With the benefit of the lift provided by the central London market under it's wings, Great Portlands Estates produced a stellar set of Full Year results for the year ended March 31st, with a total return of 22.4%, based on an uplift in the portfolio valuation of 15.5% and a pre-tax profit of £50.8 million, which is up 78% on 2010. GPE is quite modestly geared at 31.4% and has cash and undrawn facilities of £518 million, having spent only £213 million during the year on acquisitions following it's rights issue; it is in a strong position to take advantage of the opportunities from bank deleveraging which everyone is expecting. Toby Courtauld, Chief Executive, said: "London's investment markets continue to benefit from an excess of demand for assets over supply and, with prices having increased by more than 25% from their lows, it will be more challenging to generate the sorts of returns we have achieved from acquisitions made over the past 18 months. As a result, our focus is shifting to the delivery of our major development programme." "In our occupational markets, conditions continue to improve for landlords. Demand from occupiers has picked up and is running at long-term average rates. This, combined with the lack of new supply and low vacancy rates will produce further rental value increases over the next two to three years." GPE has recently gained Planning consent for it's Hanover Square development and Masterplan agreement has been reached with Crossrail/TFL for a major 205,400 sq ft mixed use scheme following the completion of the Crossrail Bond Street station. This adds to an already substantial development programme, where it is on-site on six schemes totalling 405,600 sq ft with a further 1.8 million sq ft in the pipeline. At 31 March 2011 the wholly-owned portfolio was valued at £1,021.0 million and GPE had seven joint ventures which owned properties valued at £633.5 million (their share). The valuation of the portfolio was up 13.5% or £168.8 million since 31 March 2010 on a like-for-like basis. NAV per share was 360p at the year end, up 27.2% and the total net debt was upfrom £359 million to £514 million. The shares closed last night at 415.25p which values the firm at £1.298 billion, but opened up this morning on these results. Looking for a UK Property or a commercial property, find lettings and investment property in the UK? www.ukbusinessproperty.co.uk
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