FINANCE: Great Portland Estates delivered an 11.7% increase in NAV per share in the six months to the end of September on the back of soaring London capital values and strong rental growth.
The West End focused developer’s portfolio now stands at £2.2bn, up by 8.6% since 31 March thanks to a 13% increase in the value of its development pipeline.
Pretax profits excluding the increase in portfolio valuation for the six-month period were £21m, up by 16% on 2013, or £246.5m – up from £146.9m – including valuation growth.
GPE confirmed in half-year results that it had now exited its joint venture with Brookfield on the 100 Bishopsgate, EC2, development, selling down its remaining 12.5% stake for £15.8m.
At Rathbone Place – the largest of the company’s trio of major schemes currently on site – it has now sold 129 flats for £220m in total, reflecting 78.1% of the total by value.
During the period it has also completed two acquisitions, both adjoining existing properties, totalling £33.6m.
Over the past year the company has returned 21.9%, outperforming the IPD Central London Index of 20.7%.
But its total property return is down slightly against the IPD Central London index, recording a 25% increase against the IPD’s 25.1%.
GPE’s rent roll grew by 7.8% over the six-month period, with office rents up by 3.6% and retail up by 3.4%.
The company has cash and undrawn facilities of £508m and an overall LTV of 22% with an average interest rate of 3.6%.
Chief executive Toby Courtauld said: “London continues to consolidate its position as one of the world’s most successful city economies. Jobs are being created at the fastest rate in a generation across a range of industries, the capital’s businesses are investing for growth, and its appeal as an investment destination of choice continues unabated.
“Within this positive context, we look forward to a productive second half. We can expect strong leasing interest in both our committed development properties and our limited quantity of vacant space, in both cases at rates ahead of ERVs. We will crystallise further surpluses through our disciplined approach to capital recycling, and our plentiful, low-cost financing will enable us to deliver on our significant growth plans.”
