British Land and its property sector rivals have become a conduit for fluctuations in bond markets and another bump in UK gilt yields has given investors cause for more reticence. Shares in the FTSE 100 constituent trade at a near-50 per cent discount to the net asset value forecast by analysts at the end of March next year. That is greater than the total 35 per cent fall in NAV since before the pandemic.
Given the progress on leasing activity, better growth in rental values and an improvement in the balance sheet, the sheer magnitude of the discount is becoming harder to justify. Analysts are betting that this year will represent the trough for the group’s NAV, coming in at an adjusted 543p a share
