20th May 2015 07:26
LONDON (Alliance News) - Great Portland Estates PLC Wednesday joined its peers in the UK commercial property sector in reporting higher returns and profits for its last financial year as the booming property market drive up the value of its portfolio and rental values.
The real estate investment trust, which is focused on the supply-constrained and booming London property market, reported EPRA net asset value per share of 709 pence at the end of March, up 24.6% from a year earlier, while EPRA pretax profit grew 17.4% to GBP45.1 million. The growth was driven by 18.0% growth in the value of its portfolio and rental value growth of 10.3%.
"London's economy has continued to outpace that of the rest of the UK and we can expect this to continue, assuming the inevitable uncertainty surrounding the outcome of the proposed EU referendum does not damage London's appeal as a business capital; both the risk appetite and employment intentions of the Capital's businesses remain expansionary and we anticipate their space needs to follow suit," Chief Executive Toby Courtauld said.
"As a result, with falling vacancy rates and the supply of new space to let in the near-term remaining extremely tight, we can look forward to further increases in rents," he added.
The company said its total dividend for the last financial year is 9.0 pence, up from 8.8p a year earlier.
Still, Great Portland shares were down 1.7% at 860.50 pence early Wednesday, having risen strongly on Tuesday in the wake of even stronger results from peer Land Securities PLC.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
GPOR.L