Strong London market helps Great Portland
LONDON property group Great Portland Estates (GPE) impressed investors yesterday with an improving portfolio and a record year for leasings.
Annual pre-tax profits took a battering, down 36 per cent to £155.2m, as the firm spent on development and refurbishment work.
But the group’s net asset value rose 11.9 per cent in the year to 403p.
Chief executive Toby Courtauld said GPE enjoyed a strong 2011, and that central London is likely to remain a stronghold for international investors looking to make safe investments.
Last year, GPE’s rental values grew 7.8 per cent on a like-for-like basis, picking up towards the second half.
New developments totalling almost half a million square feet of space are in progress, and the firm has already secured £16.7m of pre-let income.
Great Portland’s shares defied the gloomy market to jump 2.8 per cent.
“Earnings suffered a temporary hit, but we believe Great Portland’s portfolio of individually selected assets in the supply-starved West End will provide large development profits over the coming years,” said Peel Hunt analysts in a note.