British Land raises earnings forecast as AI firms flock to London campuses

British Land raised its annual earnings guidance after AI and technology tenants drove double-digit rental growth at its London campuses, and occupancy rose to 95% at end-March.

British Land raised its annual earnings guidance after stronger-than-expected demand from artificial intelligence and technology companies for office space in London. The company reported double-digit rental growth at its campus properties and cited constrained supply as a factor supporting rents. Management said occupancy improved and that some vacancy remained concentrated in newly delivered space. The shift comes as some traditional businesses continue to reduce office footprints amid hybrid work patterns. Key facts: - British Land said underlying earnings would reach 28.9 pence per share for fiscal 2026, up from prior guidance of 28.5 pence. - It raised guidance for the next fiscal year to at least 30.5 pence per share from 30.2, helped by the completion of its Life Science REIT acquisition. - AI tenant demand pushed campus rental growth to 12% on a like-for-like basis for the year ended March, and overall like-for-like net rental growth was 6%. - The company signed AI developer Anthropic for 158,000 square feet at its Regent's Place campus, marking its sixth deal with that developer; the article also mentions Gilead Sciences among occupiers at the campus. - Occupancy at British Land's campuses rose to 95% at end-March from 92% at end-September, with most remaining vacancy in newly delivered space. Summary: British Land's updated guidance reflects stronger rental performance at its London office campuses driven by AI and technology occupiers, while growth in retail and urban logistics eased. The company also noted that its chief executive plans to step down this year. Undetermined at this time.