British Land on track for trust conversion.

British Land is on track for conversion to a Real Estate Investment Trust in January after unveiling half-year gross profits of pounds 130m yesterday.

Sir John Ritblat, giving his last report as chairman before Dr Chris Gibson-Smith steps into the role, said the UK's second largest listed property company was in "sparkling form".

The company, which owns Teesside Retail Park near Stockton-on-Tees, saw its net asset value per share climbed 11% to pounds 1.62p in the six months to September 30, driven by a 6.2% valuation uplift from the group's pounds 19.8bn portfolio.

Headline pre-tax profits were pounds 702m ( up 27% on last year.

Chief executive Stephen Hester said the company's strategy of creating shareholder value by focusing on meeting customer needs with actively-managed real estate was working well, and confirmed it would elect to become a Real Estate Investment Trust (REIT) from January 1. REIT legislation will give investors tax benefits provided the REIT they invest in meet certain criteria such as paying out a high percentage of profits as dividends.