Great Portland sees lift in value of portfolio

published 24 July 2012

The London focused property company, Great Portland Estates, says rising demand and rental values have pushed up its net asset value.

In the three months to the end of June the value of the group's portfolio grew 3.1% to £2.107bn. This growth has seen the net asset value per share rise 3.5% to 417p.

Over the quarter Great Portland bought £159m of properties and sold £140.5m. It has a further £261m of properties on sale, of which more than £187m worth is under offer.

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Net debt at the end of June had risen to £584.7m from £499.1m three months earlier, resulting in the group's gearing - a measure of how dependent the group is on borrowed funds - increased to 45.5% from 40.3%, but in the group's view this is still a conservative level. The loan-to-value ratio, which measures debt as a proportion of the value of the group's portfolio, edged up to 35.1% from 34.3% at the end of March.

Toby Courtauld, Chief Executive, said "a significant quantity of capital from around the world continues to flow into the central London property market, resulting in yields reducing in the quarter for prime West End assets.

"With resilient tenant demand, minimal vacancy of Grade A space and constrained development supply, we expect further rental growth, particularly at our well-located, high quality buildings."

Vacancy levels at the end of June had declined to 2.7% from 3.3% at the end of March.

The shares were down 0.4% at 9:01.