Great Portland Estates (GPE) H2 2025 earnings summary

Executive summary

• Delivered strong operational and financial 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 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.

Financial highlights

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

• Portfolio valuation up 3.6% year-over-year to £2.9bn; EPRA NAV up 4.4% to 494p per share.

• Rent roll grew 15% year-over-year to GBP 123 million; EPRA LTV reduced to 30.8%; liquidity at £376m.

• EPRA earnings increased 13% to GBP 20 million; EPRA EPS at GBP 0.052; dividend per share 7.9p.

• Reported profit after tax £116.0m, driven by £97.7m property revaluation gain.

Outlook and guidance

• Rental growth guidance for FY ending March 2026 upgraded to 4%-7% for the portfolio and 6%-10% for prime offices.

• 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.