Central London office developer Great Portland Estates announced earnings per share growth of 17.8% to 10.6p in strong half-year results.
The company also revealed net asset value (NAV) growth of 1.8% to 868p per share, for the six months to the end of September.
It posted portfolio valuation growth of 0.8%, rental growth of 1.0% (+1.4% offices, -0.2% retail), yield compression of 1 basis point and a total property return of 2.7%.
It announced an interim dividend per share for the period of 4.7 pence, up 9.3%. After revaluation surplus, profit after tax was £44.1m (2018: £33.7m).
However, GPE warned that the outlook for rental growth remained uncertain dependent on the outcome of the UK general election, putting a guidance range of -2% to +1.5%.
Toby Courtauld, chief executive, said: “Our second half has started well, despite elevated levels of macro-economic and political uncertainty. Occupier interest today remains robust in a market where high quality space is scarce and we have delivered lettings totalling £2.2m of rent with a further £8.1m under offer at a 5.4% premium to September 2019 ERVs.
Although we expect continued political and possibly macro-economic turbulence, GPE is in great shape and ready to take advantage of any market weakness: We are attracting occupiers to our brand of high quality, sensibly-priced sustainable space; we are innovating across our portfolio of well-located properties which is let off low rents with further reversionary potential; our exceptional development pipeline provides us with nearly 1.4m sq ft of value creating opportunities meaning we have no immediate need to buy; yet, with our modest gearing, we retain significant and low cost financial capacity; and our collaborative culture and focus on developing our experienced and talented team will enable us to maximise the opportunity we have to generate long-term value across our business.”
GPOR : Great Portland Estates posts strong half-year figures with earnings growth of 17.8%