Great Portland Estates Plc

Reported EPS increased 63% to 8.5p, ahead of consensus, while the dividend was 8.2p per share, up 4% and fully covered. EPRA NTA rose 6.1% to 524p per share, also ahead of consensus, and the portfolio posted a 4.3% like-for-like valuation increase with ERV up 5.8%. Leasing reached a record GBP 70.9 million let at 10.3% ahead of ERV, rent roll was GBP 153 million, and liquidity increased to GBP 412 million; LTV fell from 30.8% to 28.6%. Management expects EPRA EPS of around 10p over the next 12 months, implying about 20% growth, and reiterated its 10% plus return on equity target this financial year.

Toby Courtauld framed the year as one of disciplined execution against the company’s growth strategy: buying assets cheaply, creating premium space, leasing ahead of ERV, and selling completed business plans at attractive prices. His tone was upbeat but conditional: he repeatedly said the outlook is strong absent a macro-driven downturn, and that GPE has flexibility to keep investing or return capital if conditions weaken. He emphasized that demand in prime Central London is outpacing supply and that the business is positioned to benefit because it owns 100% prime locations.

Jayne Marie Cottam highlighted the core financial outcomes: EPS up 63% to 8.5p, dividend up 4% to 8.2p per share, EPRA NTA up 6.1% to 524p, valuation growth of 4.3%, and ERV growth of 5.8%. She also pointed to financial strength, including LTV down to 28.6%, liquidity up to GBP 412 million, a weighted average debt maturity of 5.4 years, and a weighted average interest rate of 4.3%. She said the company has no refinancing needs until October 2028 thanks to new and extended RCFs, and reiterated a 10% to 35% through-the-cycle LTV range, with further sales and development surpluses supporting future flexibility.

Analysts focused on the sustainability of rent growth, changing incentives, development economics, going-concern headroom, valuation comparability after the switch from CBRE to Knight Frank, dividend cash coverage, and the economics of the fully managed flex business. Management said rent reviews are producing strong uplifts, incentives are not yet showing major softness, and in some cases are beginning to compress as competition for space intensifies. On risk, they clarified that covenant headroom remains substantial, that dividend cash coverage is likely still some time away because development completions drive future cash earnings, and that Knight Frank’s valuation transition should not create major comparability issues because it has been shadowing prior valuations.