Great Portland Estates (GPE) H2 2025 earnings summary

Executive summary

• Delivered strong operational performance, executing a growth strategy with record investment leasing and a focus on premium, sustainable London office space.

• Rights issue proceeds deployed ahead of plan into four West End acquisitions at an average 53% discount to replacement cost, with more deals in negotiation.

• Upgraded rental value growth guidance and robust development pipeline, delivering into a market with a 74% supply shortage of Grade A offices.

• Flex portfolio expansion and high customer retention underpin significant organic income growth potential.

• Achieved significant rental growth and value creation, positioning for further income and value growth.

Financial highlights

• Net operating income from Flex operations up 114% year-over-year; annualized NOI now £19 million, up 93% since September.

• Property portfolio value up 3.6% year-over-year to £2.9bn; 83% offices, 79% West End.

• EPRA NAV/NTA per share up 4.4% to 494p; rent roll up 15% to £123m; EPRA LTV at 30.8%.

• EPRA earnings increased 13% to £20 million; EPRA EPS at £0.052; total dividends nearly £32 million.

• Dividend per share 7.9p; reported profit after tax £116.0m, driven by £97.7m property revaluation gain.

Outlook and guidance

• Upgraded rental value guidance for FY ending March 2026 to 4%-7% growth, with prime offices at 6%-10%.

• Targeting over 10% ROE in the medium term, with over threefold EPS growth and 131% organic rent roll growth.

• Development surpluses of £220m–£580m expected; c.£1bn sales planned medium term.

• Progressive dividend policy to be maintained, with potential DPS growth by FY 2027.