Great Portland Estates Plc

Reported EPS was 8.5p, up 63% from 5.2p and ahead of consensus. EPRA NTA increased 6.1% to 524p per share, the dividend rose 4% to 8.2p per share, and the portfolio saw a 4.3% like-for-like valuation increase with 5.8% ERV growth. Record leasing was GBP 70.9 million, 10.3% ahead of ERV, and rent roll reached GBP 153 million, up 46%. Net asset metrics improved as LTV fell to 28.6% from 30.8% and liquidity rose to GBP 412 million, up GBP 36 million. Looking ahead, management targets EPRA EPS of around 10p in the next 12 months, about 20% growth, plus an above-10% ROE this financial year and strong medium-term earnings and NTA growth. They also reiterated guidance for office rental growth of plus 4% to plus 7% this year.

Toby Courtauld emphasized execution on the growth strategy: buying assets at discounts, creating prime space in a supply-constrained Central London market, and selling completed business plans at premiums. His tone was confident but measured, repeatedly stressing flexibility if the macro environment weakens and saying the business is well set to deliver accretive total accounting returns absent a downturn. He highlighted record leasing, development progress, and the option to recycle capital or return excess cash to shareholders.

Jayne Marie Cottam said the business delivered both income and value growth, with EPS up 63% to 8.5p, NTA up to 524p, and a 4% dividend increase to 8.2p that was fully covered. She highlighted valuation growth of 4.3%, ERV growth of 5.8%, and a stronger balance sheet after GBP 490 million of sales, taking LTV down to 28.6% and liquidity up to GBP 412 million. She also pointed to new funding with a GBP 525 million ESG-linked RCF and an extended GBP 150 million RCF, no refinancing needs until October 2028, and a weighted average debt maturity of 5.4 years at a 4.3% interest rate.

Analysts asked about rent reviews, leasing incentives, development economics, covenant headroom, valuation comparability after a change in valuer, dividend cash coverage, and the fully managed flex business. Management said rent review increases were strong, citing about GBP 30 million of increases and nearly a 50% uplift on a Hanover Square review, while incentives had not softened and were showing signs of compression only in select prime situations. On macro risk, they said covenant headroom remains substantial, with values able to fall 46% before breaching covenants, and on cash dividends they said coverage would take some time, likely at least three years, as development completions flow through.