* AI and tech firms drive strong office demand, boosting

British Land's ( BRLAF ) rental growth

* Leasing volumes at British Land ( BRLAF ) campuses hit decade

high

* Company maintains 2027 earnings forecast despite

geopolitical uncertainties

(Adds details and context on AI-related demand, CEO and analyst

comments throughout)

May 20 (Reuters) - Real estate group British Land ( BRLAF )

reported an annual profit that was slightly above

market expectations on Wednesday, helped by solid demand for

office spaces from artificial intelligence and technology firms.

Demand from AI and technology firms like Claude creator

Anthropic and OpenAI for office spaces in London, coupled with

a constrained supply of large commercial spaces, has helped

British Land ( BRLAF ) approach full occupancy and report strong rental

growth.

"While the geopolitical and interest rate backdrop has

become more uncertain, the occupational fundamentals

underpinning our portfolio are as strong as I have seen them,"

CEO Simon Carter said in a statement.

"Central London office net take-up is at its highest level

in 20 years and our retail parks are 99% occupied."

British Land ( BRLAF ), which owns campus-style developments and

counts Meta and Gilead among its major

tenants, said leasing volumes across its office campuses were

the highest in more than a decade as occupiers continued to

expand their footprints across London with activity focused at

Broadgate and Regent's Place.

For fiscal 2027, the firm said it expected rental growth at

the top end of its earlier provided 3% to 5% range.

However, the company warned that the macroeconomic

volatility arising from the U.S.-Israeli war on Iran is likely

to derail investments in the sector, after a period of growth in

2025 supported by stabilizing yields and a debt recovery from

the COVID-19 slump.

"Overall, we see this as a solid update with operations

continuing to drive performance despite yield and macro

volatility," JPMorgan analyst Neil Green said in a note.

The company stuck to its 2027 earnings forecasts, even as it

reported an underlying profit of 294 million pounds ($393.6

million) for the year ended March 31, compared with analyst

expectations of 291 million pounds, according to a

company-compiled consensus.

The results echoed those of peer Land Securities ( LSGOF ),

which last week beat market expectations on the back of

AI-driven demand for premium office spaces.

($1 = 0.7469 pounds)