Great Portland Estates has announced its interim results for the six-months ended 30 September 2015. During this period, the company’s EPRA NAV per share has increased 14% to £8.08. The company’s EPRA profit before tax of £24.3m for the period is up 15.7% year-on-year whilst its EPRA EPS of 6.9p is an increase of 16.9%. The interim dividend per share has been increased by 2.9% to 3.6p
The company says that through a combination of development successes and rental growth the portfolio has seen a valuation uplift of 10.5% during the period. They say they have seen continued strong growth in both capital and rental values, which have outperformed the London market (overall rental value growth of 6.5% – 6.7% for offices and 5.9% for retail as opposed to 5.6% for IPD Central London).
The company says it is experiencing strong leasing activity ahead of estimated rental values, including record pre-letting at Rathbone Square, W1. The company has made 29 new lettings (288,900 sq ft) securing annual income of £20.8 million, including pre-lettings and development lettings of £17.5 million. The company has pre-let all of the office space at Rathbone Square, W1 to Facebook (£16.9 million, 7.5% above the March 2015 estimated rental value). Market lettings were reportedly 6.5% ahead of the March 2015 estimated rental value whilst 13 rent reviews were settled during the period securing £1.9m per annum, 57.0% ahead of passing rent. The portfolios vacancy rate was 3.6%. The company says it has a further £8.9m of lettings (their share: £8.1m) currently under offer, 17.2% ahead of March 2015 estimated rental value.
In terms of portfolio activity, there have been sales of £116.9 million, including 95 Wigmore Street, W1 for £222.4m (the company’s share: £111.2m, 16.4% ahead of March 2015 book value). The company has also achieved full ownership of City Tower and City Place House, EC2 through purchase of their joint venture partner’s 50% interest in GSP.
The company says it has the necessary financial strength to fund further organic growth. The headline figures are gearing of 24.5%, loan to property value of 20.2%, cash and undrawn facilities of £369.7m.
Great Portland Estates NAV rises 14% during H1, PBT up 15.7% y-o-y : GPOR