Great Portland Estates working on largest development programme in its history

Great Portland Estates has reported results for the year ended 31 March 2016. At the end of March its EPRA NAV per share was 847 pence (pre-SDLT increase: 857 pence), up 19.5% in the year. EPRA profit before tax for the year was GBP47.8 million, up 6.0% on 2015. this translates into EPRA earnings per share of 13.5 pence, up 6.3%. The total dividend per share was 9.2 pence (2015: 9.0 pence), up 2.2%.

Within the portfolio they secured 52 new lettings (447,100 sq ft) securing annual income of GBP31.8 million, including one of largest ever West End office lettings of GBP17.8 million to Facebook at Rathbone Square; market lettings were 10.4% ahead of March 2015 ERV.

The portfolio valuation was up 14.7% over the year and, within that, the value of their developments rose by 26.2%. On the back of this they recorded a 12 month capital return of 16.3% which compares favourably to 13.3% for the IPD Central London Index and a Total Property Return of 18.9% v 16.7% for IPD Central London.

At the end of March their loan-to-value ratio was 17.4%. The weighted average interest rate was 3.7%; the drawn debt was 100% fixed or capped.

Great Portland has an extensive development programme, its largest ever. The committed programme comprises eight schemes (851,200 sq ft), principally focused on the regeneration of the east end of Oxford Street, and all due to complete in the next 24 months with an expected profit on cost of 27.1% on development investment of GBP1.1 billion. Combined with two near-term schemes (311,800 sq ft), their expected development capex to come stands at GBP428.4 million. Looking further ahead, they say they have made excellent progress in preparing their expanded pipeline of development opportunities, which extends to 1.4 million sq ft across 14 schemes, up by two schemes over the past year. The development programme now totals 2.6 million sq ft and covers 59% of the existing portfolio.

GPOR : Great Portland Estates working on largest development programme in its history