Further evidence of the buoyant London property market came with full-year results from Great Portland Estates (GPOR), and with demand outstripping supply by a country mile, Great Portland delivered a near 25 per cent increase in adjusted net asset value per share at 709p.
The property portfolio gained from an 18 per cent valuation uplift to £3.2bn on a like-for-like basis. This included an even more pronounced growth picture for the development arm, with a valuation uplift of 28 per cent.
Constrained London supply helped push rental values up by 10.3 per cent. Current market lettings remain 6 per cent above estimated rental value, and there looks to be plenty more uplift to come as leases fall due for renewal. Mark-to-market rents are currently 28.4 per cent above Great Portland's current levels, an increase from 22.6 per cent in the previous year.
On the development side, there is a committed pipeline of six schemes. Sensibly, a third of these have already been pre-let or sold. There are further 18 opportunities in the pipeline, with a potential to provide 2.5m sq ft of space, equivalent to over half of the existing portfolio.
Analysts at Stifel are forecasting adjusted net asset value per share of 782p by March 2016.
| GREAT PORTLAND ESTATES (GPOR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 851p | MARKET VALUE: | £2.92bn | |
| TOUCH: | 850.5-851.5p | 12-MONTH HIGH: | 877p | LOW: 602p |
| DIVIDEND YIELD: | 1.1% | TRADING PROPERTIES: | £116m | |
| PREMIUM TO NAV: | 21% | |||
| INVESTMENT PROP: | £2.98bn* | NET DEBT: | 25% | |
| Year to 31 Mar | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 359 | 261 | 84 | 8.2 |
| 2012 | 402 | 155 | 50 | 8.4 |
| 2013 | 451 | 181 | 56 | 8.6 |
| 2014 | 564 | 422 | 123 | 8.8 |
| 2015 | 701 | 507 | 148 | 9 |
| % change | +24 | +20 | +20 | +2 |
Ex-div: 28 May Payment: 13 Jul *Includes £637m with joint ventures | ||||
