London, Jan 22, 2026, 08:54 GMT
- British Land maintained its earnings forecast following the signing of 882,000 sq ft of leases in the latest quarter
- The FTSE 100’s income edge has shrunk, driving investors to seek out stocks and REITs with better yields
- Commentators have highlighted British Land and Legal & General as solid income options but caution that dividends remain at risk of cuts
British Land reported signing 882,000 square feet of leases in the third quarter and stuck to its earnings forecast, highlighting steady demand for London office campuses and retail parks.
This matters now as UK income investors return to shares in search of yield, following a period when rising interest rates pushed cash and bonds into the spotlight. Property stocks and insurers find themselves caught in the crosswinds: shifting rate expectations sway their valuations, while dividends tell the tale.
UK inflation in December climbed higher than anticipated, yet Goldman Sachs analysts predict the Bank of England will slash rates three times—in March, June, and September. These cuts could lower borrowing costs for property companies and boost real estate prices, though they might also dent yields on savings products competing with dividend-paying shares. 1
British Land reported that its leasing deals from the quarter ending Dec. 31 came in 8.5% above estimated rental value (ERV), the market rent benchmark, and 10.2% higher than the prior rent. It also said another 1.8 million square feet is currently under offer. 2
“Strong occupational fundamentals across our London campuses and retail parks are driving deals,” said Chief Executive Simon Carter. The REIT confirmed it still expects to deliver underlying earnings per share of at least 28.5 pence in fiscal 2026, with growth of at least 6% projected for fiscal 2027.
British Land reported completing 380,000 square feet of leasing across its campus portfolio, driven by growing demand from science and technology tenants. One Triton Square is now 72% let or under offer. Meanwhile, Broadgate saw 178,000 square feet leased during the quarter.
It closed 502,000 square feet of retail leasing over 90 deals and reported its retail park portfolio remained 99% occupied, with foot traffic rising 2.2% year-on-year. Retail parks—out-of-town centers anchored by major chains—have weathered the slump better than many high-street formats, though they still rely heavily on consumer spending.
On Jan. 14, interactive investor contributor Robert Stephens highlighted British Land as one of the FTSE 100’s top dividend payers, pointing to a 5.5% yield using Refinitiv data from Jan. 12. He cautioned investors about “dividend traps” — stocks that appear to offer strong yields but may slash payouts down the line. 3
Legal & General has been back in the income spotlight recently. On Jan. 19, Harvey Jones flagged the FTSE 100 giant, noting its dividend yield sits near 8%. He pointed out the stock’s price is hovering around the same levels it hit ten years ago. 4
On Jan. 21, Motley Fool UK detailed how a £20,000 investment in blue-chip dividend stocks could aim for a £2,653 annual “second income,” suggesting a yield close to 5%. The article noted investors have the choice to either collect dividends as cash or reinvest them to gradually grow their income. 5
The risk is that the dividend calculations fall apart once the cycle shifts. Slower growth might drag down rents and occupancy, while persistent inflation could push back rate cuts and keep borrowing expensive. Office demand remains patchy, and investors have seen how quickly a “high yield” can disappear when management opts to conserve cash.
British Land’s update gave a clearer signal than its usual commentary: leasing is outpacing rental benchmarks, and the firm remains on track with its earnings targets. For income investors, that’s crucial — if earnings slip, the dividend outlook falls apart.
