British Land - INTU comp

All,

British Land reported their FY20 numbers to March 2020 this morning, and not surprising their retail component suffered large valuation drops.  Total Retail valuation dropped 26.1% versus a year prior.  On the face of it this appears light, as INTU valuation drops for the FY19 ranges for 15-23%, but within retail, shopping centres valuations dropped c.30%. 

The other slide below is the rent collection, with 43% of rent collected since beginning of March.  This is in line with INTU’s 40% collected as of beginning of May for the March rent roll.  

Conclusion:

None of the details provided by British Land this morning is a surprise and does not change our opinion on the INTU structure.  We continue to believe that the INTU structure trades too tight, but we continue to monitor the situation. It is probable a consensual deal will emerge from the negotiations with the various stakeholders.

Tomas