14th Nov 2013 08:40
LONDON (Alliance News) - Property development and investment group Great Portland Estates PLC Thursday reported an increase in revenue and profit for the first half.
The company, which owns City Tower on Basinghall Street, London, said its portfolio was valued 6.7% higher on a like-for-like basis than in March at GBP2.5 billion.
Pretax profit was GBP146.9 million for the period ended September 30, up from GBP76.7 million a year earlier, and revenue was GBP42.8 million, up from GBP33.4 million in 2012.
The commercial property developers said the increase was mainly due to revaluation gains.
Great Portland said its net asset value per share stood at 487 pence compared with 446 pence at the end of March, which it attributed to the revaluation of its portfolio and profit on property disposals.
Group consolidated net debt was GBP782.7 million at September 30, up from GBP658.9 million in March. It said this was a "consequence of our accretive acquisitions and development capital expenditure, partly mitigated by proceeds from disposals."
Great Portland said gearing rose to 46.9% from 42.8% at the end of March as higher debt levels "prevailed" over the portfolio valuation rise.
The property firm remained optimistic and said the London commercial property market continued to be attractive for investment.
"With a strengthening macro-economic backdrop and supportive property market conditions in the Capital, we expect to see further growth during the second half," Chief Executive Toby Courtauld said in a statement. "London's businesses are, once more, investing for growth and our limited available space to let is attracting significant interest, enabling us to lease at rates ahead of estimate renal values.
"Meanwhile, central London's appeal as an investment destination of choice continues unabated," he added.
Courtauld said the company "conservative" gearing and low cost financing would enable it to exploit new opportunities in the long-term.
The board declared an interim dividend of 3.4 pence, up from 3.3 pence, to be paid to shareholders in January 2014.
Of this dividend, 1.2 pence per share will be a REIT Property Income Distribution (PID) in respect of the group's tax-exempt property rental business.
In early trading Thursday, Great Portland Estates shares were up 2.4% at 571.46 pence.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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