Great Portland Estates sees valuations and NAV grow

Ahead of its annual general meeting today, Great Portland Estates has revealed its net asset value per share and portfolio valuation are on the up.

The firm focuses on central London properties, 80% of which are in the "under-supplied" West End market.

For the 12 months to March 31st, net assets per share increased by 11.9% and the property portfolio delivered like-for-like valuation growth of 9.2%, outperforming its central London benchmark index (known as IPD) which increased by 7.5%.

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The firm secured £25m of annual rent during the year at levels it says are "well ahead" of the estimated rental value.

Great Portland's development programme has seen four schemes complete since March, delivering a 31% profit on cost.

The group also has five committed developments on site which it expects to deliver a 38% profit on cost and which have already been "significantly" de-risked through pre-lettings.

Gearing is at 40% and since the year end a £510m debt facility has been secured at an average interest rate of 4%.

Martin Scicluna, Chairman of Great Portland Estates, isn't afraid to blow the firm's trumpet, in his speech to the AGM today he will say: "With our developments attracting healthy tenant interest and delivering material surpluses, combined with our conservative gearing and plentiful, low-cost firepower [...] we look to the future with confidence."

Over the last 12 months, the stock has fallen 8%

BS