11th Nov 2015 08:48
LONDON (Alliance News) - Central London-focused property developer Great Portland Estates PLC said its pretax profit increased in the first half on valuation gains on its portfolio, though the group also delivered a rise in revenue and net rental income.
The FTSE 250-listed company said its pretax profit for the half to the end of September was GBP370.8 million, up from GBP246.5 million a year earlier, mainly due to the group booking a GBP301.2 million surplus on its investment property, up from the GBP168.6 million gain it made a year earlier.
Revenue for the group increased to GBP69.5 million from GBP40.7 million in the half, as its net rental income rose to GBP39.2 million from GBP33.8 million.
The group delivered a rise in rental value of 6.5% in the half, ahead of the benchmark IPD Central London, which showed 5.6% growth. It total rent roll grew 3.8% in the six months to the end of September.
The company's net asset value per share at the end of the half was up 14% to 808.00 pence over the first half, with its net assets at the end of the period at GBP2.75 billion, up from GBP2.39 billion a year earlier.
It will pay an interim dividend of 3.6p per share, up 2.9% year-on-year.
"We are pleased to report another strong set of results, driven by market-beating portfolio returns, particularly in our development business, and some outstanding leasing activity, including one of the largest ever lettings in the West End," said Chief Executive Toby Courtauld.
"In our investment markets, there remains a surfeit of buyers over assets for sale but we expect macro concerns to reduce investors' appetite for lesser quality assets, particularly where prices have run ahead of the rental growth on offer. Demand for prime properties remains robust," he added.
Great Portland shares were up 0.9% to 845.50p on Wednesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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