4th Jul 2019 10:49
(Alliance News) - Property investor Great Portland Estates PLC on Thursday said it had a strong first quarter of its financial year, partly thanks to the signing of nine new lettings in the period ended June 30.
The new lettings will generate an annual rent of the GBP2.2 million, which is in line with estimates made by valuers in March and the company will receive GBP1.9 million of the rent.
Great Portland also could receive another GBP2.9 million from GBP3.7 million worth of lettings which are currently under offer.
Among these listings is 5,000 square feet of its Hanover Square development near Bond Street in London. Part of this nine-storey building already secured Great Portland three separate 20-year leases with miner and commodities broker Glencore PLC earlier this year. No financial details of the Glencore transaction were disclosed at the time.
After a review, Great Portland also boosted the rent of seven properties, which is set to secure the firm another GBP2.3 million per annum.
The company said three development schemes, including the Hanover Square programme, which is already 53% pre-let or under offer, have progressed well.
Chief Executive Toby Courtauld said: "I am pleased to report continued positive activity over the first quarter with healthy leasing, excellent progress at our three committed development schemes, which are already more than 23% pre-let or under-offer, and further surplus equity returned to shareholders through our ongoing share buyback programme.
"The second quarter has started well with encouraging levels of enquiries from prospective occupiers attracted to our brand of high quality, well located space."
Great Portland Estates said it confident about its long-term potential, despite "political uncertainties and economic turbulence".
In its recent financial year ended March, the company made a pretax profit of GBP56.1 million, a 27% fall of the GBP76.7 million from the year before, after net rental income and revenue both declined.
Shares in the company were up 0.6% at 704.20 pence in London on Thursday.
Related Shares:
GlencoreGPOR.L