Business Review
British Land's Activity in 2008/9
We continued implementation of our activist customer led strategy, producing rental income growth in our portfolio.
In another year dominated by the global financial markets turmoil and economic uncertainty we continued implementation of our activist customer led strategy, producing rental income growth in our portfolio and property performance in line with IPD. We again mitigated market-driven damage to our business by asset disposals ahead of further price falls, and by strong balance sheet and debt structuring, including the recent Rights Issue.
The commentary in this Review highlights the actions we have taken over the year.
Under 'Sector and Asset Selection' we report on £1.9 billion (gross) property sales, reducing our total exposure to a falling property market. We also adjusted holdings in market sectors and individual assets where we forecast weaker customer demand, reinforcing our market leadership positions where prospects are stronger.
Under 'Asset Management' we show the range of work we undertake to better tailor our existing buildings to areas of greatest customer demand, and to capture the growth in rents we achieved again this year.
The 'Development' section reviews another distinctive area of expertise, by creating new buildings at the forefront of modern business needs.
In 'Portfolio Valuation' we detail the principal property valuation movements in the year.
Our 'Property Sectoral Outlook' includes market commentaries and explains the implementation of our strategy and its rationale.
In the 'Financial Performance' and 'Financing and Cash Flow' sections, we explain the financial results and summarise the ways we have added value to supplement our property activity. Our balance sheet and debt management continue to be distinctive strengths, particularly relevant in these stressed financial market times. We also set out our Key Performance Indicators. The 'Risk Management' section sets out the principal business risks we face and how we mitigate them.
By working with others, inter alia through Joint Ventures and Unit Trusts as described in the 'Partnerships' section, we earn valuable extra income, leverage our skills and capital and increase manoeuvrability in the property markets.
We also highlight, in our Corporate Responsibility Report, our actions on sustainability including the commitment to lead our industry and become carbon neutral. We are a business of the built environment. Our careful use of scarce resources and our buildings' impact in improving our communities and facilitating growth remain integral to our business success. The Corporate Responsibility Report may be viewed in full on our website www.britishland.com/crReport/2009/
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Green roof at Ropemaker