, technology and AI clusters. Size: 13 acres Ownership: 100% (except One Triton Square 50:50 JV with Royal London Asset Management) ## Broadgate The City of London's premier campus, with excellent connectivity, next to Liverpool Street Station and the Elizabeth Line. Its proximity also 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) ## % of total portfolio by value | Broadgate | 25% | | --- | --- | | Regent's Place | 17% | | Paddington Central | 3% | | Other | 13% | Science & Technology, including AI, is our largest occupier sector and represents **35%** of our campuses' rent roll (pro forma for the acquisition of Life Science REIT) --- British Land Annual Report and Accounts 2026 STRATEGIC REPORT # RETAIL AND LONDON URBAN LOGISTICS INCLUDING 56 RETAIL PARKS (42% OF TOTAL PORTFOLIO BY VALUE) ## % 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 56 parks representing c.10% of the retail park market. Parks are the preferred format for many retailers due to their affordability, adaptability and accessibility. ![img-14.jpeg](img-14.jpeg) ![img-15.jpeg](img-15.jpeg) ## London Urban Logistics We own six development-led urban logistics sites in Zone 1 of London and within the M25. Our pipeline has the potential to deliver best-in-class logistics space in a highly constrained market. In the meantime, the portfolio continues to generate good rental income. ## 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. --- British Land Annual Report and Accounts 2026 # BUSINESS MODEL We are a diversified real estate business and invest in subsectors with strong occupational fundamentals, and therefore 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. ## OUR STRENGTHS ARE: - **Portfolio of high quality assets** Our office-led campuses in London appeal to a broad range of businesses looking for high quality space in core locations. We are one of the largest owners and operators of retail parks in the UK. - **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. ## OUR LEVERS OF EARNINGS GROWTH: | LIKE-FOR-LIKE GROWTH | | --- | | FEE INCOME | | CAPITAL RECYCLING | | COST CONTROL | | DEVELOPMENTS | SUPPORTED BY OUR VALUES: DELIVER AT PACE BE SMARTER TOGETHER --- British Land Annual Report and Accounts 2026 15 STRATEGIC REPORT → READ MORE About how we create value for our stakeholders on page 16 → READ MORE About how our approach to risk underpins our strategy on pages 47 to 58 → READ MORE About how our approach to remuneration aligns with our strategy on pages 100 to 114 THIS FEEDS INTO HOW WE MANAGE THE BUSINESS TO CREATE VALUE FOR ALL OUR STAKEHOLDERS: We target acquisitions in our chosen subsectors as well as development opportunities. SOURCE VALUE-ADD OPPORTUNITIES INCOME FOCUSED 8-10% TOTAL ACCOUNTING RETURN THROUGH THE CYCLE We actively sell mature assets to crystallise returns and reinvest capital into opportunities where we can drive stronger returns through development or asset management. DEVELOP AND ACTIVELY MANAGE 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. BRING YOUR WHOLE SELF BUILD FOR THE FUTURE LISTEN AND UNDERSTAND --- British Land Annual Report and Accounts 2026 # STAKEHOLDER ENGAGEMENT | Our investors The people and institutions who own British Land shares or debt holders | Outcomes: **45%** of share register met and 188 investor meetings completed | **10.2%** 3-year total shareholder return | | --- | --- | --- | | What matters to them? - Financial performance and returns - Strong balance sheet and disciplined capital allocation - Clear strategy and business model - Leading ESG performance - Risk management - Strong leadership | How we engage - Meetings and video calls - Roadshows, conferences, investor seminars, asset tours, capital markets days and debt investors presentations - Regulatory reporting | Priorities for 2026/27 - Incoming CEO engagement with key investors - Continued open and engaged dialogue with investors - Delivering against our strategy - Strong balance sheet and disciplined approach to capital allocation | | Our customers The users of our buildings and spaces | Outcomes: **3.8m sq ft** of space leased in the year including 1.8m sq ft of regears | **80%** of customers stated BL are 'the best' or 'better than most' other providers | | What matters to them? - High quality, well-connected, sustainable and safe space that fulfils their needs - Fair and appropriate lease terms - Property management and maintenance - Affordability, adaptability and accessibility | How we engage - Regular dialogue with customers - Annual customer satisfaction surveys to gain insight - Customer networks across our campuses | Priorities for 2026/27 - Partner of choice for headquarter office space - High levels of customer retention - Upgrade buildings to meet shared environmental objectives with customers | | Our joint venture partners Institutions we partner with, usually where we share ownership, returns and risk | Outcomes: **11** key joint venture partners, including with sovereign wealth and large pension funds | **£3.7bn** value of assets in joint ventures | | 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 and working groups - Assess performance, progress and agree future objectives - Regular joint venture reporting | Priorities for 2026/27 - Leverage our strong joint venture relationships - Generate fee income growth - Bring in further partners to accelerate development delivery in a capital-light way | --- British Land Annual Report and Accounts 2026 17 STRATEGIC REPORT # Section 172 statement: Understanding our stakeholders is critical to the long term success of our business. Regular engagement helps to shape our strategy and ultimately informs our decisions so that we can deliver outstanding places and positive outcomes for our stakeholders. The nature of our business means that we have a continuous dialogue with a wide group of stakeholders 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 pages 78 to 79. | Our people Everyone employed by British Land | Outcomes: | | | --- | --- | --- | | | 64% employee engagement score | 81% employees proud to work at British Land | | What matters to them? - Diverse and inclusive culture with strong leadership - Career progression and development opportunities - Fair pay and reward - Flexible working arrangements - Ethical business | How we engage - Internal communications channel - Regular team meetings and half yearly appraisals - Annual employee engagement survey - Regular workforce culture/ engagement sessions with NEDs - Biennial Company Conference - Employee networks | Priorities for 2026/27 - Leadership and management training - Ongoing professional development - Enhance digital skills - Further evolve a performance- orientated culture | | Our communities and local authorities People who live in and around our places; local organisations and enterprises | Outcomes: | | | | £28.1m direct social and economic value generated in the year | 12,999 people benefitting from social impact partnerships | | What matters to them? - Collaboration and engagement on local initiatives - Long term and trusted relationships - Places that foster social connections and enhance wellbeing - Providing a relevant mix of services such as education, jobs and space | How we engage - Local Charter - Social Impact Fund and Customer Community Funds - Local programmes such as employment opportunities - Local networks - Expert volunteering | Priorities for 2026/27 - Impactful use of our spaces by small local businesses and community organisations - Educational initiatives for local people - Supporting local talent essential to the UK's growth industries | | Our suppliers and partners Those who have a direct contractual relationship with us to provide goods and services | Outcomes: | | | | 100% of suppliers signed up to the Supplier Code of Conduct | Achieved Living Wage Employer accreditation | | What matters to them? - Long term, collaborative, trusted relationships - New business opportunities - Fair commercial and payment terms - Aligned objectives and values | How we engage - Rigorous onboarding and tendering process - Supplier Code of Conduct | Priorities for 2026/27 - Work with suppliers who align with our values and ESG targets - 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). | --- British Land Annual Report and Accounts 2026 # BUSINESS REVIEW ![img-16.jpeg](img-16.jpeg) Kelly Cleveland Head of Real Estate and Investment The value of the portfolio was up 2.3%, as yields remained stable and positive valuation performance was driven by strong ERV growth of 4.9%, at the upper end of our guidance range. Campus valuations increased by 2.0% for the year, with yields broadly stable and ERV growth of 6.5%. This outperformance relative to ERV guidance reflects the strength of leasing activity during the year, supported by very tight supply in prime London locations. Across both our City and West End portfolios, values increased, supported by healthy ERV growth of 7.5% and 6.2% respectively. Campus valuations were partially offset by weaker performance at Canada Water and our residential development in Aldgate, reflecting softer yields in the London residential market offset by progress on leasing. Retail values performed well with values up across retail parks and shopping centres. The value of our retail park portfolio was up 3.3%, continuing the momentum from FY25 where values rose 7.1%. Yields remained broadly stable, tightening by 4 bps, with values driven by further ERV growth of 4.4%, reflecting sustained occupier demand and the portfolio now being largely rack rented. The value of our shopping centres increased by 4.2%, as yields tightened 19 bps following increasing investor demand for the sub-sector, and ERVs grew 2.7%. In other retail, values were flat as ERV growth of 1.7% was offset by outwards yield shift of 24 bps as a result of yield movement at Woolwich, both on the high street and residential elements held. The retail portfolio outperformed the MSCI All Retail benchmark by 210 bps on a total return basis for the year to 31 March 2026, whilst our campuses outperformed the MSCI benchmark for All Offices by 90 bps. Overall, our portfolio outperformed the MSCI All Property total return index by over 180 bps. London urban logistics values were down 3.2% as the ERVs were adjusted to reflect recent deals closed and softer market-wide occupier sentiment. ## Key metrics | As at | 31 March 2026 | 31 March 2025 | | --- | --- | --- | | Portfolio valuation | £10,062m | £9,486m | | Occupancy^{1,2} | 96.9% | 97.7% | | Weighted average lease length to first break | 5.4 yrs | 5.3 yrs | | Total property return | 7.4% | 6.9% | | – Yield shift | -4 bps | -4 bps | | – ERV movement | 4.9% | 4.9% | | – Valuation movement | 2.3% | 1.6% | | Lettings/renewals (sq ft) over 1 year | 3.4m | 2.8m | | Lettings/renewals over 1 year vs ERV | +7.2% | +8.6% | | Gross capital activity | £492m | £1,729m | | – Acquisitions | £94m | £738m | | – Disposals | £(106)m | £(597)m | | – Capital investment | £292m | £394m | | Net investment/(divestment) | £280m | £535m | On a proportionally consolidated basis including the Group's share of joint ventures. 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 96.9% to 96.5%. 2. Occupancy excludes completed developments in the previous 12 months. --- British Land Annual Report and Accounts 2026 19 # Portfolio performance | At 31 March 2026 | Valuation £m | Valuation movement % | | | ERV movement % | Yield shift bps | Total property return % | Net equivalent yield % | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | H1 | H2 | FY | | | | | | Campuses | 5,852 | 0.9 | 1.1 | 2.0 | 6.5 | -4 | 5.5 | 5.6 | | City | 2,968 | 2.6 | 2.3 | 4.9 | 7.5 | -3 | 8.9 | 5.4 | | West End | 2,173 | (0.9) | 1.1 | 0.2 | 6.2 | -9 | 3.8 | 5.5 | | Canada Water & other Campuses (incl. resi) | 711 | (0.2) | (3.3) | (3.6) | 0.9 | +18 | (2.0) | 6.3 | | Retail & London Urban Logistics | 4,210 | 1.6 | 1.1 | 2.7 | 3.6 | -4 | 10.1 | 6.6 | | Retail Parks | 3,193 | 1.5 | 1.8 | 3.3 | 4.4 | -4 | 10.7 | 6.4 | | Shopping Centres | 481 | 2.3 | 2.0 | 4.2 | 2.7 | -19 | 16.4 | 8.4 | | Other Retail | 203 | 4.2 | (4.1) | (0.1) | 1.7 | +24 | 5.6 | 7.4 | | London Urban Logistics | 333 | - | (3.2) | (3.2) | (4.3) | -1 | 0.2 | 5.0 | | Total | 10,062 | 1.2 | 1.1 | 2.3 | 4.9 | -4 | 7.4 | 6.0 | > **READ MORE** > in the supplementary tables for detailed breakdown which start on page 198 # Capital activity | From 1 April 2025 | Campuses £m | Retail & London Urban Logistics | | Total £m | | --- | --- | --- | --- | --- | | | | £m | £m | | | Purchases | - | 94 | 94 | | | Sales | (55) | (51) | (106) | | | Development Spend | 183 | 16 | 199 | | | Capital Spend | 68 | 25 | 93 | | | Net Investment | 196 | 84 | 280 | | | Gross Capital Activity | 306 | 186 | 492 | | On a proportionally consolidated basis including the Group's share of joint ventures. ![img-17.jpeg](img-17.jpeg) In line with the strategy to recycle capital from mature assets into higher-returning opportunities, we acquired £94m of retail assets, at a topped-up net initial yield of 7.2% and disposed of £106m of assets at a 2.9% net initial yield. Acquisitions included three fully let high-quality retail parks, two fully let retail units adjacent to our SouthGate scheme in Bath and our JV partner's 50% stake in Eden Walk. £106m of disposals were achieved at 4% ahead of March 2025 book value. Key sales included the non-income producing development opportunity at International House, Ealing and residential sales proceeds at Canada Water following completion of the site in early 2026. We also sold Newport Harlech Retail Park at the end of the year following the completion of its business plan, with the regear of the superstore anchor on the site. £292m was invested into our best-in-class development pipeline and asset management initiatives on the standing portfolio at a blended gross yield on cost of c.7%. Post year end we have exchanged or are under offer on £176m of asset sales and are in active negotiations on a number of other disposals. Also post year end we completed the immediately earnings accretive acquisition of Life Science REIT, comprising five assets located within the Golden Triangle, which we expect to generate FY27 net rental income of £18m, rising to a stabilised annual £25m of net rental income through the lease up of newly delivered space and capturing reversion. The acquisition was funded through the issue of 24.5m new shares and £49m in cash. --- 20 British Land Annual Report and Accounts 2026 # CAMPUSES Portfolio valuation £5,852m Leasing 1.7m sq ft Of deals signed ![img-18.jpeg](img-18.jpeg) --- British Land Annual Report and Accounts 2026 21 # BUSINESS REVIEW CONTINUED ## Key metrics | As at | 31 March 2026 | 31 March 2025 | | --- | --- | --- | | Portfolio valuation | £5,852m | £5,501m | | Occupancy¹ | 94.7% | 96.5% | | Weighted average lease length to first break | 6.3 yrs | 6.2 yrs | | Total property return | 5.5% | 3.1% | | – Yield shift | -4 bps | +14 bps | | – ERV growth | 6.5% | 4.3% | | – Valuation movement | 2.0% | (0.8)% | | Total lettings/renewals (sq ft) | 1,692,000 | 1,500,000 | | Lettings/renewals (sq ft) over 1 year | 1,552,000 | 1,193,000 | | Lettings/renewals over 1 year vs ERV | +6.3% | +7.5% | | Like-for-like rental growth² | +12% | +2% | On a proportionally consolidated basis including the Group's share of joint ventures. 1. Occupancy excludes recently completed developments. 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 growth would be +12% (FY25: +1%). ## Campuses operational review Leasing volumes across our campuses are the highest in over a decade as occupiers continue to expand their footprint across London with activity focused at Broadgate and Regent's Place. Lettings and renewals (including Storey) totalled 1,692,000 sq ft, 6.3% ahead of ERV. Campus leasing was elevated in the year as we filled vacancy in the standing portfolio, progressed the lease up of recently completed developments and secured significant pre-lets on committed developments. The weighted average lease length to break is 6.3 years and the weighted average lease length of deals in the year is 8.6 years. As at 31 March 2026, we had a further 295,000 sq ft under offer, 17.0% ahead of ERV. In the six weeks post year end we have gone under offer on a further 228,000 sq ft and viewing levels continue to be strong. Take-up of space from AI and innovation-led businesses is increasing across London and particularly so in the Knowledge Quarter around Regent's Place. These businesses are scaling at pace in London similar to the expansion seen on the West coast of the US. Leasing at One Triton Square, owned jointly with Royal London Asset Management, reflects this, with leasing velocity ahead of initial expectations since launching in October 2025, and the building is now 94% let. Occupiers include Anthropic, Gilead Sciences and Humanoid alongside other leading global pharmaceutical, AI and tech companies. Occupancy on our campuses is 95%, down 180 bps since 31 March 2025, which excludes refurbishments and new developments, following inclusion of Dock Shed. EPRA occupancy has increased 8 ppts to 91% as we have leased newly delivered and refurbished space such as Norton Folgate which is now 94% let or under offer. Virtually all remaining vacant office space is new or recently refurbished and given robust demand, shortage of supply and ongoing negotiations, we expect to make further progress on letting vacancy in FY27. Overall, leasing was 20.0% ahead of previous passing rent. This, combined with the improvement in our EPRA vacancy, delivered strong like-for-like rental growth of +12%, with 2 ppts of this delivered through the lease up of Norton Folgate. Campuses were valued at £5.9bn at 31 March 2026, up 2.0%, driven by continued ERV growth of 6.5%, ahead of our guided range of 3-5%. ## Broadgate Broadgate's prime location next to Liverpool Street station and on the Elizabeth line, combined with best-in-class workspace, high-quality amenities and a vibrant public realm, continues to attract strong occupier demand. The campus has seen significant leasing volumes in the year, reflecting sustained demand for prime, well-located product and is virtually full with occupancy at 99%. The newly developed top floor at 1 Broadgate was the only vacant office space at 31 March 2026 and subsequently moved under offer post year end. Leasing activity (excluding Storey) covered 907,000 sq ft, of which 866,000 sq ft were long term deals, 5.8% ahead of ERV, including: - A 21-year lease agreement with global law firm Herbert Smith Freehills Kramer for 268,000 sq ft of office space at 1 Appold Street, with options to take a minimum of 238,000 sq ft or expand up to 360,000 sq ft. The deal takes the building to 60% pre-let at a minimum. - 222,000 sq ft of deals at 201 Bishopsgate, extending the leases of Janus Henderson and Mayer Brown to 2033, highlighting the limited supply of larger floor plates in the City and the attraction of remaining on the Broadgate campus. - 50,000 sq ft letting at Exchange House, securing a new letting to MSCI whilst taking a surrender premium from Columbia Threadneedle Investments. MSCI will occupy the surrendered floor alongside previously vacant space with rents increasing by £35 psf. - 70,000 sq ft of new deals completed at Broadgate Tower including deals to Sigma Computing, Oxera Consulting and ClearBank, on a mix of traditional and fitted ("Work Ready") space. - 41,000 sq ft regear with Sumitomo Mitsui Trust Bank at 155 Bishopsgate, underscoring demand from the core financial services sector. - 40,000 sq ft rent review at 100 Liverpool Street, as the leases in the building reached their first review. Following the strong rental growth seen across the campus since 2020 these leases are being agreed significantly ahead of previous rents. - 27,000 sq ft of retail and F&B deals, including deals under offer, at 1 Broadgate (Broadgate Central). New stores include Boots Fragrance, Molton Brown, The Salad Project and Sandwich Sandwich. Broadgate Central is now 93% let or under offer. Reflecting this strong activity, Broadgate saw a valuation increase of 4.2%, driven by ERV growth of 9.2% and yield compression of 2 bps. --- British Land Annual Report and Accounts 2026 BUSINESS REVIEW CONTINUED # UNLOCKING VALUE THROUGH REPOSITIONING ![img-19.jpeg](img-19.jpeg) One Triton Square One Triton Square is a strong example of how we deploy our development, investment and leasing expertise to create a best-in-class Science and Technology scheme that unlocks value and drives earnings growth. In 2023, many viewed the decision to agree a £149m surrender payment from Meta as a signal that London office demand was weakening and that remote working was becoming the norm. Based on the demand data we were seeing, and conversations with business leaders about the desire to return to the office, we disagreed. Following the surrender, we established plans for c.£120m of capital expenditure to reposition the building as a Science and Technology hub at Regent's Place campus. The scheme was expected to deliver rents significantly in excess of those payable under the Meta lease. Other investors also recognised the building's potential and, in March 2024, we agreed a joint venture with Royal London Asset Management. This transaction saw us receive £192.5m for a 50% stake in the asset, allowing us to share expertise while further de-risking the project for British Land. The building was officially launched in October 2025 and today is 94% let, supported by strong and growing demand from Science and Technology occupiers. Based on progress to date, we expect to deliver an overall IRR in excess of 20% from the point of surrender to full lease-up, unlocking both earnings and value growth for shareholders. # Regent's Place Activity at Regent's Place has been concentrated at One Triton Square following the delivery of the scheme in October 2025. The building has reinforced the campus' position as a science and technology hub, with strong demand from innovation businesses seeking to capitalise on its location within London's Knowledge Quarter. The campus benefits from proximity to world-leading academic and research institutions, including University College London, The Wellcome Trust, The Alan Turing Institute and The Francis Crick Institute. Leasing activity (excluding Storey) covered 329,000 sq ft, of which 324,000 sq ft were long term deals, 11.9% ahead of ERV, including: - 208,000 sq ft of space let at One Triton Square (excluding Storey space) to leading science and technology occupiers, including 158,000 sq ft let to Anthropic, who currently occupy 30,000 sq ft at 338 Euston Road, and 50,000 sq ft to global biopharmaceutical company Gilead Sciences. - 32,000 sq ft lease renewal with Elexon at 350 Euston Road as they extend their stay at the campus to 2038. - Relation Therapeutics, an end-to-end biotech business developing transformational medicines, doubling its space at 338 Euston Road to 14,000 sq ft after initially taking 6,000 sq ft in 2022. - 11,000 sq ft letting to Sierra Technologies at 20 Triton Street, joining other AI-led occupiers in the building including Synthesia AI. Values at Regent's Place were down 0.1% as ERV growth of 6.9% and inward yield shift of 11 bps were offset by a negative movement in H1 due to revised cost assumptions on future development opportunities at the campus. Occupancy at the campus is 93%. # Paddington Central Paddington Central's location next to Paddington station with connectivity across London via the Elizabeth line and Heathrow Express, continues to attract and retain global occupiers looking for London HQ space. Occupancy remains high at 99%. Given the high occupancy, leasing activity was primarily focused on our Storey product in 2 and 4 Kingdom Street. The key non-Storey deal in the year was a 15-year, 10,000 sq ft letting to PureGym at 3 Sheldon Square. Paddington Central saw valuations decline 1.5%, as ERV growth of 4.6% was offset by outward yield shift of 7 bps reflecting latest market transactional evidence. 1 Sheldon Square saw the biggest decline as the asset moves towards a vacant possession value as we near Visa vacating the building at the end of 2028 following 26 years in occupation. # Storey: flexible office space Storey remains an important component of the campus offer and provides the flexibility for customers to expand and contract quickly and cost-efficiently. 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. --- British Land Annual Report and Accounts 2026 23 STRATEGIC REPORT # ANTICIPATING CUSTOMER NEEDS ![img-20.jpeg](img-20.jpeg) One of the key advantages of a British Land campus is the ability for customers to evolve over time. Our leasing teams work closely with occupiers to ensure they have the right space for their current needs, while retaining flexibility to accommodate future growth or contraction. By controlling a cluster of buildings with a range of floorplates, we can offer space that suits businesses at every stage of their journey. This may include smaller companies taking their first flexible or fitted space, with longer-term ambitions to move into a dedicated 20,000 sq ft floorplate, confident that British Land can support their future requirements. Equally, it may involve a large organisation seeking a London headquarters of more than 100,000 sq ft. We are seeing this flexibility and ability to scale in action across our campuses. At Regent's Place, Anthropic has continued to expand its presence, signing its sixth deal with British Land during the year and taking 158,000 sq ft at One Triton Square. In less than 12 months, the business has increased its London footprint with us by more than 20x, demonstrating how the campus model can support rapid growth by providing access to adjacent, high-quality space within a well-connected innovation cluster. Regent's Place is particularly well positioned to benefit from this demand given its location within the Knowledge Quarter, surrounded by leading academic and research institutions. This flexibility alongside the work of our leasing and asset management teams, enabled us to retain this exciting growth occupier at our campus, whilst reinforcing the position of Regent's Place as a science and technology hub. Storey is currently operational across 374,000 sq ft (5% of our campuses portfolio) and leasing activity covered 152,000 sq ft across 47 deals. Occupancy is at 94%, including space recently delivered at Norton Folgate and Broadgate Tower, above our target of 90%, with premiums of 20%+ ahead of traditional net effective rents. # Canada Water The first phase of the Masterplan is now complete and includes 245,000 sq ft of offices at Dock Shed and Three Deal Porters, 186 new homes at The Founding and 79 affordable homes at 7 Roberts Close. It also includes new restaurants, a leisure centre for Southwark Council, and significant enhancements to the public realm such as the revitalised Canada Dock. Office space at the campus is seeing enquiries from a range of businesses seeking new workspace at a more competitive price point than the traditional core markets of the City and West End. We currently have 3,000 sq ft under offer and 50,000 sq ft in active negotiations on the space. At The Founding, 57 residential apartments have been sold to date at an average price of c.£1,200 psf. In March 2026 a Section 73 application, which was submitted in response to major regulatory changes and sector-wide cost and viability challenges, was approved by the Mayor of London's office. The approval sees an increase in height and massing of the residential buildings, the introduction of alternative living uses, increased flexibility across plots and changes to the delivery of affordable housing. The revised Masterplan commits to providing 20% affordable housing in the next phase of development (minimum 9% overall across the Masterplan). The valuation of Canada Water declined 6.9% in the year, reflecting market conditions, the latest leasing and sales progress at the site, and the revised development programme. Looking ahead, the next phases of the Masterplan are likely to have a higher living uses component and be more capital light for British Land. This will likely include partnering with or selling plots to residential and student developers to accelerate returns. A key advantage of the Canada Water planning consent is its flexibility, which allows us to adapt our plans in line with changing market conditions. We intend to leverage this flexibility as we progress the scheme. --- British Land Annual Report and Accounts 2026 # RETAIL AND LONDON URBAN LOGISTICS Portfolio valuation £4,210m Retail park leasing ahead of previous passing rents 3.4% ![img-21.jpeg](img-21.jpeg) --- British Land Annual Report and Accounts 2026 25 # Key metrics | As at | 31 March 2026 | 31 March 2025 | | --- | --- | --- | | Portfolio valuation | £4,210m | £3,985m | | - Of which Retail Parks | £3,193m | £3,018m | | - Of which Shopping Centres | £481m | £435m | | - Of which London Urban Logistics | £333m | £324m | | Occupancy¹ | 99.0% | 98.6% | | Weighted average lease length to first break | 4.7 yrs | 4.6 yrs | | Total property return | 10.1% | 13.2% | | - Yield shift | -4 bps | -27 bps | | - ERV growth | 3.6% | 5.6% | | - Valuation movement | 2.7% | 5.0% | | Total lettings/renewals (sq ft) | 2,100,000 | 1,766,000 | | Lettings/renewals (sq ft) over 1 year | 1,850,000 | 1,577,000 | | Lettings/renewals over 1 year vs ERV | +8.4% | +10.5% | | Like-for-like rental growth² | +2% | +5% | On a proportionally consolidated basis including the Group's share of joint ventures. 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 99.0% to 98.3%. 2. Like-for-like rental growth excludes the impact of surrender premia, CVAs & admins and provisions for debtors and tenant incentives. # Retail & London Urban Logistics operational review Leasing momentum continued into the second half of the year and total volumes by area were c.20% ahead of the prior year. 2,100,000 sq ft of lettings and renewals were signed in the year, 8.4% ahead of March 2025 ERV, with a further 838,000 sq ft under offer, 10.3% ahead of ERV. Weighted average lease length of new deals is 6.9 years. Occupancy was maintained at 99% and like-for-like rental growth was 2% for the year supported by a near-full and largely rack-rented retail park portfolio that is well positioned to capture future reversion. Values increased by 2.7%, with retail parks up 3.3%, shopping centres up 4.2%, other retail flat and London urban logistics values down 3.2%. ERV growth was 3.6% driven by continued growth in retail parks, which delivered 4.4% rental growth, towards the top end of our ERV growth guidance of 3-5%. # Retail Parks Retail parks continue to be the format of choice for many retailers and demand remains robust. We signed 1,544,000 sq ft of deals in the year, 9.0% above ERV and importantly 3.4% ahead of previous passing rents. Leasing against previous passing rent accelerated in the second half of the year, at 6.3%, as we have now worked through the previous overrent in the portfolio. ![img-22.jpeg](img-22.jpeg) We continued to be acquisitive in the retail park market this year, with the team actively screening a wide range of opportunities. Our investment team works closely with our retail park leasing and asset management teams, leveraging long-standing retailer relationships to identify where value can be unlocked. This includes detailed analysis of trading performance and the overall attractiveness of each park to occupiers. Our scale and depth of retailer insight allow us to take on greater occupational risk than many other investors, who typically seek assets with limited asset management requirements. In November 2025, we acquired Turbury Retail Park for £27m, representing a net initial yield of 7.4%. While some investors were deterred by the relatively high tenant covenant risk profile, we identified an opportunity to actively manage the asset. Within the first month of ownership, we increased rents through lease renegotiations with an existing occupier, improving the yield to 7.7%. We were also able to assess additional covenant risk given the confidence we had in future demand for space at the park, supported by discussions with potential occupiers. These retailer relationships enable us to underwrite opportunities more competitively than peers who lack the same level of insight and conviction around occupational risk. --- British Land Annual Report and Accounts 2026 # BUSINESS REVIEW CONTINUED Our parks remain virtually full with occupancy at 99%, and a 89% retention rate for those with breaks or expiries in the year. Key leasing activity in the year included: - 85,000 sq ft with Tesco, securing an extension of the key grocery anchor at Newport Harlech Retail Park, ahead of disposal. - UK omni-channel retailers continue to see the benefit of a significant and growing retail park footprint and we completed 79,000 sq ft across four deals with Marks & Spencer, two of which are new stores. We also had a further 96,000 sq ft let or under offer to Next across nine parks, including two new stores. - 29,000 sq ft of renewals with Boots and 36,000 sq ft of deals with Superdrug, underscoring continued demand from leading health and beauty retailers. We also have a further 10 deals under offer with these retailers as they continue to trade well on our parks. - Six new lettings with Wingstop covering 22,000 sq ft as the popular eatery opens on our parks for the first time. - 17,000 sq ft across three deals with Skechers, as the brand expands its UK retail park footprint. - Established seven new EV charging stations across our parks generating income on previously non-income-producing parking spaces. ## Shopping Centres Our remaining shopping centres have continued to perform well, as we have maintained a high level of occupancy at 99% whilst improving the retailer line up. We have completed 315,000 sq ft of deals, 22.7% ahead of ERV and 4.4% below previous passing rents. One of our largest shopping centre exposures is now Bath Southgate, an uncovered mall, where the cash flow characteristics are closer to that of a retail park than a traditional, covered shopping centre, due to lower maintenance costs. During the year M&S successfully opened a new store at the asset, which saw a significant increase in footfall post the launch. ## London Urban Logistics Our urban logistics strategy is development led, focused on densification and repurposing opportunities in London. In the year we delivered our first development scheme, Southwark Urban Logistics (Mandela Way), building a 144,000 sq ft urban logistics scheme in London's Zone 2. The development completed on time and on budget and this multi-storey logistics facility is the first of its kind in Central London. It is set across four floors, serviced by five heavy goods lifts and three separate cargo bike lifts, with ample loading space at ground level. Post year end we are pleased to have put 29,000 sq ft in the building under offer to a technology-led manufacturing business. Despite being development led, many of the assets are income producing today and we continue to ensure the schemes are well-let and completed 92,000 sq ft of leasing with a further 90,000 sq ft under offer at year end. Deals included the letting of a vacant unit at Heritage House Enfield to AIT Home Delivery following Waitrose vacating the unit last year. Our London urban logistics portfolio has embedded development optionality, and we remain positive about the long term supply demand dynamics of the sub-sector. We can progress those schemes when the time is right, but given the sub-sector is cyclically weaker today, we are currently prioritising capital allocation towards retail park acquisitions and best-in-class office developments. --- 27 STRATEGIC REPORT # DEVELOPMENTS - Committed pipeline - 1.6m sq ft - Committed development ERV - f64m ![img-23.jpeg](img-23.jpeg) --- British Land Annual Report and Accounts 2026 ![img-24.jpeg](img-24.jpeg) David Lockyer Head of Development ## Developments | At 31 March 2026 | Sq ft '000 | Current Value £m | Cost to Complete £m | ERV £m | ERV Let & Under Offer¹ £m | | --- | --- | --- | --- | --- | --- | | Committed | 1,645 | 489 | 328 | 64 | 29 | | Near term | 126 | - | 17 | - | - | | Medium term | 6,269 | 612 | 3,636 | 249 | - | | Total pipeline | 8,040 | 1,101 | 3,981 | 313 | 29 | On a proportionally consolidated basis including the Group's share of joint ventures (except area which is shown at 100%). 1. Pre-let & under offer excludes space under option and includes deals up to 15 May 2026. Developments remain a key driver of long term value creation, with development profit providing additional upside to reach the top end of our total accounting return targets. We approach developments with discipline, ensuring schemes are suitably de-risked via pre-lets, fixed priced construction contracts and bringing in joint venture partners where appropriate to stretch the balance sheet and enhance returns. New schemes must meet the required risk-adjusted return hurdles, set against our weighted average cost of capital. These hurdles are IRRs of 12-14% for campuses and mid-teens for London urban logistics, with gross yield on cost targets above 7%. As we continue to operate in supply-constrained markets, we are securing higher rents, and our new developments are exceeding these hurdles. Following the recent commitment to 1 Appold Street and West One we are currently on site with 1.6m sq ft of space, delivering £64m of ERV, of which 45% is already let or under offer. Total development exposure is now 3.3% of portfolio gross asset value. Speculative exposure, which is based on ERV and includes space under offer is 5.0% and is within our internal risk parameter of 12.5%. ## Completed Developments We completed four developments totalling 1.3m sq ft in the last 12 months. 1 Broadgate reached practical completion in July 2025 and offers 547,000 sq ft of the highest quality, sustainable mixed use space in London, including best-in-class workspace and 48,000 sq ft of retail and leisure space. The office space was largely pre-let to JLL and A&O Shearman and we are under offer on the remaining top floor. The retail and leisure space on the ground and lower ground floor opened in November 2025 with a range of retailers in occupation including Luca Faloni, Ralph Lauren and Vagabond. At Regent's Place, One Triton Square was pivoted to focus on the AI and innovation-led demand we have seen accelerate across London. The building, owned jointly with Royal London Asset Management, is in London's Knowledge Quarter and leasing velocity has exceeded expectations since its launch. Anthropic, one of the world's leading AI companies, have let 158,000 sq ft, with the building now 94% let. Our first logistics scheme completed in Southwark in September, offering 144,000 sq ft of space across four storeys. 29,000 sq ft is currently under offer to a technology-led manufacturing business, and we are having encouraging conversations on the remaining space. The final buildings of Phase 1 of the Canada Water Masterplan completed in Q1 2026 and comprise of The Founding and Three Deal Porters. The Founding is a 35-storey building offering 186 luxury apartments of which 57 are currently sold. Three Deal Porters is a mixed use building comprising of ground-floor retail and five floors of workspace. The market has been subdued for space outside of core locations. However, given the lack of supply in the core, this is now increasing and we are seeing higher viewing numbers at the site. ## Committed Developments Our committed pipeline stands at 1.6m sq ft and is gradually decreasing as we deliver schemes into a supply-constrained office market. At Broadgate, the joint venture is progressing three best-in-class office developments, well positioned to capitalise on the highly favourable supply and demand dynamics in the City. Broadgate Tower is due to complete at the start of 2027, 2 Finsbury Avenue in mid-2027 and 1 Appold Street in early 2029. All three schemes are scheduled to deliver into a period of exceptionally limited supply of new and refurbished space, supporting strong rental growth prospects and attractive returns. ## Completed Developments | As at 31 March 2026 | Sector | BL Share % | 100% sq ft '000 | PC Calendar Year | ERV £m | | --- | --- | --- | --- | --- | --- | | 1 Broadgate | Office | 50 | 547 | Q3 2025 | 20.4 | | Southwark Urban Logistics | London Urban Logistics | 100 | 144 | Q3 2025 | 4.2 | | One Triton Square | Science & Technology | 50 | 317 | Q4 2025 | 15.7 | | Canada Water: Plot A1¹ | Mixed use | 50 | 264 | Q1 2026 | 3.0 | | Total completed | | | 1,272 | | 43.3 | 1. Canada Water Plot A1 includes Three Deal Porters and The Founding. --- British Land Annual Report and Accounts 2026 STRATEGIC REPORT # Committed Developments | As at 31 March 2026 | Sector | BL Share % | 100% sq ft '000 | PC Calendar Year | ERV £m¹ | Gross Yield on Cost%² | | --- | --- | --- | --- | --- | --- | --- | | 2 Finsbury Avenue | Office | 25 | 749 | Q2 2027 | 20.3 | 7.8 | | Broadgate Tower | Office | 50 | 394 | Q1 2027 | 18.6 | 8.2 | | 1 Appold Street | Office | 50 | 408 | Q1 2029 | 21.4 | 7.8 | | West One | Office | 25 | 94 | Q1 2029 | 3.7 | 7.4 | | Total committed | | | 1,645 | | 64.0 | 7.9 | 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. Broadgate Tower is a major refurbishment rather than a new build, enhancing the building through significant investment in amenity, including a new pavilion. The scheme is designed to appeal to occupiers seeking high quality space at a more accessible price point than new-build developments. Leasing progress has been strong, with 59% already let or under offer. At 2 Finsbury Avenue, our flagship new development, we are delivering a best-in-class tower with large, flexible floorplates, particularly across the lower podium. The scheme is c.50% let or under option and we are targeting further pre-letting activity at higher rents during FY27, with leasing of the upper tower floors expected closer to completion. During the year, the Broadgate joint venture committed to 1 Appold Street on a largely de-risked basis. The scheme is fully pre-let or under option for the office space to Herbert Smith Freehills Kramer, alongside a pre-let to a gym operator for the 48,000 sq ft leisure offer. Construction is well underway, with completion targeted for 2029. We would expect to bring in an additional partner to further de-risk the scheme and accelerate returns, like at our 2 Finsbury Avenue development. Alongside our partner Norges, we committed to the development of West One in March 2026. The scheme is mixed-use and located directly above Bond Street station on Oxford Street. It will deliver best-in-class office space on the upper levels of the building with new high quality ground level retail facades. ## Near Term Pipeline Our near term pipeline totals 0.1m sq ft of affordable housing at Canada Water that was agreed with the Greater London Authority for phase 2 of the scheme as part of the wider Section 73 application, which was approved in March 2026. This will be a capital commitment of £17m and reflects a significant reduction in overall affordable housing to be delivered at the scheme, unlocking opportunities to release further capital from the scheme. ## Medium Term Pipeline Our medium term pipeline covers 6.3m sq ft. It includes Euston Tower, where we have planning consent for a 568,000 sq ft office and innovation tower in London's Knowledge Quarter; three urban logistics developments totalling 1.0m sq ft, such as Verney Way (close to our recently completed Southwark scheme) and The Box at Paddington Central; and the future phases of the Canada Water Masterplan. ![img-25.jpeg](img-25.jpeg) ## DEVELOPMENT WITH DISCIPLINE In February, the Broadgate joint venture committed to the redevelopment of 1 Appold Street (to be known as 8 Exchange Square). Alongside this commitment, a pre-let was agreed with Herbert Smith Freehills Kramer for a minimum of 60% of the building, with an option to take up to 100% of the office space. A construction contract was also signed with Skanska. This commitment demonstrates our disciplined, de-risked approach to London development. Our leasing team secured a significant pre-let, establishing a new rental tone for the Broadgate campus. At the same time, our development team leveraged long-standing relationships and worked closely with Skanska to agree a design-and-build contract for the base build, delivering a high degree of cost certainty. This approach provides greater certainty over future returns, with the scheme expected to generate a gross yield on cost above 7.5% and a mid-teen IRR. --- British Land Annual Report and Accounts 2026 # FINANCIAL REVIEW ![img-26.jpeg](img-26.jpeg) David Walker Chief Financial Officer "Our financial performance this year demonstrates the benefit of our model – focused on sectors with strong occupational fundamentals." | Year ended | 31 March 2026 | 31 March 2025 | | --- | --- | --- | | Underlying Profit1,2 | £294m | £279m | | Underlying earnings per share1,2 | 28.9p | 28.5p | | IFRS profit after tax | £454m | £338m | | Dividend per share | 23.12p | 22.80p | | Total accounting return1 | 8.1% | 5.0% | | EPRA Net Tangible Assets (NTA) per share1,2 | 590p | 567p | | IFRS net assets | £5,932m | £5,710m | | Loan to value3,4 | 39.2% | 38.1% | | Net Debt to EBITDA (Group)3,5 | 7.7x | 8.0x | | Weighted average interest rate4 | 3.9% | 3.6% | | Senior Unsecured credit rating | A | A | 1. See Note 2 to the financial statements for definition and calculation. 2. See Table B within the supplementary disclosures for reconciliations to IFRS metrics. 3. See Note 16 to 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. 5. Net Debt to EBITDA on a Group basis excludes joint venture borrowings and includes distributions and other receivables from joint ventures. # Overview: A good financial performance Our financial performance this year demonstrates the benefit of our model – focused on sectors with strong occupational fundamentals. 90% of our portfolio is in campuses and retail parks, where demand was strong through the year, while supply remained tight. In our best-in-class, office-focused campuses these positive market fundamentals were compounded by increased demand from AI and innovation businesses. As a result, we leased well across the portfolio including standing assets, which are largely fully occupied, and filled vacant space at Norton Folgate (now 94% let or under offer) and One Triton Square (now 94% let). In retail parks, we are effectively fully occupied, with only 1% vacancy. Here, we signed 1,544,000 sq ft of deals, 3.4% ahead of previous passing rents, which in turn supports like-for-like rental growth. This strong leasing performance across the business, supported by a 4% increase in fee income, a rigorous focus on administrative costs, which were down 9%, and actions taken to mitigate increases in finance costs, delivered Underlying Profit of £294m, up 5%. Underlying EPS was 28.9p, up 1% and ahead of guidance. The growth in Underlying EPS was lower than the growth in Underlying Profit due to the increased share count following the October 2024 equity placing. In line with our policy of setting the dividend at 80% of Underlying EPS, the Board has proposed a final dividend of 10.80p, bringing the total for the year to 23.12p, 1% ahead of the prior year. ERV growth was 4.9% for the year which, combined with stable yields, results in portfolio valuation growth of 2.3% and an IFRS profit after tax of £454m. EPRA NTA per share increased 4% to 590p, which taken together with our increased earnings, delivered a total accounting return of 8.1%. Pleasingly, this is within our target range of 8-10% for the first time since 2022. # A stable balance sheet provides a platform for growth Our focus on preserving balance sheet strength through duration and diversity of financing provides the business with a flexible platform to grow and remain front footed. Loan to value (LTV) on a proportionally consolidated basis was 39.2% at 31 March 2026 (38.1% at 31 March 2025) and Group Net Debt to EBITDA was 7.7x (8.0x at 31 March 2025). Both metrics remain within our internal risk ranges, reflecting the point of the property cycle and will reduce over time through valuation and earnings growth and recycling capital from mature assets. Post year end we have exchanged or are under offer on £176m of asset sales and are in active negotiations on a number of other disposals. Despite macro and geopolitical uncertainty creating volatility in debt markets, we have remained active in a range of ways throughout the year. Total financing activity since 31 March 2025 was £3.1bn. Our ongoing engagement with debt providers further increased our finance capacity and diversity on attractive terms and margins, while extending the maturity profile. In British Land, five of our unsecured Term Loans were renewed and increased to a total of £500m, each for five years at reduced pricing. New bilateral bank facilities of £250m were completed and extensions were agreed on £1.1bn of revolving credit facilities. In February 2026 we launched our Euro Commercial Paper --- British Land Annual Report and Accounts 2026 31 (ECP) programme, under which £274m was issued at 31 March 2026. For companies in the Broadgate joint venture, we raised new Green Loans of £450m secured on 1 Broadgate, signed shortly after completion of the development in summer 2025, and £475m secured on 100 Liverpool Street, signed post year end in April 2026. We have £1.6bn of undrawn facilities and cash and, based on these facilities and our current commitments, no requirement to refinance until early 2029. In February 2026, Fitch Ratings assigned our short term rating of F1 to the ECP programme, and affirmed all our credit ratings with stable outlook, including Senior Unsecured rating at 'A'. ## A consistent, focused approach to capital allocation We take a disciplined approach to capital allocation, recycling capital from more mature, lower-returning assets into higher-returning opportunities. This includes selling longer-let London offices, acquiring earnings accretive retail parks and investing in best-in-class campus developments on a de-risked, capital-light basis. We achieve the latter by signing pre-lets at rental levels that support returns, securing build cost certainty within main construction contracts at the point of commitment and, at the right time, bringing in partners to free up capital, reduce risk and drive fee income. Investment market activity remained below average during the year, reflecting slower transaction volumes, with £106m of disposals and £94m of retail acquisitions completed. Opportunities to deploy further capital into our chosen segments remain attractive, although additional disposals will be required to fund this in the near term. ## Income statement ### 1.1 Underlying profit Underlying Profit is the measure that we use to assess income performance and is presented below on a proportionally consolidated basis. No company adjustments were made in the year to 31 March 2026 or 31 March 2025. | Year ended | Section | 31 March 2026 £m | 31 March 2025 £m | | --- | --- | --- | --- | | Gross rental income | | 551 | 484 | | Property operating expenses | | (75) | (45) | | Net rental income | 1.2 | 476 | 439 | | Net fees and other income | | 26 | 25 | | Administrative expenses | 1.3 | (75) | (82) | | Net financing costs | 1.4 | (133) | (103) | | Underlying Profit | | 294 | 279 | | Underlying tax | | (4) | (4) | | EPR A and Company adjustments | | 164 | 63 | | IFRS profit after tax | 2 | 454 | 338 | | Underlying EPS | | 28.9p | 28.5p | | IFRS basic EPS | 2 | 45.4p | 35.1p | | Dividend per share | 3 | 23.12p | 22.80p | ![img-27.jpeg](img-27.jpeg) Norton Folgate --- British Land Annual Report and Accounts 2026 # FINANCIAL REVIEW CONTINUED ![img-28.jpeg](img-28.jpeg) ## 1.2 Net rental income | | £m | | --- | --- | | Net rental income for the year ended 31 March 2025 | 439 | | Like-for-like net rent | 21 | | Developments | 14 | | Surrender premia | 13 | | Provisions for debtors and tenant incentives | (21) | | Disposals | (17) | | Acquisitions | 27 | | Net rental income for the year ended 31 March 2026 | 476 | Like-for-like net rents were up 6% or £21m in the year. Campuses delivered their strongest performance in over a decade, delivering 12% like-for-like growth, driven by leasing well ahead of previous passing rents and a reduction in EPRA vacancy which improved by over 8 ppts in the year, reflecting successful leasing of previously vacant space. Norton Folgate's inclusion within the standing portfolio, one full year post completion, added around 2 ppts to like-for-like growth and a strong performance at Broadgate contributed 4.5 ppts. In Retail & London urban logistics, like-for-like growth was 2%. We are at near-full occupancy with a largely rack-rented retail park portfolio and expect future market rental growth to translate into cash flow growth as we lease space ahead of previous passing rent. New store openings, including M&S in Swindon, Orpington and Bath SouthGate, as well as positive leasing momentum at Teesside all contributed to like-for-like performance. We have made good progress through the year leasing developments, especially in the second half, which added £14m of additional net rents from buildings including 1 Broadgate, The Optic and our build to rent residential scheme at Aldgate. Movements in provisions, partially offset by one-off surrender premia receipts reduced net rental income by £8m. Surrender premium receipts, which are excluded from like-for-like growth, increased by £13m year-on-year, to £33m. These surrenders are an example of active asset management, allowing us to secure premiums and relet space to new occupiers, capturing the benefit of growing rents. We expect surrender premia of around £10-15m in FY27. Provisions for debtors and tenant incentives had a negative £21m impact versus the prior year. This reflected provision releases in the prior year related to legacy arrears, with provisions now having normalised across the portfolio. This was a key driver of the increase in property operating expenses, alongside higher void related costs as our developments completed and entered their lease up phase. Capital recycling contributed an additional £10m to net rents in the year, with £27m of net rents generated from acquisitions offset by £17m of rents lost through disposals. Sales proceeds from non-core or mature assets were reinvested into retail parks and our best-in-class campus office development pipeline. Over the year, we acquired £94m of retail assets including £73m of retail parks, in addition to the £738m purchased in FY25. --- British Land Annual Report and Accounts 2026 STRATEGIC REPORT # 1.3 Administrative expenses Ensuring the business operates as efficiently as possible is central to how we run British Land. Over recent years, we have retained a consistent focus on reducing administrative expenses and mitigating inflationary pressures, while ensuring we retain the quality of platform required to drive growth. In doing so, we aim to maximise the conversion rate of top line rental growth into profits, and cash. We are pleased to have delivered a 9% (or £7m) reduction in administrative expenses this year to £75m as we have continued to rigorously challenge the cost base. In addition, we continue to explore opportunities to leverage the scale and opportunity within the existing British Land platform by onboarding property acquisitions, such as the five Life Science REIT assets post year end, and new developments like 1 Appold Street, and manage them with minimal incremental cost. We also seek opportunities to drive fee income through asset and development management agreements with existing or new partners. After considering fee income and property operating expenses, the Group's EPRA cost ratio was 18.9% (FY25: 17.5%). As expected, the ratio temporarily increased in the year, driven by higher property operating expenses from movements in provisions, specifically bad debt provision releases in the prior year, and increased void costs from our newly delivered development projects. We expect our EPRA cost ratio to reduce to the mid-teens over time, and based on our current expectations for FY27, expect a ratio of c.17.5%. # 1.4 Net financing costs | | £m | | --- | --- | | Net financing costs for the year ended 31 March 2025 | (103) | | Net divestment | 3 | | Developments | (34) | | Financing activity and other movements | 1 | | Net financing costs for the year ended 31 March 2026 | (133) | Net financing costs increased by £30m to £133m in the year. Disposals over the last 24 months, which included the Meadowhall joint venture sale and the new 2 Finsbury Avenue joint venture, reduced finance costs in the year by £13m. This reduction was offset by the £10m impact from acquisitions, predominantly retail parks, made over the same period. Funding our committed development pipeline and other maintenance capex increased financing costs by £34m. As developments complete, we cease capitalising interest on the relevant project costs. The impact of this from recently completed developments was £24m in the year. Also, incremental debt to fund development activity was at higher market rates, contributing to the 30 bps increase in our weighted average interest rate to 3.9%. # 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 2026 was £454m, compared with £338m in the prior year, with IFRS basic EPS at 45.4p, compared to 35.1p in the prior year. IFRS profit after tax for the year reflects Underlying Profit of £294m, the increase in value of the Group's properties of £107m, Capital and other gains from joint ventures of £112m, £32m capital and other finance costs being the fair value movement on derivatives and hedge accounted debt, a £28m loss on disposal of investment properties, joint ventures and revaluation of investments (largely staff costs and interest capitalised on joint venture developments) and taxation for the year. The basic weighted average number of shares in issue during the year was 1,002m (31 March 2025: 965m), an increase on the prior year largely due to 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 2026 of 10.80p per share, bringing the total dividend to 23.12p per share for the year. Payment will be made on Friday 24 July 2026 to shareholders on the register at close of business on Friday 19 June 2026. 9.34p will be payable as a Property Income Distribution and 1.46p 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. --- British Land Annual Report and Accounts 2026 # FINANCIAL REVIEW CONTINUED ## Balance sheet | As at | Section | 31 March 2026 £m | 31 March 2025 £m | | --- | --- | --- | --- | | Property assets | | 10,065 | 9,489 | | Other non-current assets | | 51 | 64 | | | | 10,116 | 9,553 | | Other net current liabilities | | (231) | (218) | | Adjusted net debt | 6 | (3,962) | (3,637) | | EPRA Net Tangible Assets | | 5,923 | 5,698 | | EPRA NTA per share¹ | 4 | 590p | 567p | | Other EPRA adjustments¹ | | 9 | 12 | | IFRS net assets | 5 | 5,932 | 5,710 | On a proportionally consolidated basis. 1. See Note 2 to the financial statements for definition and calculation. ## 4. EPRA Net Tangible Assets per share | | pence | | --- | --- | | EPRA NTA per share at 31 March 2025 | 567 | | Valuation performance | 20 | | Underlying Profit | 29 | | Dividend | (23) | | Other | (3) | | EPRA NTA per share at 31 March 2026 | 590 | EPRA Net Tangible Assets (NTA) per share increased by 4% over the year, reflecting a 2.3% uplift in portfolio valuations, retained earnings, and other non-material balance sheet movements. ## 5. IFRS net assets IFRS net assets at 31 March 2026 were £5,932m, an increase of £222m from 31 March 2025. This was primarily due to the IFRS profit after tax of £454m, partially offset by dividends paid in the year of £229m. ## Cash flow, net debt and financing ### 6. Adjusted net debt¹ | | £m | | --- | --- | | Adjusted net debt at 31 March 2025 | (3,637) | | Disposals | 106 | | Acquisitions | (94) | | Development & asset management initiatives | (320) | | Net cash from operations | 309 | | Dividend | (229) | | Other² | (97) | | Adjusted net debt at 31 March 2026 | (3,962) | 1. 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 to the financial statements and adjusted net debt is included in Table A within the supplementary disclosures. 2. Other includes financing activity, working capital and other cash movements. ### 7. Financing | | Group | | Proportionally consolidated | | | --- | --- | --- | --- | --- | | | 31 March 2026 | 31 March 2025 | 31 March 2026 | 31 March 2026 | | Net debt / adjusted net debt¹,² | £2,797m | £2,647m | £3,962m | £3,637m | | Principal amount of gross debt | £3,006m | £2,740m | £4,157m | £3,738m | | Loan to value² | 32.1% | 31.7% | 39.2% | 38.1% | | Net Debt to EBITDA²,³ | 7.7x | 8.0x | 9.2x | 9.3x | | Weighted average interest rate | 3.6% | 3.2% | 3.9% | 3.6% | | Interest cover | 4.5x | 5.7x | 3.2x | 3.7x | | Weighted average maturity of drawn debt | 5.0 years | 5.2 years | 5.1 years | 5.0 years | 1. Group data as presented in Note 16 to 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 to 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. --- British Land Annual Report and Accounts 2026 STRATEGIC REPORT Our total financing activity since 31 March 2025 was £3.1bn: £1bn new finance in British Land, £1.1bn extensions of existing revolving credit facilities (RCFs), and £1bn of finance in joint ventures. The transactions outlined below have been achieved with a range of debt providers through variable market conditions; we have been pleased with the terms and appreciate the engagement and support of all the lenders. For British Land, with our usual unsecured financial covenants: - £500m across five bilateral bank Term Loans (increased from £475m), each renewed for five years at reduced pricing; - £100m bilateral bank RCF and Term Loan for five years with a new bank to the Group; - £150m new bilateral bank RCF with five years maturity; and - £1.1bn total RCFs extended by a year to 2030/31. British Land launched a £1bn ECP programme in February 2026, with £274m outstanding at 31 March 2026. This commercial paper is issued for shorter terms at lower cost than drawing on RCFs. For companies in the Broadgate joint venture, new 'covenant light' Green loans (with no LTV or ICR default covenants): - £450m provided by two banks secured on 1 Broadgate, in August 2025 following completion of the development in July; and - £475m provided by four banks secured on 100 Liverpool Street, Broadgate Circle and 3 Broadgate, in early April 2026 ahead of the maturity of the existing £420m 100 Liverpool Street loan. The 1 Broadgate loan and 100 Liverpool Street loan are designated Green Loans due to the relevant buildings' sustainability credentials. Sustainability KPIs are included in £2.3bn of our RCFs and Term Loans, aligned with our Sustainability Strategy. In British Land and our joint ventures, there is a total of £3.3bn (£2.8bn British Land share) of Green and Sustainability or ESG linked loans and facilities. As a result of this activity, we have £1.6bn of undrawn facilities and cash. Based on these facilities and our current commitments we have no requirement to refinance until early 2029. In keeping with our usual practice, we expect to refinance or replace debt facilities ahead of maturities and to continue to be active in a range of debt markets. Our weighted average interest rate at 31 March 2026 was 3.9%, up 30 bps from 31 March 2025. The interest rate on our debt is 94% hedged to 31 March 2027 and 71% hedged on average over the next five years. Interest rate hedging continues to limit the level and speed of impact of higher market rates. Over time, as existing hedging at lower rates expires and we replace this with new hedging, the weighted average interest rate will gradually adjust to reflect market rates. Group Net Debt to EBITDA decreased to 7.7x at 31 March 2026 (8.0x at March 2025), largely due to the new Green Loan secured against 1 Broadgate, where the British Land share of proceeds was used to repay Group facilities. At 31 March 2026, our proportionally consolidated LTV was 39.2%, up from 38.1% at 31 March 2025, driven mainly by development spend (+190 bps), offset by property revaluations (-90 bps). We remain disciplined in our management of leverage and whilst LTV is currently at the upper end of our internal range, we remain comfortable at this point in the cycle. Our advantageous debt structure gives access to diverse sources of finance through debt raised by British Land and in our joint ventures. For British Land our focus is on unsecured debt based on our two consistent financial covenants (with no interest cover covenants) which apply to Bank finance, Bond Issuance and Private Placements. At March 2026, we retain significant headroom to our debt covenants, meaning the Group could withstand a fall in asset values across the portfolio of 34%, prior to taking any mitigating actions. In joint ventures, debt is arranged as required by the business of each relevant entity and secured on its assets, non-recourse to British Land, and the majority is 'covenant light' with no LTV default limits. Fitch Ratings, as part of its annual review in July 2025, and alongside the ECP programme launch in February 2026, affirmed all our credit ratings, with stable outlook: Senior Unsecured 'A', long term IDR 'A-' and short term IDR 'F1'. These ratings have been held since 2018/19. Our strong balance sheet, market leading unsecured and secured platforms, access to different sources of flexible finance and liquidity, with established lender relationships, provide substantial capacity for us to deliver on our strategy. David Walker Chief Financial Officer --- British Land Annual Report and Accounts 2026 # PROGRESS ON OUR SUSTAINABILITY TARGETS | READ MORE about our Greener Spaces pillar on page 37 | READ MORE about our Thriving Places pillar on page 40 | READ MORE about our Responsible Choices pillar on page 42 | | --- | --- | --- | | 47% reduction in operational carbon intensity in FY26, vs FY19 | £17.6m Social Impact Fund cash and space invested since FY21, including £2.5m in FY26 | 36% female representation at senior management levels at year end FY26 | | 2030 target: 75% reduction¹ Target | 2030 target: £25m Target | Target: at least 40% Target | | 24% reduction in whole building operational energy intensity in FY26, vs FY19 | 74,310 education and employment beneficiaries since FY21, including 7,554 in FY26 | 18% overall minoritised ethnic representation in FY26 | | 2030 target: 25% reduction¹ Target | 2030 target: 90,000 beneficiaries Target | 2030 target: at least 20%² Target | | 41% reduction in upfront embodied carbon intensity across office developments in FY26, vs FY19 | £148m direct social and economic value generated since FY21, including £28m in FY26 | 100% of people working regularly on our behalf at our places paid at least the real Living Wage in FY26 | | 2030 target: 50% reduction Target | 2030 target: £200m Target | Target: 100% Target achieved | ## SUSTAINABILITY LEADERSHIP | READ MORE in our 2026 Sustainability Progress Report: www.britishland.com/SPR | GRESB A List 2025 | DIP 75 IN EMPLOYER INDEX 2025 | | --- | --- | --- | ¹ Managed portfolio performance. ² We have revised our target, as we met our overall minoritised ethnic representation target of 17.5% in FY25. --- British Land Annual Report and Accounts 2026 37 STRATEGIC REPORT # SUSTAINABILITY REVIEW # GREENER SPACES ![img-29.jpeg](img-29.jpeg) ## ADDITIONAL HIGHLIGHTS **Decarbonisation** 75% Total portfolio rated EPC A or B (by ERV) FY25: 68% **Renewables** 93% Of energy procured came from certified renewable sources FY25: 97% **Decarbonisation** £34m Spend on carbon efficient interventions since FY19 FY25: £26m **Nature** 86% Of managed portfolio covered by Nature Action Plans FY25: 54% ![img-30.jpeg](img-30.jpeg) --- British Land Annual Report and Accounts 2026 # SUSTAINABILITY REVIEW CONTINUED Our customers increasingly demand space with excellent environmental sustainability credentials. We have a strong track record of decarbonising our portfolio and enhancing climate resilience to create places where people, businesses and nature flourish. ## Decarbonisation This year, we made strong progress on our 2030 decarbonisation targets, as outlined on page 36. We have submitted new, long term science-based targets to the Science Based Transition initiative (SBTi) for validation, aligned with a 1.5°C climate scenario. These commit us to reducing operational carbon intensity by 97% by 2040 and absolute corporate emissions (including embodied carbon and supply chain) by 90% by 2050, against our FY24 baseline. These commitments align with the SBTi Buildings Criteria and Corporate Net-Zero Standard, as well as the Carbon Risk Real Estate Monitor (CRREM) net zero pathways. Once validated, they will replace our current SBTi-validated target to 2030. We plan to report progress against the new targets from FY27. Long term target setting is an important part of transition planning, which covers a range of areas including decarbonisation, skills growth, climate resilience, nature and governance. Our Transition Vehicle, launched in April 2020, is a key mechanism for decarbonising our portfolio, with £26m³ committed. To advance essential change across the supply chain, we actively engage with the Real Estate:UK and Better Buildings Partnership to support industry initiatives. ## Reducing operational emissions with customers Operational carbon intensity across our managed portfolio has reduced 47% since FY19, as a result of our energy efficiency programme and grid decarbonisation, to 36kg CO₂e per sqm. This year, we reduced whole building operational energy intensity by 24% against our FY19 baseline, to 157kWhe per sqm. We partner with customers to deliver innovations that advance their climate goals, supported by whole building energy data coverage of 99%. Green leases lay the foundations for good engagement. All new major leases in FY26 included mutually beneficial clauses to share energy data and improve efficiency. We have rolled out our smart platform, MyBuilding, across 14 buildings, following a successful pilot at 100 Liverpool Street. We are now trialling opportunities to extend our digital platform and expertise into occupier areas, giving customers enhanced insights to improve performance. We also test energy saving interventions in our Head Office and Storey spaces, using MyBuilding to share verified energy and cost savings with customers. ## Optimising efficiency To optimise building performance for energy efficiency, 86% of our portfolio (by ERV) is equipped with smart energy metering and management systems. In offices, where we have been monitoring whole building energy data and collaborating with customers for more than a decade, we continued to achieve significant savings through free and low-cost interventions, such as demand-based heating and cooling enabled by CO₂ sensors. In retail, where we have less influence over customer energy procurement and consumption, our focus remains on improving efficiency in landlord areas and deepening engagement with customers to manage their consumption in shops and restaurants. Where we have control, we continue to make good progress. 94% of retail parks now have no gas in landlord areas and 77% are 100% LED in landlord areas. ## Retrofitting for efficiency To provide customers with all-electric buildings, we have retrofitted 101 heat pump units across our portfolio since FY14, with 55% of managed offices (by ERV) almost fully electric in FY26, only using gas for top-up. Fully electric design is being adopted across office developments. This year, 87%² of our managed portfolio (by ERV) is covered by decarbonisation pathways that identify the interventions needed to align each asset with CRREM net zero trajectories and proposed Minimum Energy Efficiency Standard (MEES) requirements for non-domestic buildings to be rated EPC A or B by 2030. 75% of our portfolio is now rated EPC A or B (by ERV), up from 68% in FY25. The total estimated cost to implement our decarbonisation pathways and to achieve our EPC target is £100m since FY19, much of which is recoverable through the service charge as part of standard life cycle replacement. Since FY19, £34m has been spent, including £8m in FY26.³ To enhance the customer offer and support the transition to low carbon transport, we exchanged or completed deals for ultra-rapid electric vehicle charging across 21 retail assets in FY26, with a further 27 sites in the pipeline. When complete, this will cover 73% of our retail portfolio. This will potentially unlock valuation uplifts and new income opportunities for British Land, with no forecasted capital outlay. ## Designing for efficiency This year, our office developments are on track to deliver base building energy efficiency in operation of 56kWhe per sqm on average. This is on the trajectory for our 2030 target of 55kWhe per sqm. To meet our targets for whole ## 1. Includes capital expenditure and recoverable service charge forward funding at British Land share. ## 2. Excludes recently completed developments. ## 3. Comprises capital expenditure, service charge and occupier spend, including commitments from the Transition Vehicle. --- British Land Annual Report and Accounts 2026 STRATEGIC REPORT 39 ![img-31.jpeg](img-31.jpeg) building performance of 90kWhe per sqm by 2030, we are collaborating with our customers to optimise their operational energy use. NABERS UK Design for Performance is being adopted across office developments to accurately predict operational energy performance. To date, three developments have received target ratings, including 1 Broadgate, the first UK building to achieve a 5-star target rating. A further four developments are undertaking Independent Design Reviews. ## Prioritising renewables To drive grid decarbonisation and support customers' climate goals, 93% of energy we procured in FY26 came from certified renewable sources, working towards 100% as a signatory to RE100¹. We continue to pilot hourly matching of our consumption with production profiles, typically achieving over 75%² matching annually. This year, we generated 1,273MWh of renewable electricity across 11 assets. We are highly supportive of occupiers retrofitting solar arrays. In FY26, we supported retail occupiers to install rooftop solar arrays at two assets, with a further five assets in the pipeline. ## Reducing embodied carbon with partners This year, we reduced upfront embodied carbon intensity by 41% across office developments, to 587kg CO₂e per sqm, and by 19% across retail and residential developments, to 729kg CO₂e per sqm, relative to FY19 industry benchmarks. ## Circular economy Keeping materials in use for as long as possible is crucial to the future of real estate, safeguarding resource availability long term and meeting decarbonisation targets. Our developments and refurbishments use pre-deconstruction audits to maximise retention and reuse, alongside materials passports to unlock future opportunities. We are also working towards our stretching 2030 target of 50% reused materials or recycled content. At 1 Appold Street, we are retaining 75% of existing structure and have harvested 4,608 tonnes of strip-out materials for reuse. We aim to recover over 80% of the glazing, with suitable glass recycled into new architectural glass. At One Yoton Square, we pioneered our first material passports on a fit out, incorporated reclaimed steel, sourced remanufactured chairs and trialled a bio-based alternative to plasterboard. We have experience building responsible waste management into developments and operations, reusing and recycling 84% of waste in FY26 and diverting 100% from landfill. All the innovations we deliver in this space are done in collaboration with our design and construction partners. Our Sustainability Brief for our Places provides clear guidance on our environmental, social and governance requirements throughout the property life cycle. Once we have taken all reasonably viable steps to reduce carbon on developments, we use certified carbon credits to offset remaining embodied emissions. ## Sustainable office fit out Our analysis shows that office fit outs account for 60-80% of a commercial building's whole life embodied carbon³, adding significant carbon and costs. Our fit outs consistently outperform industry benchmarks. This year, we published our Sustainability Brief: Office Fit Out, building on extensive data analysis and industry engagement, to provide clear guidance for suppliers and useful insights for customers. At Broadgate Tower, we delivered our lowest embodied carbon fit out to date at 44kgCO₂e per sqm through the extensive reuse of materials from earlier customer fit outs, including ceiling tiles, flooring, high-level services and furniture. ## Climate resilience As a long term business, we plan and design for weather and climate patterns decades into the future. This extends asset lifespans and protects long term value. Climate resilience is also integrated into our risk management processes. Portfolio-wide modelling shows that flooding is our most material climate-related physical risk. 100% of managed assets and major developments were covered by flood risk assessments in FY26. Of the 3% identified as high risk (by British Land share of ownership of total insured value), 100% have comprehensive management plans. This year, we also reviewed our flood readiness approach for medium and high risk assets to ensure resilience. ## Nature We recognise the intrinsic value of nature and its importance for the health and wellbeing of our customers and communities, as well as the resilience of our assets. This year, 88% of developments are on track to achieve at least 15% biodiversity net gain and 86%⁴ of standing assets have implemented Nature Action Plans. At Canada Water, we have created revitalised wetlands with London Wildlife Trust, the popular Rafter Walk across the docks, waterside spaces, a discovery pond, 15,000 sqm of living roofs and Dock Office Gardens. In FY26, we refreshed our Nature Strategy, setting out new commitments to trial embodied ecological assessments and enhance access and enjoyment of green space on our assets. Furthermore, we report against Taskforce on Nature-related Financial Disclosures (TNFD) recommendations for the first time in our 2026 Sustainability Progress Report see page 17. ## READ MORE in our 2026 Sustainability Progress Report: www.britishland.com/SPR on pages 7 to 18 1. Global initiative of companies committed to using 100% renewable electricity, led by Climate Group. 2. Settled full year data not available at time of publication. 3. Analysis of British Land projects, using RICS whole life carbon methodology. 4. Scope now include smaller assets. --- British Land Annual Report and Accounts 2026 SUSTAINABILITY REVIEW CONTINUED # THRIVING PLACES ![img-32.jpeg](img-32.jpeg) ![img-33.jpeg](img-33.jpeg) ## ADDITIONAL HIGHLIGHTS **Benefitting our communities** **12,999** Local beneficiaries, including schoolchildren, students and jobseekers FY25: 18,531 **Benefitting our colleagues** **74%** Colleagues engaged in volunteering, including expert opportunities FY25: 71% **Benefitting our customers** **All** central London campuses have customer Campus Community Funds FY25: All **Supporting local employment** **262** Local people supported into employment FY25: 457 --- British Land Annual Report and Accounts 2026 STRATEGIC REPORT Our places succeed when the communities living in and around them thrive. We have a strong track record of creating a long-lasting, positive social impact through the use of our spaces, employment and education programmes. This creates clear commercial value, differentiating our places, supporting faster planning outcomes and enabling successful developments. ## Social and commercial impact Good community relationships help us shape proposals that align with local priorities, enhancing social impact and improving the likelihood of positive planning outcomes, including more viable Section 106 Agreements, ultimately reducing risk and costs, supporting our licence to operate and enabling development. Occupiers who rate our social contribution highly are also more likely to recommend British Land, with 29% higher Net Promoter Scores on average¹. In addition, visitors who rate our social contribution highly stay longer at our places, spend more in shops and restaurants, and are more likely to recommend our places². This year, we invested £981,000 in cash and provided £1.5m of space through our Social Impact Fund, benefitting 12,999 local people and creating opportunities for customers and colleagues. Through our Campus Community Funds, we partner with customers to co-fund local projects. This grows our positive impact, builds campus networks, supports customers' social goals and offers meaningful volunteering opportunities for their teams. As part of our Broadgate Community Fund, in FY26, alongside eight Broadgate businesses, we collectively invested £73,000 in four community projects set to benefit 1,220 local people. ## Affordable space To benefit local communities, differentiate our places and attract footfall, we provided over 14,000 sqm of space and expert support to small businesses, social enterprises, community organisations and charities through our Social Impact Fund this year. In FY26, 21 organisations benefitted, including through our Really Local Stores initiative which hosted six local independent retailers, supporting entrepreneurs while activating temporarily available space, enhancing the retail mix and supporting strong footfall performance. ## Counting what matters Focusing on meaningful impacts, we only count affordable space sustained for at least three months and people benefitting from life-enhancing employment support or achieving defined educational outcomes. Many more people benefit through pop-ups, job fairs, school events, site visits and other activities. ## Employment Our skills and employment programme, Bright Lights, helps secure the talent our business, customers and communities need to thrive. This year, 872 people benefitted from pre-employment training, mentoring, graduate schemes, internships, apprenticeships and other meaningful initiatives. During FY26, 262 people progressed into employment through Bright Lights, bringing the total since FY21 to 2,373. At Fort Kinnaird, 128 people benefitted from employment support through our long-standing collaboration with Capital City Partnership, and 78 filled retailer vacancies, generating nearly £400,000 of social value and saving customers an estimated £59,000 to £70,000 in recruitment costs. We also piloted a new green skills programme, building capability for a more equitable, low carbon future. At Canada Water, 167 formerly unemployed Southwark residents have moved into jobs with suppliers and customers since we launched Canada Water Connect with charity ELBA in FY23, including 34 in FY26. By linking businesses with local talent, we met the first employment target in our planning agreement one year early. ## Education Our education partnerships develop skills vital to our business, customers and communities, as well as attracting future talent to our sector with 6,683 people benefitted this year. Literacy is essential for business success and underpins life chances. Our partnership with the National Literacy Trust is the UK's largest and longest running corporate literacy programme. In FY26, we inspired 4,565 schoolchildren to discover the power of reading, collaborating with 21 customers and on site partners to host fun, literacy-themed events in shops, offices and restaurants at our places. To create attractive, inclusive places for customers and communities, we support initiatives to attract talent from a range of backgrounds to our sector. In FY26, 84 students from state schools took part in UrbanPlan UK supported by our funding and volunteers. Of all UrbanPlan UK participants 98% are now considering careers in property, up from 23% before. We also actively support Pathways to Property, Accelerate with Open City and Shaping Southwark's Future with Construction Youth Trust. ## Social value Our social impact activity makes a difference to people's lives. To quantify this financially, we use the international Impact Evaluation Standard framework. Our Social Impact Fund generated £8.8m direct social value in FY26. We also generated £19.3m direct economic value through spend with small and medium-sized enterprises (SMEs). We generated a further £48.7m indirect social and economic value through local employment and SME spend on developments, fundraising and volunteering with suppliers and customers. ![img-34.jpeg](img-34.jpeg) → READ MORE in our 2026 Sustainability Progress Report: www.britishland.com/SPR on pages 19 to 25 1. British Land surveys of 700 retail store managers and 70 office facilities managers in FY26. 2. British Land surveys of 1,700 visitors in FY25. --- British Land Annual Health and Accounts 2006 SUSTAINABILITY REVIEW CONTINUED # RESPONSIBLE CHOICES ![img-35.jpeg](img-35.jpeg) ## ADDITIONAL HIGHLIGHTS Engagement 81% Of staff are proud to work at British Land FY25: 93% Engagement 64% Employee engagement score FY25: 79% Development 74 Number of internal moves or promotions FY25: 71 Development 6,129 Hours spent on employee training FY25: 8,055 --- British Land Annual Report and Accounts 2026 43 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 want to build a diverse, inclusive and ambitious culture, enabling us to attract, develop and inspire the best people to deliver our strategy. ## Performance leadership and talent development This year we have put even more focus on performance, results and efficient delivery. We worked on further developing leadership capability for all managers, new and old, with our mandatory management training and support programme. ## Key areas of focus included: - Learning and development: 6,129 hours of learning completed, with emphasis on leadership, management and professional skills most appropriate to delivery of the strategy. In addition, we introduced new technical skills training to enable colleagues to make use of our existing suite of tools and help them drive process efficiencies in their own areas. We also introduced a new technology skills/AI apprenticeship programme. - Internal mobility: 74 internal moves, including promotions and secondments, as we seek to stretch our people with exposure in different areas of the business or new responsibilities. This is the same number as FY25, despite our overall headcount having reduced in the period. - Coaching and mentoring: continued investment in coaching and mentoring, leveraging the expertise of colleagues to support and develop those earlier on in their careers. ## Diversity, equality and inclusion Diversity, equality and inclusion underpin our culture and decision making. We remain focused on creating an inclusive workplace where everyone can perform at their best. ## Progress - We have already met our 2025 overall minoritised ethnic representation target of 17.5%, which we set in 2021, so we have revised our target upwards to 20% by 2030. 28% of our new hires in the year were from a minoritised ethnic background and our disclosure rates are 92%. - Our Board is 45% female and our senior leadership population is 36% female. - Our gender pay gap reduced in the year to 6.9%. - We continue to implement our 2030 DE&I Strategy. The foundational work takes time to yield results and we are committed to continuing to build on progress so far. ## Employee engagement Employee engagement scores are an important source of organisational feedback. We saw a dip in our overall engagement scores this year from very high scores Workforce gender diversity at March 2026 | All employees* | 293 | 268 | | --- | --- | --- | | Senior management* | 25 | 14 | | Board | 6 | 5 | ● Male ● Female *(excludes Non-Executive Directors) previously. While our scores were in line with relevant benchmarks, we did expect a reduction from last year due to some decisions we have taken. A continued rigorous focus on cost discipline meant that a number of roles within the business were restructured and headcount was reduced. We believe these changes set the business up for future success, but there is a natural period of adjustment which is reflected in the engagement score. ## Highlights included: - Employee engagement score of 64%. - We had a participation rate of 90%, the same as the last two years. - Scores for team management improved in the year reflecting the ongoing management training and how well managers led their teams through change. - 87% of colleagues said they know what they need to do to be successful in their role, reflecting our continuous focus on clear expectations and deliverables. ## Investment in our people We continue to invest in our people, with targeted and relevant learning development and wellbeing initiatives to support performance and long term capability. ## Looking ahead Our focus remains on driving a high-performing, engaged and inclusive workforce delivering at pace. Priorities include continued leadership development, progress against DE&I ambitions and further enhancement and engagement at all levels with digital skills. ## Responsible procurement Strong supplier partnerships are essential to delivering our strategy. These are underpinned by our mandatory Supplier Code of Conduct, which sets clear social, ethical and environmental standards and promotes safe, fair working conditions across our supply chain. ## Against modern slavery We take a proactive approach to protecting human rights across our business and supply chain. We provide anti-modern slavery training to all our employees, and we carried out eight supplier audits to support compliance and promote responsible practices. Our annual Modern Slavery Statement, available on our website, provides a detailed account of our processes, progress and priorities. ## Real Living Wages We are committed to paying at least the real Living Wage to British Land employees and those working across our assets. This commitment is a key part of our Sustainability Strategy, and we were reaccredited as a Living Wage Employer in 2025. We also embed this expectation in our Supplier Code of Conduct, requiring suppliers to pay their employees who work on our assets at or above the real Living Wage. ## Mandating prompt payment We are committed to paying all suppliers within 30 days. In FY26, we settled Group invoices within 19 days on average. → READ MORE in our 2026 Sustainability Progress Report: www.britishland.com/SPR and pages 26 to 31 --- British Land Annual Report and Accounts 2026 # 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 impact on 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 2026, proportionally consolidated LTV was 39.2% and for the Group was 32.1%. The ratio of Net Debt to EBITDA is a measure of leverage as a multiple of earnings (rather than asset valuations) which we consider primarily on a Group basis. At 31 March 2026, our Group Net Debt to EBITDA was 7.7x and the proportionally consolidated measure was 9.2x. 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. Since March 2025 we completed £3.1bn of financing activity, with £1bn new finance in British Land, plus £1.1bn extensions of existing RCFs by one year to 2030/31, and £1bn finance in joint ventures. New finance for British Land includes a Euro Commercial Paper (ECP) programme launched in early 2026, under which notes are issued at lower cost than drawn RCFs, with £274m outstanding at 31 March 2026. 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. Recent activity included companies in the Broadgate Joint Venture signing two 'covenant light' Green loans: £450m secured on 1 Broadgate (August 2025) and £475m secured on 100 Liverpool Street (April 2026). 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 metrics. 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 £1.6bn at 31 March 2026. Based on our commitments and these available facilities, the Group has liquidity (no requirement to refinance) until early 2029. Presented on the following page are the five principles that guide 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 2026, the interest rate on our debt is 94% hedged for the year ending 31 March 2027. On average over the next five years we have interest rate hedging on 71% 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 2026 45 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. The Euro Commercial Paper programme allows us to issue short term notes at lower cost than drawn RCFs. Our Sustainable Finance Framework enables us to issue Sustainable, Green, and/or Social finance, when it is appropriate for our business. We have £3.3bn (British Land share £2.8bn) of Green and Sustainable/ESG linked financing. | Total drawn debt (proportionally consolidated) | £4.2bn | | --- | --- | | Bank RCFs (Unsecured) | | | Bank Term Loans (Unsecured) | | | Commercial Paper (Unsecured) | | | Debentures (Secured) | | | Sterling Bonds (Unsecured) | | | US Private Placements (Unsecured) | | | Joint Venture Bank Loans (Secured) | | | Joint Venture Securitisation (Secured) | | ## 2. Phase maturity of debt portfolio The maturity profile of our debt is managed with a spread of repayment dates, currently between one and 10 years, reducing our refinancing risk in regard to timing and market conditions. At 31 March 2026, as a result of our financing and capital activity, based on our commitments and available facilities we have liquidity (no requirement to refinance) until early 2029, 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) | 5.1 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 | £1.6bn | | --- | --- | ## 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 ('RCFs') 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 for a further two years). 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 RCFs | £2.3bn | | --- | --- | ## 5. Maintain strong metrics Fitch affirmed all our credit ratings in the year with stable outlook, including Senior Unsecured A, long term Issuer Default Rating A-, short term F1. Fitch also affirmed our ratings and assigned F1 rating to our ECP programme in February 2026. 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. Overall, this provides a strong platform for our business strategy. | LTV (proportionally consolidated) | 39.2% | | --- | --- | | Net Debt to EBITDA (Group) | 7.7x | | Senior unsecured credit rating | A | --- British Land Annual Report and Accounts 2026 # FINANCIAL POLICIES AND PRINCIPLES CONTINUED ## Group borrowings Unsecured financing for the Group includes Commercial Paper, 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. £2.3bn 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 is published in our Sustainability Progress Report. ## Unsecured borrowing covenants Two financial covenants 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 £5.4bn as at 31 March 2026. 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 2026, these assets generated £34m 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 | 2026 % | 2025 % | 2024 % | 2023 % | 2022 % | | --- | --- | --- | --- | --- | --- | | Net Borrowings to Adjusted Capital and Reserves | 48 | 47 | 40 | 38 | 36 | | Net Unsecured Borrowings to Unencumbered Assets | 44 | 43 | 38 | 32 | 30 | ## 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. The majority are 'covenant light' with no LTV default limits (cash trap only), summarised below. | Joint venture | Debt type | Covenants summary | | --- | --- | --- | | Broadgate | Securitisation bonds | Meet interest and scheduled amortisation | | | Covenant light | No LTV covenant | | | Secured Green bank loans | Interest cover ratios LTV ratios | | | Covenant light | Cash trap only | | Paddington | Secured bank loan | Interest cover ratio LTV ratio | | | Covenant light | Cash trap only | | Canada Water | Secured Green development loan facility | Loan to development cost ratio | | | | 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 2026 47 STRATEGIC REPORT # RISK MANAGEMENT # MANAGING RISK IN DELIVERING OUR STRATEGY Risk management is central to our strategy, enabling us to identify and manage principal and emerging risks to support long term value and sustainable positive outcomes for stakeholders. ## Risk Management Framework British Land operates a Group-wide risk management and internal control framework to identify, assess and manage principal and emerging risks. The framework is supported by a clear risk appetite, defined accountabilities and embedded controls. The framework, shown in the diagram below, combines top-down Board-driven strategic oversight with bottom-up business-led risk identification and control activities. This integrated approach enables us to manage key financial and non-financial risks within appetite, adapt to change, and support the delivery of our strategy. ## Governance The Board has overall responsibility for the risk management and internal control framework. It sets risk appetite, oversees principal risks and reviews the effectiveness of the framework. The Audit Committee supports the Board by reviewing the effectiveness of the risk management and internal control environment as well as related assurance processes. The Risk Committee – comprising members of the Executive Committee and senior leaders from across the business, and chaired by the Chief Financial Officer – oversees the monitoring and management of principal risks. This ensures a consolidated view of key risks and supports effective escalation, prioritisation and decision making across the Group. At the operational level, risk management is embedded across business units and core activities. This bottom-up approach facilitates early identification, monitoring and management of operational risks, as well as timely escalation. Each business unit has designated risk representatives and risk owners responsible for managing risks at source and implementing appropriate mitigations, including internal controls. They maintain detailed risk registers, which are regularly reviewed by the internal risk team. The internal risk team plays a central role in coordinating risk management activities across the Group, embedding the framework into operations, culture and decision-making processes. Internal Audit provides independent assurance over risk management and internal controls. > **READ MORE** > about the Board and Audit Committee’s risk oversight, and changes to our Governance structure with effect from the conclusion of our 2026 AGM, see pages 76 and 99 ## Our integrated risk management approach | **Board / Audit Committee / ESG Committee** Role: Strategic Direction & Oversight Set risk appetite and oversee principal risks Review effectiveness of the risk and control framework Oversee risk governance, culture and accountability | | --- | | **Internal Audit (Third Line)** Role: Independent Assurance Independent assurance on risk and controls | | **Risk Committee / Executive Committee / Risk Team (Second Line)** Role: Oversee Risk Framework & Challenge Oversee principal and emerging risks and set supporting risk policies Ensure strategic decisions align with risk appetite Aggregate, monitor and report risk exposure Challenge and oversight of ongoing risk management | | **Operational Management (First Line)** Role: Risk Ownership & Control Execution Identify, assess and escalate risks Operate controls and address remediation actions Maintain risk registers and report key risk indicators | The framework operates through three lines of defence: 1. **First line**: operational management owns day-to-day risk identification, control operation and remediation. 2. **Second line**: the Risk Committee and internal risk team oversee the framework, provide challenge to the first line and monitor control effectiveness. 3. **Third line**: Internal Audit provides independent assurance on the effectiveness of the risk management and internal control processes. --- British Land Annual Report and Accounts 2026 # RISK MANAGEMENT CONTINUED ## Progress With Our Risk Priorities in the Year Navigating External Market Volatility We continue to respond proactively to a challenging external environment shaped by inflationary pressures, interest rate volatility and geopolitical instability. We are mitigating risk through disciplined capital allocation, financial resilience and scenario planning. ## Enhancing Technology Controls and Cyber Resilience We have achieved ISO 27001 certification, strengthening our IT general control framework. Our cyber resilience continues to mature through stronger controls, improved monitoring capabilities and ongoing training. ## Technology Transformation Robust governance framework in place to support the delivery of our Enterprise Resource Planning (ERP) finance transformation scheduled for implementation in 2027. This includes the planned automation of key financial control processes, enhancing efficiency and risk controls. ## Strengthening Controls and Governance: Provision 29 We are well positioned to meet the requirements of Provision 29 in the next financial year. This is underpinned by the identification and documentation of our material controls, alongside the refinement of our structured and robust assurance framework (as outlined below). ## Preparedness for UK Corporate Governance Code Changes (Provision 29) Provision 29 is applicable for the Group's year ending 31 March 2027. It requires the Board to describe how it monitored and reviewed the risk and control framework, declare whether material controls were effective at the balance sheet date, and explain any material control weaknesses and remediation. In readiness for these requirements, we developed a roadmap during the year to support compliance and remain on track to meet the requirements. As part of this work, we have created a detailed risk and controls matrix covering material financial, operational, reporting and compliance controls across key areas of the business. This was developed using a top-down mapping of controls to principal risks and risk appetite, complemented by bottom-up workshops and focused reviews. We have identified the material entity-level, cluster-level and standalone controls, undertaken an initial assessment and identified the control evidence required for subsequent testing, as well as mapping assurance coverage across the lines of defence (see framework overleaf). This work has been reviewed through the Risk and Audit Committees. ## Our Priorities for 2026/27 1. Provision 29 Compliance: Fully embed material controls and assurance into business-as-usual. Enhance governance and reporting to support full Provision 29 compliance. 2. ERP Transformation Delivery & AI Automation: Oversee the successful delivery of the ERP finance transformation, scheduled for implementation in 2027, with a focus on robust control design, automation and data integrity. Ensure strong programme governance and change control for a smooth transition. Identify opportunities to use AI and automation to streamline processes, enhance controls and strengthen risk management within a responsible well-governed framework. 3. Operational Efficiency & Control Optimisation: Continue the simplification and standardisation of key business processes, using digital tools, including AI, to enhance efficiency and reinforce the control and risk management environment. 4. Embed Risk-Aware Culture: Continue strengthening clear risk ownership across the business and enhance the quality and consistency of risk reporting. Foster a culture where risk awareness is embedded in day-to-day decision making. Consider leveraging the global risk tool within the new ERP system to improve risk visibility and enable automated control testing. 5. Enhancing Cyber Resilience: With significant progress already achieved across corporate technology, continued efforts will prioritise property technology, focused on security controls, threat detection and response capabilities in response to the evolving threat landscape. --- British Land Annual Report and Accounts 2026 STRATEGIC REPORT # Risk Appetite Our risk appetite underpins our entire risk management approach, guiding planning, decision making and strategy execution. It is reviewed annually by the Board and supported by KRIs and tolerances for each principal risk and embedded across our policies, procedures and controls. While our appetite may adjust through the property cycle, our overall appetite is balanced: low for financial and compliance risks, and balanced for property and operational risks. This supports our value-add strategy and target of income-focused total accounting returns of 8-10% through the cycle. Risk tolerance statements for each principal risk are categorised into three 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 proactive approach, willing to take greater risks when the potential benefits justify the pursuit of strategic objectives, but remains within acceptable tolerance levels. > **READ MORE** > to see our risk appetite levels for each internal principal risk, see pages 55 to 58 Our balanced risk appetite is underpinned by: - A diversified business model centred around a high-quality portfolio of London campuses and UK retail parks, supported by strong occupational fundamentals. - Leveraging our strengths in development and asset management to deliver income-generating, total return focused growth. - A disciplined development approach with phased delivery, pre-lets, cost control and strategic joint ventures. - Robust financial discipline underpinned by a resilient balance sheet and strong liquidity. - A broad, high quality occupier base with strong covenant strength and resilient income. - Experienced leadership and governance oversight across the Board, management team and Risk Committee. # Integrated Internal Control Framework Internal controls are embedded within our wider risk management framework and support effective governance, reporting and decision making. They include policies, procedures and day-to-day controls across financial, operational, reporting and compliance activities. During the year, we have further strengthened our internal control framework in preparation for the requirements of Provision 29 of the UK Corporate Governance Code, as outlined on the previous page and shown in the diagram below. ![img-36.jpeg](img-36.jpeg) International Land Management Group --- British Land Annual Report and Accounts 2026 # RISK MANAGEMENT CONTINUED ## Risk Focus We have continued to operate in a heightened risk environment shaped by macroeconomic pressures and geopolitical uncertainty, including recent conflicts in the Middle East. Persistent inflation, elevated interest rates and shifting trade dynamics continued to influence investor sentiment and occupational markets. Any escalation or prolonged period of geopolitical instability could further impact global economic conditions, financial markets, energy prices and supply chains, which may indirectly affect the Group's operating environment and access to capital. The Board and its Committees maintained active oversight, with a continued focus on capital allocation, financial resilience and the management of development and financing risks. Further detail is set out in the principal risks table. During the year, the Risk Committee focused on: - Strengthening financial reporting, operational and compliance controls. - Health, safety and environmental risk management, including ISO 45001 re-certification. - Occupier covenant strength and income resilience. - Environmental risk and opportunity, including EPC-related exposure. - Development risk, including construction cost inflation and contractor resilience. - Procurement and supply chain resilience. - Information security controls and processes. - Delivery of Internal Audit actions. ## Principal Risks Our risk management framework identifies the principal risks facing British Land. Using a risk-scoring matrix, we assess each risk based on likelihood, potential financial impact and reputational effect to identify those most likely to have a material effect on the business. We categorise our 11 principal risks into two groups: - External risks – four risks shaped mainly by market factors such as macroeconomic conditions, political developments and property markets. - Internal risks – seven risks linked to how we manage the business, including capital allocation, operations, people and compliance. The Board, Audit Committee, Executive Committee and Risk Committee regularly review external and internal principal risks. External risks are assessed to understand risk exposures, shape strategic decision making and determine mitigating responses, while internal risks are managed through established governance, processes and controls. ## Emerging Risks Risks that are not currently principal, or are still evolving, may become more significant over time. Management, Board Committees and annual horizon scanning are used to identify and monitor these risks and assess whether they should be reclassified as principal risks. Certain emerging trends are already reflected within our principal risks and remain under close review. Key areas include: - Elevated geopolitical instability - Advances in AI and automation - Shifting occupier demand patterns - Evolving cybersecurity threats - Long term climate change impacts - Heightened supply chain vulnerabilities - Energy security and market volatility Relevant emerging trends are referenced within the principal risks table. Set out below are two trends under particularly close review and our current response. ## Elevated Geopolitical Instability Heightened geopolitical tensions, conflicts and trade tariffs may weaken the economic conditions, including the trajectory for inflation and interest rates, energy prices, disrupt supply chains and affect occupier demand, investment activity and financing availability. We mitigate this through a resilient and diversified portfolio, strong liquidity, close customer engagement, supply chain resilience and ongoing macroeconomic monitoring in our strategic planning. ## Advances in AI and Automation AI and automation presents both opportunities and risks. As customers adopt these technologies, business models, employment patterns and space use may evolve, potentially influencing occupier demand and location preferences, particularly at our campuses. At the same time, emerging technologies may also create opportunities for growth, supporting occupiers who are looking to expand their space. We continue to closely monitor developments in AI and automation, integrating relevant trends into our strategic planning and risk management processes. --- British Land Annual Report and Accounts 2026 51 # PRINCIPAL RISKS ## Principal Risk Assessment The Board has undertaken a robust annual assessment of the principal and emerging risks that could affect the Group's business model, performance, solvency, liquidity and strategy. While the overall risk profile remains broadly unchanged, external conditions continue to present heightened risk, with the macroeconomic and geopolitical outlook remaining the most significant external influences on the Group. During the year, the Operational & Compliance risk category has been updated to include IT and cyber risk and renamed Operational Delivery, Systems and Compliance. There have been no material changes to the Group's internal principal risks, aside from a slight increase in Operational Delivery, Systems and Compliance, reflecting the operational risks associated with our ERP finance transformation programme scheduled for implementation in 2027, alongside an elevated cyber threat landscape. The People and Culture risk has risen slightly, reflecting a reduction in engagement scores, albeit from high levels. This followed planned restructuring and headcount reductions. While the actions have had a short term impact on staff engagement, as anticipated, they were implemented to drive efficiency, increase accountability and support stronger collaboration, to promote the long term success of the business. Also, the CEO transition introduces some uncertainty, however it is progressing through a structured search and recruitment process that supports continuity and long term leadership stability. Our assessment of the 11 principal risks is summarised in the heat map below. Further detail on risk assessment, mitigations and key risk indicators is provided on pages 52 to 58. ![img-37.jpeg](img-37.jpeg) 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 2025. ## Risk heat map | Key | Principal risks | | --- | --- | | External | 1 | | 1 | Macroeconomic | | 2 | Political, Legal and Regulatory | | 3 | Property Market | | | a Campuses | | | b Retail | | 4 | Major Events/Business Disruption | | Internal | 5 | | 5 | Portfolio Strategy | | 6 | Development | | 7 | Financing | | 8 | Environmental and Social Sustainability | | 9 | People and Culture | | 10 | Customer | | 11 | Operation Delivery, Systems and Compliance | --- British Land Annual Report and Accounts 2026 # PRINCIPAL RISKS CONTINUED ## External Principal Risks ### 1 Macroeconomic Link to strategy: A B C D Changes in macroeconomic, fiscal, and monetary policy may impact property values, financing markets and customer demand, with consequent effects on our strategy and financial performance. #### Risk mitigation - Board and Committees Oversight: Active Board and Committee oversight of strategy, capital allocation and risk appetite. - Monitoring and Stress Testing: Ongoing monitoring of key indicators and regular stress testing to maintain resilience, supported by external reports and advisor insights on the macroeconomic outlook as key inputs. - Business Model: Focus on a prime portfolio and active capital recycling to support financial strength and mitigate downside risk. #### Risk assessment UK macroeconomic risk remains elevated amid ongoing uncertainty, despite modest GDP growth and some easing in inflation this year. However, the recent conflict in the Middle East has increased the risk of subdued economic growth and associated employment, alongside sustained inflation and elevated interest rates. #### Emerging risk trends: - Elevated geopolitical instability - Advances in AI and automation #### Opportunity/approach Our diversified business model, strong financial position and experienced leadership team enable us to navigate ongoing market challenges and capitalise on opportunities. The Board and key Committees continue to closely monitor impacts on our portfolio and financing strategy, maintaining disciplined capital allocation and resilience. #### 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 ### 2 Political, Legal and Regulatory Link to strategy: A B C D Political, legal, regulatory and geopolitical developments may affect investor sentiment, occupier demand, financing conditions and the UK's attractiveness for investment. #### Risk mitigation - Strategic Risk Consideration: Integration of political and geopolitical considerations into strategy, investment and financing decisions. - Policy & Regulatory Monitoring: Ongoing monitoring of policy and regulatory developments, supported by external insight. - Industry Engagement: Active engagement with government and industry bodies to inform and influence policy. #### Risk assessment Risk remains heightened by geopolitical tensions, trade tariffs, political uncertainty in the UK and regulatory change, including government intervention in lease structures, all of which may adversely affect the wider macroeconomic environment and our operating environment. #### Emerging risk trends: - Elevated geopolitical instability #### Opportunity/approach We actively monitor political and regulatory developments to anticipate potential impacts, engaging with government and industry bodies to stay ahead of change and ensure compliance. #### 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 --- British Land Annual Report and Accounts 2026 53 STRATEGIC REPORT # Property Markets Shifts in investor and occupier demand, together with long term structural changes – including hybrid working, evolving workforce trends, technological advancements and continued growth in online retail – may reshape business models and space requirements, negatively affecting rental income, yields and asset values. ## Risk mitigation - Market Outlook Assessment: Regular Board and Committee review of property market conditions to guide strategic decisions and capital allocation. - Market Insights: Ongoing tracking of investment and occupier demand trends using market insights and dashboards supported by agent research. - Business Model & Stress Testing: Focus on prime portfolio in resilient submarkets. Stress testing is conducted to evaluate the impact of changes in demand, rental growth and property yields. - Stakeholder Engagement: Active engagement with occupiers, agents and investors to anticipate and respond to market trends. ## Risk assessment ### Campuses The campus property market outlook remains stable, with London's prime office sector supported by strong occupational fundamentals. While AI presents longer-term structural change, demand for best-in-class space is expected to persist, supported by growing interest from AI and innovation-led businesses. Investment volumes have risen from a low base, though elevated interest rates and geopolitical risks may temper near-term sentiment and liquidity for larger transactions. ### Opportunity/approach Our campus model is built around well-connected, high quality buildings with leading sustainability and design credentials, surrounded by attractive public spaces and amenities. This enhances our offer as occupiers focus on the best-in-class space for their business. ## Retail The retail property market has remained resilient, especially within retail parks where occupational demand and investor sentiment remains positive. Both existing and new retailers continue to expand into this favoured out-of-town format, attracted by lower occupational costs, strong accessibility and rising footfall. However, macroeconomic uncertainty, rising employment costs and regulatory risks present ongoing challenges. ## Opportunity/approach Our retail portfolio is strategically focused on retail parks, aligned to convenience-led and omni-channel retail. We continue to target acquisition opportunities in retail parks, where we can leverage our scale and asset management expertise. ## Emerging risk trends: 1. Elevated geopolitical instability 2. Advances in AI and automation 3. Shifting occupier demand patterns ![img-38.jpeg](img-38.jpeg) ## 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 --- British Land Annual Report and Accounts 2026 # PRINCIPAL RISKS CONTINUED ## 4 Major Events/Business Disruption Link to strategy: H G N Major events or business disruption, including cyber incidents, extreme weather, pandemics, environmental events or geopolitical shocks, may affect operations, assets, customers, people and supply chains. Such events could lead to income disruption, asset value impairment, liquidity constraints, business continuity challenges and increased market volatility. ## Risk mitigation - Crisis & Business Continuity Planning: Established crisis management and business continuity plans, regularly tested at both corporate and assets levels. - Asset Emergency Preparedness: Ongoing asset-level emergency preparedness including scenario testing and security risk assessments. - Cyber Resilience: Continuous 24x7 managed detection and response; external specialists support cyberattack testing, alongside ongoing employee training. - Robust IT Security & Disaster Recovery: ISO 27001-certified IT controls with annual disaster recovery testing and continuity plans to protect data and operations. - Comprehensive Insurance: Comprehensive insurance for property damage and business interruption. ## Risk assessment Global political and economic uncertainties remain elevated, posing potential risks to the Group's operations and stakeholders. Potential disruptions include geopolitical conflicts, terrorism, cyber security threats and supply chain instability. During the year, we ran a simulated Executive Committee crisis exercise and a red-team cyber attack to test and strengthen our incident response capabilities. Significant progress has been made in strengthening cyber security across corporate technology, supported by improved controls, mandatory training and regular phishing testing to enhance staff awareness and reduce cyber risk. ## Emerging risk trends: a Elevated geopolitical instability b Evolving cybersecurity threats c Long term climate change impacts d Heightened supply chain vulnerabilities ## Opportunity/approach We continue to strengthen resilience across our operations and assets, drawing on established crisis response capabilities and ongoing monitoring of external risks. ## 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 ## Key a Increase b No change c Decrease d Source value-add opportunities e Develop and actively manage f Recycle capital g Leadership in sustainability --- British Land Annual Report and Accounts 2026 55 # Internal Principal Risks ## B Portfolio Strategy Link to strategy: A B C D An inappropriate portfolio strategy or poor execution could lead to income and capital underperformance. This could result from sub-optimal sector allocation, timing of investment and divestment decisions, development exposure, asset mix, 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: Detailed asset business plans to manage asset risks and optimise performance. - Joint Venture Governance: Clear defined governance frameworks and contractual arrangements to ensure alignment of interests. ### Risk assessment Portfolio risk remains broadly stable. Strong occupier markets in our core sectors have supported improved investor interest in London offices and retail parks, although geopolitical and macroeconomic uncertainty, alongside elevated interest rates continue to weigh on near-term sentiment. Investment activity has been below target reflecting subdued London market conditions for larger lot sizes. ### Emerging risk trends: A Elevated geopolitical instability B Advances in AI and automation C Shifting occupier demand patterns ### Opportunity/approach Our diversified portfolio strategy targets subsectors with strong rental growth, supported by disciplined capital allocation and active recycling into higher-returning retail parks and best-in-class campus developments. ### 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 ## B Development Link to strategy: A B C D Development offers opportunity for outperformance but carries elevated risks, including leasing exposure, construction cost and timing pressures, contractor performance, planning decisions, and changes in occupier or investment demand. ### Risk mitigation - Controlled Development Strategy: Exposure managed within defined risk thresholds, supporting by pre letting 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 mitigate planning risks. - Sustainable Approach: ESG risks embedded in decision making. ### Risk assessment Development risk remains stable and within risk appetite, with progress across the committed programme and a continued disciplined approach to new developments. ### Emerging risk trends: A Elevated geopolitical instability B Shifting occupier demand patterns C Heightened supply chain vulnerabilities D Energy security and market volatility ### Opportunity/approach We are advancing developments on a de-risked and capital-light basis, securing major pre-lets, entering into fixed priced construction contracts, and partnering with others to accelerate delivery and lock in returns. 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. ### 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 --- British Land Annual Report and Accounts 2026 # PRINCIPAL RISKS CONTINUED ## 7 Financing Link to strategy: A B C D Failure to effectively manage financing risks could result in a shortage of funds to sustain operations or debt repayments. This risk includes reduced debt availability, higher borrowing costs, leverage impacts and covenant breaches. ### Risk mitigation - Proactive Review of Funding Requirements: Regular assessment of funding requirements and active monitoring of debt and capital markets. - Lender Relationships: Maintain strong, long term relationships with finance providers. - 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 property valuation risks. Maintain resilience through cycles, considering LTV and Net Debt to EBITDA. - Covenant Monitoring: Ongoing monitoring to ensure sufficient headroom. - Joint Ventures: Spread risk through JVs, including non-recourse debt. ### Risk assessment Financing risk is stable. While geopolitical events have driven volatility in interest rates and credit markets, financing conditions remain supportive. Since 31 March 2025, we have completed £3.1bn of financing activity. Liquidity remains strong, with £1.6bn of undrawn facilities and cash, and no requirement to refinance until early 2029. Exposure to higher finance costs is mitigated by our hedging strategy, with 71% of debt hedged on average over the next five years. #### Emerging risk trends: A Elevated geopolitical instability ### Opportunity/approach The current external environment reinforces the importance of a strong balance sheet. Fitch reaffirmed our 'A' Senior unsecured credit rating with stable outlook. We retain strong liquidity and continued access to a range of debt markets. #### Impact: Medium #### Likelihood (post-mitigation): Low to medium #### Change in risk assessment in year: << #### Risk appetite: Risk averse #### KRIs: - Period until refinancing is required (liquidity) - Net Debt to EBITDA (Group) - 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 ## 8 Environmental and Social Sustainability Link to strategy: A B C D Environmental and social sustainability risks may affect performance, reputation, assets and progress against our 2030 goals, including climate-related physical and transition risks, regulation, customer demand and social impacts on communities and nature. ### Risk mitigation - 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, Net Zero Pathway, Local Charter and Sustainability Brief. - Environmental Management: ISO 14001 and 50001 certified. - Integrated Strategy: Sustainability embedded in investment and development decisions. - Building Standards: Targeting BREEAM Outstanding (offices), Excellent (retail), HMQ3* (residential), and NABERS UK (new offices). - Data Assurance: Independent verification supports transparency and credibility. ### Risk assessment Environmental and social sustainability risk remains stable, supported by continued delivery of the 2030 Sustainability Strategy. Portfolio sustainability performance continues to improve, with 75% now EPC-rated A or B, alongside strong progress against our 2030 decarbonisation targets. We remain proactive in responding to regulatory and climate-related developments. #### Emerging risk trends: A Long term climate change impacts B Heightened supply chain vulnerabilities C Energy security and market volatility ### Opportunity/approach We view sustainability as both a responsibility and an opportunity, guided by our three pillars – Greener Spaces, Thriving Places, and Responsible Choices – to address our core ESG 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, Risk Committee and COO --- British Land Annual Report and Accounts 2026 57 STRATEGIC REPORT # People and Culture Failure 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 alignment of corporate values. ## Risk mitigation - Targeted Recruitment: Direct and trusted third party hiring. - Talent & Performance Management: Succession planning and outcome focused reviews. - Pay & Benefits: Competitive, benchmarked, performance-linked remuneration. - Employee Development: Training and mandatory learning programmes. - Leadership: Focus on leadership that enhances team performance whilst promoting wellbeing. - Flexible Working: Clear hybrid and flexible policies which sets out our expectations. - Diversity & Inclusion: Embedded within our 2030 Sustainability strategy. ## Risk assessment The People and Culture risk has risen slightly, reflecting a reduction in engagement scores, albeit from high levels. This followed planned restructuring and headcount reductions. While the actions have had a short-term impact on staff engagement, as anticipated, they were implemented to drive efficiency, increase accountability and support stronger collaboration, to promote the long-term success of the business. Also, the CEO transition introduces some uncertainty, however it is progressing through a structured search and recruitment process that supports continuity and long term leadership stability. ## Emerging risk trends: - Advances in AI and automation ## Opportunity/approach Our focus is on having the right people to deliver strategic priorities while promoting our employee value proposition to attract and retain talent, recognising people and culture as key drivers of long-term success. ## Impact: Medium ## Likelihood (post-mitigation): Medium ## Change in risk assessment in year: 1 ## 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, ESG Committee, Executive Committee, CEO and HR Director # Customer Link to strategy: A B C D The Group's primary source of income is rent received from our customers. This could be adversely affected by non-payment, occupier failure, evolving customer needs, leasing challenges, poor customer service and potential changes in lease structures. ## Risk mitigation - Diversified Customer Base: High quality, diversified occupier base to mitigate individual occupier risks. - Strong Occupier Oversight: Thorough covenant checks and ongoing monitoring, supported by a risk watchlist to limit exposure to higher risk occupiers. - Occupier Engagement and Market Knowledge: Close collaboration to understand and respond to evolving customer needs. - Active Asset Management: Proactive management of lease events to maintain high occupancy and minimise vacancies. - Customer Satisfaction: Regular surveys to track occupier experience and service levels. ## Risk assessment Customer risk remains broadly stable, supported by strong rent collection and leasing progress. While retailer administrations and restructurings have increased, their financial impact has been proactively managed and limited. Macroeconomic pressures persist, and over the longer term AI-driven structural change may influence certain occupier business models and space requirements, while also presenting new opportunities, that we continue to monitor closely. ## Emerging risk trends: - Elevated geopolitical instability - Advances in AI and automation - Shifting occupier demand patterns ## Opportunity/approach Our strategic positioning across campuses and retail parks, along with strong collaborative relationships (in particular with major retailers), is focused on providing high quality spaces, while maintaining sustainable occupancy costs. ## Impact: Medium ## Likelihood (post-mitigation): Medium ## Change in risk assessment in year: 2 ## 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: Risk Committee, Head of Real Estate and Investments and CFO --- British Land Annual Report and Accounts 2026 # PRINCIPAL RISKS CONTINUED ## 11 Operational Delivery, Systems and Compliance Link to strategy: A B C D Failure to manage operational, systems and compliance risks, including technology, cyber incidents, health and safety, supply chain and internal controls, could damage reputation, earnings and asset values or lead to compliance breaches. ### Risk mitigation - **Executive Oversight**: Executive and Risk Committees oversee operational, systems and compliance risks. - **Technology and Cyber Security**: The Information Security Steering Committee, led by the CFO, oversees cyber and technology risk, reporting into the Risk and Audit Committees. Cyber risks are managed through our ISO 27001 framework, supported by robust tools, policies, third party testing and mandatory training. - **Health & Safety**: The Health & Safety Committee, chaired by the Director of Operations, governs KPIs and policies and reports to the Risk, Audit and ESG Committees. Annual independent property risk assessments (including fire) drive prioritised actions. All employees receive annual, role-specific training. Our Health & Safety Management System is certified to ISO 45001. - **Third Party Relationships**: Robust supplier selection process, contracts with clear service levels and ongoing monitoring; approved supplier base to support supply chain resilience; joint ventures managed through strong partner selection, robust governance, clear contracts and oversight. - **Key Controls (covering both material and supporting controls)**: Multi-line assurance framework, biannual management attestations, ongoing control testing, exception reporting with defined remediation actions, and independent review by internal audit. ### Risk assessment No material operational, systems or compliance issues were identified during the year. Operational risk has increased slightly, reflecting the planned launch of the ERP finance transformation in 2027 and a heightened cyber-security threat environment. The Group continues to strengthen its IT security, infrastructure and internal control framework and remains on track to meet the requirements of Provision 29 of the revised UK Corporate Governance Code for FY27. Also, in the year we updated our Fraud Assessment Framework and risk assessment to align with the requirements of the Failure to Prevent Fraud legislation. ### Emerging risk trends: - Advances in AI and automation - Evolving cyber security threats - Heightened supply chain vulnerabilities ### Opportunity/approach The Risk Committee provides oversight of our core operational and compliance risks, ensuring we continue to strengthen operational capability and efficiency across our people, processes and technology. By continuing to invest in our systems, we enhance our resilience and agility, positioning the organisation to effectively manage risk and capitalise on future opportunities. ### Impact: Medium ### Likelihood (post-mitigation): Low to medium ### Change in risk assessment in year: 1 ### Risk appetite: Risk averse ### KRIs - Information systems vulnerability score - Cyber security breaches - Information Security risk register - Health and safety risk assessments - Health and safety incidents - Risk and control exceptions ### Overseen by: Audit Committee, Risk Committee, Health & Safety Committee, Information Security Steering Committee, General Counsel and Company Secretary, and CFO ### Key - Increase - No change - Decrease - Source value-add opportunities - Develop and actively manage - Recycle capital - Leadership in sustainability --- British Land Annual Report and Accounts 2026 59 # 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 £1.6bn 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 early 2029. - In the year, British Land raised £1bn new unsecured finance and agreed extensions by one year of existing revolving credit facilities of £1.1bn. 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 (5.4 and 5.1 years respectively at 31 March 2026). 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 2031. 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 52 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 2031. 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 FY27 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 2026, the Group's debt covenant headroom is 34%, 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 30% on current commitments. Under the 'severe downside scenario' this reduces to 13%, 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 early 2029. 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 2031. ## 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. --- 60 British Land Annual Report and Accounts 2026 # NON-FINANCIAL AND SUSTAINABILITY INFORMATION STATEMENT | Non-financial area | Risk areas^{1} | 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 93 to 99. | 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 policies reflect our zero-tolerance approach to such activity both in and around the business. They provide 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 deciding whether we engage or renew with an occupier or supplier. Fraud, AML and Anti-Bribery and Corruption risk assessments are also routinely conducted. | | 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 decarbonising our portfolio as well as growing social value and wellbeing in the communities in which we operate | | | Sustainability Brief | - Aligns with our 2030 Sustainability Strategy - Gives effect to our Sustainability Policy - Sets out our sustainability ambitions, the KPIs and standards required to achieve them | READ MORE For a description of our business model, see pages 14 and 15 --- British Land Annual Report and Accounts 2026 61 STRATEGIC REPORT | Non-financial area | Risk areas^{1} | 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 | Conduct and People Policies | - 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; and our Bereavement, Compassionate and Emergency Leave Policy | British Land is committed to fairness, inclusion, and respect. Our corporate values and DE&I Strategy ensure our workforce reflects the communities we serve, helping us create welcoming spaces for everyone. You can find our progress on pages 42 and 43. The HR Director, General Counsel, and Company Secretary oversees all 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 value our relationships with communities, suppliers, and partners. Communication is key to meeting our social obligations; listening to the needs and concerns of our staff and communities improves our ability to provide a safe, inclusive and welcoming environment. Overall responsibility sits with our Chief Operating Officer (Local Charter and Supplier Code of Conduct) and Head of Development (Health and Safety Policy). Both report to the ESG Committee, with health and safety data reviewed by the Risk Committee. Read more about our social impact commitments and KPIs on pages 3 and 36 and in our 2026 Sustainability Progress Report www.britishland.com/SPR | | | | Sustainability Brief | See previous page | | | | | Local Charter | Outlines key focus areas where we are active in 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 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 was a signatory to the UN Global Compact in FY26. 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 2026 Sustainability Progress Report at www.britishland.com/SPR | 6, 9, 11 | Supplier Code of Conduct | See above | British Land maintains a zero-tolerance policy regarding human rights infringements across all operations and partnerships. We conduct rigorous due diligence to ensure all parties adhere to our ethical standards. During the past year, we audited eight high-risk suppliers. Only one scored below the 80% threshold, and a formal improvement plan is now active for that partner. Our annual Slavery and Human Trafficking Statement is available 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. --- British Land Annual Report and Accounts 2026 # STREAMLINED ENERGY AND CARBON REPORTING (SECR) # GREENHOUSE GAS REPORTING ## FY26 in review | Context | Funding the low carbon transition | | --- | --- | | During FY26, we made strong progress against all of our 2030 decarbonisation targets (see page 36), while advancing our longer term pathway: new targets have been submitted for Science Based Target initiative (SBTi) validation, aligned to a 1.5°C scenario and requiring an ambitious 90% emissions reduction by 2050 under the Corporate Net-Zero Standard and Buildings Criteria, with reporting from FY27. We continued reductions in operational carbon intensity across our managed portfolio, down 47% since FY19 driven by energy efficiency and grid decarbonisation, alongside a whole building energy intensity reduction of 24%. We continued our focus on performance in use, adopting NABERS UK Design for Performance across all office developments and securing target ratings. | Our Transition Vehicle, launched in April 2020, remains a key mechanism to decarbonise our portfolio, with £26m^{1} committed to high-impact interventions. The total estimated cost to deliver our decarbonisation pathways is £100m, much of which is recoverable through the service charge as part of standard life cycle replacement; since FY19, we have invested £34m^{2}, including £8m in FY26. We have prioritised electrification and efficiency across our portfolio, installing 101 heat pump units across our portfolio since FY14, with 55% of managed offices (by ERV) almost fully electric in FY26, only using gas for top-up. Fully electric design is being adopted across office developments. To drive grid decarbonisation, 93% of energy we procured in FY26 came from certified renewable sources in line with RE100 ambition. We continue to pilot hourly matching of our consumption with production profiles, typically achieving over 75% matching annually.^{3} | | | 1. Includes capital expenditure and recoverable service charge forward funding at British Land share. | | | 2. Includes capital expenditure, service charge and occupier spend. | | | 3. Settled full year data not available at time of publication. | | Operational performance | RE100 and procuring renewable energy | | We continued to strengthen the operation of our energy management system across the portfolio, building on ISO 50001 accreditation in our commercial offices and extending smart metering and performance monitoring across assets. This year, operational carbon intensity fell by 47% from the FY19 baseline to 36kgCO_{2}e per sqm, with whole building operations energy intensity reducing by 24% to 157kWhe per sqm, despite increased activity across retail and office campuses. Targeted efficiency measures, including the installation of an air source heat pump, at Marble Arch House improved the building's EPC rating C to B, supporting progress towards our MEES aligned decarbonisation pathway. Through our development pipeline, we are designing for best-practice performance, with new office buildings on track to achieve average base-building energy use of 72kWhe per sqm, ahead of our 2030 trajectory. | British Land has been a signatory to RE100^{1} since 2016, which commits us to procuring 100% renewable electricity. This year, 93% of landlord procured energy was from renewable sources. Our proportion of renewable gas was 95% this year, whilst renewable electricity was 93%. We have also we generated 1,273MWh onsite across 11 managed assets. 1. Global initiative of companies committed to using 100% renewable electricity, led by Climate Group. | ## Absolute emissions scope 1 and 2 (tonnes) | 2026 | 17,098 | 3,454 | | --- | --- | --- | | 2025 | 18,846 | 1,186 | | 2024 | 18,199 | 3,080 | | 2023 | 19,764 | 5,508 | | 2022 | 20,186 | 3,588 | | 2021 | 19,098 | 2,121 | | 2020 | 22,318 | 7,615 | ### Key - Location-based methodology - Market-based methodology For scope 1 and 2 emissions calculation, see our 2026 Sustainability Progress Report at britishland.com/SPR ## Greenhouse gas emissions – intensity | Year ended 31 March | | 2026 | 2025 | 2024 | | --- | --- | --- | --- | --- | | Total portfolio | tCO_{2}e per sqm | 0.036 | 0.042 | 0.043^{1} | | Offices | tCO_{2}e per sqm | 0.056 | 0.068 | 0.068^{1} | | Shopping Centres | tCO_{2}e per sqm | 0.034 | 0.036 | 0.035 | | Retail Parks | tCO_{2}e per sqm | 0.030 | 0.034 | 0.034 | | Total portfolio | tCO_{2}e per gross rental income (£m)^{2} | 25.79 | 31.05 | 31.87^{1} | 1. Restated scope 1 emissions for increased accuracy. 2. This intensity only incorporates scope 1 and 2 emissions. --- British Land Annual Report and Accounts 2026 63 # Scope 1 and 2 emissions and associated energy use | Year ended 31 March | Tonnes CO₂e | | | MWh | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | 2026 | 2025 | 2024 | 2026 | 2025 | 2024 | | Scope 1 (fuel combustion): | | 4,059 | 5,300 | 5,446 | 22,414 | 29,179 | 32,222 | | Scope 1 (refrigerant loss): | | 890 | 144 | 126 | - | - | - | | Scope 2 (purchased electricity): | Location-based | 12,148 | 13,401 | 12,627 | 70,596 | 65,980 | 62,806 | | | Market-based | 2,264 | 904 | 1,555 | - | - | - | | Total scope 1 and 2 emissions and associated energy use | Location-based | 17,098 | 18,846 | 18,199 | 93,010 | 95,159 | 95,028 | | | Market-based | 3,454 | 1,186 | 3,080 | - | - | - | | Proportion of scope 1 and 2 emissions assured by an independent third party¹ | | 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 2026 Sustainability Progress Report at www.britishland.com/SPR # Scope 3 emissions | Year ended 31 March | Tonnes CO₂e | | | | | --- | --- | --- | --- | --- | | | | 2026 | 2025 | 2024 | | Purchased goods and services | | 22,219¹ | 16,432 | 15,533 | | Capital goods | | 81,867² | 15,735³ | 25,546 | | Fuel and energy related activities (upstream) | | 5,811 | 5,549³ | 5,287³ | | Waste generated in operations | | 132 | 156 | 291 | | Business travel | | 160 | 274 | 221 | | Employee commuting and working from home | | 164 | 252 | 249 | | Downstream leased assets | Location-based | 91,303 | 93,200 | 93,205³ | | Proportion of scope 3 emissions assured by a third party | | 100% | 100% | 100% | | Total scope 1-3 emissions | Location-based | 218,754 | 150,545³ | 158,613 | 1. The increase in operational embodied carbon (in-use) emissions is primarily due to improved data availability from landlord-managed assets, including fit outs and retrofit projects valued over £1m and M&E replacements. In previous years, these emissions were estimated using benchmark assumptions rather than actual project data. 2. This only includes completed development and refurbishment projects during the reporting year. In 2026, multiple major projects completed, which is why this value increased significantly. See page 39 for our embodied carbon intensity approach and targets. 3. Restated for increased accuracy. # 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 CH₄ and N₂O emissions but zero-rates CO₂ emissions due to CO₂ absorption that occurs during the growth of biogas feedstock. However, as noted below, bioenergy feedstocks do produce CO₂ emissions during combustion, so the 'combustion emissions' are provided below for full transparency. | Biogas | UK factor (kg CO₂e per kWh) | 2026 total (tonnes CO₂e) | 2025 total (tonnes CO₂e) | | --- | --- | --- | --- | | Net emissions (excl CO₂e) | 0.00022 | 5 | 7 | | Combustion emissions (incl CO₂e) | 0.19902 | 4,964 | 6,401 | # Our methodology We have reported on all greenhouse gas (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. - Scope 1 and 2 emissions cover 84% 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 Business, Energy & Industrial Strategy's (BEIS) 2025 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 FY26, this accounts for <0.22% of total reported energy consumption and <1.51% of total reported water consumption. - Gross Rental Income (GRI) from the managed portfolio comprises Group GRI of £403m (FY25: £338m), plus 100% of the GRI generated by joint ventures and funds of £410m (FY25: £387m), less GRI generated assets outside the managed portfolio of £150m (FY25: £118m). - For full details on our reporting criteria and the calculation of scope 3 value chain emissions, see the methodology in our 2026 Sustainability Progress Report at www.britishland.com/SPR - For details of our GHG emissions boundaries, see the Pathway to Net Zero at www.britishland.com/pathway-to-net-zero --- British Land Annual Report and Accounts 2026 # TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) # CLIMATE-RELATED FINANCIAL DISCLOSURES This statement aligns with the TCFD framework, as required under FCA UK Listing Rule 6.6.6R(8). It is consistent with the TCFD recommendations and relevant recommended disclosures. In addition, we have considered the sector-specific guidance and recommended disclosures for Materials and Buildings Group. | TCFD Pillar | TCFD Recommended Disclosure | Page | | --- | --- | --- | | Governance | a) Describe the Board's oversight of climate-related risks and opportunities. | 65 | | | b) Describe management's role in assessing and managing climate-related risks and opportunities. | | | Strategy | a) Describe the climate-related risks and opportunities the organisation has identified over the short, medium and long term. | 65 | | | b) Describe the impact of climate-related risks and opportunities on the organisation's businesses, strategy, and financial planning. | | | | c) Describe the resilience of the organisation's strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. | | | Risk Management | a) Describe the organisation's processes for identifying and assessing climate-related risks. | 71 and 72 | | | b) Describe the organisation's processes for managing climate-related risks. | | | | c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation's overall risk management. | | | Metrics and Targets | a) Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process. | 72 | | | b) Disclose scope 1, scope 2, and, if appropriate, scope 3 greenhouse gas (GHG) emissions, and the related risks. | | | | c) Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets. | | # Introduction We consider climate change within our principal risk 'Environmental and Social Sustainability' see pages 60 and 61. 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. Through our TCFD-aligned disclosures, we aim to provide transparent, decision-useful insights into how climate-related risks and opportunities inform our strategic direction, operational planning and long term value creation. These disclosures are intended to help investors, customers and wider stakeholders understand the resilience of our business in a changing climate, as well as the actions we are taking to support a just and orderly transition to a low carbon economy. In FY26, we continued to make good progress against our 2030 Sustainability Strategy. To remain aligned with the latest climate science and evolving definitions of net zero, we reviewed our Science Based Target initiative (SBTi) targets in line with forthcoming Buildings Guidance, while maintaining our 2030 goals as consistent markers of ambition. We have submitted our targets and awaiting SBTi validation, and will report progress from FY27. This year, we refreshed our Nature Strategy, setting out new commitments to trial embodied carbon ecological assessments and enhance access and enjoyment of green space at our places. Furthermore, we report against Taskforce on Nature-related Financial Disclosures (TNFD) recommendations for the first time in the 2026 Sustainability Progress Report. We have progressively taken action to prepare for future reporting developments. This includes monitoring the introduction of the UK Sustainability Reporting Standards (UK SRS S1 and S2). We are also continuing work to align with emerging guidance from the Transition Plan Taskforce as expectations around transition planning evolve. These steps ensure we remain well prepared as disclosure standards continue to develop. → READ MORE about our approach to decarbonisation and nature climate resilience in our 2026 Sustainability Progress Report on pages 7 to 18 www.britishland.com/SPR --- British Land Annual Report and Accounts 2026 STRATEGIC REPORT 65 # Governance ## (a) Board oversight The Board has ultimate accountability for the Group's strategy and risk management, which includes oversight of climate-related risks and opportunities. Oversight is exercised through direct Board engagement, the work of its Committees and delegation to the Chief Executive. The Board receives an update on climate-related issues and progress against our targets several times per year. The Board 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. The Board approves our TCFD disclosure as recommended by the Audit Committee. The ESG Committee oversaw the delivery of our Sustainability Strategy. The Remuneration Committee is responsible for setting ESG targets for executive remuneration and receives progress updates against these targets three times a year. The Long Term Incentive Plan for Executive Directors includes targets linked to the reduction of operational carbon and operational energy, and the Annual Incentive Plan includes targets linked to our progress on portfolio EPC ratings and our performance in GRESB. These targets are set out in the summary of the Remuneration Policy (see page 102). The Audit Committee reviews and approves the effectiveness of risk management and internal control processes for climate-related risks throughout the year. In addition, it assesses principal and emerging climate-related risks following recommendation by the Risk Committee twice a year. ## (b) Management's role The Board provides oversight of climate-related risks and opportunities and delegates day-to-day responsibility for implementation of the Group's strategy to the Chief Executive, supported by the Executive Committee, with management responsible for operating the systems, processes and controls through which climate considerations are integrated into business activities. ## Executive responsibility The Chief Financial Officer is the Board Director with responsibility for climate-related matters and chairs the Risk Committee, while the Chief Operating Officer leads delivery of the Sustainability Strategy and chairs the Sustainability Committee. Climate-related considerations are embedded within investment and development decision making and are reviewed by the Investment Committee, chaired by the Head of Real Estate and Investment. The Risk Committee oversees management's approach to identifying, assessing and managing material climate-related risks, escalating significant and emerging risks to the Audit Committee to support effective Board oversight. ## Sustainability team responsibility The Sustainability team is responsible for the day-to-day monitoring and management of climate-related issues and works with business functions to identify risks and opportunities through horizon scanning and stakeholder engagement. > READ MORE > further information on our approach to Governance and changes to our Governance structure with the effect from the conclusion of our 2026 AGM can be found on page 76 # FY26 Governance in action: - COO sustainability training: our COO was previously Joint Head of Canada Water, and so is knowledgeable on our Sustainability Strategy and climate-related issues, and has completed the Business & Sustainability Programme course at Cambridge Institute for Sustainability Leadership (CISL). - CFO sustainability training: previously as the COO, our CFO led the delivery of the Sustainability Strategy so has extensive knowledge of our climate-related issues and has also completed formal sustainability training by completing the Business & Sustainability Programme course at CISL. - ESG Committee activities: outlined on pages 84 to 87 including the sustainability-related updates provided to the Board by the ESG Committee Chair. # Strategy ## (a) Our identified climate-related risks and opportunities over our short, medium and long term time horizons. Material risk and opportunities identification TCFD divides climate-related risks into two categories - (1) Risks associated with the transition to a low carbon economy (e.g., policy and legal risks); and (2) The risks related to the physical impacts of climate change - both acute (event-driven e.g., floods: river, flash, coastal; windstorm, extratropical cyclone) and chronic (longer term shifts in climate patterns e.g., heat stress, precipitation, drought, sea level rise). We work 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 key internal business areas. In FY24, we updated our physical issues modelling and in FY25 we updated our transition issues modelling. We used the climate exposure diagnostic metric and value at risk (VaR) to assess our portfolio's risk from climate-related physical impacts. The climate exposure diagnostic metric assesses an asset's exposure based on its location and the severity and intensity of potential impacts. VaR is the financial impact quantification of asset damage and business interruption from acute physical risks. The VaR analysis considers both exposure to physical risks and evaluates potential vulnerabilities and consequences in terms of financial impact. These results are considered a 'residual' measure, as risk adaptation measures could mitigate potential financial impacts. --- British Land Annual Report and Accounts 2026 # TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) CONTINUED ## Time horizons and scenarios Transition risks were modelled in two climate scenarios 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 become increasingly significant to 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 potential acute risks. Post-2050 was chosen for the long term time horizon as this is when future climate scenarios start to differentiate from the current climate when we can expect more frequent and severe climate-related impacts. This aligns with the portfolio's standard 60-year building life. ## Transition risk scenarios and parameters | Time horizon | Scenario name | | IPCC scenarios | IEA scenarios | NGFS scenarios | Temperature rise^{1} | 2030 UK carbon price | Global net zero achieved by | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Up to 2035 | 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 CO_{2} | Temperature rise^{2} | 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^{3} 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. --- British Land Annual Report and Accounts 2026 67 # Defining a material risk and/or opportunity We define a 'material' risk or opportunity in line with the combination of its potential impact, both financial and/ or reputational, and its 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 to the right, 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. 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. In FY26 we downgraded the potential financial impact of MEES compliance from high to medium high risk. This is because we have made excellent progress towards MEES compliance. We have spent £34m³ out of an expected £100m and 75% of our portfolio, by ERV, is now rated EPC B or above. # 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', may provide opportunity 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 | | ![img-39.jpeg](img-39.jpeg) Material risk and opportunities heat map 1. Comprises capital expenditure, service charge and occupier spend, including commitments from the Transition Vehicle. --- British Land Annual Report and Accounts 2026 # 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 to five years up to 2030) | 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 | This is the physical damage to assets from river and flash flooding. | Mean loss: <£1.5 m (pre-insurance). Since 2007, our (insured) actual annual mean loss is below the modelled value of £1.5m. | 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 (British Land share of ownership). Mean losses are the average loss of modelled events weighted by the probability of their occurrence. These losses are fully insured 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. | | | | Potential loss of revenue from business interruption (closure of operations). | | | | | | Increased capital expenditure (cost) to repair damaged assets. | | | | | | Potential increased insurance costs. | | | | Medium term risks (five to fifteen years 2030 to 2040) | | | | | | 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 global corporates lead 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 tCO₂e 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 67% of our committed development pipeline. In addition, our internal carbon levy would cover a carbon credit price increase of up to £90 per tonne. | ## #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 with the proposed MEES legislation. 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 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. While earlier proposals referenced 2030, the government has not yet confirmed the final target date. The estimated cost across our managed portfolio to implement our existing decarbonisation and to be MEES compliant is £100m, implying an annual cost of £12.5m excluding assets in our near and medium term development pipeline. Our Transition Vehicle (see page 38) was established to finance the retrofitting of our portfolio, which aligns (but goes beyond) proposed MEES requirements. To date £34m³ has been spent on carbon efficient interventions, of which approx. 60% is recovered through the service charge and 75% 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. Comprises capital expenditure, service charge and occupier send, including commitments from the Transition Vehicle. --- British Land Annual Report and Accounts 2026 69 # Material climate-related risks continued Long term risks (post-2050) | Climate scenario | Likelihood | Description of impact | Potential financial impact | Explanation and mitigation | | --- | --- | --- | --- | --- | | #4 Future flood risk vulnerability of assets (extreme weather events) | | | | | | RCP2.6 (2C) Low to High RCP8.5 (>4C) | Low to High | This is the physical damage to assets from river and flash flooding. 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 (4°C) 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 share of ownership). Modelling was completed in FY24, and as such it does not include our newly purchased assets. 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 Company 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 resulting from price premiums. An increasing number of our customers have announced net zero commitments. 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. | --- British Land Annual Report and Accounts 2026 # 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 (see 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 we are dependent on operating in a tolerable and safe climate that we also have an impact on climate-related risks and opportunities. We recognise our role in supporting the equitable transition to a low carbon economy, and have embedded sustainability throughout our business. Material climate-related risks and opportunities have affected the delivery of 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 | Upgrading the standing portfolio | - Environmental audits completed across our standing portfolio. | - Annual asset-level business plans include capex requirements for energy savings interventions. | | Adaptation and mitigation activities | (Risk #3 & Opportunity #1) | - Asset and campus-level business plans incorporate energy savings interventions and climate resilience actions. These plans gain approval from our senior leaders including the CEO, CFO and joint venture partners where relevant. | - Medium term forecasting incorporates initiatives which support our 2030 energy efficiency and carbon reduction targets. | | Operations | | - Progress against our 2030 energy efficiency and carbon reduction targets are monitored quarterly. | - Development decisions incorporate the environmental impacts of alternative schemes, including refurbishment and redevelopment. | | | | - 2030 energy efficiency and carbon reduction targets are included within executive remuneration, see page 103. | - Transition Vehicle enable carbon efficient interventions. | | Products and services | Developing sustainable buildings | - Our Sustainability Brief for our Places^{1} and Sustainability Brief: Office Fit Out sets stretching targets for our major developments, refurbishments and fit outs. | - Sustainable building certifications can provide access to green finance. | | Adaptation and mitigation activities | (Risks #1, 2, 3 & Opportunity #1) | - Low Carbon Materials Working Group established to identify innovative materials and technology to lower embodied carbon. | - 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. | | Investment in research and development | | - Adopting NABERS UK for all new office developments. | | | Access to capital | | - Established our Transition Vehicle in 2020 to incentivise reduction in embodied carbon and to enable the decarbonisation of our portfolio. | | | Value chain | Internal price of carbon | - Internal levy of £90 per tonne of embodied carbon on developments incentivising low carbon development. | - Funding generated by the levy is available pay for the carbon credits to offset residual embodied carbon in developments and decarbonisation interventions on the standing portfolio, managed by our Transition Vehicle, see page 38. | | Capital expenditure | (Risk #2) | - Pre purchase carbon credits for our developments at the point of commitment to provide greater certainty over costs. | | | Acquisitions or divestments | ESG criteria assessed as part of acquisitions | - ESG criteria are integrated into our due diligence procedure for new acquisitions, including flood risk exposure, presence of gas 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. | | Operations | (Risks #1, 3, 4 & Opportunity #1) | | - To manage specific risks like flood, formal flood risk assessments are funded as part of the acquisition's due diligence where necessary. | 1. Read our Sustainability Brief for our Places at www.britishland.com/sustainability-brief --- British Land Annual Report and Accounts 2026 71 STRATEGIC REPORT (c) Resilience of our strategy in the different climate-related scenarios and alignment with the just 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 share of ownership of total insured value). Any potential losses from flooding at our assets in high river flood risk areas are fully insured. 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 share of 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 share of ownership of total insured value).¹ 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 Company 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 implement 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 Carbon 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 procuring high quality carbon credits while managing cost risk. Our internal carbon price is £90 per tonne. We have now pre purchased carbon credits equivalent to 95% of the embodied carbon in our committed development pipeline. Transition opportunities: Our customers increasingly want space that is energy efficient, to reduce operational costs and assist with their own targets. As a response, our use of NABERS energy star ratings and the upgrading of standing assets as part of our Pathway to Net Zero Carbon 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, see pages 47 to 50. 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, see pages 47 to 50. The Governance and Strategy sections of our TCFD disclosure outlining this process for climate-related issues, see page 65. In FY23 we worked with JLL to conduct a double materiality assessment of the most material ESG issues to our business and stakeholders². We do these double materiality assessments on a regular basis with the next planned for FY27. 1. Post-2050 flood exposure percentages are based on modelling completed in FY24; this modelling is scheduled to be updated in FY27. 2. Read about our FY23 materiality review here – www.britishland.com/materiality --- British Land Annual Report and Accounts 2026 # 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, see pages 47 to 50. 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 see page 65. Our identified material climate-related risks are monitored as key risk indicators within our principal 'Environmental and Social Sustainability risk', see 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 Carbon, 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 brief 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 pre purchase carbon credits for our committed developments to provide greater certainty over the costs. Our internal carbon price increased to £90 per tonne in FY24 to better 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 (see page 71) and in our internal risk management process (see pages 47 to 50). ## 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 2026 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% reduction in upfront embodied carbon intensity across our office developments to below 500kg CO₂e 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% reduction in whole building operational 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 CDP 2025: A, GRESB 2025: 5* Standing Investments and 5* Development and FTSE4Good 83rd 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 103. --- British Land Annual Report and Accounts 2026 73 # (a) Our metrics to assess climate-related risks and opportunities in line with our strategy and risk management process ## Climate-related risks (KRIs) | | | | 2026 | 2025 | 2024 | | --- | --- | --- | --- | --- | --- | | Policy and legal^{1} | Risk #3 | EPCs rated A (by ERV) | 21% | 13% | 8% | | | | EPCs rated B (by ERV) | 54% | 55% | 50% | | | | EPCs rated C (by ERV) | 16% | 21% | 23% | | | | EPCs rated D (by ERV) | 4% | 5% | 12% | | | | EPCs rated E (by ERV) | 3% | 4% | 5% | | | | EPCs rated F (by ERV) | 0% | 0% | 1% | | | | EPCs rated G (by ERV) | 0% | 1% | 1% | | | | Certificate currently not available (by ERV) | 2% | 1% | 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% | 3% | | | | Assets in high flood risk areas with flood management plans (by British Land share of ownership of total insured value)^{2} | 100%^{3} | 100% | 100% | 1. EPC data includes retail assets located in Scotland. 2. These values only include occupied British Land managed properties. 3. Two flood management plans were completed in May 2026. ## Climate-related opportunities (targets and KPIs) | | | | 2026 | 2025 | 2024 | | --- | --- | --- | --- | --- | --- | | Resource efficiency | Risk #2 | 50% reduction in upfront embodied carbon intensity across our office developments completed from April 2020 (kg CO_{2}e per sqm) vs 2019 | 587 | 615 | 625 | | | Opportunity #1 | 75% reduction in operational carbon intensity of managed assets by 2030 vs 2019 | 47% | 38% | 36%^{1} | | | | 25% reduction in whole building operational energy intensity of the managed assets by 2030 vs 2019 | 24% | 19% | 18% | | Energy sources | Opportunity #1 | Electricity purchased from renewable sources | 93% | 97% | 94% | | | | On site renewable energy generation (MWh) | 1,273 | 1,411 | 1,772 | | Products and services | Opportunity #1 | Standing portfolio with green building ratings (by floor area) | 33% | 33% | 48% | | | | Developments on track for BREEAM Excellent or higher (by floor area, offices) | 100% | 100% | 98% | | | | Percentage of gross rental income from BREEAM certified assets (managed portfolio) | 41% | 43% | 62% | | | Risk #2 | Internal price of carbon (£ per tonne) | £90 | £90 | £60 | 1. Restated scope 1 emissions for increased accuracy. Select environmental data above is assured by DNV – specific details of scope of assurance can be found in DNV’s assurance statement in our 2026 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 total scope 1, 2 and 3 GHG emissions data is subject to ‘limited assurance’ by DNV. 1. Details about our reporting methodology and DNV’s assurance statement can be found in our 2026 Sustainability Progress Report – www.britishland.com/SPR # (c) Our targets used to manage climate-related risks and opportunities and performance against targets Our full set of sustainability targets, including our science-based targets, are detailed in our 2026 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 19 May 2026 and signed on its behalf by: ![img-40.jpeg](img-40.jpeg) Simon Carter Chief Executive --- British Land Annual Report and Accounts 2026 ![img-41.jpeg](img-41.jpeg) 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 2024 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 11 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. Although Lynn remains independent, she has decided after 11 years to step down from the Board with effect from the end of the 2026 AGM. Further details about our Board changes can be found on page 88. # CORPORATE GOVERNANCE --- British land Annual Report and Accident 2010 # REPORTING AGAINST CODE PRINCIPLES The table below has been included to enable shareholders to understand how the Principles have been applied. 1. Board leadership and Company purpose | | | Pages | | --- | --- | --- | | A | Effective Board | 14 and 30 | | B | Purpose | 4 | | | Values and culture | 86 and 87 | | C | Governance and Board decisions | 78 and 79 | | | Code adherence | 74 | | D | Stakeholder engagement | 16 and 17 | | E | Workforce policies and practices | 43 and 60 to 61 | 2. Division of responsibilities | | | Pages | | --- | --- | --- | | F | Chair leadership | 77 and 80 | | G | Board composition | 80 to 83 | | H | External appointments and conflicts of interest | 80 and 92 | | I | Board policies, processes and resources | 60 to 61, 80 and 88 to 92 | 3. Composition, succession and evaluation | | | Pages | | --- | --- | --- | | J | Appointments to the Board | 89 | | K | Board skills, experience and knowledge | 81 to 83 and 90 | | L | Annual Board evaluation | 80 | 4. Audit, risk and internal control | | | Pages | | --- | --- | --- | | M | Financial reporting | 95 to 96 | | | External Audit and Internal Audit | 97 to 99 | | N | Review of the 2026 Annual Report and Accounts | 95 to 96 and 118 | | O | Internal controls | 99 | | | Risk management and Principal risks | 47 to 58 and 99 | 5. Remuneration | | | Pages | | --- | --- | --- | | P | Linking remuneration with purpose and strategy | 100 to 102 | | Q | Remuneration Policy | 102 | | R | Performance outcomes in 2026 | 104 to 114 | Broadgate event --- British Land Annual Report and Accounts 2026 # NON-EXECUTIVE CHAIR'S INTRODUCTION # CORPORATE GOVERNANCE REPORT ![img-42.jpeg](img-42.jpeg) ## Focus in the year - Board changes - Recommended acquisition of Life Science REIT plc - Strategic oversight ## Dear Shareholder, As I near the two-year mark at British Land, I am pleased to report on the Company's strong fundamentals and the Board's continued focus on long term value creation. 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 changes In January 2026, we announced that Simon Carter will be stepping down as Chief Executive. This follows a significant portion of his career spanning 18 years at British Land. The Board has commenced a search process for his successor, the results of which will be announced as soon as a decision has been made. I would like to personally express my gratitude to Simon for his significant contribution to the Company and the Board during his tenure. During the year, the Board appointed Raj Shah who joined the Company as a Non-Executive Director in January 2026. Raj brings extensive investment experience that will be invaluable to the Board. Following a tenure of 11 years, Lynn Gladden will step down as a Non-Executive Director at the conclusion of the 2026 AGM. Lynn's expertise within the science and technology sector has been invaluable to the Board in recent years as the Company developed our presence in that important sector. Loraine Woodhouse will step down as Chair of the Audit Committee but remain a member at the conclusion of the 2026 AGM, with Amanda James appointed as her successor. Loraine has made a significant contribution during her time as Chair of the Audit Committee. Further details about these Board changes can be found on page 88. ## Strategic execution During the year the Board has primarily focused on executing the Company's strategy. Pages 78 to 79 provide an insight into the Board decision-making process with a selection of principal decisions. ## Governance framework review The Board agreed at the May 2026 Board meeting that from the conclusion of the 2026 AGM, a revised Governance Framework would take effect and the ESG Committee will be dissolved. ESG considerations are now embedded across the organisation as the Company's strategy has evolved and our commitment remains as strong as ever. As the Company enters the next phase of its strategy, the responsibilities of the ESG Committee will be integrated into the revised governance structure. ### Key changes: - Delivery of the Sustainability Strategy will continue to be overseen by the Executive-level Sustainability Committee. - The Board will directly review and approve our Sustainability Strategy and monitor performance against it. - Oversight of certain risks (including Health & Safety) previously exercised by the ESG Committee will be transferred to the Audit Committee, which will be renamed the Audit & Risk Committee. - Oversight of the DE&I Strategy will sit with the Remuneration Committee, which will be renamed the Remuneration & People Committee. - The Non-Executive Director responsible for workforce engagement will be Alastair Hughes, using our Employee Listening Sessions to provide insights directly to the Board. These structural changes are well aligned with our strategic direction and provide a strong framework for effective oversight. Alastair Hughes will step down as Chair of the ESG Committee following its dissolution. Alastair has chaired the ESG Committee since its inception in 2019 and it is testament to the work of the Committee that we are now able to integrate its responsibilities into other parts of our Governance Framework. ## AGM I look forward to welcoming shareholders to the AGM on 14 July 2026, which will be held at Ashurst LLP, London Fruit & Wool Exchange, 1 Duval Square, London, E1 6PW. Full details of the event and the proposed resolutions are included in the Notice of Meeting. ![img-43.jpeg](img-43.jpeg) ## William Rucker Non-Executive Chair --- British Land Annual Report and Accounts 2026 77 CORPORATE GOVERNANCE # Operation of the Governance Framework during the year The Board is satisfied that this structure operated effectively during the year to support clear accountability and strong oversight. The Board delegated specific responsibilities to its Committees, each of which operates within defined terms of reference and reports regularly to the Board. This enabled the Board to make well-informed, timely decisions and ensured that governance arrangements remain robust, transparent and aligned with best practice. ## Our key stakeholders - Investors - People - Customers - Communities - Suppliers and partners - Environment - Joint venture partners - All ## 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. ### 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. ### 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. ### 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. ## Board Committees ### 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. ### 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. ### 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. ### 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 Committees ### Executive - Reports to the Board through the Chief Executive - Supports the Chief Executive to execute the Company's strategy. ### Investment - Reports to the Board - Makes capital decisions under delegated authority from the Board. ### Disclosure - Reports to the Board - Oversees the disclosure of information to meet our regulatory obligations. ### 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. ## Management Committees ### 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. ### Social Impact Committee - Reports to the Sustainability and Investment Committees - Oversees the strategic management of the Social Impact Fund. ### Information Security Steering Committee - Reports to the Risk Committee - Oversees the information security programme. * With effect from the conclusion of the 2026 AOM, the Remuneration Committee will become the Remuneration & People Committee, and the Audit Committee will become the Audit & Risk Committee. The responsibilities of the ESG Committee will be integrated into the revised governance structure and the ESG Committee will be dissolved. --- British Land Annual Report and Accounts 2026 # OUR APPROACH TO GOVERNANCE ## BOARD ACTIVITY ### Q1 **MAY 2025** **Finance:** Approval of Annual Report and Accounts **Finance:** Considered the Group's reserves and capital position and approved the final dividend **Risk:** Approval of the identification and assessment of principal risks, FY26 risk appetite and key risk indicators, and effectiveness of risk management and internal control processes during FY26 **Key decision:** Approval of the project to introduce a new Enterprise Resource Planning system and allocated capex ### Q2 **JULY 2025** **Governance:** AGM **Finance:** Approval of a £450m secured 'Green Loan' against 1 Broadgate in the Broadgate joint venture **Governance:** Succession planning for Executive Committee and their direct reports ### SEPTEMBER 2025 **Update:** 1 Appold Street redevelopment **Strategy:** High level update **Governance:** Approval of the Human Trafficking Statement **Key decision:** Approval of the increase to £150m and extension to five years of a term loan facility agreement 2025 ## Stakeholder engagement and principal Board decisions The methods used to engage with the Company's stakeholders are outlined on pages 16 and 17. The outputs of that engagement and the wider factors listed within Section 172 of the Companies Act are taken into account by the Board when making decisions. These considerations help ensure that decisions promote long term value, support high quality placemaking, and balance the needs of occupiers, local communities, partners and the wider environment, in order to deliver Places People Prefer. The process described below is applied consistently to 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 each Section 172 stakeholder group, issues and other factors. ### Board meeting and decision The Board ultimately makes a decision based on shareholder benefit, whilst taking into account the impact on all stakeholders. > Commitment to 1 Appold Street redevelopment and pre-let to HSF Kramer > Decision: Commitment to the full redevelopment of 1 Appold Street and pre-let to Herbert Smith Freehills Kramer ('HSF Kramer') through our Broadgate joint venture with GIC. 1 Appold Street is a 14-storey office-led scheme forming a key component of the Broadgate campus. ### Considerations **For shareholders:** The Board was mindful of ensuring that the building achieved significant pre-let activity. The commitment to development was concurrently executed with a 21-year lease agreement with leading global law firm HSF Kramer for 268,000 sq ft, representing a 60% pre-let. **For customers:** The redevelopment will offer high quality, flexible, sustainable workspace, targeting BREEAM Outstanding, EPC A and NABERS 5-5.5*. This aligns with growing occupier demand for premium, sustainability-conscious buildings. **From an environmental perspective:** The scheme will retain approximately 75% of its existing structural frame. **Outcome:** The Board concluded that committing to the development would benefit the long term success of the Broadgate campus and deliver appropriate returns for shareholders. The project has been substantially de-risked through the pre-let and placing of a design and build contract with Skanska, with a high degree of cost certainty. --- British Land Annual Report and Accounts 2026 79 CORPORATE GOVERNANCE # Q3 ## NOVEMBER 2025 - Finance: Approval of half year results - Finance: Considered the Group's reserves and capital position and approved the interim dividend - Finance: Consideration of various financing structures and initiatives - Finance: Assessment and approval of the Group's interest rate management policy - Risk: Approval of identification and assessment of the Group's principal risks and effectiveness of the risk management and internal control processes - Strategy: Portfolio update and corporate actions # Q4 ## JANUARY 2026 - Update: Geopolitical risk - Key decision: Approval of the commitment to 1 Appold Street redevelopment - Key decision: Approval of the recommended offer for Life Science REIT plc ## FEBRUARY 2026 - Strategy: Board strategy offsite - Finance: Approval of 100 Liverpool Street £475m secured loan refinance in the Broadgate joint venture ## MARCH 2026 - Finance: Approval of £150m three-year revolving credit facility - Strategy: Board strategy offsite follow-up - Key decision: FY27 budget # 2026 ## Recommended acquisition of Life Science REIT plc - Decision: A recommended cash-and-share offer for Life Science REIT plc. ## Considerations - For shareholders: The Board discussed the solid business fundamentals of the acquisition, recognising that this bolt on acquisition, while relatively small, was both strategically and financially attractive. It would enhance British Land's Science and Technology presence across the Golden Triangle at an attractive entry point, supported by a diverse and high-growth occupier base. The acquisition was expected to be immediately earnings accretive on completion and further significant accretion relative to the deal size is expected over time from capturing embedded reversion and leasing vacant space. The Board considered the impact of the acquisition on the key financial metrics of the business, noting that as well as being immediately accretive to earnings, the transaction was importantly non-dilutive to net tangible assets per share. - From a reputational perspective: The transaction was consistent with the stated Science and Technology strategy of the business and evidenced British Land's ability to act decisively when presented with an opportunity to grow the Company. - Long term impact: The Board concluded that the acquisition would benefit British Land's long term strategy and enhance the Company's exposure to this high growth sector. - Outcome: The Board agreed that the recommended offer represented good value for the Company's shareholders, whilst positively impacting a broad range of wider stakeholders. Our key stakeholders Investors People Customers Communities Suppliers and partners Environment Joint venture partners All All --- British Land Annual Report and Accounts 2026 # OUR APPROACH TO GOVERNANCE CONTINUED ## Board and Committee evaluations The Board reviews its performance and effectiveness annually. During the year, the Company Secretary conducted an internal Board evaluation with the last externally facilitated evaluation in 2023/24 and next in 2026/27. 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, find ways to improve, and evaluate individual director performance. ## Progress against 2025 focus areas During the year, the Board sought to implement the key takeaways from last year's internal Board evaluation as detailed below. | Focus area | Action taken | | --- | --- | | New Non-Executive Director | Following a rigorous search process, the Board appointed Raj Shah in January 2026. See page 88 for more detail. | | Additional external perspectives | The Board continued to hear from external speakers which enabled rich discussion and informed debate. | | Executive succession pipeline | The Board has strengthened the pipeline for the Executive Committee and their direct reports by enhancing visibility of potential successors for critical leadership roles and ensuring excellent talent is being nurtured at the senior level of the business. Comprehensive succession and contingency plans remain in place for all executive positions, supported by the ongoing assessment of leadership capability and readiness. | ## 2026 internal Board evaluation process The internal evaluation of the Board was carried out by the Company Secretary who conducted 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 2026 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 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. During the year, the Board dedicated time to evaluating the effectiveness of its Committee structure and assessing whether it continued to be most appropriate for the Company's strategy and operation. Following this review, the Board concluded that revisions were appropriate to ensure the Committee structure most effectively supports the operational and strategic needs of the business. Further information on the upcoming Governance Framework changes are found on page 76. ## 2026 internal Board evaluation outcome An opportunity was identified to remove some duplication and overlap between the Board Committees, also enabling the meeting cycle to be more efficient. It was anticipated that the upcoming changes to the Governance Framework, post AGM 2026, would address the issues and enable the Board and its Committees to operate even more effectively. ## Division of responsibilities The division of responsibilities between the Chair, Chief Executive and Senior Independent Director have been agreed by the Board and are available to view on our website www.britishland.com/committees. ## Board operation Care is taken to ensure that information is circulated in good time ahead of Board and Committee meetings. Papers are circulated one week prior to meetings, marked 'For Decision', 'For Discussion' or 'For Information', and presented clearly with the appropriate level of detail to assist the Board in discharging its duties. ## 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 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. ## Board Attendance as at 31 March 2026 | Director | Board | Audit | ESG | Nomination | Remuneration | | --- | --- | --- | --- | --- | --- | | Mark Aedy | 8/8 | n/a | 3/3 | n/a | n/a | | Simon Carter | 8/8 | n/a | n/a | n/a | n/a | | Lynn Gladden | 8/8 | n/a | 3/3 | n/a | 4/4 | | Alastair Hughes | 7/8² | 4/4 | 3/3 | 5/5 | n/a | | Amanda James | 8/8 | 4/4 | n/a | n/a | n/a | | Amanda Mackenzie | 8/8 | n/a | 3/3 | 5/5 | 4/4 | | Mary Ricks | 7/8² | 4/4 | n/a | n/a | n/a | | William Rucker | 8/8 | n/a | n/a | 5/5 | n/a | | Raj Shah¹ | 4/4 | n/a | n/a | n/a | n/a | | David Walker | 8/8 | n/a | n/a | n/a | n/a | | Loraine Woodhouse | 8/8 | 4/4 | n/a | 5/5 | 4/4 | 1. Raj Shah was appointed to the Board on 20 January 2026. 2. Alastair Hughes and Mary Ricks were unable to attend the February and March Board meetings respectively due to a pre-existing commitment. --- British Land Annual Report and Accounts 2026 81 CORPORATE GOVERNANCE # BOARD OF DIRECTORS # OUR LEADERSHIP ## Board Committee membership key A Audit Committee B Remuneration Committee E Environmental Social Governance Committee N Nomination Committee O Chair of a Board Committee ![img-44.jpeg](img-44.jpeg) N ## William Rucker Non-Executive Chair Appointed as Non-Executive Chair in July 2024 ## Career and experience William is Chair of ICG plc and the UK Dementia Research Institute. He was previously Chair of Marston's plc, Lazard UK, Crest Nicholson Holdings plc and Quintain Estates and Development plc. A Chartered Accountant, William joined Lazard in 1987 from Arthur Andersen and has extensive experience in the real estate sector. ## 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. ![img-45.jpeg](img-45.jpeg) ## Simon Carter Chief Executive Appointed as Chief Financial Officer in May 2018 and Chief Executive in November 2020 ## Career and experience Simon joined British Land in 2018 from Logicor, where he was CFO, and previously served as Finance Director at Quintain Estates and Development plc. Simon held a number of senior roles at British Land from 2004 until 2015 and earlier worked at UBS. He was the President of the British Property Federation until April 2026. A Chartered Accountant, he qualified with Arthur Andersen. ## Skills relevant to British Land - Strategic leadership, fostering innovation and driving impactful change - Holistic and judicious approach to decision making - Extensive capital markets and property knowledge - Supports diversity and inclusion in the real estate sector ## Significant external appointments None. ![img-46.jpeg](img-46.jpeg) ## David Walker Chief Financial Officer Appointed as Chief Financial Officer in November 2024 ## Career and experience David joined British Land in 2017 and was previously Chief Operating Officer, Interim CFO and Head of Investor Relations. A Chartered Accountant, he qualified with PwC and spent seven years at Deutsche Bank before holding senior roles in Investor Relations, Strategy, Finance and Corporate Development across UK listed businesses. He is currently on the Board of Equiem, a leading property technology business. ## 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 ## Significant external appointments None. ![img-47.jpeg](img-47.jpeg) ## Loraine Woodhouse Senior Independent Director Appointed as a Non-Executive Director in March 2021 and Senior Independent Director in January 2025 A N R ## Career and experience Loraine is a Non-Executive Director at Pennon Group plc and Associated British Foods plc. She was CFO of Halfords Group plc until 2022 and previously held senior finance roles at John Lewis Partnership, Hobbs, Capital Shopping Centres (Intu) and Costa Coffee. A qualified accountant, Loraine has extensive experience across finance disciplines in sectors including retail and real estate. ## 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. Loraine Woodhouse will step down as Chair of the Audit Committee (but will remain a member) with effect from the conclusion of the 2026 AGM. --- 82 British Land Annual Report and Accounts 2026 # BOARD OF DIRECTORS CONTINUED ![img-48.jpeg](img-48.jpeg) Amanda Mackenzie Independent Non-Executive Director Appointed as a Non-Executive Director in September 2023 N P E ## Career and experience Amanda is a Non-Executive Director of Lloyds Banking Group plc and Non-Executive Chair and Partner of OtherWise Partners LLP. She was Chief Executive of Business in the Community and previously held senior roles at Aviva, British Airways AirMiles, BT, Hewlett Packard 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. ![img-49.jpeg](img-49.jpeg) Alastair Hughes Independent Non-Executive Director Appointed as a Non-Executive Director in January 2018 A N E ## Career and experience Alastair is Chair of Schroders Real Estate Investment Trust and a Non-Executive Director of Tritax Big Box REIT and QuadReal Property Group. A Fellow of the Royal Institution of Chartered Surveyors, he has over 35 years' experience in real estate and previously held senior leadership roles at Jones Lang LaSalle Inc., including managing director in the UK, CEO for EMEA and then 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. ![img-50.jpeg](img-50.jpeg) Lynn Gladden Independent Non-Executive Director Appointed as a Non-Executive Director in March 2015 R E ## Career and experience Lynn is Shell Professor of Chemical Engineering at the University of Cambridge and former Pro-Vice Chancellor for Research. She previously served as Executive Chair of the Engineering and Physical Sciences Research Council. Lynn is a member of the Council for Science and Technology, a trustee of the Faraday Institution and adviser to BeyondNetZero. She is a Fellow of the Royal Society and Royal Academy of Engineering and a foreign member of the US National Academy of Engineering. Lynn Gladden will be stepping down from the Board with effect from the conclusion of the 2026 AGM. ## 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. ![img-51.jpeg](img-51.jpeg) Mark Aedy Independent Non-Executive Director Appointed as a Non-Executive Director in September 2021 E ## Career and experience Mark is Chairman of EMEA & APAC, Moelis & Company. Prior to 2009, he 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 of the HALO Trust. ## 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. The responsibilities of the ESG Committee will be integrated into the revised governance structure and the ESG Committee will be dissolved with effect from the conclusion of the 2026 AGM, see page 76. --- British Land Annual Report and Accounts 2026 83 CORPORATE GOVERNANCE ![img-52.jpeg](img-52.jpeg) Amanda James Independent Non-Executive Director Appointed as a Non-Executive Director in July 2024 # Career and experience Amanda is an Independent Non-Executive Director of Auto Trader Group plc and Rightmove plc. She joined the Board of NEXT plc as CFO in 2015, and after spending over 28 years in its finance team, stepped down from the Board in 2024. A qualified accountant, Amanda has extensive finance experience across UK listed businesses. # Skills relevant to British Land - Recent and relevant financial experience - Strong consumer, retail and multichannel 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. Amanda James will succeed Loraine Woodhouse as Chair of the Audit Committee, renamed the Audit & Risk Committee, with effect from the conclusion of the 2026 AGM. ![img-53.jpeg](img-53.jpeg) Raj Shah Independent Non-Executive Director Appointed as a Non-Executive Director in January 2026 # Career and experience Raj is Partner and Chairman of Healthcare investing at Nordic Capital Advisors. He previously co-led Healthcare Investment Banking at Goldman Sachs, having originally trained as a cardiac surgeon. Raj brings extensive investment experience in science-focused companies and serves on the boards of several Nordic Capital investments. He was a trustee of the Royal Brompton & Harefield Hospitals Charity until 2024. # Skills relevant to British Land - Deep experience in evaluating and scaling complex, science focused and operationally intensive businesses; bringing a rigorous analytical approach to strategy and capital allocation - Strong understanding of stakeholder dynamics, informed by a career bridging clinical practice, investment banking and global private equity leadership - Extensive investment experience across the life sciences sector, supporting informed decision making in innovation driven environments # Significant external appointments Partner and Chairman of Healthcare at Nordic Capital Advisors. ![img-54.jpeg](img-54.jpeg) Mary Ricks Independent Non-Executive Director Appointed as a Non-Executive Director in November 2023 # Career and experience Mary brings over 35 years' experience in UK, European and US property markets. She spent 32 years at Kennedy Wilson, where she launched its European business and oversaw its IPO in 2014, later serving as Group President from 2018 to 2023. Mary has set up a family foundation supporting 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. ![img-55.jpeg](img-55.jpeg) Brona McKeown HK Director, General Counsel and Company Secretary Appointed as General Counsel and Company Secretary in January 2018 and HR Director in January 2022 # Career and experience Brona joined British Land in 2018 after four years on the Executive Committee at The Co-operative Bank plc where she played a key role in its restructuring. She previously held senior legal roles at Coventry Building Society and Barclays, including Global General Counsel of Corporate Banking. Brona trained as a solicitor and spent a number of years at a large London law firm. # Skills relevant to British Land - Skilled in leadership, strategic thinking, analysis and operational delivery of the people agenda to drive a high performance culture - Extensive experience in legal and corporate governance with significant experience in navigating complex legal landscapes # Significant external appointments None. --- British Land Annual Report and Accounts 2026 # REPORT OF THE ENVIRONMENTAL SOCIAL GOVERNANCE COMMITTEE # ENGAGING WITH OUR WORKFORCE "Our Employee Listening Sessions provided valuable insight into our organisational culture." Alastair Hughes Chair of ESG Committee ![img-56.jpeg](img-56.jpeg) Alastair Hughes Independent Non-Executive Director ## Focus in the year - Engaging with our workforce - ESG strategy review - Progress against targets ## Role of the Committee during the year The primary role of the ESG Committee was 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 - Ensuring the Board was aware of the mechanisms used by the Company to engage with key stakeholders - Ensuring that those mechanisms were fit for purpose and assist in contributing to wider society Our Sustainability section found on pages 36 to 43 should be read alongside this report. ## Membership and attendance during the year The membership of the Committee was comprised of four independent Non-Executive Directors. Biographical details of the Committee members are found on pages 81 to 83. The Committee met three times in 2025/26 with an additional joint meeting held with the Remuneration Committee. Attendance is set out on page 80. Senior managers from across the business are invited to attend each Committee meeting, together with our Executive Directors. I am pleased to present the report of the ESG Committee for the year ended 31 March 2026. ## Activity during the year - Monitored progress against our environmental commitments and approved the launch of our Nature Strategy. - Received a report that the Company had achieved a GRESB 5* rating. - Approved the renewal of our SBTi targets. - Reviewed our social sustainability commitments, agreeing to prioritise initiatives that deliver strategically important outcomes. - Monitored progress against our DE&I Strategy and oversaw the mechanisms for engaging with the workforce on behalf of the Board. - Assessed and monitored organisational culture to ensure alignment with our purpose, strategy and values. - Employee Listening Sessions continued to provide valuable insight into our organisational culture, supplemented by regular updates from our Employee Networks. - Monitored Health & Safety and Development Risk. ## Governance framework review As the Company enters the next phase of its strategy, the responsibilities of the ESG Committee will be integrated into the wider governance structure (see page 76). I will be responsible for workforce engagement, using our Employee Listening Sessions to provide insights directly to the Board. On behalf of the Board, I would like to thank all Committee members, colleagues and stakeholders for their contribution and commitment throughout the years. ![img-57.jpeg](img-57.jpeg) Alastair Hughes Chair of the ESG Committee --- British Land Annual Report and Accounts 2026 85 CORPORATE GOVERNANCE # Workforce engagement statement In accordance with Provision 5 of the Code, during the year the ESG Committee was responsible for workforce engagement on behalf of the Board. In the context of changes to the Company's governance framework, and following a review of these arrangements, responsibility for workforce engagement will be owned by a designated Non-Executive Director, Alastair Hughes, with effect from the conclusion of the 2026 AGM. Employee Listening Sessions will continue as the key mechanism for workforce engagement and will be led by Alastair Hughes, who will report key themes to the Board. The Board considers our workforce engagement mechanisms will remain effective, with the appointment of a designated Non-Executive Director ensuring appropriate oversight and clear accountability for workforce engagement at Board level. ## Director engagement - The Employee Listening Sessions have strengthened direct communication between the workforce and our Board. - Ahead of each Committee meeting, a small group of employees from across the business meets with two or more Non-Executive Directors to discuss culture, recognition, DE&I and communication. - These sessions provide valuable insights that help the Committee monitor and support our organisational culture. - **Outcome:** Themes arising from the sessions are reported to the Board and shared with the Executive Committee, informing management actions and giving the Board cultural insights into the Company. Employee feedback indicated that the sessions were felt to be effective and welcomed, and provided a valuable opportunity to engage directly with Non-Executive Directors. ## Employee engagement survey - We hold a Company-wide survey to evaluate engagement and highlight areas for improvement. This is analysed and discussed through a diversity lens. - Having the detailed survey responses helps shape future inclusion initiatives and provides the Board with valuable insights. - **Outcome:** The results are considered by the Executive Committee and the Board as part of their ongoing oversight and will help inform priorities within the Company's wider strategic direction. > **READ MORE** > about our engagement survey and people strategy on pages 42 to 43 ## Linking remuneration - 85% of eligible employees invest in British Land through our Share Incentive Plan and SAYE schemes. - In the year, we introduced greater links between the financial targets, goals and individual performance targets of the wider business and individuals, which helps promote closer links between achieving corporate objectives and rewarding our employees. - **Outcome:** Wider range of bonus outcomes to reflect and differentiate individual performance and ensure objectives are closely linked to business goals. ## Internal communications - Our Internal Communications team sends a fortnightly Company-wide email highlighting key business activities. Employees also receive regular updates on Employee Network events. - There are monthly staff meetings led by our Executive Committee that feature updates from across the business. - This year we hosted our Company Conference, which gathered teams from across the business together under one roof. We celebrated 170 years of British Land by revisiting our history and by setting out our vision for the future. - **Outcome:** Following feedback from employees, there was a range of speakers from across the business presenting at our Company Conference, alongside senior leadership and external speakers to give the customer view. ## Employee Networks - Network chairs presented 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. - Our Networks provide a valuable opportunity to understand how employees are collaborating and influencing the broader inclusion and equality agenda within the Company. - **Outcome:** During the year, the Committee endorsed the work of the Networks, which increased senior leadership involvement in Network events. The Network Spotlight below highlights a tangible outcome arising directly from these engagements. ![img-58.jpeg](img-58.jpeg) # Network Spotlight: NextGen The NextGen Network is aimed at those early in their careers to help nurture professional development and form a community of support. NextGen offer a buddy programme, connecting mentors and mentees from across the Company, as well as organising a variety of social events. The Committee endorsed the NextGen Network to expand their outreach to host more Fireside Chats with our Non-Executive Directors. This year two events have been held with our Chair, William Rucker, and Non-Executive Director, Mark Aedy, participating. These sessions enabled employees to listen to their career journey and lessons they have learned along the way. --- British Land Annual Report and Accounts 2026 # REPORT OF THE ENVIRONMENTAL SOCIAL GOVERNANCE COMMITTEE CONTINUED ## Focus on culture The Board sets the tone for a culture that supports delivery of our strategy and oversees how that culture is embedded across the business through the embodiment of our values. In doing so, the Board has continued to focus on our people strategy, which aims to build a diverse, inclusive and ambitious culture, enabling us to attract, develop and inspire the best people to deliver our strategy. ## How the Board monitors and assesses culture During the year, the Board and its Committees considered a range of indicators to assess culture in practice. These included monitoring: - Progress against our people strategy, with a particular focus on having a performance driven culture, executing in line with our value "Deliver at Pace", learning and development, internal mobility and investment in coaching and mentoring - Progress against our DE&I ambitions, recognising the importance of an inclusive culture for effective decision making and long term success which is embedded through our values "Bring Your Whole Self" and "Build for the Future" The Board saw a dip in our overall engagement scores this year from very high scores previously. While in line with relevant benchmarks, a reduction from the prior year was expected given organisational restructuring and headcount reductions. The Board considered the engagement results in the context of the strategic changes implemented during the year and will continue to monitor engagement and culture as the business moves through this period of adjustment. ## Outcomes of the Board's monitoring and assessment The strategic benefits of these changes support the culture the Board is seeking to embed and help position the business for future success. In particular, the changes have: - Reinforced cost discipline - Increased accountability and efficiency following organisational restructuring and headcount reductions The Board believes that the changes adopted during the year support the development of a sustainable culture aligned with long term performance. The Board expects engagement levels to stabilise and improve and will closely consider the results of next year's engagement survey, adapting the strategy where required in the interests of the business. Employee Listening Sessions will continue to be used as an important tool to monitor culture and ensure it remains aligned with the Company's values and objectives. ## Embedding our desired culture We continue to invest in our people to support performance and build long term capability. Clear expectations, effective leadership and opportunities for development remain central to how we support colleagues to perform at their best. ### Looking ahead Our focus remains on driving a high-performing, engaged and inclusive workforce that can "Deliver at Pace". Priorities include continued leadership development, further progress against our DE&I ambitions and opportunities to enhance digital and technical skills at all levels across the business. The key metrics for FY26, set out overleaf, enable the Board to keep abreast of the culture of the business, providing insight into colleague experience, leadership effectiveness and engagement. The Board and Executive Committee remain focused on our long term performance whilst continuing to embed our values to enable a diverse, inclusive and ambitious culture. --- British Land Annual Report and Accounts 2026 87 CORPORATE GOVERNANCE # Our culture in action The snapshot below highlights some of the key culture metrics for FY26, which are aligned to our values and are visible to the Board through our Governance structure. | OUR VALUES | | | | | | --- | --- | --- | --- | --- | | BE SMARTER TOGETHER | BRING YOUR WHOLE SELF | LISTEN AND UNDERSTAND | BUILD FOR THE FUTURE | DELIVER AT PAGE | | 6,129 training hours across the business | 88% of employees feel they receive support from people around them at work when needed | 64% employee engagement score in FY26 | 28% of new hires were from a minoritised ethnic background | £3.1bn of financing activity in the year | | 9 employee-led Networks | 80% of employees felt they can be their authentic self at work | 30 employees attending Listening Sessions with our Non-Executive Directors | 87% of employees know what they need to do to be successful in their role | 54 days from agreeing terms to completion of the 158,000 sq ft Anthropic lease at One Triton Square | | 11 staff meetings with all employees invited to attend and members of our Executive Committee presenting | 17.4% ethnicity pay gap | 88% of employees stated they are able to arrange time out of work when needed | 74 internal job movements or promotions | 94% now let at One Triton Square since its launch in October 2025 | | 90% participation rate in employee engagement survey in FY26 | 6.9% gender pay gap | 82% of employees felt they have access to the things they need to do their job well | 65 people early on in their careers participated in our work experiences programmes | 1.7m sq ft of leasing across Campuses during the year | | 73% of employees felt that they are encouraged to be innovative even though some of their initiatives may not succeed | 36% female representation at senior management level | 81% of employees are proud to work for the Company | £333m assets acquired through the acquisition of Life Science REIT plc which completed in April 2026 | 40 Business-led digital improvements delivered in FY26, enabled through the Digital Skills Forum | --- British Land Annual Report and Accounts 2026 # REPORT OF THE NOMINATION COMMITTEE # DELIVERING SUCCESS THROUGH EFFECTIVE LEADERSHIP William Rucker Non-Executive Chair ![img-59.jpeg](img-59.jpeg) ## Focus in the year - Chief Executive succession - Non-Executive Director changes - 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 The Nomination Committee is dedicated to ensuring that the Company is best placed to meet its long term strategic objectives through effective and dependable leadership at both Board and executive level. The Committee is responsible for ensuring that the Board has a diverse and meaningful combination of skills and experience amongst the Directors to meet those objectives. ## Membership and attendance The membership of the Committee comprises four independent Non-Executive Directors. In particular, Chairs of the Audit, ESG and Remuneration 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 81 to 83. The Committee met five times during the year with attendance set out on page 80. The Chief Executive, Company Secretary and Director of Governance are invited to attend each Committee meeting. "The Nomination Committee is dedicated to ensuring that the Company is best positioned to meet its long term strategic objectives through effective and dependable leadership" William Rucker Non-Executive Chair I am pleased to present the report of the Nomination Committee for the year ended 31 March 2026. ## Board changes In January 2026 we announced that Simon Carter will be stepping down as Chief Executive. The Committee has commenced a thorough search process and will follow the selection and appointment process detailed on the following page. After consideration by the Committee, it was decided that the Board's skillset would benefit from additional experience in the healthcare and private equity sector. Consequently, the Board approved the appointment of Raj Shah as Non-Executive Director with effect from January 2026. In May 2026, it was announced that Lynn Gladden will be stepping down from the Board. Raj Shah, already a member of the Innovation Advisory Council, will become Chair of the Council upon Lynn's departure and will bring great insight to this forum. The Committee recommended the appointment of Amanda James as Chair of the Audit Committee (which will be renamed to the Audit & Risk Committee), succeeding Loraine Woodhouse, with effect from the conclusion of the 2026 AGM. Loraine Woodhouse will remain a member of the Audit & Risk Committee. Further information can be found on page 93. ## Board diversity The Committee periodically 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 Board is pleased now to comply with the requirements of the UK Listing Rules in respect of ethnic diversity and will continue to work towards the more stretching target within its own policy. The Committee is pleased that as at 31 March 2026, the Board met and exceeded its targets in respect of gender. A full description of the Board's diversity, and areas of focus for the year ahead, are included on page 92. ![img-60.jpeg](img-60.jpeg) ## William Rucker Chair of the Nomination Committee --- British Land Annual Report and Accounts 2026 89 # 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 has been appointed to lead the search for a successor to the Chief Executive and WMW Consulting was appointed in the search for a Non-Executive Director resulting in the appointment of Raj Shah. Both firms have no other relationship with the Company or individual Directors. The firms have 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 Director of Governance 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 expertise. 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, and their alignment with the Company's strategic objectives. The Board dedicated considerable time to evaluating the effectiveness of its Committee structure and assessing whether it remained fit for purpose. Following this review, the Board concluded that revisions were appropriate to ensure the Committee structure most effectively and efficiently supports the operational and strategic needs of the business. Further information on the governance framework changes are found on page 76. Details of significant external appointments taken on by Directors during the year can be found on page 92. 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 80. ## 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. In respect of Lynn Gladden who has served on the Board for 11 years, the Committee made a recommendation to the Board that notwithstanding her tenure of over nine years, she remains independent in accordance with the circumstances listed in Provision 10 of the Code. 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. The Committee recommended to the Board that all serving Directors be put forward as appropriate for appointment and reappointment at the 2026 AGM, with the exception of Lynn Gladden who will be stepping down as a Director at its conclusion. ## 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. --- British Land Annual Report and Accounts 2026 # REPORT OF THE NOMINATION COMMITTEE CONTINUED ## Demonstrating our skills Our skills matrix as at 31 March 2026 has been updated to show the additional skills brought to the Board with the appointment of Raj Shah. The percentage shows the outcome as a proportion of the maximum score available. The Committee uses this data when considering Non-Executive Director appointments. ## Skills matrix | People/talent/culture | 85% 88% | | --- | --- | | Listed PLC experience | 81% 88% | | Remuneration | 70% 71% | | Accounting/finance/risk | 81% 79% | | Public & private capital markets | 76% 75% | | M&A/transactions | 70% 67% | | Strategy & data usage | 57% 56% | | Real estate | 67% 71% | | Retail/customer orientation | 70% 71% | | Digital and technology | 58% 63% | | Sustainability & ESG | 70% 71% | | Marketing | 63% 63% | | Policy/government relations | 61% 67% | | CEO experience | 63% 63% | 2025 2026 ## 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 as well as external recruitment. 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 whole Board. 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. ### Non-Executive tenure as at 31 March 2026 (years) | Lynn Gladden | 11.0 | | --- | --- | | Alastair Hughes | 8.2 | | Loraine Woodhouse | 5.1 | | Mark Aedy | 4.6 | | Amanda Mackenzie | 2.6 | | Mary Ricks | 2.4 | | Amanda James | 1.8 | | William Rucker | 1.2 | | Raj Shah | 0.2 | --- British Land Annual Report and Accounts 2026 91 # 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 (senior management is defined as the Executive Committee and its direct reports). We believe that in order to achieve our strategy we need a diverse Board that reflects the places we develop and manage as well as the tenants and customers that occupy our spaces. The policy, which applies to the Board and its Committees, affirms that appointments will continue to be made on merit against 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 aligns with the recommendation of the Parker Review to introduce a percentage target for minoritised ethnic representation in senior management. It also 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 2026 included: - the intention to maintain a balance such that at least 40% of the Board were 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, Chief Financial Officer or Senior Independent Director to be a woman; - to achieve a gender mix such that at least 40% of senior management were women and a diversity mix such that 15% of senior management were from a minoritised ethnic background; and - to ensure that there was 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. During the year, the ESG Committee was accountable for diversity and inclusion, by benchmarking progress against relevant objectives and British Land initiatives. 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. As at 31 March 2026, which is our chosen reference date in accordance with the UK Listing Rules, the Board had a gender balance of 45% women, and Loraine Woodhouse remains appointed as the Senior Independent Director. The Board is pleased to have exceeded and met these objectives respectively as at the reference date. As at 31 March 2026, the gender diversity for senior management, as previously defined, was 36% women, in line with 2025. 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. ![img-61.jpeg](img-61.jpeg) Board gender balance 31 March 2026 | ● Male | 55% | | --- | --- | | ● Female | 45% | 31 March 2025 | ● Male | 50% | | --- | --- | | ● Female | 50% | 31 March 2024 | ● Male | 50% | | --- | --- | | ● Female | 50% | As at the reference date, Raj Shah is the sole Board member from a minoritised ethnic background. The Nomination Committee is pleased that the Company once again aligns with the recommendation of the Parker Review and the UK Listing Rules requirement. However, we are cognisant that the Company remains below its own stretching target of two Directors from a minoritised ethnic background, as set out in our policy. We 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 of two Directors from a minoritised ethnic background, notwithstanding the current Board composition. As at 31 March 2026, 10.3% of our senior management team was from a minoritised ethnic background. ![img-62.jpeg](img-62.jpeg) Board ethnicity balance 31 March 2026 | ● White/British | 91% | | --- | --- | | ● Asian/Asian British | 9% | 31 March 2025 | ● White/British | 100% | | --- | --- | 31 March 2024 | ● White/British | 83% | | --- | --- | | ● Asian/Asian British | 17% | --- British Land Annual Report and Accounts 2026 # REPORT OF THE NOMINATION COMMITTEE CONTINUED ## 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 | 6 | 55 | 3 | 3 | 50 | | Women | 5 | 45 | 1 | 3 | 50 | | 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 | 91 | 4 | 6 | 100 | | Mixed/Multiple ethnic groups | - | - | - | - | - | | Asian/Asian British | 1 | 9 | - | - | - | | Black/African/Caribbean/Black British | - | - | - | - | - | | Other ethnic group | - | - | - | - | - | | Not specified/prefer not to say | - | - | - | - | - | The table above sets out the ethnic background and gender identity of the Board and Executive Committee as at 31 March 2026, which is our chosen reference date in accordance with the UK Listing Rules. The data was collected by the Director of Governance 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 80. The Committee's terms of reference were reviewed by the Committee in May 2026 to reflect the governance structure changes detailed on page 76. 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 Significant appointments include the appointment to the Board of any listed company or large privately owned company, and any other appointment deemed to be significant in relation to its time commitment which is determined on a case-by-case basis. The Board is aware that each individual's circumstances are different and therefore does not take a 'one size fits all' approach. Further detail about the Board Conflicts of Interest Policy can be found on page 80. The Board reviews and considers the time commitments of each Director and confirms that all Directors maintain the ability to dedicate sufficient time to their commitments at British Land. All previously approved significant appointments provide Directors with valuable exposure to diverse strategic challenges and enable them to bring fresh insight to their roles at British Land. During the year under review, no significant external appointments by Non-Executive Directors required prior approval from the Board. ## 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 Chief Executive. 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 2026 93 CORPORATE GOVERNANCE # REPORT OF THE AUDIT COMMITTEE # EVOLVING GOVERNANCE AND SYSTEMS ![img-63.jpeg](img-63.jpeg) ## Focus in the year - Enterprise Resource Planning (ERP) programme - Provision 29 of the UK Corporate Governance Code (the 'Code') - Governance framework review ## 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 - Advise on the 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 The Committee's terms of reference were reviewed by the Committee in May 2026 to reflect the governance structure changes detailed on page 76. ## 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. Details of the Committee members and attendance are found on pages > "Forthcoming technology changes will drive efficiency alongside ongoing improvements in the control environment." > > Loraine Woodhouse > Chair of the Audit Committee 80 to 83. The Committee met four times during 2025/26, compared to three in 2024/25. The additional meeting allowed more time to be allocated to risk management and internal control, which was a constructive use of time. ## ERP programme The Committee has provided Board-level oversight of the new ERP programme to implement Oracle Fusion. The programme will transform the systems that facilitate our core business functions, by upgrading various legacy systems into a modern, high-performing ERP tool. We received updates from management regarding the tender of the service provider, timeframe for implementation, and progress to date including design and testing processes, before it was recommended to the Board for approval. The programme will streamline processes and standardise tasks, therefore ultimately minimising risk and reducing costs. ## Provision 29 of the Code We dedicated significant time to discuss corporate governance matters, including the revised Provision 29 of the Code. In preparation for reporting under Provision 29 next year, we received an update from management on their review of our internal controls. Overall, we were impressed with the depth of preparation and maturity of the Company's risk and internal control environment. ## Governance framework review With effect from the conclusion of the 2026 AGM, oversight of Health & Safety and Main Development Contractor Risk, previously part of the ESG Committee remit, will be transferred to the Audit Committee. The Committee will be renamed the Audit & Risk Committee to better reflect its role. ## Year ahead The Committee will continue to oversee the ERP programme as it moves into its final stages. On Provision 29, we will build on the strong foundations laid this year to support the Board's first attestation in the 2027 Annual Report. We will oversee preparations for IFRS 18 which applies to British Land at the half year ending in 2028. Finally, the Committee will hold deep dives on its new areas of responsibility as the expanded Audit & Risk Committee. As agreed at the May 2026 Committee meeting, Amanda James will Chair the Audit Committee from the end of the 2026 AGM and I wish her every success in the role. I will continue to be a member of the Committee following Amanda becoming Chair. ![img-64.jpeg](img-64.jpeg) ## Loraine Woodhouse Chair of the Audit Committee --- 94 British Land Annual Report and Accounts 2026 # 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 estimation 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, JLL and Cushman & Wakefield. As at 31 March 2026, the portfolio was valued at £10.1bn. Key matters discussed in the year: - Yield movements, current and future rental levels, and benchmarking; - Trends affecting occupational and investment retail and office sectors, logistics, life sciences and industrial markets and Canada Water; - Macroeconomic events affecting the markets the Company operates in; - Impact of the mandatory valuer rotation rules on the market; and - Biannual qualitative review of valuers' service level. The valuers present their reports biannually which include details of the valuation process, market conditions and any significant estimates 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; and - Valuation outliers are reviewed on our valuation movements with any variances analysed. ## Activities during the year **MAY** Valuer reports and effectiveness 2025 Annual Report and Accounts and preliminary announcement Going concern and viability assessments Sustainability assurance, Internal and External audit reports Corporate Governance Code compliance Principal risks and internal control effectiveness review Reappointment of external auditors, PwC and BDO ERP update **SEW** **OCT** Corporate governance changes including Provision 29 of the Code External audit plan, fees and engagement letter Insurance, ERP, technology and cyber security updates **NOV** Valuer reports and effectiveness Going concern and viability assessments 2026 half year results, preliminary announcements and financial reporting judgements Internal and external audit reports Risk and internal control update Cyber security update Treasury policy approval **MAR** Going concern and viability assessments Provision 29 compliance, sustainability reporting and ERP updates Financial reporting judgements Principal and emerging risks assessment and appetite review Data privacy, tax, whistleblowing and compliance reports Internal and external audit reports Reappointment of internal auditor, Deloitte Effectiveness of the Committee, Internal and External Audit --- British Land Annual Report and Accounts 2026 95 # 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. A summary of our material accounting policies can be found in Note 2 of the financial statements; - 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 estimates; 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, an overview of which is set out across the page. In particular, the Committee contemplated the specific considerations in the 2026 Annual Report and Accounts found opposite 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 118 that it believes that the Annual Report and Accounts, taken as a whole, is FBU. 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. # Fair, balanced and understandable review process ## 01 MANAGEMENT REVIEW Key members of the management team independently review the Annual Report and Accounts, challenging its accuracy, consistency and appropriateness. They then come together to discuss and determine any suitable changes which are overseen by the Committee. ## 02 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. ## 03 VERIFICATION A group of individuals from across the business verify all factual content and provide assurance that all data is correct. ## 04 RECOMMENDATION TO THE BOARD The Board considers the Committee's recommendation that the Annual Report and Accounts as a whole is FBU. ## PRIMARY CONSIDERATIONS: - Maintaining an appropriate balance of financial and non-financial measures. - Ensuring the Company's purpose is communicated clearly and consistently. - Ensuring that real estate terminology was appropriately explained or clarified, where necessary. --- British Land Annual Report and Accounts 2026 # REPORT OF THE AUDIT COMMITTEE CONTINUED 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 49 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 120 to 126 and the significant accounting policies disclosed in the notes to the financial statements. The Committee received reports from management in relation to IFRS 18 which will replace IAS 1 and is effective for annual reporting periods beginning on or after 1 January 2027, with the Company's first affected reporting period being the 2028 half year reporting period. The standard introduces changes to the presentation and disclosure requirements of the financial statements intended to enhance transparency and comparability. The Committee noted that preparatory work is already underway and was satisfied that appropriate plans are in place to ensure timely and effective implementation. On this basis, the Committee was comfortable that the Company will be compliant with the new requirements and will continue to monitor progress ahead of the implementation date. ## 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 estimates 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 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. | | **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. | The Committee was satisfied that the accounting treatment and related financial disclosure of significant transactions was appropriate. There was no interaction with the FRC's Corporate Reporting Review team during the year. | | **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, released and utilised by the Group in the year. 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. | --- British Land Annual Report and Accounts 2026 97 # 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 the Company. Deloitte, in their third 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. Deloitte was reappointed as internal auditor during the year for a term of three years. Over the past three years, Deloitte has delivered a high quality internal audit programme and has worked effectively with the British Land teams, demonstrating appropriate professional challenge alongside flexibility where required. 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 controls 2. IT general controls 3. Leasing processes 4. Fraud risk management 5. Group cyber security – Asset systems 6. Payroll 7. ERP – Programme governance 8. Development procurement and supply chain resilience 9. Artificial intelligence – Strategy and governance No material control issues were identified during the work of the Internal Audit during the year. Control findings which were identified were reported to management and actions agreed to address each finding. Actions are tracked to conclusion and verified before closure. During the year, Internal Audit reported on the Company's robust and maturing enterprise-wide controls framework and positive progress toward Provision 29 readiness. In addition, enhancements to the Company's fraud risk management processes and procedures were identified to ensure compliance with the Failure to Prevent Fraud requirements. # Effectiveness The Committee held private sessions with the internal auditor three times during the year. These meetings are held without management present to enable the auditor to raise any issues of concern. In addition, the Chair of the Committee holds private meetings with the auditor separately before each meeting and additional meetings are held on request. The annual evaluation of the internal auditor's performance was undertaken in March 2026. The review 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 Committee members, CFO, Group Financial Controller, Head of Strategy and Investor Relations, Head of Information Security, Head of Risk and Internal Control, and Reward, Talent and Performance Director, 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 next page. In addition, the internal auditor completes a self-assessment paper. The results were positive, in particular it showed that the internal auditor had further improved in quality of delivery and people, with all four assessment areas being rated in the highest category. The Committee concluded that Deloitte had discharged its duties as internal auditor effectively throughout the year. In particular, the Committee highlighted the practical findings and insights from other organisations as a key strength. # External Audit 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. Both auditors are provided with complete access to Company staff and records to assist in their work. In addition, the Committee has cultivated a strong relationship with the auditors, and encourage them to challenge management continuously. | Audit firm | PricewaterhouseCoopers | | --- | --- | | Original date of appointment | 18 July 2014 | | Tender completed | February 2024 | | Audit firm tenure | 11 years | | Lead partner, tenure | Saira Choudhry, 2 years | | FY26 non-audit fee as % of total audit fee | 57% | # Non-audit services and fees The Committee discussed the audit fee for the 2026 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 | Audit Committee Chair | | £100,001 and above | Audit Committee | --- British Land Annual Report and Accounts 2026 # 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 sufficient 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 £0.39m, which represents 57% of the total Group audit fees payable for the year ended 31 March 2026. Details of fees charged by the external auditor during the year are set out on page 140. 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. | Total auditor fees | | | Total fee | | --- | --- | --- | --- | | 2025/26 | £0.39m | 57% | £1.06m | | | | £0.67m | | | 2024/25 | £0.36m | 56% | £1.01m | | | | £0.65m | | | 2023/24 | £0.26m | 37% | £0.95m | | | | £0.69m | | ## Key - Non-audit fees - Audit fees ## 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 in 2024 and the lead audit engagement partner and senior members of the audit team were rotated in the year. For the year ended 31 March 2026, as for the prior year, the external auditor made the following confirmations: - At each Committee meeting, that it remains independent; - An annual letter of confirmation stating its independence and that it maintains appropriate internal safeguards to ensure its independence and objectivity; and - That PwC complies with the FRC's Ethical Standards. 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. ## Effectiveness The Committee held private sessions with the external auditor four times during the year. These meetings are held without management present to enable the auditor to raise any issues of concern. In addition, the Chair of the Committee holds private meetings with the 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 2026. The auditor completes a self-assessment paper and key stakeholders also complete a questionnaire, including senior members of the Finance, Strategy, IR and HR teams as well as members of the Committee, CFO and Company Secretary. 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 estimates; and - Quality of the people on the audit team, including their experience and technical knowledge. The scores and feedback are shared with the external auditor and compared against their self-assessment. The feedback received from the survey included good continuity in the external audit team, enabling a smooth audit process. Each category was rated 'good', being the highest rating obtainable. PwC provides a report to the Committee to assess its performance using Audit Quality Indicators (AQIs) which are extremely useful to aid the assessment of the external auditor. The AQIs used during the half and year end include: - Experience and continuity of the audit team; - Percentage of total hours spent on the engagement by the audit partner, director and specialists; - Number of audit misstatements, both adjusted and unadjusted; and - Number of control findings or observations. The Committee monitored any developments against the AQIs and was satisfied that no risks to the audit quality were identified. In addition, the Committee considered the FRC's Audit Quality Review report in relation to the Group's audit. 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. --- British Land Annual Report and Accounts 2026 # 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. The Committee's review for the year ended 31 March 2026 covered financial, operational, compliance and strategic risks. 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 49. The Group has adopted the Code, best practice recommendations in the FRC's Guidance on Risk Management, Internal Control and Related Financial and Business Reporting and the FRC's Minimum Standard for Audit Committees and the External Audit ('Minimum Standard'). The Committee reviewed the Group's compliance with the Minimum Standard during the year and agreed that it was aligned. In addition, the Company's internal control framework operates in line with the recommendations set out in the internationally recognised COSO Internal Control Integrated Framework. # Internal control Internal controls remained a key focus for the Committee during FY26 as the Company prepared to comply with the new Provision 29 of the Code. The Committee devoted significant time over the year to considering the requirements of Provision 29 and its practical implications for the Company, including a dedicated deep dive at the newly introduced October Committee meeting. As part of our roadmap, management undertook a structured process to identify controls considered 'material' in relation to the Company's principal risks, with regular updates to the Committee. The Head of Risk and Internal Control led an initial assessment of risks through reputational, financial, fraud, compliance and disruption lenses. Through iterative discussions with department leads this was refined and resulted in material controls that are categorised into entity-level, cluster-related and singular controls. The Committee provided active oversight throughout this process, offering guidance to management and emphasising the importance of a clear, proportionate and well-defined approach to materiality that appropriately reflected the scale and scope of the Company's operations. In doing so, the Committee was mindful of the need to avoid an overly narrow set of material controls, which could result in oversight being too high-level, and therefore supported an approach that enabled an appropriate depth of scrutiny. In addition to the standard self-certification of key controls, sample testing of internal controls was undertaken during the year, consistent with the biannual testing programme in place. The Committee reviewed and was comfortable with the assurance processes supporting the internal controls framework, noting that the combination of self-certification and independent testing provides a robust basis for scrutiny and will support the assurance required for the Board's future attestation. In the coming year, sample testing will focus specifically on the material controls identified. Looking ahead, overseeing preparations for the Board attestation under Provision 29 in the 2027 Annual Report and Accounts will remain a priority for the Committee. # 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. In particular, the Committee devoted considerable time to discussing macroeconomic risk, reflecting the heightened volatility and uncertainty in the wider economic environment during the year. Both external and internal risks are reviewed and their effect on the Company's strategic aims considered. The assessment of emerging risks included a bottom-up review of all business units and a deep dive by the executive-level Risk Committee. The 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 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. # Effectiveness The Committee has delegated authority from the Board to monitor the effectiveness of the Company's risk management and internal control systems. The assessment was informed by discussions with the Finance team and senior management, reports from the internal and external auditor, and updates from the Risk Committee. Particular focus was placed on controls over financial reporting, IT general controls, cybersecurity and regulatory change. While opportunities for further control enhancement were identified, no material weaknesses were noted. Additional reassurance was provided through the testing of our key controls and rigorous review of our material controls as described earlier in the report. Following its review, the Committee confirmed to the Board that it was satisfied that the Group's risk management procedures and internal control framework operated effectively throughout the period providing reasonable assurance and remaining aligned with the FRC's Guidance on Risk Management, Internal Control and Related Financial and Business Reporting. --- British Land Annual Report and Accounts 2026 # DIRECTORS' REMUNERATION REPORT # ALIGNING WITH INVESTOR PRIORITIES ![img-65.jpeg](img-65.jpeg) ## Focus in the year - Assessing Executive performance during the year against remuneration performance measures - Setting performance measures and remuneration levels for the year ahead - Altered the system of assessment for senior leadership performance to use a more quantitative score card approach based on delivery and results - Supported proposal to widen the performance range for annual appraisals for all other colleagues ## 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 remuneration is commensurate with performance outcomes > "Remuneration outcomes reflect a year of strong delivery, strategic execution and sustained operational performance." Amanda Mackenzie Chair of Remuneration Committee ## Membership and attendance The membership of the Committee comprises three independent Non-Executive Directors. Biographical details of the Committee members are found on pages 81 to 83. The Committee met four times in 2025/26 with an additional joint meeting held with the ESG Committee. Attendance is set out on page 80. As well as Committee members, the Chair of the Board, CEO, CFO, HR Director, Reward, Talent and Performance Director and Director of Governance are invited to attend each meeting. ## Company performance Management has delivered another strong year of operational performance, underpinned by favourable occupational fundamentals across its market-leading London campuses and retail park portfolio. Robust demand and highly constrained supply, alongside a clear return to office and continued retailer expansion, have driven strong leasing activity, ERV growth and high occupancy levels. This translated into solid earnings growth and an 8.1% total accounting return, supported by disciplined cost control, active asset management and continued progress against the Group's value-add strategy. While macroeconomic and geopolitical uncertainty persists, management remains focused on executing against its strategic priorities and is well positioned to deliver sustainable earnings growth and attractive returns. The Executive Directors performed well against the Annual Incentive Plan (AIP) performance measures. Development profit remains below target largely reflecting changing macroeconomic conditions, although development across our campuses continues to represent a key driver of long term value creation. Underlying Profit increased by £15m compared to the prior year, representing a 5% increase. This resulted in an AIP outcome just below the maximum outcome for this performance measure. In addition to strong financial performance, the Executive Directors also exceeded expectations on the ESG related measures, including achieving performance above the GRESB 5* benchmark and improving EPC Ratings across the portfolio. --- British Land Annual Report and Accounts 2026 101 The Committee reviewed and supported management's proposal to alter the performance assessment framework for senior leadership (being the Executive Committee and their direct reports) during the year. For FY26, the new framework is an adaptation of the score card approach already in place for Executive Directors and heavily weights an individual's objectives to quantitative targets and outcomes. At the same time the appraisal framework for all other colleagues was changed to make categories of performance range from one to five (rather than one to four) with an even greater emphasis on objectives that support income generation and efficiencies. Taken together, the changes mean there is a much wider range of possible outcomes for annual incentive payments for all colleagues. These changes further implement our philosophy of greater differentiation of pay for truly exceptional performance. ## 2026 remuneration outcomes The Committee considered that the 2025 Remuneration Policy 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, AIP outcomes produced cash bonuses of 97% and 104% of salary, respectively for Simon Carter and David Walker. As announced on 12 January 2026 however, Simon Carter informed the Board of his intention to step down as CEO and is ineligible to receive his 2026 bonus. Following his resignation, all unvested Performance Share awards under the Company's Long Term Incentive Plan (LTIP) will not vest. David Walker's 2023 LTIP grant will vest on 15 June 2026 at a rate of 54%. The Committee notes that performance is largely driven by Total Property Return outperformance relative to the sector weighted MSCI index, as well as the achievement of the stretch performance target for energy reduction. In accordance with the 2024 UK Corporate Governance Code, the Committee has not considered it necessary or appropriate to invoke any malus or clawback provisions during the year. ## 2025 remuneration outcomes The AIP and LTIP performance condition outcomes published in the 2025 Annual Report were final and not subject to change following publication. ## 2027 AIP performance measures The Committee considered the weighting of AIP performance measures during the process of setting targets for the year ending 31 March 2027. In doing so, the Committee recognised the increased focus of investors on earnings growth and has therefore increased the weighting to profitability related measures, whilst reducing the weighting of environmental measures. Full details are available on page 103, however in aggregate, 70% of the AIP is now weighted to profitability related measures compared with 60% in FY26. In addition, 10% of the AIP is now weighted to environmental targets compared with 20% in FY26. The remaining 20% of the AIP is weighted towards strategic objectives. ## Gender and ethnicity pay gaps During the year, the gender pay gap has decreased substantially by 6.7% from 13.6% to 6.9%, and the ethnicity pay gap has decreased by 2.6% from 20.0% to 17.4%. The Committee is very pleased to see continued progress in these areas and in particular the progress with the gender pay gap which was 40.6% in 2018 and is now 6.9%, reflecting the continuing and focused efforts in this area. ## Governance framework review With effect from the conclusion of the 2026 AGM, oversight of our DE&I Strategy, previously part of the ESG Committee's remit, will be transferred to the Remuneration Committee. The Committee will be renamed the Remuneration & People Committee to better reflect its wider role. The Committee will also continue to review the outcomes of the Employee Engagement Survey, a role it currently shares with the ESG Committee. ## Recommendation On behalf of the Board, the Committee recommends the full Directors' Remuneration Report to shareholders for approval at the 2026 AGM. The Committee considers that remuneration for 2026 and the proposed operation of the policy for 2027 are appropriate, taking into account the Group's performance and remuneration structures and outcomes across the Group. Following extensive engagement with shareholders in respect of the 2025 Remuneration Policy, there were no remuneration related matters that required shareholder engagement during the year. ![img-66.jpeg](img-66.jpeg) Amanda Mackenzie Chair of the Remuneration Committee --- 102 British Land Annual Report and Accounts 2026 # DIRECTORS' REMUNERATION REPORT CONTINUED ## SUMMARY OF OUR REMUNERATION POLICY AND LINK TO 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 (see page 15). 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. A copy of the full policy can be found at www.britishland.com/governance. | Fixed remuneration | Benefits | Pension | | --- | --- | --- | | Attracts and retains talented people with the appropriate degree of expertise and experience to deliver our agreed strategy. | Executive Directors are eligible to receive taxable and other benefits. **Salary** Set with reference to scope of role, benchmarking and experience of the candidate. Subject to annual review. | Defined Contribution arrangements and/or cash allowances in lieu of pension are made to the CEO and CFO at 15% of their salary, in line with the arrangement for the majority of the workforce. | ## Annual Incentive Plan Maximum opportunity is 150% of basic salary. Two thirds is paid in cash with the remaining third (net of tax) used to purchase shares on behalf of the Executive Director which must be held for a further three years whether or not they remain an employee of British Land. | Profitability | Environmental Measures | Strategic Objectives | | --- | --- | --- | | We are an earnings driven business. The majority of our annual incentive is focused on profitability related measures, both in absolute terms and relative to the wider property sector. | 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 2027 Annual Report. | | | We are a responsible business. Our priority is to create returns for our shareholders, but we do so in a way that takes into account our environmental impact. | | | ## Long Term Incentive Plan The maximum value of an LTIP award may be 300% of salary. Awards are subject to a three-year vesting period and any vested shares must be held by the Executive Director for a further two years post-vesting. | Total Accounting Return | Total Shareholder Return | Environmental Measures | | --- | --- | --- | | Aligns with our central ambition and drives long term priority for an income focused 8-10% Total Accounting Return for our shareholders through the cycle. | Drives behaviours to ensure that on a long term basis, British Land remains an attractive investment relative to the wider listed property market. | Maintains a long term focus on our carbon footprint. | Details of the malus and clawback provisions found in the Remuneration Policy can be found on page 107. --- British Land Annual Report and Accounts 2026 103 # HOW WE INTEND TO APPLY OUR REMUNERATION POLICY DURING THE YEAR ENDING 31 MARCH 2027 ## Key for colour coding - Fixed Remuneration - Annual Incentive Plan - Long Term Incentive Plan ## Executive Director salaries The Executive Directors' salaries for the year beginning 1 April 2026 are set out in the table below. The increase to David Walker's salary is 3% which is consistent with the average salary increase for the wider workforce. Simon Carter will not receive an increase given he is serving his notice post resignation. | Director | 2025/26 £000 | 2026/27 £000 | | --- | --- | --- | | Simon Carter | 796 | 796 | | David Walker | 490 | 505 | 1. The Chair and Non-Executive Directors fees will each increase by 3%. 2. The Committee changes set out on page 76 will take effect from the end of the 2026 AGM after which there will not be an ESG Committee Chair or any ESG Committee Members. 3. The Innovation Advisory Council Chair fee is reducing given the Council is now set up and established. The higher fee reflected the additional work in its initial set up. ## Non-Executive Director fees | Role | 2025/26 £000 | 2026/27 £000 | | --- | --- | --- | | Chair^{1} | 375 | 386 | | Non-Executive Director^{1} | 66 | 68 | | Senior Independent Director | 10 | 15 | | Audit or Remuneration Committee Chair | 20 | 20 | | Audit or Remuneration Committee Member | 8 | 8 | | ESG Committee Chair^{2} | 14 | 14 | | Nomination or ESG Committee Member^{2} | 5 | 5 | | Innovation Advisory Council Chair^{3} | 50 | 20 | | Innovation Advisory Council Member | 30 | 30 | ## Annual Incentive Plan The detailed targets the Committee sets are considered to be commercially sensitive and will be disclosed in the 2027 Annual Report. | Measure | Vesting range for minimum to maximum expectations | Weighting for the year ended 31 March 2026 | Weighting for the year ending 31 March 2027 | | --- | --- | --- | --- | | Profitability | | 60% | 70% | | Total Property Return | | | | | TPR vs Sector Weighted MSCI Universe | 17% to 100% | 20% | 20% | | Annual Profitability | | | | | Underlying Profit | 0% to 100% | 30% | 35% | | Development Profit | 0% to 100% | 10% | 15% | | Environmental Measures | | 20% | 10% | | GRESB Ranking | 25% to 100% | 10% | 5% | | EPC Ratings | 20% to 100% | 10% | 5% | | Strategic Objectives | | 20% | 20% | | | 0% to 100% | 20% | 20% | ## Long Term Incentive Plan | | Target range | Weighting | | --- | --- | --- | | Total Accounting Return | | 50% | | | Threshold: 4% p.a. - Maximum: 10% p.a. | | | Total Shareholder Return | | 25% | | | Threshold: Equal to FTSE 350 REIT index Maximum: Index + 3% p.a. | | | Environmental Measures | | 25% | | Operational Carbon Reduction | Threshold: 61% - Intermediate: 68% - Maximum: 74% | 12.5% | | Operational Energy Reduction | Threshold: 28% - Intermediate: 30% - Maximum: 32% | 12.5% | | All Long Term Incentive Plan measures vest across a range of 20% to 100% | | | --- 104 British Land Annual Report and Accounts 2026 # DIRECTORS' REMUNERATION REPORT CONTINUED # HOW WE APPLIED OUR REMUNERATION POLICY DURING THE YEAR ENDED 31 MARCH 2026 # 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 2026 and show comparative figures for the year ended 31 March 2025. | | Simon Carter | | David Walker | | | --- | --- | --- | --- | --- | | | 2025 £000 | 2026 £000 | 2025¹ £000 | 2026 £000 | | Salary | 773 | 796 | 178 | 490 | | Taxable benefits | 20 | 21 | 8 | 24 | | Pension or pension allowance | 116 | 119 | 27 | 73 | | Other items in the nature of remuneration | 12 | 12 | 2 | 10 | | Fixed remuneration | 921 | 948 | 215 | 597 | | Annual incentive | 941 | 0² | 213 | 508 | | Long term incentives | 879² | 0⁴ | 211² | 357⁵ | | Variable remuneration | 1,820 | 0 | 424 | 865 | | Total | 2,741 | 948 | 639 | 1,462 | # Notes to the single total figure of remuneration table (audited) Taxable benefits | | Simon Carter | | David Walker | | | --- | --- | --- | --- | --- | | | 2025 £000 | 2026 £000 | 2025 £000 | 2026 £000 | | Car allowance | 17 | 17 | 6 | 17 | | Private medical | 3 | 4 | 2 | 4 | | Benefits in kind | n/a | n/a | 0 | 3 | | Total | 20 | 21 | 8 | 24 | # Pensions | | Simon Carter | | David Walker | | | --- | --- | --- | --- | --- | | | 2025 £000 | 2026 £000 | 2025 £000 | 2026 £000 | | DC Pension Contribution | 10 | 10 | 1 | 4 | | Pension Allowance | 106 | 109 | 26 | 69 | | Total | 116 | 119 | 27 | 73 | 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. # Other items in the nature of remuneration | | Simon Carter | | David Walker | | | --- | --- | --- | --- | --- | | | 2025 £000 | 2026 £000 | 2025 £000 | 2026 £000 | | Insurances | 5 | 6 | 1 | 4 | | Subscriptions | 1 | 1 | 0 | 1 | | Share Incentive Plan | 6 | 5 | 1 | 5 | | Total | 12 | 12 | 2 | 10 | 1. David Walker's remuneration for 2025 was pro-rated to reflect the amount of time served on the Board as CFO, following his appointment on 20 November 2024. 2. Confirmed outcome. A forecast estimated figure was published in the 2025 Annual Report on the basis of a Volume Average Weighted Price for the quarter ended 31 March 2025. The actual outcome is reflected in the table above on the basis of the share price achieved upon vesting of 358.48p. The vesting level remained unchanged at 50% as disclosed within the 2025 Annual Report. 3. Simon Carter's 2026 AIP bonus will not be paid due to him resigning as CEO. 4. Simon Carter's 2023 LTIP award will not vest following his resignation as CEO. 5. Estimated vesting value. The value is based on the Volume Weighted Average Price of 395.13p in respect of the last quarter of the year ended 31 March 2026. The final vesting value will be confirmed in the 2027 Annual Report. --- British Land Annual Report and Accounts 2026 105 # Long Term Incentive Plan (audited) The figure in the long term incentives column of the single total figure of remuneration table on page 104 relates to the vesting of awards granted in 2023 under the Long Term Incentive Plan. The below table outlines the performance conditions attached to the awards, final performance outcomes and the vesting position. No more than 20% of the award will vest if the minimum performance threshold is achieved. | Measure | Weighting | Threshold (20% vests) | Maximum | Performance outcome | % of award vesting | | --- | --- | --- | --- | --- | --- | | Total Accounting Return | | | | | | | | 50% | 4% p.a. | 10% p.a. | 4.1% | 10.7% | | Total Property Return | | | | | | | | 25% | MSCI +0.4% | MSCI +1.4% p.a. | 4.1% | 25% | | Environmental Measures | | | | | | | Operational Carbon Reduction | 12.5% | -44% | -53% | -47% | 5.8% | | Operational Energy Reduction | 12.5% | -17% | -21% | -24% | 12.5% | | Vesting outcome | | | | | 54% | The table below summarises the awards granted in 2023 under the Long Term Incentive Plan. Simon Carter's 2023 LTIP award will not vest following his resignation as CEO. | Executive Director | Grant date | Vesting date | Number of performance shares awarded | Number of performance shares vesting | Estimated value of award on vesting £000^{1} | Estimated dividend equivalent value £000 | Increase in value as a result of share price movement between grant and vesting £000^{2} | | --- | --- | --- | --- | --- | --- | --- | --- | | Simon Carter | 15/06/2023 | 15/06/2026 | 571,375 | 0 | 0 | 0 | 0 | | David Walker | 15/06/2023 | 15/06/2026 | 142,381 | 76,885 | 304 | 53 | 43 | 1. The value is based on the Volume Weighted Average Price of 395.13p in respect of the last quarter of the year ended 31 March 2026. 2. The share price used to calculate the value of the award on grant was 338.74p. ☑ Achieved ☐ Not achieved ## Annual Incentive Plan (audited) | Measure | Weighting | Threshold^{3} | Maximum | Performance outcome | Final outcome weighting (% of max) | Final outcome (% of salary) | | --- | --- | --- | --- | --- | --- | --- | | Total Property Return | | | | | | | | TPR vs Sector Weighted MSCI Universe | 20% | Obps | +125bps | 187bps | 20% | 30% | | Annual Profitability | | | | | | | | Underlying Profit | 30% | £279m | £298m | £294m | 23.3% | 35% | | Development Profit | 10% | £120m | £170m | £1m | 0% | 0% | | Environmental Measures | | | | | | | | GRESB Ranking | 10% | 5*-1pt | 5*+1pt | 5*+2pts | 10% | 15% | | EPC Ratings | 10% | 72% | 78% | 75% | 5% | 7.5% | | Strategic Objectives | | | | | | | | Simon Carter^{4} | 20% | 0% | 20% | 6.17% | 6.17% | 9.25% | | David Walker | 20% | 0% | 20% | 10.83% | 10.83% | 16.25% | | Total payout | | | | | % of max | % of salary | | Simon Carter^{5} | | | | | 0 | 0 | | David Walker | | | | | 69.13 | 103.75 | 1. Simon Carter's AIP bonus will not be paid due to him resigning as CEO. ☑ Achieved ☐ Not achieved 2. 0% payable for threshold performance for Underlying Profit and Development Profit. 25% payable for threshold performance, 50% payable for in-line (being GRESB 5*) 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. --- 106 British Land Annual Report and Accounts 2026 # DIRECTORS’ REMUNERATION REPORT CONTINUED ## AIP scorecards (audited) **Simon Carter¹** | Measure | Weighting | Outcome | % award achieved | | --- | --- | --- | --- | | Active capital recycling | 7% | Completed/exchanged on £0.6bn of gross investment activity, including acquisition of Life Science REIT plc, £0.1bn of Retail Park purchases and £0.1bn disposal of off strategy assets. | 1.33% | | Grow fee income | 2% | We continue to seek opportunities to drive fee income and are in discussions with various parties. | 0.00% | | Progressing value accretive development | 7% | 1 Broadgate, One Triton Square, Mandela Way and Canada Water Plot A1 / Three Deal Porters and The Founding reached practical completion. Continuing to progress 2 Finsbury Avenue development, the refurbishment of Broadgate Tower, and committed to West One development. Committed to the redevelopment of 1 Appold Street, where we have also exchanged on 268k sq ft (plus option space) with Herbert Smith Freehills Kramer. | 2.33% | | Drive leasing income | 1% | Aldgate build to rent scheme residential units are at close to full occupancy. | 0.67% | | Performance driven culture | 3% | Gender pay gap improved by 6.7% and ethnicity pay gap improved by 2.6%. Engagement survey completed with a Group engagement score of 64%, a reduction versus last year but similar to the benchmark. | 1.83% | **David Walker** | Measure | Weighting | Outcome | % award achieved | | --- | --- | --- | --- | | Financial stewardship and stakeholder engagement | 5% | Maintained refinancing date of more than two years. In July, Fitch affirmed our credit rating retained as Senior Unsecured credit rating of A with stable outlook. Re-entered FTSE 100 in December. Positive market reaction to Life Science REIT plc transaction. | 3.33% | | Progressing value accretive development | 1% | 1 Broadgate, One Triton Square, Mandela Way and Canada Water Plot A1 / Three Deal Porters and The Founding reached practical completion. Continuing to progress 2 Finsbury Avenue development, the refurbishment of Broadgate Tower, and committed to West One development. Committed to the redevelopment of 1 Appold Street, where we have also exchanged on 268k sq ft (plus option space) with Herbert Smith Freehills Kramer. | 1.00% | | Drive leasing income | 6.5% | Exchanged £42m of deals including £18m of new lettings in Retail, with deals exchanged at an average of 8% ahead of ERV and 1% ahead of previous passing rent. At our campuses, exchanged £59m of deals, including £29m of new lettings. Deals exchanged are 5% ahead of ERV and 20% ahead of previous passing rent. Storey stabilised occupancy is over 90%, with retentions at 73%. | 3.17% | | Cost management | 4.5% | Delivered significant savings in administrative costs driven by a focus on cost control. FY26 Cost Ratio increased to 19% driven by increase in voids whilst we lease up our developments. ERP project well progressed following prior year’s delivery of new lead to lease system. | 1.50% | | Performance driven culture | 3% | Gender pay gap improved by 6.7% and ethnicity pay gap improved by 2.6%. Engagement survey completed with a Group engagement score of 64%, a reduction versus last year but similar to the benchmark. | 1.83% | 1. Simon Carter's AIP bonus will not be paid due to him resigning as CEO. --- British Land Annual Report and Accounts 2026 107 # 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 2026. # Malus and Clawback In relation to both Annual Incentive and LTIP awards under the Remuneration 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; - if 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 - if 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. The period for malus and clawback is three years from the determination of the award for the Annual Incentive award (cash and shares) and for the LTIP, from the date of grant until three years after the determination of the vesting level of an award. The Committee considers this time period to be appropriate as it is a reasonable period in which the specified circumstances would be discovered, and the period is in line with FTSE 100 market practice. Malus and clawback were not used during the year ended 31 March 2026. # Share scheme interests awarded during the year (audited) The total face value of LTIP awards made to Simon Carter and David Walker during the year ended 31 March 2026 was equivalent to 250% of their basic salary at grant. Simon's 2025 LTIP award will not vest following his resignation as CEO. 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 386.13p. The performance conditions attached to these awards are summarised below. ## Performance shares | Executive Director | Grant date | Number of performance shares granted | Face value £000 | End of performance period | Vesting date | Percentage vesting on achievement of minimum performance threshold % | | --- | --- | --- | --- | --- | --- | --- | | Simon Carter | 23/06/2025 | 515,160 | 1,989 | 31/03/28 | 23/06/2028 | 20% | | David Walker | 23/06/2025 | 317,250 | 1,225 | 31/03/28 | 23/06/2028 | 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: TSR performance: equal to the FTSE 350 REIT index for threshold performance and +3% 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: 55% reduction for threshold performance and 65% reduction for maximum performance (12.5% weighting); and Operational Energy Reduction: 23% reduction for threshold performance and 25% reduction for maximum performance (12.5% weighting). TAR will be measured on the basis of a three-year average over the performance period. 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. # Directors' shareholdings and share interests (audited) ## 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. 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. --- British Land Annual Report and Accounts 2026 # DIRECTORS' REMUNERATION REPORT CONTINUED The guideline shareholdings for the year ended 31 March 2026 are shown below based on the Volume Weighted Average Price for 31 March 2026 of 356.83p: | Executive Director | Guideline as percentage of basic salary | Guideline holding | Holding counting towards guidelines at 31 March 2026 | % of salary held (based on 31 March 2026 shareholding) | | --- | --- | --- | --- | --- | | Simon Carter | 225 | 501,715 | 734,452 | 329 | | David Walker | 200 | 274,641 | 123,416 | 90 | # Directors' shareholdings as at 31 March 2026 The table below shows the Directors' shareholdings, including shares held by connected persons, as at year end. 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 2026, Mark Aedy received shares in full satisfaction of his fee. | Director | Outstanding scheme interests as at 31 March 2026 | | | | Shares held | | Total of all share plan awards and shareholdings as at 31 March 2026 | | --- | --- | --- | --- | --- | --- | --- | --- | | | 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 2025 | As at 31 March 2026 | | | Simon Carter^{1} | 0 | 5,149 | 5,843 | 10,992 | 548,945 | 734,452 | 745,444 | | David Walker | 581,988 | 5,149 | 2,634 | 589,771 | 59,958 | 123,416 | 713,187 | | William Rucker (Chair) | | | | | 50,000 | 79,000 | 79,000 | | Mark Aedy | | | | | 53,022 | 77,533 | 77,533 | | Lynn Gladden | | | | | 18,339 | 18,339 | 18,339 | | Alastair Hughes | | | | | 7,371 | 21,893 | 21,893 | | Amanda James | | | | | 11,848 | 11,848 | 11,848 | | Amanda Mackenzie | | | | | - | - | - | | Mary Ricks | | | | | 11,848 | 11,848 | 11,848 | | Raj Shah^{2} | | | | | n/a | - | - | | Loraine Woodhouse | | | | | 20,094 | 27,130 | 27,130 | 1. Simon Carter's LTIP awards will not vest following his resignation as CEO. 2. Raj Shah joined the Board during the year which means he has no shareholding to disclose as at 1 April 2025. ## Unvested share awards (subject to performance) | Executive Director | LTIP performance shares^{1} | | | | | | --- | --- | --- | --- | --- | --- | | | Date of grant | Number outstanding at 31 March 2026 | Subject to performance measures | End of performance period | Vesting date | | David Walker | 15/06/23 | 142,381 | Yes | 31/03/26 | 15/06/26 | | | 20/06/24 | 122,357 | Yes | 31/03/27 | 21/06/27 | | | 23/06/25 | 317,250 | Yes | 31/03/28 | 23/06/28 | 1. Simon Carter's LTIP awards will not vest following his resignation as CEO. ## Unvested option awards (not available to be exercised) | Executive Director | Sharesave options | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Date of grant | Number outstanding at 31 March 2026 | Face value | Option price pence | Subject to performance measures | End of performance period | Date becomes exercisable | Exercisable until | | Simon Carter^{1} | 25/06/25 | 5,843 | 22,864^{2} | 314 | No | N/A | 01/09/28 | 28/02/29 | | David Walker | 03/07/24 | 2,634 | 11,571^{3} | 352 | No | N/A | 01/09/27 | 28/02/28 | 1. Simon Carter's 2025 SAYE grant will lapse on his departure from the Company. 2. The face value of Simon Carter's SAYE options was determined based on a three-day average mid-market share price prior to the invitation date of the scheme being 391.3p. 3. The face value of David Walker's SAYE options was determined based on a three-day average mid-market share price prior to the invitation date of the scheme being 439.3p. --- British Land Annual Report and Accounts 2026 109 # Acquisitions of ordinary shares after the year end On 10 April 2026, Mark Aedy was allotted 2,708 shares at a price of 360.47 pence per share in satisfaction of his quarterly 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 shares | Matching shares | | --- | --- | --- | --- | --- | | Simon Carter | 14/04/26 | 382.6p | 40 | 40 | | | 14/05/26 | 376.6p | 39 | 39 | | David Walker | 14/04/26 | 382.6p | 40 | 40 | | | 14/05/26 | 376.6p | 39 | 39 | Other than as set out above, there have been no further changes from 31 March 2026 up to the date this Annual Report was approved by the Board on 19 May 2026. # 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 2026 and 31 March 2025. During the year, the total cost of remunerating employees reduced by 6.2% compared to the prior year, driven largely by organisational restructuring and headcount reductions. The total cost of paying distributions to shareholders for the year ended 31 March 2026 increased by 4% compared with the prior year, driven by increased earnings flowing through to dividends. ![img-67.jpeg](img-67.jpeg) ## Remuneration of employees including Directors: - Wages and salaries - Annual Incentives - Social security costs - Pension costs - Equity-settled share-based payments ## Distributions to shareholders: - PID cash dividends paid to shareholders - PID tax withholding - Non-PID cash dividends paid to shareholders # 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 | 2016/17 | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 | 2024/25^{3} | 2025/26^{3} | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Chris Grigg | Chris Grigg | Chris Grigg | Chris Grigg | CEO^{1} | Simon Carter | Simon Carter | Simon Carter | Simon Carter | Simon Carter | | Chief Executive's single total figure of remuneration (£000) | 1,938 | 2,279 | 1,653 | 1,534 | 1,644 | 1,919 | 1,658 | 2,560 | 2,741 | 948 | | Annual Incentive awards against maximum opportunity (%) | 33 | 63 | 36 | 28 | 53 | 91 | 58 | 79 | 81 | 0 | | Long term incentive awards vesting rate against maximum opportunity (%) | 15 | 16 | 0 | 0 | 0 | 0 | 11 | 40 | 50 | 0 | 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. Simon Carter's LTIP awards will not vest, and his AIP bonus will not be paid, following his resignation as CEO. This is reflected in his lower single total figure of remuneration for 2025/26. --- British Land Annual Report and Accounts 2026 # DIRECTORS' REMUNERATION REPORT CONTINUED ## Total shareholder return The graph below shows British Land's total shareholder return for the 10 years to 31 March 2026, which assumes that £100 was invested on 1 April 2016. 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. ![img-68.jpeg](img-68.jpeg) The British Land Company PLC FTSE All-Share REIT's sector ## CEO pay ratio The 2025/26 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 2026 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 decreased in the year to 31 March 2026 driven primarily by the lack of any incentive payments to the CEO. 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 potential 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 100. | CEO pay ratio | 2019/20 | 2020/21^{1} | 2021/22 | 2022/23 | 2023/24 | 2024/25 | 2025/26 | | --- | --- | --- | --- | --- | --- | --- | --- | | Method | C | A | A | A | A | A | A | | CEO single figure (£000) | 1,534 | 1,644 | 1,919 | 1,736 | 2,512 | 2,746 | 948 | | Upper quartile | 14:1 | 16:1 | 17:1 | 15:1 | 20:1 | 21:1 | 7:1 | | Median | 22:1 | 23:1 | 26:1 | 22:1 | 30:1 | 32:1 | 11:1 | | Lower quartile | 33:1 | 35:1 | 38:1 | 33:1 | 44:1 | 47:1 | 16:1 | 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 2025/26 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. | 2025/26 Employee pay | Salary £ | Total pay £ | | --- | --- | --- | | Upper quartile | 88,400 | 132,868 | | Median | 70,135 | 89,558 | | Lower quartile | 43,000 | 59,765 | --- British Land Annual Report and Accounts 2026 111 CORPORATE GOVERNANCE # 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 2025 and 2026 is provided below, with the explanation of changes in prior periods available in the relevant Annual Report and Accounts. - Simon Carter's salary increased by 3% between 2025 and 2026 to reflect the average workforce increase. - Simon Carter's AIP bonus will not be paid following his resignation as CEO. - Any change in Non-Executive Director fees are due to a change in Board roles such as Committee membership and chairing roles, the fees for which were not increased. - 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. William Rucker, David Walker and Amanda James joined the Board during the previous year, and Raj Shah 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 | Raj Shah | Loraine Woodhouse | Average employees | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 2026 vs 2025 | | | | | | | | | | | | | | Base salary/fees % change | 3% | n/a | n/a | 0% | 1% | 0% | n/a | 7% | 3% | n/a | 11% | 4% | | Benefits % change | 1% | n/a | n/a | 0% | -62% | 0% | n/a | 0% | 19% | n/a | 0% | 1% | | Annual Bonus % change | -100% | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | n/a | 5% | | 2025 vs 2024 | | | | | | | | | | | | | | Base salary/fees % change | 0% | n/a | n/a | 0% | 3% | 0% | n/a | n/a | n/a | n/a | 12% | 6% | | Benefits % change | 3% | n/a | n/a | 0% | -25% | 0% | n/a | 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 | n/a | -1% | | 2024 vs 2023 | | | | | | | | | | | | | | Base salary/fees % change | 3% | n/a | n/a | 3% | 61% | 2% | n/a | n/a | n/a | n/a | 2% | 7% | | Benefits % change | 1% | n/a | n/a | 0% | 62% | 0% | n/a | 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 | 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 | n/a | 0% | 9% | | Benefits % change | -2% | n/a | n/a | n/a | 98% | 0% | n/a | 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 | 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 | n/a | 6% | | Benefits % change | -2.8% | n/a | n/a | n/a | 100% | 0% | n/a | 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 | n/a | 50% | 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. --- British Land Annual Report and Accounts 2026 # DIRECTORS' REMUNERATION REPORT CONTINUED ## Non-Executive Directors' remuneration (audited) The table below shows the fees paid to our Chair and Non-Executive Directors for the years ended 31 March 2026 and 31 March 2025. | Chair and Non-Executive Directors | Fees¹ | | Taxable benefits² | | Total | | | --- | --- | --- | --- | --- | --- | --- | | | 2026 £000 | 2025 £000 | 2026 £000 | 2025 £000 | 2026 £000 | 2025 £000 | | William Rucker (Chair) | 375 | 273 | - | - | 375 | 273 | | Mark Aedy | 71 | 71 | - | - | 71 | 71 | | Lynn Gladden | 129 | 128 | 2 | 5 | 131 | 133 | | Alastair Hughes | 98 | 98 | - | - | 98 | 98 | | Amanda James | 74 | 56 | 1 | 9 | 75 | 65 | | Amanda Mackenzie | 104 | 97 | - | - | 104 | 97 | | Mary Ricks³ | 74 | 72 | 16 | 13 | 90 | 85 | | Raj Shah⁴ | 13 | - | - | - | 13 | - | | Loraine Woodhouse | 117 | 105 | - | - | 117 | 105 | 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. Mary Ricks lives in the USA and her taxable benefits relate to hotel accommodation at the time of Board and Committee meetings. In addition, the Company reimburses part of the cost of Mary's flights to attend Board and Committee meetings, however these are not deemed 'taxable' benefits under the HMRC guidelines and are therefore not included in the table above. 4. Raj Shah joined the Board on 20 January 2026 and his fee is pro-rated to reflect his time spent on the Board during the year. ## Remuneration Committee meeting governance As at 31 March 2026, 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 80. During the year ended 31 March 2026, Committee meetings were also part attended by William Rucker (Chair), Simon Carter (Chief Executive), David Walker (Chief Financial Officer), Brona McKeown (HR Director, General Counsel and Company Secretary), Kelly Barry (Reward, Talent and Performance Director) and Gavin Bergin (Director of Governance) 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 to discuss matters of governance, the Remuneration Policy and any concerns they may have. --- British Land Annual Report and Accounts 2026 113 CORPORATE GOVERNANCE # 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 2025 Directors' Remuneration Policy, following a period of shareholder engagement, and 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 2026, the Committee also considered the following matters: - 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; - the Committee was made aware of the results of engagement surveys and any general themes that are impacting employees. The Committee Chair attended Employee Listening Sessions throughout the year where amongst other topics remuneration was discussed. 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 in May 2026 to reflect the governance structure changes detailed on page 76. # 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 £58,107 (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 AGM on 15 July 2025. A copy of the full policy can be found at www.britishland.com/governance. | Resolution | Votes for | % for | Votes against | % against | Total votes cast | Total votes withheld | | --- | --- | --- | --- | --- | --- | --- | | Directors' Remuneration Report (2025) | 680,636,151 | 92.81 | 52,704,343 | 7.19 | 733,340,494 | 94,731 | | Directors' Remuneration Policy (2025) | 692,241,284 | 94.40 | 41,089,905 | 5.60 | 733,331,189 | 104,036 | --- British Land Annual Report and Accounts 2026 # DIRECTORS' REMUNERATION REPORT CONTINUED ## Service contracts and letters of appointment The letters of appointment of Non-Executive Directors are generally subject to renewal on a triennial basis. In accordance with the UK Corporate Governance Code and the Company's Articles of Association, all Directors stand for appointment or re-appointment by the Company's shareholders on an annual basis. As discussed on page 74, Lynn Gladden will step down as a Non-Executive Director at the conclusion of the 2026 AGM. 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 | Commencement date in 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 19 May 2026 (months) | | --- | --- | --- | --- | | William Rucker (Chair) | 9 July 2024 | 9 July 2024 | 14 | | Loraine Woodhouse (SID) | 1 March 2021 | 9 July 2024 | 14 | | Mark Aedy | 1 September 2021 | 15 July 2025 | 26 | | Lynn Gladden | 20 March 2015 | 15 July 2025 | 2 | | Alastair Hughes | 1 January 2018 | 9 July 2024 | 14 | | Amanda James | 1 July 2024 | 1 July 2024 | 14 | | Amanda Mackenzie | 1 September 2023 | 1 September 2023 | 14 | | Mary Ricks | 1 November 2023 | 1 November 2023 | 14 | | Raj Shah | 20 January 2026 | 20 January 2026 | 38 | 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 re-appointed 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 19 May 2026. ![img-69.jpeg](img-69.jpeg) Amanda Mackenzie Chair of the Remuneration Committee --- British Land Annual Report and Accounts 2026 115 CORPORATE GOVERNANCE # DIRECTORS' REPORT AND ADDITIONAL DISCLOSURES 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 2026. The Directors' Report also encompasses the entirety of our Corporate Governance Report from pages 74 to 118 and Other Information section from pages 206 to 209 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 2026 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 | 7 to 11 | | Dividends | Strategic Report | 33 | | Financial instruments – risk management objectives and policies | Strategic Report | 47 to 58 | | Engagement with stakeholders | Strategic Report | 14 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 | 102 to 105 | | Share capital | Directors Report | 116 | | Capitalised interest (UKLR 6.6.1 (1)) | Financial Statements | 141 and 147 | | Exposure to risks | Financial Statements | 166 to 170 | | Additional unaudited financial information (UKLR 6.6.1 (2)) | Other Information (unaudited) | 206 to 208 | ## AGM The 2026 AGM will be held at 11:30am on 14 July 2026 at Ashurst LLP, London Fruit & Wool Exchange, 1 Duval Square, London, E1 6PW. 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. > **READ MORE** > The articles are available on the Company's website www.britishland.com/governance ## 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 81 to 83 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 88. 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 2024 UK Corporate Governance 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 100 to 114. 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. 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 being 20. 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. 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. --- British Land Annual Report and Accounts 2026 # DIRECTORS' REPORT AND ADDITIONAL DISCLOSURES CONTINUED ## 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 Act) were in force during the course of the year ended 31 March 2026 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 2025 AGM to allot relevant securities up to a nominal amount of £83,263,703 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 2026 AGM or the close of business on 30 September 2026, whichever is the sooner. At this year's AGM, shareholders will be asked to renew the authority to allot relevant securities. At the 2025 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 £24,979,111. 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 2025 AGM a special resolution was passed to permit the purchase of up to 99,916,444 ordinary shares. This authority will expire at the earlier of the conclusion of the 2026 AGM or close of business on 30 September 2026. 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 2026 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 172 to 173. ## Events after the balance sheet date Details of subsequent events, if any, can be found in Note 24 on page 176. ## Political donations and expenditure The Company and its subsidiaries did not make any political donations or incur any political expenditure during the year ended 31 March 2026 (previous year ended 31 March 2025: £nil). ## 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 BEST 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. > **READ MORE** > 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 2026, 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 shares | Percentage holding disclosed % | | --- | --- | --- | | BlackRock, Inc. | 73,048,930 | 7.86% | | Bank of America Corporation | 40,380,114 | 4.04% | | APG Asset Management N.V. | 49,469,584 | 4.95% | | Invesco Ltd. | 45,871,686 | 4.95% | | Schroders | 50,388,268 | 5.04% | | Janus Henderson Group PLC | 56,849,636 | 5.69% | | Caxton Associates LLP | 51,145,712 | 5.11% | Since the year end, and up to 19 May 2026, 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 shares | Percentage holding disclosed % | | --- | --- | --- | | Bank of America Corporation | 51,110,672 | 4.99% | | Janus Henderson Group PLC | 55,432,049 | 5.54% | --- British Land Annual Report and Accounts 2026 117 # 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. # Auditor and disclosure of information So far as the Directors are aware, there is no relevant audit information that has not been brought to the attention of the Company's auditor. Each Director has taken all reasonable steps to make themselves aware of any relevant audit information and to establish that such information was provided to the auditor. 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 2026 AGM. The Directors' Report was approved by the Board on 19 May 2026 and signed on its behalf by: ![img-70.jpeg](img-70.jpeg) # Brona McKeown HR Director, General Counsel and Company Secretary The British Land Company PLC Company number: 621920 --- 118 British Land Annual Report and Accounts 2026 # 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, confirm 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 include 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 19 May 2026 --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS ![img-71.jpeg](img-71.jpeg) # FINANCIAL STATEMENTS | CONTENTS | → | | --- | --- | | Independent auditors' report | 120 | | Primary statements and notes | 127 | | Company balance sheet | 179 | | Supplementary disclosures | 191 | | Other information (unaudited) | 198 | | EPRA best practice recommendations on sustainability reporting | 204 | | 10-year record | 205 | | Shareholder information | 206 | --- 120 British Land Annual Report and Accounts 2026 # INDEPENDENT AUDITORS’ REPORT # INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE BRITISH LAND COMPANY PLC ## 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 2026 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 2026 (the “Annual Report”), which comprise: - the Consolidated Balance Sheet as at 31 March 2026; - the Company Balance Sheet as at 31 March 2026; - the Consolidated Income Statement for the year then ended; - the Consolidated Statement of Comprehensive Income for the year then ended; - the Consolidated Statement of Cash Flows for the year then ended; - the Consolidated Statement of Changes in Equity for the year then ended; - the Company Statement 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: £93.6m (2025: £88.8m) based on 1% of Total Assets. - Overall Company materiality: £84.2m (2025: £79.9m) based on 1% of Total Assets. - Performance materiality: £70.2m (2025: £66.6m) (Group) and £63.2m (2025: £59.9m) (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. --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS 121 # 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, 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. The key audit matters below are consistent with last year. | 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 £6,316m (2025: £6,065m) and for the Group's share of joint ventures was £3,746m (2025: £3,421m) as at 31 March 2026. | | | 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. Where relevant, 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, where relevant, 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. 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. | | --- British Land Annual Report and Accounts 2026 # 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 £7,855m (2025: £7,811m) as at 31 March 2026 after recognising a reversal of impairment of £44m (2025: reversal of impairment of £12m). The Company has loans to subsidiaries of £15,270m (2025: £15,018m) as at 31 March 2026 after recognising a provision for impairment of £52m (2025: provision for impairment of £55m). 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 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 2026 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, 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 as at 31 March 2026. We assessed the accounting policies for investments and loans in subsidiaries 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 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 to be the underlying valuation of investment and development property held by the subsidiaries. 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. --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS 123 # 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 Central, Canada Water and One 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. # 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 | £93.6 million (2025: £88.8 million). | £84.2 million (2025: £79.9 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. | --- British Land Annual Report and Accounts 2026 # 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% (2025: 75%) of overall materiality, amounting to £70.2m (2025: £66.6m) for the Group financial statements and £63.2m (2025: £59.9m) 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. We agreed with the Audit Committee that we would report to them misstatements identified during our audit above £4.7m (Group audit) (2025: £4.4 m) and £4.2m (Company audit) (2025: £3.9m) as well as misstatements below those amounts 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. --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS 125 # 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 2026 is consistent with the financial 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. --- British Land Annual Report and Accounts 2026 # 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 in accordance with 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 experts 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 involving revenue. 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 We were first appointed by the Company for the financial year ended 31 March 2015. Our uninterrupted engagement covers 12 financial years. ## 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 19 May 2026 --- British Land Annual Report and Accounts 2026 127 # FINANCIAL STATEMENTS ## CONSOLIDATED INCOME STATEMENT For the year ended 31 March 2026 | | 2026 | 2025 | | --- | --- | --- | | Note | Underlying¹ £m | Capital and other £m | Total £m | Underlying¹ £m | Capital and other £m | Total £m | | Revenue | 3 | 523 | - | 523 | 454 | - | | Costs² | 3 | (147) | - | (147) | (123) | - | | | 3 | 376 | - | 376 | 331 | - | | Joint ventures (see also below)³ | 11 | 76 | 112 | 188 | 90 | - | | Administrative expenses | | (73) | (3) | (76) | (82) | - | | Valuation movements on property | 4 | - | 107 | 107 | - | 148 | | Loss on disposal of investment properties, joint ventures and revaluation of investments | | - | (28) | (28) | - | (42) | | Net financing charges | | | | | | | | financing income | 6 | 2 | - | 2 | 2 | - | | financing charges | 6 | (87) | (32) | (119) | (62) | (43) | | | 6 | (85) | (32) | (117) | (60) | (43) | | Profit before taxation | | 294 | 156 | 450 | 279 | 63 | | Taxation | 7 | (4) | 8 | 4 | (4) | - | | Profit for the year after taxation attributable to shareholders of the Company | | 290 | 164 | 454 | 275 | 63 | | Earnings per share: | | | | | | | | basic | 2 | | | 45.4p | | 35.1p | | diluted | 2 | | | 45.3p | | 35.0p | All results derive from continuing operations. | | 2026 | | | 2025 | | | | --- | --- | --- | --- | --- | --- | --- | | | Note | Underlying¹ £m | Capital and other £m | Total £m | Underlying¹ £m | Capital and other £m | | Results of joint ventures accounted for using the equity method | | | | | | | | Underlying Profit | 76 | - | 76 | 90 | - | 90 | | Share of joint venture result⁴ | - | 12 | 12 | - | 11 | 11 | | Net movements on property⁵ | 4 | - | 98 | 98 | - | (14) | | Capital financing income (charges) | - | 5 | 5 | - | (3) | (3) | | (Loss) profit on disposal of properties | - | (3) | (3) | - | 6 | 6 | | | 11 | 76 | 112 | 188 | 90 | - | 1. See definition in Note 2 and a reconciliation between Underlying Profit and IFRS profit in Note 20. 2. Included within 'Costs' is a debit relating to provisions for impairment of tenant debtors, accrued income and tenant incentives and contracted rent increases of £3m (2024/25: £2m credit). 3. Included within 'Joint ventures' is a debit relating to the movement of provision for impairment of equity investments and loans to joint ventures of £8m (2024/25: £18m 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. 5. Included within the current year 'Net movements on property' credit of £98m (2024/25: £14m debit) are valuation movements on investment and development properties of £111m (2024/25: £14m debit) and impairment of trading properties of £13m (2024/25: £nil). --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED ## CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 March 2026 | | 2026 £m | 2025 £m | | --- | --- | --- | | Profit for the year after taxation | 454 | 338 | | Other comprehensive expense: | | | | Items that may be reclassified subsequently to profit or loss: | | | | Losses on cash flow hedges | | | | – Joint ventures | (5) | – | | | (5) | – | | Other comprehensive expense for the year | (5) | – | | Total comprehensive income for the year attributable to shareholders of the Company | 449 | 338 | --- British Land Annual Report and Accounts 2026 129 FINANCIAL STATEMENTS # CONSOLIDATED BALANCE SHEET As at 31 March 2026 | | Note | 2026 | 2025 | | --- | --- | --- | --- | | | | £m | £m | | ASSETS | | | | | Non-current assets | | | | | Investment and development properties | 10 | 6,398 | 6,130 | | | | 6,398 | 6,130 | | Other non-current assets | | | | | Investments in joint ventures | 11 | 2,611 | 2,462 | | Other investments | 12 | 37 | 48 | | Property, plant and equipment | | 14 | 16 | | Interest rate and currency derivative assets | 16 | 42 | 73 | | | | 9,102 | 8,729 | | Current assets | | | | | Trading properties | 10 | 22 | 22 | | Debtors | 13 | 34 | 36 | | Interest rate and currency derivative assets | 16 | 26 | 9 | | Cash and cash equivalents | 16 | 176 | 57 | | | | 258 | 124 | | Investment properties held-for-sale | 10 | - | 22 | | | | 258 | 146 | | Total assets | | 9,360 | 8,875 | | LIABILITIES | | | | | Current liabilities | | | | | Short term borrowings and overdrafts | 16 | (521) | (311) | | Creditors | 14 | (281) | (263) | | Corporation tax | 7 | (3) | (6) | | Interest rate and currency derivative liabilities | 16 | - | (2) | | | | (805) | (582) | | Non-current liabilities | | | | | Debentures and loans | 16 | (2,475) | (2,417) | | Other non-current liabilities | 15 | (102) | (107) | | Deferred tax liabilities | | (1) | (3) | | Interest rate and currency derivative liabilities | 16 | (45) | (56) | | | | (2,623) | (2,583) | | Total liabilities | | (3,428) | (3,165) | | Net assets | | 5,932 | 5,710 | | EQUITY | | | | | Share capital | | 253 | 253 | | Share premium | | 1,591 | 1,589 | | Merger reserve | | 213 | 213 | | Other reserves | | 8 | 13 | | Retained earnings | | 3,867 | 3,642 | | Total equity attributable to shareholders of the Company | | 5,932 | 5,710 | | EPRA Net Tangible Assets per share¹ | 2 | 590p | 567p | 1. See definition in Note 2 and a reconciliation between EPRA Net Tangible Assets and IFRS net assets in Note 20. Simon Carter Chief Executive David Walker Chief Financial Officer The financial statements on pages 127 to 178 were approved by the Board of Directors and signed on its behalf on 19 May 2026. Company number 621920. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED ## CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 March 2026 | | Note | 2026 £m | 2025 £m | | --- | --- | --- | --- | | Income received from tenants | | 476 | 414 | | Fees and other income received | | 56 | 57 | | Operating expenses paid to suppliers and employees | | (208) | (211) | | Cash generated from operations | | 324 | 260 | | Interest paid | | (76) | (57) | | Interest received | | 1 | 2 | | Corporation taxation payments | | (1) | (7) | | Distributions and other receivables from joint ventures | 11 | 61 | 72 | | Net cash inflow from operating activities | | 309 | 270 | | Cash flows from investing activities | | | | | Development and other capital expenditure | | (124) | (216) | | Purchase of investment properties | | (83) | (726) | | Sale of investment properties1 | | 81 | 292 | | Purchase of investments and joint ventures | | (12) | (4) | | Indirect taxes paid in respect of investing activities | | (6) | (2) | | Loan repayments from joint ventures2 | 11 | 205 | 93 | | Investment in and loans to joint ventures | | (263) | (292) | | Capital distributions from joint ventures | 11 | - | 2 | | Net cash outflow from investing activities | | (202) | (853) | | Cash flows from financing activities | | | | | Issue of ordinary shares | 19 | (2) | 295 | | Dividends paid | 18 | (229) | (220) | | Capital payments in respect of interest rate derivatives | | (19) | (8) | | Repayment of lease liabilities | | (4) | (3) | | Purchase of non-controlling interests | | - | (13) | | Proceeds from new borrowings | 16 | 332 | 297 | | Repayment of bank and other borrowings | | (339) | (132) | | Drawdowns on bank and other borrowings | | 35 | 138 | | Net drawdown of revolving credit facilities | | 238 | 198 | | Net cash inflow from financing activities | | 12 | 552 | | Net increase (decrease) in cash and cash equivalents | | 119 | (31) | | Cash and cash equivalents at 1 April | | 57 | 88 | | Cash and cash equivalents at 31 March | 16 | 176 | 57 | | Cash and cash equivalents consists of: | | | | | Cash and short term deposits | | 131 | 21 | | Tenant deposits | | 45 | 36 | 1. Sale of investment properties in the prior year includes the sale of investment in Meadowhall Shopping Centre joint venture of £158m. Refer to Note 11 for further information. 2. Loan repayments from joint ventures in the current year of £205m relates to a loan repayment from Broadgate REIT Limited, following the joint venture's completion of a £450m five-year Green Loan secured against 1 Broadgate. The loan repayment from joint ventures in the prior year of £93m relates to a loan repayment from Broadgate REIT Limited as part of the 2 Finsbury Avenue joint venture transaction. Refer to Note 11 for further information. --- British Land Annual Report and Accounts 2026 131 # CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended 31 March 2026 | | Share capital £m | Share premium £m | Revaluation reserve £m | Merger reserve £m | Retained earnings £m | Total £m | Non-controlling interests £m | Total equity £m | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Balance at 1 April 2025 | 253 | 1,589 | 13 | 213 | 3,642 | 5,710 | - | 5,710 | | Profit for the year after taxation | - | - | - | - | 454 | 454 | - | 454 | | Other comprehensive expense | - | - | (5) | - | - | (5) | - | (5) | | Total comprehensive (expense) income for the year | - | - | (5) | - | 454 | 449 | - | 449 | | Shares issued in the year | - | 2 | - | - | - | 2 | - | 2 | | Dividends payable in year (22.88p per share) | - | - | - | - | (229) | (229) | - | (229) | | Balance at 31 March 2026 | 253 | 1,591 | 8 | 213 | 3,867 | 5,932 | - | 5,932 | | 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 | 1. In the prior year, 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 422p per share, resulting in an increase in share capital of £18m and share premium of £277m. See Note 19 for further information. 2. In the prior year, 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 had £nil non-controlling interests as at 31 March 2025. --- 132 British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED ## NOTES TO THE ACCOUNTS CONTINUED ### 1 Basis of preparation, material accounting policies and accounting judgements #### Basis of preparation The financial statements for the year ended 31 March 2026 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. No new standards or amendments have been applied to the financial statements for the first time for the year ended 31 March 2026. 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 detailed below, these amendments to standards that are not yet effective are not expected to have a material impact on the Group's results. IFRS 18 will replace IAS 1 'Presentation of Financial Statements' and is effective for annual periods beginning on or after 1 January 2027. IFRS 18 will not impact the recognition or measurement of items in the financial statements, but its impact on presentation and disclosure is expected to be material. Management is currently assessing the detailed implications of applying the new standard to the Group's consolidated financial statements. From the preliminary assessment performed, the following potential impacts have been identified: - Rental income from investment property, valuation movements on investment property and any gains or losses on the disposal of investment property will be presented in the operating category of the consolidated income statement, as they arise from the Group's specified main business activity of investing in investment property. - The Group's share of joint venture result, and any income or expenses associated with joint ventures, will be presented in the investing category, outside of IFRS 18's new mandatory operating profit subtotal. - The line items presented within the primary financial statements might change as a result of the enhanced principles on aggregation and disaggregation. - New disclosures will be added to the notes to the financial statements covering management-defined performance measures; specified expenses by nature; and for the first reporting period of applying IFRS 18, a reconciliation between the restated comparative amounts presented under IFRS 18 and the amounts previously presented under IAS 1. - In the consolidated statement of cash flows, following the narrow scope amendments to IAS 7 'Statement of Cash Flows' which apply at the same time as IFRS 18, interest received and distributions from joint ventures will be presented in the investing category and interest paid will be presented in financing category. The Group will apply IFRS 18 for the financial year ending 31 March 2028. Retrospective application is required, therefore the comparative information for the financial year ending 31 March 2027 will be restated in accordance with IFRS 18. 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 £521m and current creditors of £281m. The Group has access to £1.6bn 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 Group has 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. --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS 133 # 1 Basis of preparation, material accounting policies and accounting judgements continued 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. # 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. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED ## NOTES TO THE ACCOUNTS CONTINUED ### 1 Basis of preparation, material accounting policies and accounting judgements continued #### 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. 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, 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. --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS 135 # 1 Basis of preparation, material accounting policies and accounting judgements continued 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. ## 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 profit before taxation 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. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED ## NOTES TO THE ACCOUNTS CONTINUED ### 1 Basis of preparation, material accounting policies and accounting judgements continued 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. 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 prior year (see Note 11). As previously disclosed, no critical accounting judgement was identified in the assessment. 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, both of which occurred 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 £2m to carbon efficient interventions in the year to 31 March 2026 (2024/25: £1m). The Group spent £1m (2024/25: £3m) in the year to 31 March 2026 on carbon efficient interventions, of which £1m (2024/25: £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 2026 (2024/25: £1m). - As part of the valuation process, the Group has discussed the impact of sustainability and Environmental, Social and Governance (ESG) 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 ESG 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. --- British Land Annual Report and Accounts 2026 137 FINANCIAL STATEMENTS # 2 Performance measures Management considers the business on a proportionally consolidated basis when reviewing performance, which includes the Group's share of joint ventures on a line-by-line basis. 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, adjustments relating to non-operating and exceptional items and their related taxation. In the current year to 31 March 2026, Capital administrative expenses of £3m, relating to software as a service implementation costs, were excluded in the calculation of EPRA earnings as an EPRA non-operating and exceptional item adjustment. There is no tax effect of this adjustment. No adjustments were made in the prior year to 31 March 2025. 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 2026 or prior year to 31 March 2025. | | 2026 | | | 2025 | | | | --- | --- | --- | --- | --- | --- | --- | | Earnings per share | Relevant earnings £m | Relevant number of shares million | Earnings per share pence | Relevant earnings £m | Relevant number of shares million1 | Earnings per share pence | | Underlying | | | | | | | | Underlying basic | 290 | 1,000 | 29.0 | 275 | 962 | 28.6 | | Underlying diluted | 290 | 1,002 | 28.9 | 275 | 965 | 28.5 | | EPRA | | | | | | | | EPRA basic | 290 | 1,000 | 29.0 | 275 | 962 | 28.6 | | EPRA diluted | 290 | 1,002 | 28.9 | 275 | 965 | 28.5 | | IFRS | | | | | | | | Basic | 454 | 1,000 | 45.4 | 338 | 962 | 35.1 | | Diluted | 454 | 1,002 | 45.3 | 338 | 965 | 35.0 | 1. In the prior year, 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 422p per share, resulting in a 71,227,309 increase in the number of shares. See Note 19 for further information. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # 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 Reinstatement 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. | | 2026 | | | 2025 | | | | --- | --- | --- | --- | --- | --- | --- | | Net asset value per share | Relevant net assets £m | Relevant number of shares million | Net asset value per share pence | Relevant net assets £m | Relevant number of shares million¹ | Net asset value per share pence | | EPRA | | | | | | | | EPRA NTA | 5,923 | 1,004 | 590 | 5,698 | 1,005 | 567 | | EPRA NRV | 6,538 | 1,004 | 651 | 6,283 | 1,005 | 625 | | EPRA NDV | 5,982 | 1,004 | 596 | 5,768 | 1,005 | 574 | | IFRS | | | | | | | | Basic | 5,932 | 1,000 | 593 | 5,710 | 999 | 572 | | Diluted | 5,932 | 1,004 | 591 | 5,710 | 1,005 | 568 | 1. In the prior year, 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 422p 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. | | 2026 | | | 2025 | | | | --- | --- | --- | --- | --- | --- | --- | | | Movement in NTA per share pence | Dividend per share paid pence | Total accounting return | Movement in NTA per share pence | Dividend per share paid pence | Total accounting return | | Total accounting return | 23 | 22.9 | 8.1% | 5 | 22.9 | 5.0% | --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS # 3 Revenue and costs | | 2026 | | | 2025 | | | | --- | --- | --- | --- | --- | --- | --- | | | Underlying £m | Capital and other £m | Total £m | Underlying £m | Capital and other £m | Total £m | | Rent receivable | 361 | - | 361 | 317 | - | 317 | | Spreading of tenant incentives and contracted rent increases | 7 | - | 7 | 3 | - | 3 | | Surrender premia | 29 | - | 29 | 10 | - | 10 | | Gross rental income | 397 | - | 397 | 330 | - | 330 | | Service charge income | 78 | - | 78 | 77 | - | 77 | | Management and performance fees (from joint ventures and assets under management) | 19 | - | 19 | 20 | - | 20 | | Other fees and commissions | 29 | - | 29 | 27 | - | 27 | | Revenue | 523 | - | 523 | 454 | - | 454 | | Service charge expenses | (72) | - | (72) | (68) | - | (68) | | Property operating expenses | (50) | - | (50) | (35) | - | (35) | | Movement in impairment of trade debtors and accrued income | (3) | - | (3) | (5) | - | (5) | | Movement in impairment of tenant incentives and contracted rent increases | - | - | - | 7 | - | 7 | | Other fees and commissions expenses | (22) | - | (22) | (22) | - | (22) | | Costs | (147) | - | (147) | (123) | - | (123) | | | 376 | - | 376 | 331 | - | 331 | Net rental income (gross rental income less property operating expenses) recognised during the year ended 31 March 2026 from properties which were not subject to a security interest was £293m (2024/25: £238m). Property operating expenses relating to investment properties that did not generate any rental income were £5m (2024/25: £2m). Contingent rents of £6m (2024/25: £5m) that contain a variable lease payment were recognised in the year. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # NOTES TO THE ACCOUNTS CONTINUED ## 4 Valuation movements on property | | 2026 £m | 2025 £m | | --- | --- | --- | | Revaluation of properties (consolidated income statement) | 107 | 148 | | Revaluation of properties held by joint ventures accounted for using the equity method¹ | 98 | (14) | | | 205 | 134 | 1. Revaluation of properties held by joint ventures accounted for using the equity method of £98m credit (2024/25: £14m debit) includes valuation movements on investment and development properties of £111m (2024/25: £14m debit) and impairment of trading properties of £13m (2024/25: £nil). ## 5 Auditors' remuneration ### PricewaterhouseCoopers LLP | | 2026 £m | 2025 £m | | --- | --- | --- | | Fees payable to the Company's auditor for the audit of the Company's annual accounts and consolidated financial statements | 0.7 | 0.6 | | Fees payable to the Company's auditor for the audit of the Company's subsidiaries, pursuant to legislation | - | - | | Total audit fees | 0.7 | 0.6 | | Audit related assurance services | 0.3 | 0.3 | | Total audit and audit related assurance services | 1.0 | 0.9 | | Other fees | - | - | | Other services | 0.1 | 0.1 | | Total | 1.1 | 1.0 | --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS # 6 Net financing charges | | 2026 £m | 2025 £m | | --- | --- | --- | | Underlying | | | | Financing charges | | | | Facilities and overdrafts | (38) | (36) | | Derivatives | 35 | 50 | | Other loans | (107) | (106) | | Obligations under head leases | (3) | (3) | | | (113) | (95) | | Development interest capitalised | 26 | 33 | | | (87) | (62) | | Financing income | | | | Deposits, securities and liquid investments | 2 | 2 | | | 2 | 2 | | Net financing charges - Underlying | (85) | (60) | | Capital and other | | | | Financing charges | | | | Capital financing costs | (2) | - | | Valuation movement on fair value hedge accounted derivatives | (1) | 9 | | Valuation movement on fair value hedge accounted debt | - | (12) | | Valuation movement on non-hedge accounted derivatives | (29) | (40) | | | (32) | (43) | | Net financing charges - Capital and other | (32) | (43) | | Total financing income | 2 | 2 | | Total financing charges | (119) | (105) | | Net financing charges | (117) | (103) | The Group's weighted average interest rate as at 31 March 2026 was 3.6% (2024/25: 3.2%), and on a proportionally consolidated basis was 3.9% (2024/25: 3.6%). --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # NOTES TO THE ACCOUNTS CONTINUED ## 7 Taxation | | 2026 £m | 2025 £m | | --- | --- | --- | | Taxation income (expense) | | | | Current taxation | | | | Underlying Profit | | | | Current period UK corporation taxation (25%) | (4) | (3) | | Underlying Profit adjustments in respect of prior periods | - | (1) | | Total current Underlying Profit taxation expense | (4) | (4) | | Capital and other profit | | | | Current period UK corporation taxation (25%) | - | - | | Capital and other profit adjustments in respect of prior periods | 6 | (1) | | Total current Capital and other profit taxation income (expense) | 6 | (1) | | Total current taxation income (expense) | 2 | (5) | | Deferred taxation on revaluation of derivatives | 2 | 1 | | Group total taxation income (expense) | 4 | (4) | | Attributable to joint ventures | (3) | - | | Total taxation income (expense) | 1 | (4) | | Taxation reconciliation | | | | Profit before taxation | 450 | 342 | | Less: Profit attributable to joint ventures | (188) | (90) | | Group profit before taxation | 262 | 252 | | Taxation on profit at UK corporation taxation rate of 25% | (66) | (63) | | Effects of: | | | | - REIT exempt income and gains | 70 | 72 | | - Taxation losses | (8) | (12) | | - Deferred taxation on revaluation of derivatives | 2 | 1 | | - Adjustments in respect of prior years | 6 | (2) | | Group total taxation income (expense) | 4 | (4) | Corporation tax liability as at 31 March 2026 was £3m (2024/25: £6m liability) as shown on the consolidated balance sheet. The credit to the consolidated income statement for the current year in relation to the deferred taxation movement on the revaluation of derivatives was £2m (2024/25: £1m credit). At 31 March 2026 the Group had capital losses of £732m (2024/25: £730m) available to offset future capital gains giving rise to an unrecognised deferred tax asset calculated at 25% (2024/25: 25%) of £183m (2024/25: £183m). At 31 March 2026 the Group had UK revenue tax losses from previous years of £226m (2024/25: £182m) giving rise to an unrecognised deferred tax asset calculated at 25% (2024/25: 25%) of £57m (2024/25: £46m). 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. --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS # 8 Staff costs | Staff costs (including Directors) | 2026 £m | 2025 £m | | --- | --- | --- | | Wages and salaries | 55 | 61 | | Social security costs | 9 | 9 | | Pension costs | 7 | 7 | | Equity-settled share-based payments | 5 | 4 | | | 76 | 81 | Of the £76m (2024/25: £81m) total staff costs for the year, £48m (2024/25: £52m) is included within administrative expenses, £9m (2024/25: £9m) within service charge expenses, £3m (2024/25: £4m) within property operating expenses and £16m (2024/25: £16m) within other fees and commissions expenses. The average monthly number of employees of the Company during the year was 311 (2024/25: 349). The average monthly number of Group employees, including those employed directly at the Group's properties and their costs recharged to tenants, was 599 (2024/25: 646). For the year ended 31 March 2026, the average monthly number of employees of the Company by category was as follows: Campuses: 32 (2024/25: 36); Retail & London Urban Logistics: 27 (2024/25: 29); Developments: 26 (2024/25: 31); Storey: 5 (2024/25: 6); and Support Functions: 221 (2024/25: 247). The average number of employees working at the Group's properties and their costs recharged to tenants of 288 (2024/25: 297) are categorised as Property Management. The Executive Directors and Non-Executive Directors are the key management personnel. Their emoluments are disclosed in the Remuneration Report on pages 100 to 114. # 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. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # NOTES TO THE ACCOUNTS CONTINUED ## 8 Staff costs continued During both the current year and 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. | | 23 June 2025 | | 20 June 2024 | | | --- | --- | --- | --- | --- | | | Awards with holding period | Awards with no holding period | Awards with holding period | Awards with no holding period | | Share price | £3.79 | £3.79 | £4.17 | £4.17 | | Exercise price | £0.00 | £0.00 | £0.00 | £0.00 | | Expected volatility | 26.9% | 26.9% | 30.7% | 30.7% | | Expected term (years) | 3 | 3 | 3 | 3 | | Dividend yield | 3.8% | 3.8% | 5.5% | 5.5% | | Risk free interest rate | 4.0% | 4.0% | 3.9% | 3.9% | | Fair value - TPR and TAR Tranches | £3.36 | £3.79 | £3.63 | £4.17 | | Fair value - ESG Tranche | £3.36 | £3.79 | £3.63 | £4.17 | 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 the defined contribution 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 (2024/25: £7m), 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 2024. The employer does not expect to make any payments during the year to 31 March 2027. The major assumptions used for the actuarial valuation were: | | 2026 % p.a. | 2025 % p.a. | | --- | --- | --- | | Discount rate | 6.2 | 5.8 | | Salary inflation | - | - | | Pensions increase | 3.4 | 3.2 | | Price inflation | 3.6 | 3.4 | The assumptions are that a member currently aged 60 will live on average for a further 27.7 years if they are male and for a further 29.2 years if they are female. For a member who retires in 2046 at age 60, the assumptions are that they will live on average for a further 29.1 years after retirement if they are male and for a further 30.7 years after retirement if they are female. The weighted average duration of the defined benefit obligation as at 31 March 2026 is 11 years (2024/25: 12 years). --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS # 9 Pensions continued ## Composition of scheme assets | | 2026 £m | 2025 £m | | --- | --- | --- | | Equities | 17 | 18 | | Diversified growth funds | 14 | 13 | | Other assets | 63 | 62 | | Total scheme assets | 94 | 93 | 81% (2024/25: 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: | | 2026 £m | 2025 £m | | --- | --- | --- | | Present value of defined scheme obligations | (72) | (74) | | Fair value of scheme assets | 94 | 93 | | Irrecoverable surplus^{1} | (22) | (19) | | 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 (2024/25: £nil), therefore the surplus in the defined benefit schemes of £22m (2024/25: £19m) 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 | | | | --- | --- | --- | --- | | Assumption | Change in assumption | 2026 £m | 2025 £m | | Discount rate | +0.5% | (4) | (4) | | Salary inflation | +0.5% | - | - | | RPI inflation | +0.5% | 3 | 3 | | Assumed life expectancy | +1 year | 2 | 2 | --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # NOTES TO THE ACCOUNTS CONTINUED ## 9 Pensions continued Movements in the present value of defined benefit obligations were as follows: | | 2026 £m | 2025 £m | | --- | --- | --- | | At 1 April | (74) | (85) | | Interest cost | (4) | (4) | | Actuarial gain | | | | Gain from change in financial assumptions | 2 | 10 | | Gain on scheme liabilities arising from experience | - | 1 | | Benefits paid | 4 | 4 | | At 31 March | (72) | (74) | Movements in the fair value of the scheme assets were as follows: | | 2026 £m | 2025 £m | | --- | --- | --- | | At 1 April | 93 | 108 | | Interest income on scheme assets | 5 | 5 | | Contributions by employer | - | - | | Actuarial loss | - | (16) | | Benefits paid | (4) | (4) | | At 31 March | 94 | 93 | 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 diversified credit fund 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. --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS # 10 Property Property reconciliation for the year ended 31 March 2026 | | Campuses Level 3 £m | Retail & London Urban Logistics Level 3 £m | Developments Level 3 £m | Investment and development properties Level 3 £m | Trading and held-for-sale properties £m | Total £m | | --- | --- | --- | --- | --- | --- | --- | | Carrying value at 1 April 2025 | 2,173 | 3,566 | 391 | 6,130 | 44 | 6,174 | | Additions | | | | | | | | - property purchases | - | 113 | - | 113 | - | 113 | | - development expenditure | 11 | 3 | 25 | 39 | - | 39 | | - capitalised interest and staff costs | 1 | 1 | 8 | 10 | - | 10 | | - capital expenditure on asset management initiatives | 21 | 27 | - | 48 | 1 | 49 | | | 33 | 144 | 33 | 210 | 1 | 211 | | Disposals | (14) | (43) | - | (57) | (23) | (80) | | Reclassifications | 23 | 72 | (95) | - | - | - | | Revaluations included in income statement | 52 | 90 | (35) | 107 | - | 107 | | Movement in tenant incentives and contracted rent uplift balances | 2 | 6 | - | 8 | - | 8 | | Carrying value at 31 March 2026 | 2,269 | 3,835 | 294 | 6,398 | 22 | 6,420 | | Lease liabilities (Notes 14 and 15) | | | | | | (109) | | Less valuation surplus on right-of-use assets^{1} | | | | | | (3) | | Valuation surplus on trading properties | | | | | | 8 | | Group property portfolio valuation at 31 March 2026 attributable to shareholders | | | | | | 6,316 | 1. 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 £6,316m above. Additions include £1m of capital expenditure in response to climate change (2024/25: £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. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # NOTES TO THE ACCOUNTS CONTINUED ## 10 Property continued Property reconciliation for the year ended 31 March 2025 | | Campuses Level 3 £m | Retail & London Urban Logistics Level 3 £m | Developments Level 3 £m | Investment and development properties Level 3 £m | Trading and held-for-sale properties £m | Total £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^{1} | - | 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 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. --- British Land Annual Report and Accounts 2026 149 FINANCIAL STATEMENTS # 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 93 to 99. 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. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # 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: | | 2026 | | | 2025 | | | | --- | --- | --- | --- | --- | --- | --- | | | Group £m | Joint ventures £m | Total £m | Group £m | Joint ventures £m | Total £m | | Knight Frank LLP | 765 | 78 | 843 | 713 | 69 | 782 | | CBRE | 2,497 | 133 | 2,630 | 2,368 | 139 | 2,507 | | Jones Lang LaSalle | 2,848 | 693 | 3,541 | 2,753 | 632 | 3,385 | | Cushman & Wakefield | 206 | 2,842 | 3,048 | 231 | 2,581 | 2,812 | | Total property portfolio valuation attributable to shareholders1 | 6,316 | 3,746 | 10,062 | 6,065 | 3,421 | 9,486 | 1. The £176m (2024/25: £96m) difference between the total property portfolio valuation for joint ventures of £3,746m (2024/25: £3,421m) and the total investment and trading properties of £3,570m (2024/25: £3,325m) disclosed in Note 11 relates to £191m (2024/25: £115m) of property included within investments in joint ventures, £19m (2024/25: £17m) of headleases and a £4m (2024/25: £2m deficit) trading property surplus, all at Group share. Information about fair value measurements using unobservable inputs (Level 3) as at 31 March 2026 | | | | ERV per sq ft | | | Equivalent yield | | | Costs to complete per sq ft | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Investment | Fair value at 31 March 2026 £m | Valuation technique | Min £ | Max £ | Average £ | Min % | Max % | Average % | Min £ | Max £ | Average £ | | Campuses | Investment | | | | | | | | | | | | | 2,185 | methodology | 30 | 99 | 70 | 5 | 9 | 6 | - | 171 | 36 | | Retail & London | Investment | | | | | | | | | | | | Urban Logistics | 3,807 | methodology | 2 | 43 | 21 | 4 | 19 | 7 | - | 78 | 4 | | Developments | Residual | | | | | | | | | | | | | 294 | methodology | 35 | 117 | 89 | 5 | 6 | 5 | 416 | 1,429 | 1,072 | | Total | 6,286 | | | | | | | | | | | | Trading properties at fair value | 30 | | | | | | | | | | | | Group property portfolio valuation | 6,316 | | | | | | | | | | | --- British Land Annual Report and Accounts 2026 151 FINANCIAL STATEMENTS # 10 Property continued Information about fair value measurements using unobservable inputs (Level 3) as at 31 March 2025 | Investment | Fair value at 31 March 2025 £m | Valuation technique | ERV per sq ft | | | Equivalent yield | | | Costs to complete per sq ft | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | Min £ | Max £ | Average £ | Min % | Max % | Average % | Min £ | Max £ | Average £ | | Campuses | 2,086 | Investment methodology | 28 | 136 | 67 | 5 | 9 | 6 | - | 171 | 41 | | Retail & London Urban Logistics | 3,539 | Investment methodology | 2 | 41 | 20 | 4 | 18 | 7 | - | 69 | 3 | | Developments | 391 | Residual methodology | 29 | 113 | 70 | 5 | 6 | 5 | 225 | 1,337 | 899 | | Total | 6,016 | | | | | | | | | | | | Trading and held-for-sale properties at fair value | 49 | | | | | | | | | | | | Group property portfolio valuation | 6,065 | | | | | | | | | | | Information about the impact of changes in unobservable inputs (Level 3) on the fair value of the total property portfolio as at 31 March 2026 | | Fair value at 31 March 2026 £m | Impact on valuations | | Impact on valuations | | Impact on valuations | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | +5% ERV £m | -5% ERV £m | +25bps NEY £m | +25bps NEY £m | -5% costs £m | +5% costs £m | | Campuses^{1} | 2,215 | 93 | (90) | 111 | (100) | - | - | | Retail & London Urban Logistics | 3,807 | 155 | (153) | 158 | (147) | - | - | | Developments | 294 | 17 | (17) | 13 | (12) | 32 | (31) | | Group property portfolio valuation | 6,316 | 265 | (260) | 282 | (259) | 32 | (31) | | Share of joint venture property portfolio valuation | 3,746 | 157 | (167) | 204 | (197) | 40 | (41) | | Total property portfolio valuation | 10,062 | 422 | (427) | 486 | (456) | 72 | (72) | 1. Includes trading properties at fair value. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # 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 2025 | | Impact on valuations | | | Impact on valuations | | Impact on valuations | | | --- | --- | --- | --- | --- | --- | --- | --- | | | Fair value at 31 March 2025 £m | +5% ERV £m | -5% ERV £m | -25bps NEY £m | +25bps NEY £m | -5% costs £m | +5% costs £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. 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 2026, the Group property portfolio valuation of £6,316m (2024/25: £6,065m) comprised of freeholds of £3,379m (2024/25: £3,113m); virtual freeholds of £459m (2024/25: £473m); long leaseholds of £2,261m (2024/25: £2,043m); and short leaseholds of £217m (2024/25: £436m). The historical cost of properties was £5,205m (2024/25: £5,036m). Cumulative interest capitalised against investment, development and trading properties amounted to £162m (2024/25: £155m). Properties valued at £925m (2024/25: £905m) were subject to a security interest. Included within the property valuation was £1m (2024/25: £1m) in respect of accrued contracted rental uplift income and £138m (2024/25: £129m) 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. --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS 153 # 11 Joint ventures Summary movement for the year of the investments in joint ventures | | Equity £m | Loans¹ £m | Total £m | | --- | --- | --- | --- | | At 1 April 2025 | 1,334 | 1,128 | 2,462 | | Additions | 58 | 220 | 278 | | Disposals and repayments | (13) | (238) | (251) | | Share of profit after taxation² | 187 | 1 | 188 | | Distributions and dividends: | | | | | – Capital | – | – | – | | – Revenue | (58) | (3) | (61) | | Hedging and exchange movements | (5) | – | (5) | | At 31 March 2026 | 1,503 | 1,108 | 2,611 | 1. Loan additions of £220m in the current year represent additional shareholder loans to the following joint ventures: £178m Broadgate, £32m One Triton Square, £7m West One and £3m Other joint ventures. Loan disposals of £238m in the current year represent shareholder loan repayments from the following joint ventures: £205m Broadgate, £15m West One, £15m Other joint ventures and £3m BL West End. 2. The share of profit after taxation includes equity accounted profits of £196m (2024/25: £72m profits) and a debit relating to the movement of provision for impairment of equity investments and loans of £8m (2024/25: £18m 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 In the prior year, 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 In the prior year, 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. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED ## 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 2026** | See page 158 for additional information on each joint venture | Broadgate | West One | BL West End | | --- | --- | --- | --- | | Group share | 50% | 25% | 25% | | Summarised income statements for the year ended 31 March 2026 | | | | | Revenue^{3} | 275 | 9 | 27 | | Costs | (93) | (2) | (9) | | | 182 | 7 | 18 | | Administrative expenses | (2) | - | - | | Net interest payable | (77) | - | (6) | | Underlying Profit (Loss) | 103 | 7 | 12 | | Share of joint venture result | 24 | - | - | | Net movements on property^{4} | 184 | (3) | 45 | | Capital financing income (charges) | 11 | - | - | | Loss on disposal of properties | (2) | - | - | | Profit (loss) before taxation | 320 | 4 | 57 | | Taxation | - | - | (1) | | Profit (loss) after taxation | 320 | 4 | 56 | | Other comprehensive expense | (10) | - | (3) | | Total comprehensive income (expense) | 310 | 4 | 53 | | British Land share of total comprehensive income (expense) | 155 | 1 | 14 | | British Land share of distributions payable | 38 | 1 | 2 | | Summarised balance sheets as at 31 March 2026 | | | | | Investment, development and trading properties | 4,603 | 140 | 464 | | Investments in joint ventures | 374 | - | - | | Other non-current assets | 6 | - | 9 | | Current assets | 23 | 1 | 5 | | Cash and cash equivalents | 131 | 19 | 11 | | Gross assets | 5,137 | 160 | 489 | | Current liabilities | (139) | (10) | (11) | | Bank and securitised debt | (1,850) | - | (160) | | Loans from joint venture partners | (1,619) | (27) | - | | Other non-current liabilities | - | (4) | (13) | | Gross liabilities | (3,608) | (41) | (184) | | Net assets (liabilities) | 1,529 | 119 | 305 | | British Land share of net assets less shareholder loans^{1} | 765 | 30 | 76 | 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, 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. On 30 October 2025, the Group acquired the remaining 50% share of Eden Walk Shopping Centre Unit Trust. As a result of this acquisition, Eden Walk Shopping Centre Unit Trust, previously accounted for as a joint venture, became a wholly-owned subsidiary of the Group and has been fully consolidated from this date. 3. Revenue includes gross rental income at 100% share of £335m (2024/25: £332m). 4. Included in the total net movements on property of £209m are valuation movements on investment and development properties of £234m and impairment of trading properties of £25m. At Group share, the net movements on property of £98m include valuation movements on investment and development properties of £111m and impairment of trading properties of £13m. --- British Land Annual Report and Accounts 2026 155 FINANCIAL STATEMENTS # 11 Joint ventures continued | Canada Water | Paddington Central^{1} | One Triton Square | SouthGate | Hercules Unit Trust JV | Other joint ventures^{2} | Total 2026 | Total Group share 2026 | | --- | --- | --- | --- | --- | --- | --- | --- | | 50% | 25% | 50% | 50% | 50% | | | | | 8 | 65 | 2 | 17 | 16 | 14 | 433 | 192 | | (9) | (22) | (3) | (5) | (1) | (4) | (148) | (66) | | (1) | 43 | (1) | 12 | 15 | 10 | 285 | 126 | | (1) | (1) | - | - | (1) | - | (5) | (2) | | (3) | (24) | - | (1) | - | - | (111) | (48) | | (5) | 18 | (1) | 11 | 14 | 10 | 169 | 76 | | - | - | - | - | - | - | 24 | 12 | | (57) | (13) | 29 | 9 | 7 | 8 | 209 | 98 | | - | (4) | - | - | - | - | 7 | 5 | | (4) | - | - | - | - | - | (6) | (3) | | (66) | 1 | 28 | 20 | 21 | 18 | 403 | 188 | | - | - | - | - | - | - | (1) | - | | (66) | 1 | 28 | 20 | 21 | 18 | 402 | 188 | | - | - | - | - | - | - | (13) | (5) | | (66) | 1 | 28 | 20 | 21 | 18 | 389 | 183 | | (33) | 1 | 14 | 10 | 11 | 10 | 183 | | | - | 3 | - | 4 | 7 | 6 | 61 | | | 695 | 853 | 509 | 183 | 224 | 198 | 7,869 | 3,570 | | - | - | - | - | - | - | 374 | 187 | | - | 10 | - | - | - | - | 25 | 7 | | 3 | 5 | 4 | 2 | 1 | 1 | 45 | 17 | | 8 | 27 | 8 | 5 | 6 | 3 | 218 | 96 | | 706 | 895 | 521 | 190 | 231 | 202 | 8,531 | 3,877 | | (19) | (27) | (9) | (7) | (3) | (3) | (228) | (101) | | (107) | (513) | - | - | - | - | (2,630) | (1,146) | | - | (445) | (336) | - | - | (73) | (2,500) | (1,132) | | - | - | - | (28) | - | - | (45) | (19) | | (126) | (985) | (345) | (35) | (3) | (76) | (5,403) | (2,398) | | 580 | (90) | 176 | 155 | 228 | 126 | 3,128 | 1,479 | | 290 | - | 88 | 77 | 114 | 63 | 1,503 | | 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 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. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # 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 158 for additional information on each joint venture | Broadgate¹ | Meadowhall² | West One | BL West End | | --- | --- | --- | --- | --- | | Group share | 50% | 0%² | 25% | 25% | | Summarised income statements for the year ended 31 March 2025 | | | | | | Revenue³ | 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 result¹ | 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 as at 31 March 2025 | | | | | | Investment, development and trading properties | 4,179 | - | 126 | 415 | | Investments in joint ventures¹ | 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 loans³ | 634 | - | 17 | 61 | 1. In the prior year, 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 153 of Note 11. 2. In the prior year, 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). --- British Land Annual Report and Accounts 2026 157 FINANCIAL STATEMENTS # 11 Joint ventures continued | Canada Water | Paddington Central^{1} | One Triton Square | SouthGate | Hercules Unit Trust JV | Other joint ventures^{2} | Total 2025 | Total Group share 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. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # 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 Limited | Meadowhall | Norges Bank Investment Management | Shopping Centre | 0%^{1} | | WOSC Partners Limited Partnership | West One | Norges Bank Investment Management | West End Campuses | 25% | | 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 Limited Partnership | Paddington Central | Euro Emerald Private Limited (GIC) | West End Campuses | 25% | | One Triton Holding Limited | One Triton Square | The Royal London Mutual Insurance Society Limited | West End Campuses | 50% | | Southgate Property Unit Trust | SouthGate | Aviva Investors | Shopping Centre | 50% | | Hercules Unit Trust joint venture | Hercules Unit Trust JV | The Prudential Assurance Company Limited | Retail Parks | 50% | 1. In the prior year, 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) | | 2026 £m | 2025 £m | | --- | --- | --- | | Income received from tenants | 181 | 176 | | Operating expenses paid to suppliers and employees | (76) | (70) | | Proceeds from sale of trading properties | 18 | - | | Cash generated from operations | 123 | 106 | | Interest paid | (48) | (46) | | Interest received | 9 | 5 | | UK corporation tax paid | (1) | (1) | | Cash inflow from operating activities | 83 | 64 | | Cash inflow from operating activities deployed as: | | | | Surplus (deficit) cash retained within joint ventures | 22 | (8) | | Revenue distributions per consolidated statement of cash flows | 61 | 72 | | Revenue distributions attributable to shareholders of the Company | 61 | 72 | ## 12 Other investments | | 2026 | | | 2025 | | | | --- | --- | --- | --- | --- | --- | --- | | | Fair value through profit or loss £m | Intangible assets £m | Total £m | Fair value through profit or loss £m | Intangible assets £m | Total £m | | At 1 April | 41 | 7 | 48 | 46 | 8 | 54 | | Additions | 2 | - | 2 | 2 | 3 | 5 | | Capital distribution | (7) | - | (7) | (3) | - | (3) | | Revaluation and foreign currency translation | (4) | - | (4) | (4) | - | (4) | | Amortisation | - | (2) | (2) | - | (4) | (4) | | At 31 March | 32 | 5 | 37 | 41 | 7 | 48 | The amount included in the fair value through profit or loss relates to private equity/venture capital investments of £32m (2024/25: £41m) 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. --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS # 13 Debtors | | 2026 £m | 2025 £m | | --- | --- | --- | | Trade and other debtors | 21 | 28 | | Prepayments and accrued income | 13 | 8 | | | 34 | 36 | Trade and other debtors are shown after deducting a provision for impairment against tenant debtors of £13m (2024/25: £12m). Accrued income is shown after deducting a provision for impairment of £nil (2024/25: £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 £3m (2024/25: £5m debit), as disclosed in Note 3. This is equal to the increase in provision for impairment of trade debtors and accrued income of £1m (2024/25: £1m increase) and write-offs of trade debtors of £2m (2024/25: £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 | | 2026 £m | 2025 £m | | --- | --- | --- | | Trade creditors | 67 | 69 | | Accruals | 85 | 77 | | Deferred income | 46 | 47 | | Other taxation and social security | 31 | 27 | | Lease liabilities | 7 | 7 | | Tenant deposits | 45 | 36 | | | 281 | 263 | 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 | | 2026 £m | 2025 £m | | --- | --- | --- | | Lease liabilities | 102 | 107 | | | 102 | 107 | --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # NOTES TO THE ACCOUNTS CONTINUED ## 16 Net debt | | Footnote | 2026 £m | 2025 £m | | --- | --- | --- | --- | | Secured on the assets of the Group | | | | | 5.264% First Mortgage Debenture Bonds 2035 | 1 | 247 | 250 | | 5.0055% First Mortgage Amortising Debentures 2035 | | 81 | 83 | | 5.357% First Mortgage Debenture Bonds 2028 | 1 | 146 | 164 | | | | 474 | 497 | | Unsecured | | | | | 2.375% Sterling Unsecured Bond 2029 | | 299 | 299 | | 5.25% Sterling Unsecured Bond 2032 | 1 | 297 | 297 | | 2.67% Senior Notes 2025 | | - | 37 | | 2.75% Senior Notes 2026 | | 37 | 37 | | 3.81% Senior Notes 2026 | | - | 99 | | 3.97% Senior Notes 2026 | | - | 99 | | 4.16% Senior US Dollar Notes 2025 | 2 | - | 76 | | 5.003% Senior US Dollar Notes 2026 | 2 | 61 | 63 | | Floating Rate Senior Notes 2028 | | 80 | 80 | | Floating Rate Senior Notes 2034 | | 101 | 101 | | Commercial paper | 3 | 274 | - | | Facilities and overdrafts | | 833 | 568 | | Term loans | | 540 | 475 | | | | 2,522 | 2,231 | | Gross debt | 4 | 2,996 | 2,728 | | Interest rate and currency derivative liabilities | 5 | 45 | 58 | | Interest rate and currency derivative assets | 6 | (68) | (82) | | Cash and cash equivalents | 7 | (176) | (57) | | Total net debt attributable to shareholders of the Company | | 2,797 | 2,647 | | Total net debt | | 2,797 | 2,647 | | Amounts payable under leases (Notes 14 and 15) | | 109 | 114 | | Total net debt attributable to shareholders of the Company (including lease liabilities) | | 2,906 | 2,761 | 1. In the prior year, 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. In the current year to 31 March 2026, the Group issued commercial paper denominated in Euros, US Dollars and Pound Sterling. All commercial paper denominated in a foreign currency was swapped to Pound Sterling. 4. The principal amount of gross debt at 31 March 2026 was £3,006m (2024/25: £2,740m). Included in this is the principal amount of secured borrowings and other borrowings of non-recourse companies of £480m (2024/25: £501m). 5. Interest rate and currency derivative liabilities includes non-current interest rate and currency derivative liabilities of £45m (2024/25: £56m) and current interest rate and currency derivative liabilities of £nil (2024/25: £2m). 6. Interest rate and currency derivative assets includes non-current interest rate and currency derivative assets of £42m (2024/25: £73m) and current interest rate and currency derivative assets of £26m (2024/25: £9m). 7. Cash and cash equivalents includes tenant deposits of £45m (2024/25: £36m) and cash and short term deposits not subject to a security interest amount to £131m (2024/25: £21m). --- British Land Annual Report and Accounts 2026 161 FINANCIAL STATEMENTS # 16 Net debt continued ## Maturity analysis of net debt | | | 2026 £m | 2025 £m | | --- | --- | --- | --- | | Repayable: | within one year and on demand | 521 | 311 | | Between: | one and two years | 252 | 98 | | | two and five years | 1,528 | 1,386 | | | five and ten years | 695 | 531 | | | ten and fifteen years | - | 402 | | | | 2,475 | 2,417 | | Gross debt | | 2,996 | 2,728 | | Interest rate and currency derivatives | | (23) | (24) | | Cash and cash equivalents | | (176) | (57) | | Net debt | | 2,797 | 2,647 | ## Fair value and book value of net debt | | 2026 | | | 2025 | | | | --- | --- | --- | --- | --- | --- | --- | | | Fair value £m | Book value £m | Difference £m | Fair value £m | Book value £m | Difference £m | | Debentures and unsecured bonds | 1,592 | 1,624 | (32) | 1,643 | 1,685 | (42) | | Bank debt and other floating rate debt | 1,382 | 1,372 | 10 | 1,054 | 1,043 | 11 | | Gross debt | 2,974 | 2,996 | (22) | 2,697 | 2,728 | (31) | | Interest rate and currency derivative liabilities | 45 | 45 | - | 58 | 58 | - | | Interest rate and currency derivative assets | (68) | (68) | - | (82) | (82) | - | | Cash and cash equivalents | (176) | (176) | - | (57) | (57) | - | | Net debt attributable to shareholders of the Company | 2,775 | 2,797 | (22) | 2,616 | 2,647 | (31) | 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 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 materially equivalent to the book value. The fair value hierarchy level of debt held at amortised cost is Level 2 (as defined in Note 10). --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # 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. EPRA LTV has been disclosed in Table E. ### Group LTV | | 2026 £m | 2025 £m | | --- | --- | --- | | Group LTV | 32.1% | 31.7% | | Principal amount of gross debt | 3,006 | 2,740 | | Less cash and short term deposits (consolidated statement of cash flows)¹ | (131) | (21) | | Total net debt for LTV calculation | 2,875 | 2,719 | | Group property portfolio valuation (Note 10) | 6,316 | 6,065 | | Investments in joint ventures (Note 11) | 2,611 | 2,462 | | Other investments and property, plant and equipment (consolidated balance sheet)² | 38 | 50 | | Total assets for LTV calculation | 8,965 | 8,577 | ### Proportionally consolidated LTV | | 2026 £m | 2025 £m | | --- | --- | --- | | Proportionally consolidated LTV | 39.2% | 38.1% | | Principal amount of gross debt | 4,157 | 3,738 | | Less cash and short term deposits³ | (195) | (101) | | Total net debt for proportional LTV calculation | 3,962 | 3,637 | | Group property portfolio valuation (Note 10) | 6,316 | 6,065 | | Share of property of joint ventures (Note 10) | 3,746 | 3,421 | | Other investments and property, plant and equipment (consolidated balance sheet)² | 38 | 50 | | Total assets for proportional LTV calculation | 10,100 | 9,536 | 1. Cash and short term deposits exclude tenant deposits of £45m (2024/25: £36m). 2. The £13m (2024/25: £14m) difference between other investments and plant, property and equipment per the consolidated balance sheet totalling £51m (2024/25: £64m) 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 £77m (2024/25: £64m). --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS # 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 | | 2026 £m | 2025 £m | | --- | --- | --- | | Group Net Debt to EBITDA | 7.7x | 8.0x | | Principal amount of gross debt | 3,006 | 2,740 | | Less cash and short term deposits (consolidated statement of cash flows)¹ | (131) | (21) | | Total net debt for Group Net Debt to EBITDA calculation | 2,875 | 2,719 | | Underlying Profit (Table A) | 294 | 279 | | Plus Net financing charges (Note 6) | 85 | 60 | | Less Underlying Profit due to joint ventures² | (76) | (90) | | Plus distributions and other receivables from joint ventures³ | 66 | 84 | | Plus depreciation and amortisation (Table A) | 5 | 8 | | Total EBITDA for Group Net Debt to EBITDA calculation | 374 | 341 | ## Proportionally consolidated Net Debt to EBITDA | | 2026 £m | 2025 £m | | --- | --- | --- | | Proportionally consolidated Net Debt to EBITDA | 9.2x | 9.3x | | Principal amount of gross debt | 4,157 | 3,738 | | Less cash and short term deposits⁴ | (195) | (101) | | Total net debt for proportional Net Debt to EBITDA calculation | 3,962 | 3,637 | | Underlying Profit (Table A) | 294 | 279 | | Plus Net financing charges (Table A) | 133 | 103 | | Plus depreciation and amortisation (Table A) | 5 | 8 | | Total EBITDA for proportional Net Debt to EBITDA calculation | 432 | 390 | 1. Cash and short term deposits exclude tenant deposits of £45m (2024/25: £36m). 2. Underlying Profit due to joint ventures of £76m (2024/25: £90m) (consolidated income statement). 3. Includes distributions and other receivables from joint ventures of £61m (2024/25 £72m) (consolidated statement of cash flows) and fees and other income received from joint ventures of £5m (2024/25: £12m). 4. Cash and short term deposits exclude tenant deposits of £77m (2024/25: £64m). --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # 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: | | 2026 £m | 2025 £m | | --- | --- | --- | | Net Borrowings not to exceed 175% of Adjusted Capital and Reserves | 48% | 47% | | Principal amount of gross debt | 3,006 | 2,740 | | Less cash and short term deposits (consolidated statement of cash flows)¹ | (131) | (21) | | Net Borrowings | 2,875 | 2,719 | | Share capital and reserves (consolidated balance sheet) | 5,932 | 5,710 | | Deferred tax liabilities (Table A) | 4 | 4 | | Trading property surplus (Table A) | 12 | 3 | | Exceptional refinancing charges (see below) | 95 | 107 | | Fair value adjustments of financial instruments (Table A) | (27) | (23) | | Adjusted Capital and Reserves | 6,016 | 5,801 | In calculating Adjusted Capital and Reserves for the purpose of the unsecured debt financial covenants, there is an adjustment of £95m (2024/25: £107m) to reflect the cumulative net amortised exceptional items relating to the refinancings in the years ended 31 March 2005, 2006 and 2007. | | 2026 £m | 2025 £m | | --- | --- | --- | | Net Unsecured Borrowings not to exceed 70% of Unencumbered Assets | 44% | 43% | | Principal amount of gross debt | 3,006 | 2,740 | | Less cash and short term deposits not subject to a security interest | (131) | (21) | | Less principal amount of secured and non-recourse borrowings | (480) | (501) | | Net Unsecured Borrowings | 2,395 | 2,218 | | Group property portfolio valuation (Note 10) | 6,316 | 6,065 | | Investments in joint ventures (Note 11) | 2,611 | 2,462 | | Other investments and property, plant and equipment (consolidated balance sheet)² | 38 | 50 | | Less investments in joint ventures (Note 11) | (2,611) | (2,462) | | Less encumbered assets (Note 10) | (925) | (905) | | Unencumbered Assets | 5,429 | 5,210 | 1. Cash and short term deposits exclude tenant deposits of £45m (2024/25: £36m). 2. The £13m (2024/25: £14m) difference between other investments and plant, property and equipment per the balance sheet totalling £51m (2024/25: £64m) 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. --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS # 16 Net debt continued Reconciliation of movement in Group net debt for the year ended 31 March 2026 | | 2025£m | Cash flows£m | Transfers1£m | Foreignexchange£m | Arrangement cost | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | Fair value£m | amortisation£m | 2026£m | | Short term borrowings | 311 | (43) | 247 | 2 | - | 4 | 521 | | Long term borrowings | 2,417 | 309 | (247) | (2) | (1) | (1) | 2,475 | | Derivatives2 | (24) | (5) | - | - | 6 | - | (23) | | Total liabilities fromfinancing activities3 | 2,704 | 261 | - | - | 5 | 3 | 2,973 | | Cash and cash equivalents | (57) | (119) | - | - | - | - | (176) | | Net debt | 2,647 | 142 | - | - | 5 | 3 | 2,797 | Reconciliation of movement in Group net debt for the year ended 31 March 2025 | | 2024£m | Cash flows£m | Transfers1£m | Foreign exchange£m | Arrangement cost | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | Fair value£m | amortisation£m | 2025£m | | Short term borrowings | 10 | (12) | 311 | - | - | 2 | 311 | | Long term borrowings | 2,202 | 513 | (311) | (6) | 21 | (2) | 2,417 | | Derivatives4 | (43) | 29 | - | 6 | (16) | - | (24) | | Total liabilities fromfinancing activities3 | 2,169 | 530 | - | - | 5 | - | 2,704 | | Cash and cash equivalents | (88) | 31 | - | - | - | - | (57) | | Net debt | 2,081 | 561 | - | - | 5 | - | 2,647 | 1. Transfers comprises debt maturing from long term to short term borrowings. 2. Cash flows on derivatives include £14m of net receipts on derivative interest. 3. Cash flows of £261m includes repayment of bank and other borrowings of £339m, proceeds from new borrowings of £372m, drawdowns on bank and other borrowings of £35m (which includes £3m of issue costs), net drawdown of revolving credit facilities of £198m and capital payments in respect of interest rate derivatives of £19m as shown in the consolidated statement of cash flows, along with £14m of net receipts on derivative interest. 4. Cash flows on derivatives include £37m of net receipts on derivative interest. 5. 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. # 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. | | 2026 | | | | 2025 | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Level 1£m | Level 2£m | Level 3£m | Total£m | Level 1£m | Level 2£m | Level 3£m | Total£m | | Interest rate and currency derivative assets | - | (68) | - | (68) | - | (82) | - | (82) | | Other investments - fair value through profit or loss (Note 12) | - | - | (32) | (32) | - | - | (41) | (41) | | Assets | - | (68) | (32) | (100) | - | (82) | (41) | (123) | | Interest rate and currency derivative liabilities | - | 45 | - | 45 | - | 58 | - | 58 | | Liabilities | - | 45 | - | 45 | - | 58 | - | 58 | | Total | - | (23) | (32) | (55) | - | (24) | (41) | (65) | --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # NOTES TO THE ACCOUNTS CONTINUED ## 16 Net debt continued ### Categories of financial instruments | | 2026 £m | 2025 £m | | --- | --- | --- | | Financial assets | | | | Amortised cost | | | | Cash and cash equivalents | 176 | 57 | | Trade and other debtors (Note 13) | 21 | 28 | | Fair value through profit or loss | | | | Derivatives in designated fair value hedge accounting relationships^{1,2} | 11 | 14 | | Derivatives not in designated hedge accounting relationships | 57 | 68 | | Other investments (Note 12) | 32 | 41 | | | 297 | 208 | | Financial liabilities | | | | Amortised cost | | | | Creditors (Note 14) | (197) | (182) | | Gross debt | (2,996) | (2,728) | | Lease liabilities (Notes 14 and 15) | (109) | (114) | | Fair value through profit or loss | | | | Derivatives in designated fair value hedge accounting relationships^{1,2} | (4) | (6) | | Derivatives not in designated hedge accounting relationships | (41) | (52) | | | (3,347) | (3,082) | | Total | (3,050) | (2,874) | 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, Note 13, 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 credit 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 2026, the fair value of these derivatives is a net asset of £56m (2024/25: £63m). Interest rate swaps with a fair value of £nil (2024/25: £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 2026 was £nil (2024/25: £nil). --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS # 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 | | 2026 £m | 2025 £m | | --- | --- | --- | | Outstanding: at one year | 1,570 | 2,020 | | at two years | 1,450 | 1,670 | | at five years | 850 | 950 | ## 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 2026, the fair value of these derivatives is a net liability of £33m (2024/25: net liability of £39m). Interest rate swaps with a fair value asset of £7m have been designated as fair value hedges under IFRS 9 (2024/25: asset of £8m). The cross-currency swaps of the 2025/2026 US Private Placements fully hedge the foreign exchange exposure at an average floating rate of 174 basis points above SONIA. These have been designated as fair value hedges of the US Private Placements. ## Interest rate profile – including effect of derivatives | | 2026 £m | 2025 £m | | --- | --- | --- | | Fixed or capped rate | 2,797 | 2,647 | | | 2,797 | 2,647 | At 31 March 2026 the weighted average interest rate of the Sterling fixed rate debt is 4.4% (2024/25: 4.3%). The weighted average period for which the rate is fixed is 5.5 years (2024/25: 5.5 years). ## Sensitivity table – market rate movements | | 2026 | | 2025 | | | --- | --- | --- | --- | --- | | | 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 | 421 | (421) | 424 | (424) | | Impact on cash flow hedge and non-hedge accounted derivative valuations (£m) | 154 | (137) | 164 | (185) | 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. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # 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 2026 position, a 28% appreciation (largest annual change over the last 10 years) in the USD relative to Sterling would result in a £nil change (2024/25: £1m) in reported profits. | | Assets^{1} | | Liabilities | | | --- | --- | --- | --- | --- | | | 2026 £m | 2025 £m | 2026 £m | 2025 £m | | USD denominated | 32 | 35 | 33 | 33 | 1. The USD denominated asset of £32m (2024/25: £35m) is an other investment accounted for as fair value through profit of loss as disclosed in Note 12. The remaining £nil (2024/25: £6m) 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 2026 amounted to £176m (2024/25: £57m). Cash and cash equivalents were placed with financial institutions with BBB+ or better credit ratings. At 31 March 2026, the fair value of all interest rate derivative assets was £68m (2024/25: £82m). At 31 March 2026, 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 £68m (2024/25: £42m). This represents 0.7% (2024/25: 0.5%) 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. --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS # 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. | | 2026 | | | | | | --- | --- | --- | --- | --- | --- | | | Within one year £m | Following year £m | Three to five years £m | Over five years £m | Total £m | | Gross debt^{1} | 525 | 254 | 1,536 | 701 | 3,016 | | Interest on debt | 137 | 120 | 267 | 109 | 633 | | Derivative payments | 56 | 13 | 23 | 14 | 106 | | Lease liability payments | 9 | 10 | 28 | 313 | 360 | | Total payments | 727 | 397 | 1,854 | 1,137 | 4,115 | | Derivative receipts | (91) | (12) | (17) | (2) | (122) | | Net payment | 636 | 385 | 1,837 | 1,135 | 3,993 | | Operating leases with tenants | 324 | 284 | 555 | 604 | 1,767 | | Liquidity deficit | (312) | (101) | (1,282) | (531) | (2,226) | | Cumulative liquidity deficit | (312) | (413) | (1,695) | (2,226) | | | | 2025 | | | | | | --- | --- | --- | --- | --- | --- | | | Within one year £m | Following year £m | Three to five years £m | Over five years £m | Total £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) | | 1. Gross debt of £2,996m (2024/25: £2,728m) represents the total of £3,016m (2024/25: £2,753m), less unamortised issue costs of £14m (2024/25: £17m), less fair value adjustments to debt of £6m (2024/25: £8m). --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # 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 £1,456m (2024/25: £1,775m) and cash and cash equivalents of £176m (2024/25: £57m), of which £131m (2024/25: £21m) is not subject to a security interest. As a result, the Group has no requirement to refinance until early 2029. Further liquidity can be achieved through sales of property assets or investments and financing activity. The Group's property portfolio is valued externally at £6,316m (2024/25: £6,065m) and the share of joint ventures' property is valued at £3,746m (2024/25: £3,421m). 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 | | 2026 £m | 2025 £m | | --- | --- | --- | | Maturity date: over five years | 250 | 140 | | between four and five years | 665 | 1,055 | | between three and four years | 235 | 6 | | Total facilities available for more than three years | 1,150 | 1,201 | | Between two and three years | 4 | 24 | | Between one and two years | - | 450 | | Within one year | 302 | 100 | | Total | 1,456 | 1,775 | ## 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 (2024/25: five years). The future aggregate minimum rentals receivable under non-cancellable operating leases are as follows: | | 2026 £m | 2025 £m | | --- | --- | --- | | Less than one year | 324 | 307 | | Between one and two years | 284 | 271 | | Between three and five years | 555 | 583 | | Between six and ten years | 382 | 364 | | Between eleven and fifteen years | 158 | 164 | | Between sixteen and twenty years | 43 | 48 | | After twenty years | 21 | 8 | | Total | 1,767 | 1,745 | --- British Land Annual Report and Accounts 2026 171 FINANCIAL STATEMENTS # 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. | | 2026 | | | 2025 | | | | --- | --- | --- | --- | --- | --- | --- | | | Minimum lease payments £m | Interest £m | Principal £m | Minimum lease payments £m | Interest £m | Principal £m | | British Land Group | | | | | | | | Less than one year | 9 | 2 | 7 | 9 | 2 | 7 | | Between one and two years | 10 | 2 | 8 | 10 | 2 | 8 | | Between two and five years | 28 | 8 | 20 | 30 | 8 | 22 | | More than five years | 313 | 239 | 74 | 319 | 242 | 77 | | Total | 360 | 251 | 109 | 368 | 254 | 114 | | Less future finance charges | (251) | | | (254) | | | | Present value of lease obligations | 109 | | | 114 | | | # 18 Dividends The final dividend payment for the six-month period ended 31 March 2026 will be 10.80p. Payment will be made on 24 July 2026 to shareholders on the register at close of business on 19 June 2026. 9.34p will be payable as a Property Income Distribution and 1.46p will be payable as a non-Property Income Distribution. 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. | Payment date | Dividend | Pence per share | 2026 £m | 2025 £m | | --- | --- | --- | --- | --- | | Current year dividends | | | | | | 24.07.2026 | 2026 Final | 10.80 | | | | 14.01.2026 | 2026 Interim | 12.32 | 123 | | | | | 23.12 | | | | Prior year dividends | | | | | | 25.07.2025 | 2025 Final | 10.56 | 106 | | | 15.01.2025 | 2025 Interim | 12.24 | | 122 | | | | 22.80 | | | | 26.07.2024 | 2024 Final | 10.64 | | 99 | | Dividends disclosed in consolidated statement of changes in equity | | | 229 | 221 | | Dividends settled in cash | | | 229 | 221 | | Timing difference relating to payment of withholding tax | | | - | (1) | | Dividends disclosed in consolidated statement of cash flows | | | 229 | 220 | --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED ## NOTES TO THE ACCOUNTS CONTINUED ### 19 Share capital and reserves | | 2026 | 2025 | | --- | --- | --- | | Number of ordinary shares in issue at 1 April | 1,010,420,504 | 938,764,023 | | Share issues | 741,109 | 71,656,481 | | Number of ordinary shares in issue at 31 March | 1,011,161,613 | 1,010,420,504 | Of the issued 25p ordinary shares, nil shares were held in the ESOP trust (2024/25: nil), 11,266,245 shares were held as treasury shares (2024/25: 11,266,245) and 999,895,368 shares were in free issue (2024/25: 999,154,259). No treasury shares were acquired by the ESOP trust during the year. All issued shares are fully paid. In the prior year, 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 422p 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. ### Revaluation reserve The revaluation reserve relates to investments in joint ventures. In the current year to 31 March 2026, £nil was transferred from the revaluation reserve to retained earnings (2024/25: £nil). ### Merger reserve This comprises the premium on the share placing in the year ended 31 March 2013. No share premium was recorded in the Company's financial statements, through the operation of the merger relief provisions of the Companies Act 2006. ### Share-based payments At 31 March 2026, options over 1,049,398 ordinary shares were outstanding under employee share option plans. The options had a weighted average life of 2.14 years. Details of outstanding share options and shares awarded to employees, including Executive Directors, are set out below and on the following page: | Date of grant | At 1 April 2025 | Granted | Exercised/ Vested | Lapsed/ Forfeited | At 31 March 2026 | Exercise price (pence) | Exercise dates | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | From | To | | Share options Sharesave Scheme | | | | | | | | | | 18.06.19 | 689 | - | - | (689) | - | 435 | 01.09.24 | 01.03.25 | | 07.07.20 | 145,074 | - | (123,485) | (15,339) | 6,250 | 336 | 01.09.25 | 01.03.26 | | 06.07.21 | 3,998 | - | - | (3,998) | - | 414 | 01.09.24 | 01.03.25 | | 06.07.21 | 19,849 | - | - | (2,173) | 17,676 | 414 | 01.09.26 | 01.03.27 | | 22.06.22 | 53,467 | - | - | (51,331) | 2,136 | 421 | 01.09.25 | 01.03.26 | | 22.06.22 | 6,695 | - | - | - | 6,695 | 421 | 01.09.27 | 01.03.28 | | 21.06.23 | 530,865 | - | (17,312) | (45,455) | 468,098 | 287 | 01.09.26 | 01.03.27 | | 21.06.23 | 268,819 | - | (4,807) | (33,341) | 230,671 | 287 | 01.09.28 | 01.03.29 | | 03.07.24 | 88,225 | - | (1,714) | (28,676) | 57,835 | 352 | 01.09.27 | 01.03.28 | | 03.07.24 | 54,478 | - | - | (23,962) | 30,516 | 352 | 01.09.29 | 01.03.30 | | 25.06.25 | - | 135,364 | (31) | (9,489) | 125,844 | 314 | 01.09.28 | 01.03.29 | | 25.06.25 | - | 113,039 | (31) | (9,331) | 103,677 | 314 | 01.09.30 | 01.03.31 | | Total | 1,172,159 | 248,403 | (147,380) | (223,784) | 1,049,398 | | | | | Weighted average exercise price of options (pence) | 311 | 314 | 329 | 343 | 302 | | | | --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS 19 Share capital and reserves continued | Date of grant | At 1 April 2025 | Granted | Exercised/Vested | Lapsed/Forfeited | At 31 March 2026 | Share price at grant date (pence) | Vesting date | | --- | --- | --- | --- | --- | --- | --- | --- | | Performance Shares Long Term Incentive Plan | | | | | | | | | 19.07.22 | 1,160,685 | - | (580,342) | (580,343) | - | 470.70 | 19.07.25 | | 15.06.23 | 1,516,122 | - | - | - | 1,516,122 | 334.70 | 15.06.26 | | 20.06.24 | 1,216,758 | - | - | (450,101) | 766,657 | 416.60 | 20.06.27 | | 23.06.25 | - | 1,617,042 | - | (515,160) | 1,101,882 | 379.20 | 23.06.28 | | | 3,893,565 | 1,617,042 | (580,342) | (1,545,604) | 3,384,661 | | | | Restricted Share Plan | | | | | | | | | 19.07.22 | 594,796 | - | (585,930) | (8,866) | - | 470.70 | 19.07.25 | | 15.06.23 | 795,624 | - | - | (65,008) | 730,616 | 334.70 | 15.06.26 | | 20.06.24 | 665,589 | - | - | (65,808) | 599,781 | 416.60 | 20.06.27 | | 01.08.24 | 11,653 | - | - | - | 11,653 | 411.00 | 20.06.27 | | 23.06.25 | - | 718,898 | - | (24,602) | 694,296 | 379.20 | 23.06.28 | | | 2,067,662 | 718,898 | (585,930) | (164,284) | 2,036,346 | | | | Total | 5,961,227 | 2,335,940 | (1,166,272) | (1,709,888) | 5,421,007 | | | | Weighted average price of shares (pence) | 401 | 379 | 471 | 420 | 370 | | | ## 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. The chief operating decision maker for the purpose of segment information is the Executive Committee. Gross rental income is derived from the rental of investment properties. 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. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # NOTES TO THE ACCOUNTS CONTINUED ## 20 Segment information continued ### Segment result | | Campuses | | Retail & London Urban Logistics | | Unallocated | | Total | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 2026 £m | 2025 £m | 2026 £m | 2025 £m | 2026 £m | 2025 £m | 2026 £m | 2025 £m | | Gross rental income | | | | | | | | | | British Land Group | 108 | 95 | 289 | 235 | - | - | 397 | 330 | | Share of joint ventures | 124 | 111 | 24 | 35 | - | - | 148 | 146 | | Total | 232 | 206 | 313 | 270 | - | - | 545 | 476 | | Net rental income | | | | | | | | | | British Land Group | 88 | 79 | 266 | 222 | - | - | 354 | 301 | | Share of joint ventures | 101 | 98 | 21 | 32 | - | - | 122 | 130 | | Total | 189 | 177 | 287 | 254 | - | - | 476 | 431 | | Operating result | | | | | | | | | | British Land Group | 96 | 93 | 263 | 222 | (43) | (52) | 316 | 263 | | Share of joint ventures | 92 | 89 | 20 | 30 | (1) | - | 111 | 119 | | Total | 188 | 182 | 283 | 252 | (44) | (52) | 427 | 382 | | Reconciliation to Underlying Profit | 2026 £m | 2025 £m | | --- | --- | --- | | Operating result | 427 | 382 | | Net financing charges1 | (133) | (103) | | Underlying Profit | 294 | 279 | | Reconciliation to profit before taxation | | | | --- | --- | --- | | Underlying Profit | 294 | 279 | | Capital and other | 156 | 63 | | Total profit before taxation | 450 | 342 | | Reconciliation to Group revenue | | | | --- | --- | --- | | Gross rental income per operating segment result | 545 | 476 | | Less share of gross rental income of joint ventures | (148) | (146) | | Gross rental income (Note 3) | 397 | 330 | | Service charge income | 78 | 77 | | Management and performance fees (from joint ventures and assets under management) | 19 | 20 | | Other fees and commissions | 29 | 27 | | Revenue (consolidated income statement) | 523 | 454 | 1. A reconciliation between net financing charges in the consolidated income statement and net financing charges of £133m (2024/25: £103m) in the segmental disclosures above can be found within Table A in the supplementary disclosures. All of the operating result above, in the current year to 31 March 2026 and prior year to 31 March 2025, was derived in the UK. --- British Land Annual Report and Accounts 2026 175 FINANCIAL STATEMENTS # 20 Segment information continued ## Segment assets | | Campuses | | Retail & London | | Total | | | --- | --- | --- | --- | --- | --- | --- | | | 2026 | 2025 | Urban Logistics | 2026 | | | | | £m | £m | £m | £m | £m | £m | | Property assets | | | | | | | | British Land Group | 2,431 | 2,397 | 3,888 | 3,671 | 6,319 | 6,068 | | Share of joint ventures | 3,424 | 3,107 | 322 | 314 | 3,746 | 3,421 | | Total | 5,855 | 5,504 | 4,210 | 3,985 | 10,065 | 9,489 | ## Reconciliation to net assets | | 2026 £m | 2025 £m | | --- | --- | --- | | Property assets | 10,065 | 9,489 | | Other non-current assets | 51 | 64 | | Non-current assets | 10,116 | 9,553 | | Other net current liabilities | (328) | (310) | | EPRA net debt^{1} | (3,865) | (3,545) | | EPRA NTA | 5,923 | 5,698 | | EPRA adjustments | 9 | 12 | | IFRS net assets (consolidated balance sheet) | 5,932 | 5,710 | 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: | | 2026 | 2025 | | --- | --- | --- | | | £m | £m | | British Land Group | 42 | 38 | | Share of joint ventures | 337 | 250 | | | 379 | 288 | 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 £2m to carbon efficient interventions in the year to 31 March 2026 (2024/25: £1m). The Group spent £1m in the year to 31 March 2026 (2024/25: £3m) on carbon efficient interventions, of which £1m (2024/25: £2m) is recoverable through the service charge. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # 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 100 to 114. 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. | Summarised income statement | Note | Joint ventures 2026 £m | Joint ventures 2025 £m | | --- | --- | --- | --- | | Management and performance fees (from joint ventures and assets under management) | 3 | 19 | 20 | | Share of distributions | 11 | 61 | 72 | | Capital return | 11 | - | 2 | | Summarised balance sheet | | | | | Loans | 11 | (1,132) | (1,152) | 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 | | 2026 | | | | | | 2025 | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Net closing investment | | Closing provision for impairment | | Movement in provision for impairment | | Net closing investment | | Closing provision for impairment | | Movement in provision for impairment | | | | Loan £m | Equity £m | Loan £m | Equity £m | Loan £m | Equity £m | Loan £m | Equity £m | Loan £m | Equity £m | Loan £m | Equity £m | | Broadgate | 810 | 765 | - | - | - | 12 | 835 | 634 | - | (12) | - | 20 | | Meadowhall1 | - | - | - | - | - | - | - | - | - | - | 174 | 199 | | West One | 4 | 30 | (3) | (20) | - | 1 | 11 | 17 | (3) | (21) | - | 1 | | BL West End | - | 76 | - | (20) | - | 10 | 3 | 61 | - | (30) | - | (10) | | Canada Water | - | 290 | - | (134) | - | (33) | - | 308 | - | (101) | - | (31) | | Paddington Central | 100 | - | (11) | - | - | - | 102 | - | (11) | - | (3) | - | | One Triton Square | 168 | 88 | - | - | - | 3 | 135 | 74 | - | (3) | - | (1) | | SouthGate | - | 77 | - | (33) | - | 5 | - | 69 | - | (38) | - | 12 | | Hercules Unit Trust JV | - | 114 | - | - | - | - | - | 110 | - | - | - | - | | Other joint ventures | 26 | 63 | (10) | (40) | - | 10 | 42 | 61 | (10) | (50) | (10) | 4 | | Total | 1,108 | 1,503 | (24) | (247) | - | 8 | 1,128 | 1,334 | (24) | (255) | 161 | 194 | 1. In the prior year, 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 prior 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 On 20 April 2026, post year end, the Group completed the acquisition of Life Science REIT plc. Under the terms of the acquisition each Life Science REIT plc shareholder received, for each Life Science REIT plc share held, 14.1p in cash and 0.07 new British Land shares. The total consideration of £146m therefore comprises £49m in cash and £97m of new British Land shares. Shortly after completion, Life Science REIT plc was re-registered as a private limited company. --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS 177 # 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. | Entity Name | Company Number | | --- | --- | | 17-19 Bedford Street Limited | 07398971 | | 18-20 Craven Hill Gardens Limited | 07667839 | | 20 Brock Street Limited | 07401697 | | Ashband Limited | 04409592 | | B.L.Holdings Limited | 00000529 | | Bayeast Property Co Limited | 00635800 | | BF Properties (No.5) Ltd | 05270039 | | BL SKS Holdings Limited | 13398992 | | BL Aldgate Development Limited | 05070564 | | BL Aldgate Investment Holdings Limited | 15314977 | | 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 Didcot 1 Limited | 05422338 | | BL Didcot 2 Limited | 05495284 | | BL Doncaster Wheatley Limited | 07780272 | | BL Drummond Properties Limited | 09806622 | | BL Eden Walk 2 Limited | 05270219 | | BL Eden Walk Limited | 10620935 | | BL Euston Tower Holding Company Limited | 11612398 | | BL Falkirk Limited | 04295313 | | 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 Holdings 2010 Limited | 07353966 | | 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 Merthyr Limited | 06663608 | | BL Middlesbrough Limited | 03537439 | | 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 Ravenhead Limited | 02534666 | | BL Residual Holding Company Limited | 05995030 | | Entity Name | Company Number | | --- | --- | | BL Retail Holding Company Limited | 05995033 | | BL Retail Indirect Investments Limited | 12288466 | | BL Retail Investment Holdings Limited | 11612693 | | BL Retail Properties 3 Limited | 04869976 | | BL Retail Properties Limited | 13215893 | | BL Retail Property Holdings Limited | 13215871 | | 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 Turbary Limited | 16695801 | | BL Vangarde Limited | 05270196 | | BL Warwickshire Limited | 04323341 | | 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 Centre Limited | 03918066 | | BLSSP (PHC 5) Limited | 04104061 | | Boldswitch Limited | 02307096 | | British Land (Joint Ventures) Limited | 04682740 | | 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 | | British Land Superstores (Non Securitised) Number 2 Limited | 06514283 | | Broadgate Adjoining Properties Limited | 07580963 | | Capitol Preston Limited | 06120395 | | Cavendish Geared Limited | 02779045 | | Clarges Estate Property Management Co Limited | 08418875 | | Drake Circus Centre Limited | 09069182 | | Drake Circus Leisure Limited | 09190208 | | Eden Walk Shopping Centre General Partner Limited | 06421966 | | 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 | --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # NOTES TO THE ACCOUNTS CONTINUED ## 25 Audit exemptions taken for subsidiaries continued | Entity Name | Company Number | Entity Name | Company Number | | --- | --- | --- | --- | | Mayflower Retail Park Basildon Limited | 07566738 | Plymouth Retail Limited | 10368557 | | Nugent Shopping Park Limited | 06153558 | Regent's Place Holding 2 Limited | 11864307 | | Orbital Shopping Park Swindon Limited | 05489767 | Solartron Retail Park Limited | 13060834 | | Osnaburgh Street Limited | 05886735 | St. Stephens Shopping Centre Limited | 04931198 | | Paddington 3KS Investments Limited | 13843646 | Storey Offices Limited | 11417071 | | Paddington 5KS Holdings Limited | 13843365 | TBL Properties Limited | 03863190 | | Paddington Box Limited | 14782912 | Tollgate Centre Colchester Limited | 10461649 | | Pillar Denton Limited | 02982293 | Topside Street Limited | 11253428 | | Pillar Property Group Limited | 02570618 | Union Property Corporation Limited | 00664862 | 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 | Name | | --- | --- | | BL Fixed Uplift Fund Limited Partnership | Paddington 5KS Property Limited Partnership | | BL Lancaster Limited Partnership | Power Court Luton Limited Partnership | | BL Shoreditch Limited Partnership | The Aldgate Place Limited Partnership | | Eden Walk Shopping Centre Limited Partnership | The Hercules Property Limited Partnership | | Hereford Shopping Centre Limited Partnership | | --- British Land Annual Report and Accounts 2026 179 # COMPANY BALANCE SHEET As at 31 March 2026 | | Note | 2026 | 2025 | | --- | --- | --- | --- | | | | £m | £m | | Fixed assets | | | | | Investments and loans to subsidiaries | D | 23,125 | 22,829 | | Investments in joint ventures | D | - | 1 | | Other investments | D | 19 | 23 | | Interest rate and currency derivative assets | E | 42 | 73 | | | | 23,186 | 22,926 | | Current assets | | | | | Debtors | G | 4 | 3 | | Interest rate and currency derivative assets | E | 26 | 9 | | Cash at bank and in hand | E | 74 | 2 | | | | 104 | 14 | | Creditors: amounts falling due within one year | | | | | Short term borrowings and overdrafts | E | (521) | (311) | | Creditors | H | (111) | (108) | | Amounts due to subsidiaries | D | (15,237) | (15,265) | | Interest rate and currency derivative liabilities | E | - | (2) | | | | (15,869) | (15,686) | | Net current liabilities | | (15,765) | (15,672) | | Total assets less current liabilities | | 7,421 | 7,254 | | Creditors: amounts falling due after more than one year | | | | | Debentures and loans | E | (2,475) | (2,417) | | Lease liabilities | | (15) | (19) | | Deferred tax liabilities | | (1) | (3) | | Interest rate and currency derivative liabilities | E | (45) | (56) | | | | (2,536) | (2,495) | | Net assets | | 4,885 | 4,759 | | Equity | | | | | Called up share capital | I | 253 | 253 | | Share premium account | | 1,591 | 1,589 | | Other reserves | | (5) | (5) | | Merger reserve | | 213 | 213 | | Profit and loss account | | 2,833 | 2,709 | | Total equity | | 4,885 | 4,759 | The profit after taxation for the year ended 31 March 2026 for the Company was £353m (2024/25: £232m). Simon Carter Chief Executive David Walker Chief Financial Officer The financial statements on pages 179 to 190 were approved by the Board of Directors and signed on its behalf on 19 May 2026. Company number 621920 --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED ## COMPANY STATEMENT OF CHANGES IN EQUITY For the year ended 31 March 2026 | | Called up share capital £m | Share premium account £m | Other reserves £m | Merger reserve £m | Profit and loss account £m | Total equity £m | | --- | --- | --- | --- | --- | --- | --- | | Balance at 1 April 2025 | 253 | 1,589 | (5) | 213 | 2,709 | 4,759 | | Shares issued in the year | - | 2 | - | - | - | 2 | | Dividend paid | - | - | - | - | (229) | (229) | | Fair value of share and share option awards | - | - | - | - | - | - | | Profit for the year after taxation | - | - | - | - | 353 | 353 | | Balance at 31 March 2026 | 253 | 1,591 | (5) | 213 | 2,833 | 4,885 | | Balance at 1 April 2024 | 235 | 1,310 | (5) | 213 | 2,701 | 4,454 | | Shares issued in the year^{1} | 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 | 1. In the prior year, 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 422p per share, resulting in an increase in share capital of £18m and share premium of £277m. See Note I for further information. --- British Land Annual Report and Accounts 2026 181 FINANCIAL STATEMENTS ## (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 186 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 2026 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; (c) the requirements of IAS 1 to disclose information on the management of capital; (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 £15,237m 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 from the signing date of these financial statements. The net current liability position also results from the £521m of facilities that are reaching maturity within the next 12 months and current creditors of £111m. The Company has access to £1.6bn 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, and have reasonable expectation that the Company has 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. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED ## 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. 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 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. Amounts due to the Company from subsidiaries are recovered through the sale of properties and investments held by subsidiaries and through settling financial assets, net of financial liabilities, that the subsidiaries hold with counterparties other than the Company. This is essentially equal to the net asset value of the subsidiary and therefore the net asset value of the subsidiary 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 over the subsidiary'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 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. ### (C) Employee information Employee costs include wages and salaries of £32m (2024/25: £37m), social security costs of £6m (2024/25: £6m) and pension costs of £5m (2024/25: £5m). Details of the Executive Directors' remuneration are disclosed in the Remuneration Report on pages 100 to 114. 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 £0.7m (2024/25: £0.6m). --- British Land Annual Report and Accounts 2026 183 FINANCIAL STATEMENTS (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 2025 | 7,811 | 15,018 | 1 | 23 | 22,853 | | Additions | - | 889 | - | 1 | 890 | | Disposals | - | (585) | (1) | - | (586) | | Amortisation | - | - | - | (5) | (5) | | Reversal of (provision for) impairment | 44 | (52) | - | - | (8) | | As at 31 March 2026 | 7,855 | 15,270 | - | 19 | 23,144 | The historical cost of shares in subsidiaries is £8,401m (2024/25: £8,706m). The historical cost of other investments is £55m (2024/25: £55m). Amounts due to subsidiaries is £15,237m (2024/25: £15,265m), 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. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # NOTES TO THE ACCOUNTS CONTINUED # (E) Net debt | | 2026 £m | 2025 £m | | --- | --- | --- | | Secured on the assets of the Company | | | | 5.264% First Mortgage Debenture Bonds 2035^{1} | 247 | 250 | | 5.0055% First Mortgage Amortising Debentures 2035 | 81 | 83 | | 5.357% First Mortgage Debenture Bonds 2028^{1} | 146 | 164 | | | 474 | 497 | | Unsecured | | | | 2.375% Sterling Unsecured Bond 2029 | 299 | 299 | | 5.25% Sterling Unsecured Bond 2032^{1} | 297 | 297 | | 2.67% Senior Notes 2025 | - | 37 | | 2.75% Senior Notes 2026 | 37 | 37 | | 3.81% Senior Notes 2026 | - | 99 | | 3.97% Senior Notes 2026 | - | 99 | | 4.16% Senior US Dollar Notes 2025^{2} | - | 76 | | 5.003% Senior US Dollar Notes 2026^{2} | 61 | 63 | | Floating Rate Senior Notes 2028 | 80 | 80 | | Floating Rate Senior Notes 2034 | 101 | 101 | | Commercial paper^{3} | 274 | - | | Facilities and overdrafts | 833 | 568 | | Term loans | 540 | 475 | | | 2,522 | 2,231 | | Gross debt | 2,996 | 2,728 | | Interest rate and currency derivative liabilities^{4} | 45 | 58 | | Interest rate and currency derivative assets^{5} | (68) | (82) | | Cash at bank and in hand | (74) | (2) | | Net debt | 2,899 | 2,702 | 1. In the prior year, 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. In the current year to 31 March 2026, the Company issued commercial paper denominated in Euros, US Dollars and Pound Sterling. All commercial paper denominated in a foreign currency was converted by way of an FX swap at full interest rate parity. 4. Interest rate and currency derivative liabilities includes non-current interest rate and currency derivative liabilities of £45m (2024/25: £56m) and current interest rate and currency derivative liabilities of £nil (2024/25: £2m). 5. Interest rate and currency derivative assets includes non-current interest rate and currency derivative assets of £42m (2024/25: £73m) and current interest rate and currency derivative assets of £26m (2024/25: £9m). --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS (E) Net debt continued Maturity analysis of net debt | | 2026 £m | 2025 £m | | --- | --- | --- | | Repayable within one year and on demand | 521 | 311 | | between: one and two years | 252 | 98 | | two and five years | 1,528 | 1,386 | | five and ten years | 695 | 531 | | ten and fifteen years | - | 402 | | | 2,475 | 2,417 | | Gross debt | 2,996 | 2,728 | | Interest rate and currency derivatives | (23) | (24) | | Cash at bank and in hand | (74) | (2) | | Net debt | 2,899 | 2,702 | (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 | | 2026 £m | 2025 £m | | --- | --- | --- | | Trade and other debtors | 4 | 2 | | Corporation tax | - | 1 | | | 4 | 3 | Trade and other debtors are shown after deducting a provision for impairment against tenant debtors of £nil (2024/25: £nil). The provision for impairment is calculated as an expected credit loss on trade and other debtors in accordance with IFRS 9. (H) Creditors | | 2026 £m | 2025 £m | | --- | --- | --- | | Trade creditors | 28 | 31 | | Corporation tax | 3 | 7 | | Other taxation and social security | 25 | 21 | | Accruals and deferred income | 55 | 49 | | | 111 | 108 | (I) Called up share capital | | £m | Number of ordinary shares of 25p each | | --- | --- | --- | | Issued, called and fully paid | | | | At 1 April 2025 | 253 | 1,010,420,504 | | Share issues | - | 741,109 | | At 31 March 2026 | 253 | 1,011,161,613 | --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # NOTES TO THE ACCOUNTS CONTINUED ## (I) Called up share capital continued | | £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 | In the prior year, 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 422p 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. ## (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 2026, the Company has £nil of capital commitments (2024/25: £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 at 31 March 2026 are listed on the next page. All Group entities are included in the consolidated financial results. Unless otherwise stated, the Company holds 100% of the voting rights and beneficial interests in the shares of the following subsidiaries, partnerships, associates and joint ventures. 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. 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. 45 Gresham Street, London, EC2V 7BG 3. 26 New Street, St Helier, Jersey, JE2 3RA 4. First Names House, Victoria Road, Douglas, Isle of Man, IM2 4DF 5. 80 Fenchurch Street, London, EC3M 4AE 6. 28 Esplanade, St Helier, Jersey, JE4 2QP 7. IFC 1, The Esplanade, St Helier, Jersey, JE1 4BP *Companies with an active proposal to be struck off the register or are undergoing liquidation. --- British Land Annual Report and Accounts 2026 187 FINANCIAL STATEMENTS # (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 | | Barnclass Limited | UK Tax Resident | | Barndrill Limited | UK Tax Resident | | Bayeast Property Co Limited | UK Tax Resident | | BF Properties (No.4) Limited | UK Tax Resident | | BF Properties (No.5) Limited | UK Tax Resident | | BL SKS 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 | | 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 | --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS CONTINUED # NOTES TO THE ACCOUNTS CONTINUED ## (K) Disclosures relating to subsidiary undertakings continued | Name | UK/Overseas Tax Resident Status | | --- | --- | | BL Eden Walk 2 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 (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 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 | | 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 | | Name | UK/Overseas Tax Resident Status | | --- | --- | | BL Retail Warehousing Holding Company Limited | UK Tax Resident | | BL Sainsbury Superstores Limited (50% interest) 2,4 | 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 Turbary Limited | UK Tax Resident | | BL Vangarde 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 | | 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 Annual Report and Accounts 2026 189 FINANCIAL STATEMENTS # (K) Disclosures relating to subsidiary undertakings continued | Name | UK/Overseas Tax Resident Status | | --- | --- | | 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 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)³ | UK Tax Resident | | Broughton Retail Park Limited (Jersey)¹ | UK Tax Resident | | Broughton Unit Trust (Units)¹ | Overseas Tax Resident | | Brunswick Park Limited | UK Tax Resident | | Capitol Preston Limited | UK Tax Resident | | Cavendish Geared Limited | UK Tax Resident | | Cheshire Properties Limited (50% Interest) | UK Tax Resident | | Chester Limited (Beneficial Interest)¹ | UK Tax Resident | | Chrisilu Nominees Limited | UK Tax Resident | | City of London Office Unit Trust (Jersey) (Units) (35.94% interest)³ | Overseas 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 | | 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 (Partnership interest) | UK Tax Resident | | Eden Walk Shopping Centre Unit Trust) (Jersey) (Units)¹ | Overseas Tax Resident | | Elk Mill Oldham Limited | UK Tax Resident | | Euston Tower Limited | UK Tax Resident | | Fort Kinnaird GP Limited (50% Interest) | UK Tax Resident | | Fort Kinnaird Limited Partnership (50% interest) | UK Tax Resident | | FRP Group Limited | UK Tax Resident | | Name | UK/Overseas Tax Resident Status | | --- | --- | | Garamead Properties Limited | 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)¹ | Overseas Tax Resident | | Hereford Old Market Limited | UK Tax Resident | | Hereford Shopping Centre GP Limited | UK Tax Resident | | Hereford Shopping Centre Limited | UK Tax Resident | | Partnership (Partnership Interest) | | | HUT Investments Limited¹ | 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 | | Paddington 5KS Unit Trust (Units)¹ | Overseas Tax Resident | | Paddington Box Limited | UK Tax Resident | | Paddington Property Investment GP Limited | UK Tax Resident | | Paddington Property Investment Limited Partnership (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 | --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED # NOTES TO THE ACCOUNTS CONTINUED ## (K) Disclosures relating to subsidiary undertakings continued | Name | UK/Overseas Tax Resident Status | | --- | --- | | 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^{4,_{+}} | 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)^{5} | UK Tax Resident | | Southgate Property Unit Trust (50% interest) (Units)^{6} | Overseas Tax Resident | | Solartron Retail Park Limited | UK Tax Resident | | Speke Unit Trust (Units)^{1} | Overseas Tax Resident | | St. Stephens Shopping Centre Limited | UK Tax Resident | | Stockton Retail Park Limited | UK Tax Resident | | Storey Offices Limited | UK Tax Resident | | 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 (Member interest) (50% interest) | UK Tax Resident | | The Hercules Property Limited Partnership (Partnership interest) | UK Tax Resident | | Name | UK/Overseas Tax Resident Status | | --- | --- | | 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^{1} | 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)^{1} | Overseas Tax Resident | | WOSC GP Limited (25% interest) | UK Tax Resident | | WOSC Partners LP (Partnership interest) (25% interest) | UK Tax Resident | --- British Land Annual Report and Accounts 2026 191 # SUPPLEMENTARY DISCLOSURES ## Unaudited ### Table A: Summary income statement and balance sheet Summary income statement based on proportional consolidation for the year ended 31 March 2026 The following pro forma information 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. | | Year ended 31 March 2026 | | | Year ended 31 March 2025 | | | | --- | --- | --- | --- | --- | --- | --- | | | Group £m | Share of joint ventures £m | Proportionally consolidated £m | Group £m | Share of joint ventures £m | Proportionally consolidated £m | | Gross rental income^{1} | 403 | 148 | 551 | 338 | 146 | 484 | | Property operating expenses | (53) | (22) | (75) | (32) | (13) | (45) | | Net rental income | 350 | 126 | 476 | 306 | 133 | 439 | | Administrative expenses^{2} | (73) | (2) | (75) | (82) | - | (82) | | Net fees and other income | 26 | - | 26 | 25 | - | 25 | | Ungeared income return | 303 | 124 | 427 | 249 | 133 | 382 | | Net financing charges | (85) | (48) | (133) | (60) | (43) | (103) | | Underlying Profit | 218 | 76 | 294 | 189 | 90 | 279 | | Underlying taxation | (4) | - | (4) | (4) | - | (4) | | Underlying Profit after taxation | 214 | 76 | 290 | 185 | 90 | 275 | | Valuation movements on property (Note 4) | | | 205 | | | 134 | | Other capital and taxation (net)^{3} | | | (46) | | | (71) | | Result attributable to shareholders of the Company | | | 449 | | | 338 | 1. Group gross rental income includes £6m (2024/25: £8m) of all-inclusive rents relating to service charge income. 2. Administrative expenses includes £5m (2024/25: £8m) of depreciation and amortisation. 3. Includes other comprehensive income. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED ## SUPPLEMENTARY DISCLOSURES CONTINUED ### Table A: continued #### Summary balance sheet based on proportional consolidation as at 31 March 2026 The following pro forma information does not form part of the consolidated financial 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 and assumes full dilution. | | Group £m | Share of joint ventures £m | Share 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 2026 £m | EPRA NTA 31 March 2025 £m | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Campuses properties | 2,507 | 3,424 | - | - | (85) | 9 | - | 5,855 | 5,504 | | Retail & London Urban Logistics properties | 3,913 | 337 | - | - | (43) | 3 | - | 4,210 | 3,985 | | Total properties^{1} | 6,420 | 3,761 | - | - | (128) | 12 | - | 10,065 | 9,489 | | Investments in joint ventures | 2,611 | (2,611) | - | - | - | - | - | - | - | | Other investments | 37 | - | - | - | - | - | (5) | 32 | 41 | | Other net (liabilities) assets | (338) | (106) | 7 | - | 128 | - | - | (309) | (287) | | Deferred tax liability | (1) | (3) | - | - | - | - | 4 | - | - | | Net debt^{2} | (2,797) | (1,041) | - | (27) | - | - | - | (3,865) | (3,545) | | Net assets | 5,932 | - | 7 | (27) | - | 12 | (1) | 5,923 | 5,698 | | EPRA NTA per share (Note 2) | | | | | | | | 590p | 567p | 1. Included within the total property value of £10,065m (2024/25: £9,489m) are right-of-use assets net of lease liabilities of £3m (2024/25: £3m), 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 £3,865m represents adjusted net debt used in proportionally consolidated LTV and Net Debt to EBITDA calculations of £3,962m (see Note 16), less tenant deposits of £77m and issue costs and fair value hedge adjustments of £20m. ## EPRA Net Tangible Assets movement | | Year ended 31 March 2026 | | Year ended 31 March 2025 | | | --- | --- | --- | --- | --- | | | £m | Pence per share | £m | Pence per share | | Opening EPRA NTA | 5,698 | 567 | 5,252 | 562 | | Income return | 290 | 29 | 275 | 27 | | Capital and other return | 164 | 17 | 95 | 11 | | Dividend paid | (229) | (23) | (221) | (23) | | Dilution due to issue of shares | - | - | 297 | (10) | | Closing EPRA NTA | 5,923 | 590 | 5,698 | 567 | --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS # Table B: EPRA Performance measures ## EPRA Performance measures summary table | | 2026 | | 2025 | | | --- | --- | --- | --- | --- | | | £m | Pence per share | £m | Pence per share | | EPRA Earnings - basic | 290 | 29.0 | 275 | 28.6 | | - diluted | 290 | 28.9 | 275 | 28.5 | | | Percentage | | Percentage | | | EPRA Net Initial Yield | | 4.5% | | 5.0% | | EPRA 'topped-up' Net Initial Yield | | 5.5% | | 5.5% | | EPRA Vacancy Rate | | 6.6% | | 10.0% | | EPRA Cost Ratio (including direct vacancy costs) | | 18.9% | | 17.5% | | EPRA Cost Ratio (excluding direct vacancy costs) | | 11.9% | | 10.5% | | | 2026 | | 2025 | | | --- | --- | --- | --- | --- | | | Net assets £m | Net asset value per share (pence) | Net assets £m | Net asset value per share (pence) | | EPRA NTA | 5,923 | 590 | 5,698 | 567 | | EPRA NRV | 6,538 | 651 | 6,283 | 625 | | EPRA NDV | 5,982 | 596 | 5,768 | 574 | | | Percentage | | Percentage | | | EPRA LTV | | 41.8% | | 40.7% | ## Calculation and reconciliation of Underlying/EPRA/IFRS Earnings and Underlying/EPRA/IFRS Earnings per share | | 2026 £m | 2025 £m | | --- | --- | --- | | Profit attributable to the shareholders of the Company | 454 | 338 | | Exclude: | | | | Group - Underlying taxation (Note 7) | 4 | 4 | | Group - Capital and other taxation (Note 7) | (8) | - | | Group - valuation movements on property (Note 4) | (107) | (148) | | Group - loss on disposal of investment properties, joint ventures and revaluation of investments | 28 | 42 | | Group - Capital administrative expenses | 3 | - | | Joint ventures - share of joint venture result^{1} | (12) | (11) | | Joint ventures - net movements on property (Note 4)^{2} | (98) | 14 | | Joint ventures - Capital financing (income) charges | (5) | 3 | | Joint ventures - loss (profit) on disposal of properties | 3 | (6) | | Changes in fair value of financial instruments and associated close-out costs (Note 6) | 32 | 43 | | Underlying Profit | 294 | 279 | | Group - Underlying taxation (Note 7) | (4) | (4) | | EPRA/Underlying Earnings - basic and diluted | 290 | 275 | | Profit attributable to the shareholders of the Company | 454 | 338 | | IFRS Earnings - basic and diluted | 454 | 338 | 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. 2. Included within the current year 'Joint ventures - net movements on property' credit of £98m (2024/25: £14m debit) are valuation movements on investment and development properties of £111m (2024/25: £14m debit) and impairment of trading properties of £13m (2024/25: £nil). --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED ## SUPPLEMENTARY DISCLOSURES CONTINUED Table B continued | | 2026 Number million | 2025 Number million | | --- | --- | --- | | Weighted average number of shares¹ | 1,011 | 973 | | Adjustment for treasury shares | (11) | (11) | | IFRS/EPRA/Underlying Weighted average number of shares (basic) | 1,000 | 962 | | Dilutive effect of share options | - | - | | Dilutive effect of ESOP shares | 2 | 3 | | EPRA/Underlying Weighted average number of shares (diluted) | 1,002 | 965 | | Remove anti-dilutive effect | - | - | | IFRS Weighted average number of shares (diluted) | 1,002 | 965 | 1. In the prior year, 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 422p per share, resulting in a 71,227,309 increase in the number of shares. See Note 19 for further information. ## Calculation and reconciliation of EPRA NTA/NRV/NDV and EPRA NTA/NRV/NDV per share | | 2026 | | 2025 | | | --- | --- | --- | --- | --- | | | £m | Pence per share | £m | Pence per share | | IFRS net assets | 5,932 | | 5,710 | | | Deferred tax arising on revaluation movements | 4 | | 4 | | | Mark-to-market on derivatives and related debt adjustments | (27) | | (23) | | | Dilution effect of share options | 7 | | 11 | | | Surplus on trading properties | 12 | | 3 | | | Intangible assets | (5) | | (7) | | | EPRA NTA | 5,923 | 590 | 5,698 | 567 | | Intangible assets | 5 | | 7 | | | Purchasers' costs | 610 | | 578 | | | EPRA NRV | 6,538 | 651 | 6,283 | 625 | | Deferred tax arising on revaluation movements and the surplus on trading properties | (7) | | (5) | | | Purchasers' costs | (610) | | (578) | | | Mark-to-market on derivatives and related debt adjustments | 27 | | 23 | | | Mark-to-market on debt | 34 | | 45 | | | EPRA NDV | 5,982 | 596 | 5,768 | 574 | 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. 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. --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS 195 Table B continued | | 2026 Number million | 2025 Number million | | --- | --- | --- | | Number of shares at year end^{1} | 1,011 | 1,010 | | Adjustment for treasury shares | (11) | (11) | | IFRS/EPRA number of shares (basic) | 1,000 | 999 | | Dilutive effect of share options | 1 | 1 | | Dilutive effect of ESOP shares | 3 | 5 | | IFRS/EPRA number of shares (diluted) | 1,004 | 1,005 | 1. In the prior year, 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 422p per share, resulting in a 71,227,309 increase in the number of shares. See Note 19 for further information. EPRA Net Initial Yield and ‘topped-up’ Net Initial Yield | | 2026 £m | 2025 £m | | --- | --- | --- | | Group property portfolio valuation (Note 10) | 6,316 | 6,065 | | Share of property of joint ventures (Note 10) | 3,746 | 3,421 | | Less developments, residential and land | (1,087) | (1,590) | | Completed property portfolio | 8,975 | 7,896 | | Allowance for estimated purchasers’ costs | 613 | 534 | | Gross up completed property portfolio valuation (A) | 9,588 | 8,430 | | Annualised cash passing rental income | 464 | 450 | | Property outgoings | (32) | (28) | | Annualised net rents (B) | 432 | 422 | | Rent expiration of rent-free periods and fixed uplifts^{1} | 92 | 39 | | ‘Topped-up’ net annualised rent (C) | 524 | 461 | | EPRA Net Initial Yield (B/A) | 4.5% | 5.0% | | EPRA ‘topped-up’ Net Initial Yield (C/A) | 5.5% | 5.5% | | Including fixed/minimum uplifts received in lieu of rental growth | 5 | 5 | | Total ‘topped-up’ net rents (D) | 529 | 466 | | Overall ‘topped-up’ Net Initial Yield (D/A) | 5.5% | 5.5% | | ‘Topped-up’ net annualised rent | 524 | 461 | | ERV vacant space | 41 | 56 | | Reversions | 52 | 27 | | Total ERV (E) | 617 | 544 | | Net Reversionary Yield (E/A) | 6.4% | 6.5% | 1. The weighted average period over which rent-free periods expire is one year (2024/25: 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 2026, 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. --- British Land Annual Report and Accounts 2026 # FINANCIAL STATEMENTS CONTINUED ## SUPPLEMENTARY DISCLOSURES CONTINUED Table B continued EPRA Vacancy Rate | | 31 March 2026 £m | 31 March 2025 £m | | --- | --- | --- | | Annualised potential rental value of vacant premises | 41 | 56 | | Annualised potential rental value for the completed property portfolio | 629 | 555 | | EPRA Vacancy Rate | 6.6% | 10.0% | EPRA Cost Ratios | | 2026 £m | 2025 £m | | --- | --- | --- | | Property operating expenses | 53 | 32 | | Administrative expenses | 75 | 82 | | Share of joint ventures expenses | 22 | 13 | | Less: Performance and management fees (from joint ventures and assets under management) | (13) | (13) | | Net other fees and commissions | (13) | (12) | | Ground rent costs and operating expenses de facto included in rents | (25) | (22) | | EPRA Costs (including direct vacancy costs) (A) | 99 | 80 | | Direct vacancy costs | (37) | (32) | | EPRA Costs (excluding direct vacancy costs) (B) | 62 | 48 | | Gross Rental Income less ground rent costs and operating expenses de facto included in rents | 381 | 320 | | Share of joint ventures (GRI less ground rent costs) | 142 | 138 | | Total Gross rental income less ground rent costs (C) | 523 | 458 | | EPRA Cost Ratio (including direct vacancy costs) (A/C) | 18.9% | 17.5% | | EPRA Cost Ratio (excluding direct vacancy costs) (B/C) | 11.9% | 10.5% | | Overhead and operating expenses capitalised (including share of joint ventures) | 6 | 8 | 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 | | 2026 £m | 2025 £m | | --- | --- | --- | | Rent receivable1 | 496 | 466 | | Spreading of tenant incentives and contracted rent increases | 22 | (2) | | Surrender premia | 33 | 20 | | Gross rental income | 551 | 484 | 1. Group gross rental income includes £6m (2024/25: £8m) of all-inclusive rents relating to service charge income. The current and prior year information is presented on a proportionally consolidated basis. --- British Land Annual Report and Accounts 2026 FINANCIAL STATEMENTS Table D: Property related capital expenditure | | Year ended 31 March 2026 | | | Year ended 31 March 2025 | | | | --- | --- | --- | --- | --- | --- | --- | | | Group £m | Share of joint ventures £m | Total £m | Group £m | Share of joint ventures £m | Total £m | | Acquisitions | 113 | - | 113 | 730 | - | 730 | | Development | 39 | 160 | 199 | 105 | 205 | 310 | | Investment properties | | | | | | | | Incremental lettable space | 2 | - | 2 | 2 | - | 2 | | No incremental lettable space | 42 | 49 | 91 | 43 | 39 | 82 | | Tenant incentives | 5 | 9 | 14 | 6 | 1 | 7 | | Other material non-allocated types of expenditure | 3 | 3 | 6 | 4 | 4 | 8 | | Capitalised interest | 7 | 22 | 29 | 14 | 19 | 33 | | Total property related capital expenditure | 211 | 243 | 454 | 904 | 268 | 1,172 | | Conversion from accrual to cash basis | (4) | (10) | (14) | (7) | 35 | 28 | | Total property related capital expenditure on cash basis | 207 | 233 | 440 | 897 | 303 | 1,200 | The above is presented on a proportionally consolidated basis. The 'Other material non-allocated types of expenditure' category contains capitalised staff costs of £6m (2024/25: £8m). Table E: EPRA LTV | | As at 31 March 2026 | | | As at 31 March 2025 | | | | --- | --- | --- | --- | --- | --- | --- | | | Group £m | Proportionally consolidated | | Group £m | Proportionally consolidated | | | | | Share of joint ventures £m | Total £m | | Share of joint ventures £m | Total £m | | Include: | | | | | | | | Gross debt | 3,006 | 1,151 | 4,157 | 2,740 | 998 | 3,738 | | Net payables | 243 | 90 | 333 | 224 | 87 | 311 | | Exclude: | | | | | | | | Cash and cash equivalents | (176) | (96) | (272) | (57) | (108) | (165) | | EPRA Net Debt (A) | 3,073 | 1,145 | 4,218 | 2,907 | 977 | 3,884 | | Include: | | | | | | | | Property portfolio valuation | 6,316 | 3,746 | 10,062 | 6,065 | 3,421 | 9,486 | | Other financial assets | 32 | - | 32 | 43 | - | 43 | | Intangibles | 5 | - | 5 | 7 | - | 7 | | EPRA Total Property Value (B) | 6,353 | 3,746 | 10,099 | 6,115 | 3,421 | 9,536 | | EPRA LTV (A/B) | 48.4% | | 41.8% | 47.5% | | 40.7% | --- British Land Annual Report and Accounts 2026 # OTHER INFORMATION (UNAUDITED) Data includes Group's share of joint ventures. ## FY26 rent collection | Rent due between 25 March 2025 and 24 March 2026 | Campuses | Retail & London Urban Logistics | Total | | --- | --- | --- | --- | | Received | 99.8% | 100.0% | 99.9% | | Outstanding | 0.2% | - | 0.1% | | | 100.0% | 100.0% | 100.0% | | Total | £203m | £268m | £471m | ## March quarter 2026 rent collection | Rent due between 25 March 2026 and 11 May 2026 | Campuses | Retail & London Urban Logistics | Total | | --- | --- | --- | --- | | Received | 100% | 97.5% | 99.0% | | Outstanding | - | 2.5% | 1.0% | | | 100.0% | 100.0% | 100.0% | | Total | £49m | £48m | £97m | ## Purchases | 12 months to 31 March 2026 | Sector | Price (100%) £m | Price (BL Share) £m | Annualised Net Rents £m¹ | | --- | --- | --- | --- | --- | | York Vangarde Retail Park | Retail Parks | 44.3 | 44.3 | 2.2 | | Eden Walk | Shopping Centres | 30.0 | 15.0 | 1.1 | | Turbary Retail Park | Retail Parks | 27.0 | 27.0 | 2.3 | | H&M Bath | Other Retail | 5.3 | 5.3 | 0.4 | | Towngate Retail Park | Retail Parks | 2.1 | 2.1 | 0.2 | | Total | | 108.7 | 93.7 | 6.2 | 1. British Land share of annualised rent topped up for rent frees. ## Sales | 12 months to 31 March 2026 | Sector | Price (100%) £m | Price (BL Share) £m | Annualised Net Rents £m¹ | | --- | --- | --- | --- | --- | | Canada Water residential sales | Residential | 35.8 | 17.9 | - | | International House | Other Campuses | 23.7 | 23.7 | - | | Newport Harlech Retail Park | Retail Parks | 21.0 | 21.0 | 1.7 | | 19-33 Liverpool Street | City Office | 13.8 | 13.8 | 0.5 | | Westwood Thanet Retail Park | Retail Parks | 12.5 | 12.5 | 0.8 | | Woolwich Phase 1 Plot 1 (Beresford Square) | Other Retail | 6.2 | 6.2 | 0.3 | | Aberdeen Shopping Centre Unit Trust | Shopping Centres | 5.4 | 5.4 | - | | TGI Croydon | Other Retail | 3.8 | 3.8 | - | | TGI Prestwich | Other Retail | 2.0 | 2.0 | - | | Total | | 124.2 | 106.3 | 3.3 | 1. British Land share of annualised rent topped up for rent frees. --- British Land Annual Report and Accounts 2026 199 # Portfolio valuation by sector¹,² | As at 31 March 2026 | Group £m | Joint Ventures £m | Total £m³ | FY Value Change %² | FY Value Change £m³ | Portfolio Weighting % | | --- | --- | --- | --- | --- | --- | --- | | City | 476 | 2,492 | 2,968 | 4.9 | 139 | 29.5 | | West End | 1,592 | 581 | 2,173 | 0.2 | 5 | 21.6 | | Other Campuses | 219 | 300 | 519 | (0.9) | (5) | 5.2 | | Residential³ | 141 | 51 | 192 | (10.5) | (23) | 1.9 | | Campuses | 2,428 | 3,424 | 5,852 | 2.0 | 116 | 58.2 | | Retail Parks | 2,982 | 211 | 3,193 | 3.3 | 104 | 31.7 | | Shopping Centres | 370 | 111 | 481 | 4.2 | 19 | 4.8 | | London Urban Logistics | 333 | - | 333 | (3.2) | (11) | 3.3 | | Other Retail | 203 | - | 203 | (0.1) | - | 2.0 | | Retail & London Urban Logistics | 3,888 | 322 | 4,210 | 2.7 | 112 | 41.8 | | Total | 6,316 | 3,746 | 10,062 | 2.3 | 228 | 100.0 | | Standing Investments | 6,018 | 3,016 | 9,034 | 2.8 | 226 | 89.8 | | Developments | 298 | 730 | 1,028 | 0.2 | 2 | 10.2 | On a proportionally consolidated basis including the Group's share of joint ventures and excluding non-controlling interests. 1. Property valuation as at 31 March 2026, including capital expenditure in the period. 2. Valuation movement during the period (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 income¹ | Accounting basis £m | Annualised as at 31 March 2026 | | | | --- | --- | --- | --- | | | Group | Joint Ventures | Total | | City | 21 | 107 | 128 | | West End | 66 | 29 | 95 | | Other Campuses | 12 | 3 | 15 | | Residential | 8 | - | 8 | | Campuses | 107 | 139 | 246 | | Retail Parks | 193 | 15 | 208 | | Shopping Centres | 41 | 9 | 50 | | London Urban Logistics | 8 | - | 8 | | Other Retail | 14 | - | 14 | | Retail & London Urban Logistics | 256 | 24 | 280 | | Total | 363 | 163 | 526 | On a proportionally consolidated basis including the Group's share of joint ventures. 1. Annualised accounting rent as at 31 March 2026, which differs from the gross rental income seen in the period as a result of leasing activity, capital activity, properties moving from and to development and other movements. --- 200 British Land Annual Report and Accounts 2026 # OTHER INFORMATION (UNAUDITED) CONTINUED Portfolio net yields¹,² | As at 31 March 2026 | EPRA NIY (%) | EPRA TUNIY³ (%) | Overall TUNIY⁴ (%) | EPRA NEY (%) | NEY Movement (bps) | EPRA NRY⁵ (%) | ERV Growth (%) | | --- | --- | --- | --- | --- | --- | --- | --- | | City Offices | 3.2 | 5.0 | 5.0 | 5.4 | (3) | 6.1 | 7.5 | | West End Offices | 3.7 | 4.7 | 4.7 | 5.5 | (9) | 6.4 | 6.2 | | Other Campuses | 1.6 | 3.0 | 3.3 | 6.5 | 18 | 7.2 | 0.9 | | Residential | 5.2 | 5.3 | 5.3 | 6.0 | n/a | 6.0 | n/a | | Campuses | 3.4 | 4.7 | 4.8 | 5.6 | (4) | 6.3 | 6.5 | | Retail Parks | 5.8 | 6.3 | 6.4 | 6.4 | (4) | 6.5 | 4.4 | | Shopping Centres | 8.3 | 8.6 | 8.8 | 8.4 | (19) | 8.5 | 2.7 | | London Urban Logistics | 1.9 | 1.9 | 1.9 | 5.0 | (1) | 5.3 | (4.3) | | Other Retail | 6.2 | 6.3 | 6.5 | 7.4 | 24 | 7.1 | 1.7 | | Retail & London Urban Logistics | 5.9 | 6.3 | 6.4 | 6.6 | (4) | 6.7 | 3.6 | | Total | 4.5 | 5.5 | 5.5 | 6.0 | (4) | 6.4 | 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 (or other unexpired lease incentives such as discounted rent periods and step rents). 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. Total property return (as calculated by MSCI) | 12 months to 31 March 2026 | Campuses | | Retail & London Urban Logistics | | Total | | | --- | --- | --- | --- | --- | --- | --- | | | British Land | MSCI | British Land | MSCI | British Land | MSCI | | Capital Return | 2.7 | 0.7 | 3.0 | 1.9 | 2.8 | 0.8 | | ERV Growth | 6.5 | 3.9 | 3.6 | 2.9 | 4.9 | 3.3 | | Yield Movement¹ | (4) bps | (11) bps | (4) bps | (8) bps | (4) bps | 5 bps | | Income Return | 2.7 | 3.8 | 7.0 | 6.0 | 4.5 | 4.8 | | Total Property Return | 5.5 | 4.6 | 10.1 | 8.0 | 7.4 | 5.6 | On a proportionally consolidated basis including the Group's share of joint ventures and excluding non-controlling interests. 1. Net equivalent yield movement. --- British Land Annual Report and Accounts 2026 201 # Top 20 occupiers by sector¹ | As at 31 March 2026 | Share of Retail & London Urban Logistics Rent (%) | | --- | --- | | Next | 5.8 | | M&S | 5.2 | | Boots | 4.0 | | TJX (TK Maxx) | 3.4 | | Kingfisher | 3.1 | | Currys | 2.9 | | JD Sports | 2.7 | | DFS | 2.5 | | Matalan | 2.2 | | Hutchinson Whampoa | 2.1 | | Frasers Group | 1.9 | | Sainsbury's | 1.9 | | Pets at Home | 1.6 | | Tapi | 1.4 | | Smyths Toys | 1.4 | | ASDA | 1.2 | | SCS Group | 1.2 | | B&M | 1.1 | | Primark | 1.1 | | River Island | 1.1 | | Total Top 20 | 47.8 | ¹ Excludes occupiers who have entered administration or CVA. | As at 31 March 2026 | Share of Campus Rent (%) | | --- | --- | | Meta | 10.2 | | A&O Shearman | 5.0 | | Dentsu | 3.7 | | Arm | 3.7 | | Reed Smith | 3.6 | | SEFE | 3.2 | | Herbert Smith Freehills Kramer | 3.1 | | Sumitomo Mitsui | 2.6 | | Jones Lang LaSalle | 1.9 | | TP ICAP | 1.8 | | Janus Henderson | 1.8 | | Interpublic Group | 1.6 | | Mayer Brown International LLP | 1.4 | | Milbank LLP | 1.4 | | Crédit Agricole | 1.3 | | Essendi | 1.3 | | Mimecast | 1.3 | | Akin Gump LLP | 1.2 | | Marex | 1.2 | | Anthropic | 1.2 | | Total Top 20 | 52.5 | # Lease length & occupancy | As at 31 March 2026 | Average Lease Length (Yrs) | | Occupancy Rate (%) | | | --- | --- | --- | --- | --- | | | To Expiry | To Break | EPRACoccupancy | Occupancy¹,²,³ | | City | 9.3 | 7.1 | 95.0 | 98.6 | | West End | 5.8 | 4.7 | 91.5 | 94.6 | | Other Campuses | 14.0 | 11.8 | 61.3 | 70.5 | | Residential | 3.5 | 3.4 | 83.2 | 91.5 | | Campuses | 8.0 | 6.3 | 90.8 | 94.7 | | Retail Parks | 6.2 | 4.7 | 98.0 | 99.1 | | Shopping Centres | 6.1 | 4.4 | 98.3 | 98.7 | | London Urban Logistics | 2.6 | 2.0 | 70.2 | 100.0 | | Other Retail | 7.6 | 6.2 | 92.9 | 96.4 | | Retail & London Urban Logistics | 6.1 | 4.7 | 96.3 | 99.0 | | Total | 7.0 | 5.4 | 93.4 | 96.9 | 1. Occupancy excludes recently completed developments in the last 12 months. 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 94.7% to 95.3% 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 fall from 99.0% to 98.3%, and total occupancy would fall from 96.9% to 96.5%. --- British Land Annual Report and Accounts 2026 # OTHER INFORMATION (UNAUDITED) CONTINUED Valuation basis: annualised rent & estimated rental value (ERV) | | Annualised Rent (Valuation Basis)£m³ | | | ERV£m | Average Rent£psf | | | --- | --- | --- | --- | --- | --- | --- | | | | JointVentures | Total | | Total | Contracted² | | As at 31 March 2026 | Group | | | | | ERV | | City³ | 17 | 71 | 88 | 163 | 66.9 | 75.9 | | West End³ | 65 | 18 | 83 | 134 | 76.1 | 90.7 | | Other Campuses | 8 | - | 8 | 24 | 36.8 | 41.9 | | Residential | 7 | - | 7 | 9 | 59.2 | 54.4 | | Campuses | 97 | 89 | 186 | 330 | 64.4 | 72.2 | | Retail Parks | 190 | 14 | 204 | 228 | 21.7 | 21.4 | | Shopping Centres | 44 | 7 | 51 | 51 | 20.1 | 18.4 | | London Urban Logistics | 8 | - | 8 | 16 | 22.3 | 26.2 | | Other Retail | 15 | - | 15 | 16 | 16.0 | 15.1 | | Retail & London Urban Logistics | 257 | 21 | 278 | 311 | 21.2 | 20.7 | | Total | 354 | 110 | 464 | 641 | 31.0 | 33.1 | 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 | 2027 | 2028 | 2029 | 2030 | 2031 | 2027-29 | 2027-31 | | --- | --- | --- | --- | --- | --- | --- | --- | | As as 31 March 2026 | £m | £m | £m | £m | £m | £m | £m | | City | 6 | 1 | 12 | 5 | 44 | 19 | 68 | | West End | - | 1 | 2 | 1 | 3 | 3 | 7 | | Other Campuses | - | - | - | 1 | - | - | 1 | | Campuses | 6 | 2 | 14 | 7 | 47 | 22 | 76 | | Retail Parks | 17 | 8 | 10 | 12 | 11 | 35 | 58 | | Shopping Centres | 2 | 2 | 1 | 1 | 1 | 5 | 7 | | London Urban Logistics | - | - | - | - | - | - | - | | Other Retail | 1 | - | - | 1 | - | 1 | 2 | | Retail & London Urban Logistics | 20 | 10 | 11 | 14 | 12 | 41 | 67 | | Total | 26 | 12 | 25 | 21 | 59 | 63 | 143 | Rent subject to lease break or expiry | For year to 31 March | 2027 | 2028 | 2029 | 2030 | 2031 | 2027-29 | 2027-31 | | --- | --- | --- | --- | --- | --- | --- | --- | | As at 31 March 2026 | £m | £m | £m | £m | £m | £m | £m | | West End | 10 | 4 | 18 | 4 | 22 | 32 | 58 | | City | 8 | 14 | 13 | 32 | 20 | 35 | 87 | | Other Campuses | - | 1 | 1 | - | - | 2 | 2 | | Residential | 7 | - | - | - | - | 7 | 7 | | Campuses | 25 | 19 | 32 | 36 | 42 | 76 | 154 | | Retail Parks | 35 | 26 | 26 | 30 | 30 | 87 | 147 | | Shopping Centres | 9 | 10 | 7 | 5 | 2 | 26 | 33 | | London Urban Logistics | 1 | 5 | - | - | 2 | 6 | 8 | | Other Retail | 3 | 1 | 1 | 1 | 2 | 5 | 8 | | Retail & London Urban Logistics | 48 | 42 | 34 | 36 | 36 | 124 | 196 | | Total | 73 | 61 | 66 | 72 | 78 | 200 | 350 | | % of contracted rent | 14 | 11 | 12 | 13 | 14 | 37 | 64 | 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. --- British Land Annual Report and Accounts 2026 203 # Recently completed & committed developments | As at 31 March 2026 | Sector | BL Share % | 100% sq ft '000 | PC Calendar Year | Current Value £m | Cost to Come¹ £m | ERV² £m | Let & Under Offer⁴ £m | Gross Yield on Cost⁴ % | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1 Broadgate | Office | 50 | 547 | Q3 2025 | 363 | 8 | 20.4 | 20.6 | 5.9 | | Southwark Urban Logistics | London Urban Logistics | 100 | 144 | Q3 2025 | 67 | 6 | 4.2 | 0.8 | 5.8 | | One Triton Square | Science & Technology | 50 | 317 | Q4 2025 | 254 | 4 | 15.7 | 14.6 | 6.3 | | Canada Water: Plot A1⁵ | Mixed Use | 50 | 264 | Q1 2026 | 82 | 9 | 3.0 | 0.1 | 5.3 | | Total Recently Completed | | | 1,272 | | 766 | 27 | 43.3 | 36.1 | 5.9 | | Broadgate Tower⁶ | Office | 50 | 394 | Q1 2027 | 201 | 43 | 18.6 | 9.8 | 8.2 | | 2 Finsbury Avenue | Office | 25 | 749 | Q2 2027 | 191 | 74 | 20.3 | 6.5 | 7.8 | | 1 Appold Street | Office | 50 | 408 | Q1 2029 | 87 | 174 | 21.4 | 13.0 | 7.8 | | West One | Office | 25 | 94 | Q1 2029 | 10 | 37 | 3.7 | - | 7.4 | | Total Committed | | | 1,645 | | 489 | 328 | 64.0 | 29.3 | 7.9 | On a proportionally consolidated basis including the Group's share of joint ventures (except area which is shown at 100%). 1. From 31 March 2026. 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. Pre-let & under offer excludes space under option and includes deals up to 15 May 2026. 1 Broadgate total let & under offer exceeds the ERV as deals post period end exceeded March 2026 ERV. 4. 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. 5. Canada Water Plot A1 includes Three Deal Porters and The Founding. 6. Broadgate Tower let space also includes space where tenants remain in occupation during development in now reversionary space. This represents £7.0m of the £18.6m ERV and £5.1m of the £9.8m let and under offer. The ERV numbers are used to calculate overall occupancy of 59%. # Near term development pipeline | As at 31 March 2026 | Sector | BL Share % | 100% sq ft '000 | Earliest Start Calendar Year | Current Value £m | Cost to Come £m¹ | ERV £m² | Planning Status | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Canada Water: Affordable Housing | Residential | 50 | 126 | Q2 2027 | - | 17 | - | Pre-submission | | Total Near Term | | | 126 | | | 17 | | | On a proportionally consolidated basis including the Group's share of joint ventures (except area which is shown at 100%). 1. From 31 March 2026. 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). --- 204 British Land Annual Report and Accounts 2026 # OTHER INFORMATION (UNAUDITED) CONTINUED ## Medium term development pipeline | As at 31 March 2026 | Sector | BL Share % | 100% sq ft '000 | Planning Status | | --- | --- | --- | --- | --- | | Euston Tower | Office | 100 | 568 | Consented | | 5 Kingdom St | Office | 100 | 214 | Consented | | Hannah Close, Wembley | London Urban Logistics | 100 | 668 | Submitted | | Verney Road | London Urban Logistics | 100 | 202 | Consented | | The Box, Paddington | London Urban Logistics | 100 | 122 | Consented | | Canada Water: Printworks | Mixed Use | 50 | 170 | Pre-submission | | Canada Water: Future Phases¹ | Mixed Use | 50 | 4,325 | Outline Consent | | Total Medium Term | | | 6,269 | | 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), 14 years running. Selected data in the Sustainability Progress Report 2026 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. > **READ MORE** > This year, full disclosure against the EPRA Sustainability Best Practice Recommendations can be found in the Sustainability Datasheets 2026 at www.britishland.com/sustainability-datasheets ## Governance indicators | | Annual Report and Accounts 2025 | | --- | --- | | Composition of the highest governance body | Board's Executive and Non-Executive Directors pages 81 to 83 Tenures of Non-Executive Directors page 90 | | Nominating and selecting the highest governance body | Appointment process for new Directors page 89 | | Process for managing conflicts of interest | Board procedure for managing conflicts of interest page 80 | --- British Land Annual Report and Accounts 2026 205 # 10-year record The table below summarises the last ten years' results, balance sheets and cash flows. | | 2026£m | 2025£m | 2024£m | 2023£m | 2022£m | 2021£m | 2020£m | 2019£m | 2018£m | 2017£m | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Summarised income statement1 | | | | | | | | | | | | Gross rental income | 551 | 484 | 476 | 493 | 493 | 509 | 560 | 576 | 613 | 643 | | Net rental income | 476 | 439 | 440 | 446 | 425 | 359 | 478 | 532 | 576 | 610 | | Net fees and other income | 26 | 25 | 23 | 18 | 13 | 11 | 13 | 10 | 15 | 17 | | Net financing charges | (133) | (103) | (108) | (111) | (102) | (103) | (111) | (121) | (128) | (151) | | Administrative expense | (75) | (82) | (87) | (89) | (89) | (74) | (74) | (81) | (83) | (86) | | Underlying Profit | 294 | 279 | 268 | 264 | 247 | 193 | 306 | 340 | 380 | 390 | | Summarised balance sheets1 | | | | | | | | | | | | Total properties at valuation2 | 10,065 | 9,489 | 8,688 | 8,907 | 10,476 | 9,140 | 11,177 | 12,316 | 13,716 | 13,940 | | EPRA net debt | (3,865) | (3,545) | (3,178) | (3,127) | (3,397) | (2,877) | (3,854) | (3,521) | (3,973) | (4,223) | | Other assets and liabilities | (277) | (246) | (258) | (293) | (273) | (221) | (110) | (146) | (183) | (219) | | EPRA NTA/NAV3 | 5,923 | 5,698 | 5,252 | 5,487 | 6,806 | 6,080 | 7,213 | 8,649 | 9,560 | 9,498 | | Cash flow movement - Group only | | | | | | | | | | | | Cash generated from operations | 324 | 260 | 386 | 238 | 256 | 218 | 404 | 617 | 351 | 379 | | Other cashflows from operating activities | (15) | 10 | 23 | 2 | (11) | (69) | (29) | (4) | 2 | (16) | | Net cash inflow from operating activities | 309 | 270 | 409 | 240 | 245 | 149 | 375 | 613 | 353 | 363 | | Cash (outflow) inflow from investing activities | (202) | (853) | (172) | 326 | (385) | 910 | (361) | 187 | 346 | 470 | | Equity dividends paid | (229) | (220) | (213) | (213) | (155) | (76) | (295) | (298) | (304) | (295) | | Cash inflow (outflow) from management of liquid resources and financing | 241 | 772 | (61) | (339) | 215 | (1,022) | 232 | (365) | (404) | (538) | | Increase (decrease) in cash4 | 119 | (31) | (37) | 14 | (80) | (39) | (49) | 137 | (9) | - | | Capital returns | | | | | | | | | | | | Growth in net assets5 | 3.9% | 8.5% | (4.3)% | (19.4)% | 11.9% | (15.7)% | (16.6)% | (9.5)% | 0.7% | (5.7)% | | Total accounting return | 8.1% | 5.0% | (0.5)% | (16.3)% | 14.6% | (14.6)% | (11.0)% | (3.3)% | 8.9% | 2.7% | | Per share information | | | | | | | | | | | | EPRA NTA/NAV per share6 | 590p | 567p | 562p | 588p | 730p | 651p | 774p | 905p | 967p | 915p | | Memorandum | | | | | | | | | | | | Dividends declared in the year | 23.12p | 22.80p | 22.80p | 22.64p | 21.92p | 15.04p | 15.97p | 31.00p | 30.08p | 29.20p | | Dividends paid in the year | 22.88p | 22.88p | 23.20p | 23.20p | 16.96p | 8.40p | 31.47p | 30.54p | 29.64p | 28.78p | | Diluted earnings | | | | | | | | | | | | Underlying earnings per share | 28.9p | 28.5p | 28.5p | 28.3p | 27.0p | 18.0p | 32.7p | 34.9p | 37.4p | 37.8p | | IFRS earnings (loss) per share | 45.3p | 35.0p | (0.1)p | (112.0)p | 103.5p | (108.0)p | (110.0)p | (30.0)p | 48.5p | 14.7p | 1. Including share of joint ventures. 2. Including surplus over book value of trading properties. 3. EPRA NTA is disclosed in 2026 to 2021 and EPRA NAV is disclosed from 2020 to 2017. 4. Represents movement in cash and cash equivalents under IFRS. 5. Represents movement in EPRA NTA in 2026 to 2021 and movement in EPRA NAV from 2020 to 2017. 6. Represents diluted EPRA NTA per share in 2026 to 2021 and diluted EPRA NAV per share in 2020 to 2017. --- 206 British Land Annual Report and Accounts 2026 # OTHER INFORMATION (UNAUDITED) CONTINUED ## Shareholder information Analysis of shareholders – 31 March 2026 | Number of shares | Number of holdings | % | Balance as at 31 March 2026^{1} | % | | --- | --- | --- | --- | --- | | 1-1,000 | 2,971 | 57.61 | 1,075,810 | 0.11 | | 1,001-5,000 | 1,148 | 22.26 | 2,567,744 | 0.25 | | 5,001-20,000 | 341 | 6.61 | 3,457,872 | 0.34 | | 20,001-50,000 | 154 | 2.99 | 4,983,367 | 0.49 | | 50,001-highest | 543 | 10.53 | 999,076,820 | 98.81 | | **Total** | **5,157** | **100** | **1,011,161,613** | **100** | | Holder type | | | | | | --- | --- | --- | --- | --- | | Individuals | 4,179 | 81.05 | 8,537,301 | 0.84 | | Nominee and institutional investors | 978 | 18.95 | 1,002,624,312 | 99.16 | | **Total** | **5,157** | **100** | **1,011,161,613** | **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: - Highdown House - Yeoman Way - Worthing - 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. ## 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 materials 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 ## 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. --- British Land Annual Report and Accounts 2026 207 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. 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 --- British Land Annual Report and Accounts 2026 # 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 "Risk Management and Principal Risks" on pages 47 to 58 for a discussion of certain 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 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 are not guarantees 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 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. --- Printed by a Carbon Neutral Operation (certified: CarbonQuota) under the PAS2060 standard. This publication was printed by an FSC™ certified printer that holds an ISO 14001 certification. This product is made using recycled materials limiting the impact on our precious forest resources, helping reduce the need to harvest more trees. 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. FSC www.fsc.org RECYCLED Paper made from recycled material FSC™ C014531 CARBON BALANCED PAPER www.carbonbalancedpaper.com C0P126145 Designed and produced by emperor Visit us at emperor.works --- Head office and registered office York House 45 Seymour Street London W1H 7LX www.britishland.com British Land