Investment case

 

We have a simple strategy – to generate superior portfolio and shareholder returns from investing in and improving central London real estate, a market that we know inside out.

Delivering shareholder value

We aim to achieve this through our intense, customer-focused approach to managing our properties combined with an effective reading of the property cycle, increasing and reducing risk as appropriate.

The core principles of our business model are:

  • 100% central London, with a West End focus
  • Reposition properties let off low rents
  • Flex operational risk throughout the property cycle
  • Maintain low financial leverage
  • Disciplined capital management; raise to acquire, distribute excess

Find out more about our strategy

Within a more challenging economic context, GPE is well positioned: Following five years of net property sales, our balance sheet has never been stronger with gearing at record low levels, giving us significant financial capacity to take advantage of any market weakness should it arise. Moreover, our committed development programme is materially de-risked; our investment portfolio is almost fully occupied; we have an exceptional development programme which is full of opportunity, totalling 1.7 million sq ft, 0.4 million sq ft of which is now on site; and we have a first class team ready to capitalise on this period of greater uncertainty.

Toby Courtauld Chief Executive, Great Portland Estates

How we measure success

For many years we have calibrated our absolute and relative performance using a small number of key performance indicators. We aim to manage the business to deliver results in excess of these benchmarks over the long term.

 

Five year performance to 31 March 2018 

The successful management of risk is critical for the Group to deliver its strategic priorities. Whilst the ultimate responsibility for risk
management rests with the Board, the effective day-to-day management of risk is integral in the way we do business and the culture of
our team, where the attitude to risk is that of collective responsibility.


Our organisational structure, with close involvement of senior management in all significant decisions, combined with our prudent and analytical approach, is designed to align the Group’s interests with those of shareholders.

 

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