Rising interest rates wipe £200m off British Land’s property portfolio

British Land’s Broadgate development. Investors received a 5% increase in its half-year dividend per share pay out. Photograph: Bjanka Kadic/Alamy

Soaring rental rates and increasing demand for office and retail space have boosted profits at the property company British Land, but rising interest rates slashed almost £200m off the value of its portfolio.

British Land, which owns sites including the Broadgate Centre in the City of London and the Paddington Central development, reported a 3.4% rise in underlying profits to £142m in the half year to the end of September.