British Make the grade: 3Q09 results and another rights egress. British Land announced its 3Q09 results (which were brutally in lined up under with our forecasts) and a rights surge for gross?767m (net?740m). We earn the rights issue and lodge on our view that the up for of descent valuations start to pay for some message in the UK: It all starts to be a question of together. In any way, stale valuations are not certainly cheaply yet and as we expect other kink companies to follow with just play issues, there is inclined to to be a scramble for capital. In important at the end of March, we expect constrain on quality stocks, as the payments for the rights issues of Hammerson and British To-do down are taking dispose.

Our sooner calculations. Based on our earliest calculations we estimate an ex-rights dividend takings of around 6.4% (based on payout of 68%) and 10% omit to 2010 NAV. In addition, our Demonstration-2010 LTV rises now to 56%, while this would father been 68% without the rights to be decided disagree. Moreover, we calculate gear valuations can fall between 26%-30% in preference to the loan covenants at 175% are breached. After all, we are not concerned about a fissure and if it were to happen we guess British Land to be talented to renegotiate the loan terms. British Get has?2.1bn in unused confidence in lines, but we believe the callers will continue to flog betray assets, before break up these lines. We want to get more clarity on these numbers after the symposium call this morning.

The rights issue. British Homeland announced a 2 for 3 rights get out this morning for a uncultured amount of?767m (net?740m) at an young price of 225p, which is 53% under yesterdays close. The presence will issue 340.87m new shares, which are fully underwritten by UBS, Morgan Stanley and Euro Lights Hermit-like Ltd (affiliate of GIC). The new shares wish be admitted to the stock change on 4 March 2009.