Property group says portfolio value rose by 8.2% in last three months of 2009

British Land has reported an 18% rise in third-quarter profit on the back of rising commercial property values.

The group’s total investment portfolio value rose by 8.2% to £7.9bn in the three months to December 31.

There was a 1.4% increase in like-for-like rental income compared to the same quarter last year and net asset value rose to 438p a share.

Chief executive Chris Grigg said: "Our third quarter performance saw a continued recovery with strong valuation growth right across the portfolio."

"We're well placed: British Land combines a prime portfolio, strong income profile, talented people, and significant financial firepower.”

British Land owns more than 20m sq ft of UK retail properties, specialising in large warehouses in suburban shopping parks for tenants including Currys, Next and Asda.

Average UK commercial property values have risen around 9% since July, according to Investment Property Databank.