Great Portland Estates (LSE: GPE) reported positive leasing figures and development progress, boosting the company’s outlook despite a challenging market.
While GPE shares remain down year-to-date and over the past year, positive news provided a welcome sign for investors.
For the year ending March 31st, GPE exceeded pre-pandemic estimates by signing £22.5 million worth of leases, reflecting a 9.1% increase. Highlighting their commitment to development in a market with limited supply, GPE announced progress on major projects in London, including the 143,100 sq ft redevelopment of Minerva House and the 67,600 sq ft development of French Railways House.
GPE’s leasing activity also demonstrated positive momentum during the quarter. The company secured 14 new leases and renewals, generating an additional £5.7 million in annual rent. They further emphasized progress on their “Flex” refurbishment projects, with four on-site refurbishments on track for completion.
Looking ahead, CEO Toby Courtauld expressed confidence that a combination of development projects, Flex activities, and rising rental income will drive strong returns. He anticipates favourable market conditions with interest rates and yields potentially nearing their peak, which could further benefit GPE.
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