3rd Jul 2025 10:02
(Alliance News) - Great Portland Estates PLC on Thursday backed full-year rental growth guidance, reflecting continued strong leasing momentum and demand for property in a market "starved of supply".
Chief Executive Toby Courtauld said: "The strong leasing momentum we experienced in our last financial year has continued. Customer demand for our brand of premium [headquarters] and fully managed spaces remains strong."
"This strong performance reaffirms our confidence in our rental value growth guidance of 4.0% to 7.0% for the financial year, with our prime spaces higher still," he added.
For the financial year that ended March 31, 2025, Great Portland previously had reported revenue growth of 5.0%.
In response, shares in the London-based property development and investment firm rose 2.6% to 349.50 pence each in London on Thursday morning.
In a trading update for the quarter to June 30, Great Portland said 17 new leases and renewals have been signed since April 1 generating annual rent of GBP20.6 million with market lettings on average 6.7% ahead of March 2025.
Two retail rent reviews were settled in the quarter, securing GBP500,000 of annual rent at a 3.8% uplift on previous passing rent.
A further GBP7.7 million of rent is currently under offer, with market lettings 6.5% ahead of March 2025 estimated rental value.
In addition, the company said demand for fully managed spaces remains strong, with five deals secured in the quarter at an average rent of GBP237 per square foot, 2.7% ahead of estimated rental growth.
Looking ahead CEO Courtauld said Great Portland Estates is in an "enviable position".
"Against a backdrop of healthy occupational demand, we are delivering premium, sustainable spaces into a market starved of supply. These deliveries are anticipated to create significant surpluses, which will further accelerate as the market strengthens. We are also seeing an uptick in activity in our investment markets, and with it, more opportunities to crystallise our development returns through sale."
By Jeremy Cutler, Alliance News reporter
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