Finance
UK's British Land Lifts Earnings Forecast as AI Firms Flock to London Campuses
Published by Global Banking & Finance Review®
Posted on April 21, 2026
2 min readLast updated: April 21, 2026
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British Land has raised its FY2026 EPS outlook to 28.9p (from 28.5p) and FY2027 to at least 30.5p, buoyed by strong rental growth driven by tech and AI tenants flocking to its London office campuses following its Life Science REIT acquisition and robust leasing performance.
UK's British Land lifts earnings forecast as AI firms flock to London campuses
AI and Tech Demand Drives Growth for British Land
April 21 (Reuters) - Real estate group British Land Company raised its annual earnings guidance on Tuesday as a scramble for office space by AI and technology companies, including Anthropic, drove double-digit rental growth across its London campuses.
London’s Emergence as a Technology Hub
London is emerging as a leading technology hub, with firms such as OpenAI establishing bases in the city, helping offset weaker demand from traditional businesses that have scaled back office space as hybrid work takes hold.
Key Tenants and Expansion Deals
British Land said it signed Claude creator Anthropic for 158,000 square feet - the equivalent of almost two soccer fields - at its Regent's Place campus, marking its sixth deal with the artificial intelligence developer, which is expanding its UK presence.
Drugmaker Gilead Sciences is among the other pharmaceutical and tech firms at the Regent's Place campus, it said.
Leadership Insights and Market Trends
British Land's Chief Executive Simon Carter, who plans to step down this year, said the company was seeing "accelerating demand from a new wave of AI and innovation-led occupiers" in a supply-constrained market.
The company's shares were up 2% at 0713 GMT.
Occupancy and Rental Growth Performance
British Land, which operates the Broadgate, Regent's Place and Paddington Central office campuses, said occupancy rose to 95% at end-March from 92% at end-September with most remaining vacancy located in newly delivered space, where demand is strongest.
AI tenant demand has pushed campus rental growth to 12% on a like-for-like basis for the year ended March, boosting overall like-for-like net rental growth to 6%.
Retail and Logistics Segment Overview
However, like-for-like net rental growth at its retail and London urban logistics cooled to 2% from 5% growth seen last year, as demand normalised and retail parks neared full occupancy.
Upgraded Earnings Guidance
British Land said underlying earnings would reach 28.9 pence per share for fiscal 2026 compared to prior guidance of 28.5.
It also raised its guidance for next fiscal year's earnings to at least 30.5 pence per share from 30.2 pence, helped by the completion of its Life Science REIT acquisition.
Reporting and Editorial Credits
(Reporting by Simone Lobo and Raechel Thankam Job in Bengaluru; Editing by Ronojoy Mazumdar and Joe Bavier)
Key Takeaways
- •Underlying EPS for FY26 raised to 28.9p (previously 28.5p) and FY27 raised to ≥30.5p, aided by Life Science REIT acquisition and strong rental growth.
- •Strong leasing activity: campuses enjoying 6% like‑for‑like net rental growth and robust demand, particularly from AI, science and technology tenants.
- •AI and innovation firms, including 11 AI-led businesses since April, are driving leasing momentum at prime campuses like Regent’s Place, Broadgate and Triton developments.
Frequently Asked Questions about UK's British Land lifts earnings forecast as AI firms flock to London campuses
1What is the new earnings per share guidance for British Land?
British Land now expects underlying earnings per share to be 28.9 pence for the financial year ended March 31, up from the previous guidance of 28.5 pence, and raised next year's guidance to at least 30.5 pence.
2How have AI and technology companies impacted British Land's business?
AI and technology companies have driven robust demand for high-quality office space in London, supporting increased rental growth and improved earnings forecasts for British Land.
