Chairman John Ritblat said the performance was driven primarily by the growth in values at Broadgate, the 3.77 million sf office complex in the City. Rental values there soared by 19% in a year, driving strong capital growth. Weatherall Green & Smith valued the complex at £2.896 billion ($4.05 billion) on the basis of an equivalent yield of 6.23% and an estimated rental value of £57 ($79.80) per sf. City of London offices now account for over 40% of the British Land portfolio.

But British Land's next biggest asset has not performed as well. The Meadowhall shopping mall in Sheffield, South Yorkshire, was bought two years ago for £1.28 billion ($1.79 billion). And even though British Land's active management has pushed up rental income from £45 million ($63 million) to £60 million ($84 million) per annum, this has had no impact on the capital value, because market yields for shopping centres have softened considerably since British land bought the centre.

The total British Land portfolio was valued at £7.334 billion ($10.27 billion). Analysts - notably Merrill Lynch's top-rated team - have lambasted British Land's 'big is beautiful' approach and called for the company to be broken up into more manageable specialist units. But Ritblat countered: 'Size brings many advantages. By owning a big portfolio British Land enjoys an annualised rent roll of £493 million ($690 million), enabling it to carry development sites until it is opportune to start with no significant impact on profits.' He also pointed out that British Land's size meant it was one of the few players sure to be offered any mega project that came to the market.