LONDON: Great Portland Estates plc announced robust financial results for the year ended March 31, 2025, highlighted by strong leasing performance, portfolio growth, and an upgraded rental value forecast.
The London-focused property group reported a 3.6% increase in portfolio valuation, reaching £2.9 billion ($3.7 billion), with prime office capital values rising 12.8%. Rental values grew 5.0%, prompting the company to raise its FY 2026 estimated rental value (ERV) growth guidance to 4.0%-7.0%.
Key Financial Highlights:
– Rights Issue Proceeds: £325 million ($412 million) allocated, including four West End acquisitions at a 53% discount to replacement cost.
– Leasing Performance: £37.7 million ($47.8 million) in signed leases, 10.6% above March 2024 ERV; rent roll up 15% to £123 million ($156 million).
– Development Pipeline: Expected surpluses of £217 million-£580 million ($275 million-$735 million) from ongoing and planned projects.
– Balance Sheet: EPRA loan-to-value ratio at 30.8%, with £376 million ($477 million) in cash and undrawn facilities.
CEO Toby Courtauld said the company delivered “a productive and successful year,” citing strong demand for premium office space in central London. He noted a record 87% customer retention rate and an industry-leading Net Promoter Score of +26.1.
Operational Successes:
– Flex Space Growth: Fully Managed flexible office space now generates £19.3 million ($24.5 million) in net operating income, up 93% since interim results.
– Development Progress: Seven active schemes, including the pre-leased 30 Duke Street, expected to yield a 35.1% profit on cost.
– Disposals Planned: Over £350 million ($444 million) in near-term sales, with more than half already under offer.
Looking ahead, Courtauld projected a “10%+ annualised return on equity” and a threefold increase in EPRA earnings per share, citing London’s strengthening commercial property market.
Dividend Maintained: Shareholders will receive an unchanged dividend of 7.9 pence per share.