Evidence of the healthy state of the West End property market came with full-year results from Great Portland Estates (GPOR), which included an astonishing 25 per cent uplift in book value to 564p a share. Much of this reflects chief executive Toby Courtauld's canny move back in 2009 to pick up assets at a time when the property market was in disarray.
Key drivers included rental growth of 8 per cent, which helped lift net rental income by 22 per cent to £69.7m. Three new development schemes totalling 487,100 square feet were completed, delivering profits of £104m - a 53 per cent premium over costs. But that still leaves a development programme of about 2.2m square feet, three-quarters of which is in the West End and over half of which has planning consent.
The programme will be funded largely by disposals or 'capital recycling' in the jargon. These totalled £423m last year, at an average 9.5 per cent premium to book value. It was also a record year for lettings, which were signed at a 4 per cent premium to the estimates used for valuations. Group finances remain extremely healthy, with a loan-to-value ratio of just 25.7 per cent.
Analysts at UBS are forecasting book value of 622p per share by March 2015.
| GREAT PORTLAND ESTATES (GPOR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 630p | MARKET VALUE: | £2.17bn | |
| TOUCH: | 628-630p | 12-MONTH HIGH: | 667p | LOW: 495p |
| DIVIDEND YIELD: | 1.4% | TRADING PROPERTIES: | £93.3m | |
| PREMIUM TO NAV: | 12% | |||
| INVESTMENT PROP: | £2.5bn* | NET DEBT: | 30% | |
| Year to 31 Mar | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 280 | 157 | 56 | 8 |
| 2011 | 359 | 261 | 84 | 8.2 |
| 2012 | 402 | 155 | 50 | 8.4 |
| 2013 | 451 | 181 | 56 | 8.6 |
| 2014 | 564 | 422 | 123 | 8.8 |
| % change | +25 | +133 | +120 | +2 |
Ex-div: 28 May Payment: 8 Jul *Includes £525m within joint ventures | ||||
