A long track record of paying bumper dividends has been one of the greatest allures for investors in two of the giants of commercial property. Those dividends at British Land and Land Securities were slashed last year amid the collapse in rental income, but a return to profit at the half-year stage has ignited hopes that the resumption of a growing dividend will be sustainable.
In many ways, British Land and Land Securities are birds of a feather: two powerhouse listed commercial landlords with large central London office portfolios grappling with how to arrest the decline in retail rents. Dealing with the latter, though, is where they diverge.
Landsec is planning to increase its exposure to mixed-use urban developments to between 20 per cent and
