Property giant British Land has reported a rise in rental growth, but the value of its portfolio has taken a hit.

British Land, owner of centres including Sheffield’s Meadowhall, said it achieved like-for-like rental growth of £15m last year, “more than offsetting the £14m impact of retail CVAs”. However, the value of its portfolio fell by 4.8%, driven by retail which was down 11.1%.

British Land chief executive Chris Grigg said: “Retailers continue to face the challenge of fundamental structural change compounded this year by short-term operational headwinds. 

“As a result, we have seen further CVAs and administrations from troubled operators and, although faring better than the market overall, we have not been immune; the annualised rental impact from CVAs and administrations that have occurred over the last two years was £16.9m including £0.9m at properties which have subsequently been sold.

“We have been focused on mitigating this for some time. Of the £10.9m rent on stores subject to closure, £6.5m has already been let or is in negotiation.”

He continued: “Despite these challenges, many retailers continue to perform well and successful new entrants continue to emerge – as has always been the case.

“However, while the key Christmas trading period was generally stronger than expected, the market is set to remain challenging overall. Since the end of our financial year we have seen a high-profile CVA from Debenhams.”