Great Portland Estates plc is pleased to announce results for the Group for the year ended 31 March 2025, with highlights including
Successful deployment of rights proceeds
£325 million allocated
Strong operational performance, record investment leasing at 10.6% premium to March 2024 ERV
Valuation +3.6% (inc. Fully Managed +12.8%)
EPRA NTA +4.4%
TAR +6.0%
Rental values up by 5.0%, portfolio ERV growth guidance upgraded to 4.0% to 7.0% for FY26
Developments delivering premium space into supply drought
c.£220m to c.£580m surplus to come
Balance sheet strength maintained, EPRA LTV 30.8%, cash and undrawn facilities £376 million
Significant income & value growth to come
prospective 10%+ annualised ROE with EPRA EPS up 3x
Toby CourtauldChief Executivesaid
" We are pleased to report on a productive and successful year during which we achieved or exceeded most of the challenging operational targets we set ourselves, in spite of the often extreme and unpredictable macro-political backdrop
we successfully raised and then deployed, ahead of schedule, significant fresh equity capital into exciting new opportunities at a sizeable average discount of more than 50% to those assets replacement cost
we delivered a record quantity of investment leasing at a healthy 11% premium to ERV, growing rent roll by 15% and validating our focus on creating premium spaces, with our prime office rental values rising by 7.6% and Fully Managed capital values by 12.8% over the year. Pleasingly, our commitment to customer service has been rewarded with an exceptional 87% customer retention rate and an industry-leading Net Promoter Score.
Looking forward, despite ongoing macro-economic uncertainty, we believe that many of the conditions necessary for a period of attractive growth in central Londons commercial property values are increasingly evident and we are well placed to prosper
with healthy demand, rents at our well-located, premium spaces will continue rising and we have upgraded our forecasts for the year
we have amassed an enviable pipeline of prime development and refurbishment opportunities covering almost 40% of our portfolio from which we expect to generate material surpluses, given the extreme shortage of such space
Londons growing relative attractions are generating early signs of a reinvigorated investment market which will allow us to crystalise surpluses through asset sales
and our deeply experienced teams and strong financial position will enable us to take full advantage of these supportive conditions and generate attractive returns for shareholders, with a prospective 10%+ annualised return on equity and a threefold increase in EPRA EPS over the medium term."