British Land Share Price Forecast: BLND Slips into a Half-Year Loss Amid Inflation Concerns

British Land share price slipped on Wednesday breaking its 3-week bullish run. At the time of writing, the BLND stock was down 2.27% at 387.1p. The stock has crashed more than 30% since the start of the year. The company’s total market capitalization has slipped to 3.67 billion pounds.

Inflation Concerns

British Land Company Plc is one of the largest property development and investment companies in the UK. Its portfolio includes a large amount of property that has been bought from and leased back to major retailers such as Tesco, Sainsbury’s, House of Fraser, and Asda. The company has 636 employees.

British Land share price was in the red on Wednesday after the company reported a fall in valuations of its assets and slid into a half-year loss. The company said that the value of its property portfolio fell 3% to 9.6 billion pounds in the six months to the end of September.

British Land’s key property campuses, which make up just under a third of its portfolio, saw its valuation drop to 6.23 billion pounds. According to the British Land, soaring inflation, as well as broader market uncertainty, affected the unit.

Aggressive interest rate hikes to tackle inflation and deepening recession woes have been snuffing out a faltering recovery in the commercial property sector from pandemic lows. According to data released by the Office for National Statistics, the UK Consumer Price Index (CPI) YoY for October came in at 11.1%, beating analysts’ forecast estimates of 10.7%.

Despite the slump in valuations, British Land’s underlying profit, which does not include valuation movements, climbed 13% YoY to 136 million pounds on the back of rapid growth in rents and moves to rein in expenses.

British Land Share Price Forecast

The daily chart shows that the British Land share price has been on a bearish run for the past few days, breaking out of its 3-week bullish trajectory. The stock hit an intraday high of 398.3p before pulling back further. It has managed to move below the 25-day and 50-day moving averages.

Therefore, with the soaring inflation, the BLND stock price is likely to continue its bearish run. A bearish trend will have bears pushing the price past the support at 365p. However, a move past the resistance at 402p will invalidate this view.

BLND Price Chart

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