Great Portland Estates : GPOR – results

Over the year to end March 2014, Great Portland Estates saw its EPRA NAV rise by 27.6% to 569p. Properties were revalued upwards by 18.7% – the bulk of this return came from the profit generated by their developments (95 Wigmore Street, City Tower EC2 and 240 Blackfriars Road were all completed during the year). Overall the return on their property was 22.5% – ahead of the IPD index which rose by 20.0%.

Rents rose by 8.2% – helped by a 12.1% growth in West End retail. The vacancy rate rose to 3.7% from 2.3%.

Two development schemes are in progress – Walmar House on Regent Street (pictured) and 12/14 New Fetter Lane. Great Portland Estates has a development pipeline amounting to 2.2m square feet – 55% of this already has planning permission. the bulk of it, over three quarters, is in London’s West End. Although they bought Oxford house, W1 for £90m during the year, in general they say they would prefer to concentrate on developing their existing portfolio than compete to acquire more property in the current property market.

Their loan to value ratio finished the year at 26%. Weighted average cost of debt is 3.5% with a  weighted average maturity of 6.9 years.

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