The value of Great Portland’s property investments jumped by GBP 58.4 million in the three months through June.
A paucity of office space and steadily increasing rents have both contributed to the developer’s added profits.
“Investor demand for central London commercial property continued unabated during the quarter and with limited supply, we expect much of it to remain unsatiated for some time to come,” Chief Executive Officer Toby Courtauld stated.
He added: “We remain encouraged by both the levels and spread of tenant demand across our portfolio, helping us to maintain our investment properties at almost full occupancy and deliver decent rates of rental growth.”
So far this year, shares in Great Portland Estates have risen by almost 22 per cent. Overseas investors have been a large factor in the jump but Courtauld went on to warn that the sovereign debt crisis in Europe could have an adverse effect.
“A key mainstay behind this demand is investor expectations for further rental growth, as the supply of available space to let falls faster than its rate of replenishment.”
Meanwhile, the UK’s largest real estate investment trust, Land Securities, has said that it will continue to invest in retail and commercial property despite the economy’s sluggish recovery.
Currently, Land Securities is developing the Trinity Leeds Shopping Centre, which is more than 50 per cent leased. The centre will not be completed for at least another two years.
The Bank of England recently presented a fairly gloomy outlook for the British economy. With inflation due to peak in the next few months, the bank is widely expected not to raise rates until the last quarter of this year.
Editor’s notes: In 2022, Great Portland Estates (GPE) generated revenues of £84.2 million and reported profits of £167.2m after tax.
GPE’s portfolio was 100% focused on Central London, with the majority of its assets being office properties.
Land Securities rebranded as Landsec in 2017, and its portfolio’s value grew to £12 billion in 2022.
In June 2024, it was announced that GPE had raised £350m from its latest rights issue of almost 150 million new shares at 230p each on the London Stock Exchange (LSE).
In April 2025, it was announced that GPE had reported strong leasing performance and one of its ‘busiest quarters on record’ in the quarter to 31st March 2025.
Thirty-two new leases and renewals were signed in the quarter, generating annual rent of £18.2 million. 74 new leases and renewals were signed in the year, generating an annual rent of £37.7 million. 41 Fully Managed leases were signed, as well as six Ready to Fit leases.