Ahead of its Annual General Meeting at 11:00 today, Great Portland Estates plc (GPE) publishes a trading update for the quarter to 30 June 2022.
Continued leasing success
- £6.0 million of new annual rent signed, including £1.9 million of Flex space and £1.7 million of retail space, market lettings 2.6% ahead of March 2022 ERV
- £9.5 million of further lettings under offer (up from £9.4 million at May), 1.9% ahead of March 2022 ERV
- £33 million of new annual rent in negotiation, demonstrating demand for prime offices and best in class flexible spaces
Accretive sales and acquisitions
- Sale of 6/10 Market Place, W1 for £28.2m, 4.1% net initial yield, 3% above March 22 book value
- Acquisition of 6/10 St Andrew Street, EC4 completed for £30.0 million (£650 per sq ft), growing our fully managed offer
- Acquisition of 2 Cathedral Street, SE1 for £7.1 million, 4.4% net initial yield
Strong financial position; total liquidity of £343 million
- LTV of 22.2%, weighted average interest rate of 2.4% (fully drawn), cash & undrawn facilities of £343 million
- Total prospective capex of c.£970 million (including refurbishments), including £15.1 million to complete pre-let 50 Finsbury Square development and a further £267.0 million to deliver our prospective scheme at 2 Aldermanbury Square, EC2
"I am pleased to report continued positive activity over the first quarter with healthy leasing, excellent progress at 50 Finsbury Square, EC2, which is already 98% pre-let or under-offer, and the completion of our acquisition of 6/10 St Andrew Street, EC4 for our fully managed offer. The second quarter has started well with our Customer first approach delivering encouraging levels of enquiries from prospective customers attracted to our brand of high quality, well-located space, more than 93% of which is within walking distance of an Elizabeth Line station. Today we have £9.5 million of lettings under offer, at a premium to March 2022 ERVs, with an additional £33 million under negotiation. Whilst the current macro-economic backdrop is expected to be volatile in the short-term, we remain convinced of the long-term, enduring appeal of our capital city and its property markets to businesses and investors alike. With our clear strategic focus, strong balance sheet, opportunity rich portfolio and experienced team, we remain confident in our outlook."
