Great Portland Estates has posted a 3.7% fall in its portfolio valuation in its half-year results.
The company has also recorded a 4% drop in net asset value per share to 813p in the six months ended 30 September.
Profit before tax was up by 16.5% from the same time last year at £28.3m.
Although rental values slipped by 0.5%, the company completed 26 new lettings during the period, securing an annual income of £21.1m since the start of the financial year and has a further £5.9m of lettings under offer – 4.2% ahead of March’s estimated rental value.
It has completed two schemes totalling 100,900 sq ft, which are 25% prelet, and has five committed schemes expected to complete in the next 15 months, which are 72% prelet or pre-sold.
GPE has also secured planning permission at Oxford House, W1, adjacent to the upcoming Crossrail station and longer term has a development pipeling of 14 schemes totally 1.4m sq ft.
Chief executive Toby Courtauld said the EU referendum result had had a negative effect on business confidence in London, which would likely result in lower economic growth, and he expected the property market to weaken.
He added: “However, the broad spread and depth of its economic activity and a growing population will, we believe, help to ensure that London maintains its position as a truly global city and Europe’s business capital.”
He said with its strong balance sheet and lower than ever gearing, GPE was well placed to weather the market conditions.
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