(Alliance News) - Great Portland Estates PLC on Thursday reported "strong leasing momentum" in the second quarter, especially for its flexible and prime office spaces.
The London-focused property investor and developer said an acceleration of enquiries in the first quarter "translated into healthy leasing activity" in the second.
In the recent quarter, Great Portland Estates said its premium and flexible offices attracted GBP33 million of new annual rent in negotiation.
It signed GBP12.7 million in new annual rent, 9.3% ahead of estimated rental value, in the quarter that ended June 30.
Further lettings under offer reached GBP14.9 million in the quarter, up from GBP5.5 million at May and 6.7% ahead of estimated rental value in March, the firm added.
To date, Great Portland Estates has collected 86% of June rents, including deposits. Rent collection from retail and leisure businesses lagged behind, with a 58% collection rate, compared to 94% in other sectors, such as offices.
Great Portland Estates said it was offering monthly rent terms and rent deferrals or holiday for tenants facing difficulties.
The company continues to further its property development pipeline, recently securing planning permission for its Aldermanbury Square redevelopment in east central London.
Great Portland Estates said it had GBP423.5 million in total liquidity on June 30 - including both cash and undrawn credit facilities. Meanwhile, net debt sat at GBP496.8 million on June 30, up 4.0% from GBP477.5 million at March 31. The company's property loan-to-value ratio was 19.1%
Chief Executive Toby Courtauld said: "As momentum in our markets builds, we can expect demand for our flexible and sustainable spaces to grow. With our sizeable development programme designed to satisfy customers' changing needs, our low leverage and high liquidity providing significant capacity for growth and our talented and innovative team, we are well placed to capitalise in such a dynamic market environment."
Shares in Great Portland Estates were trading down 0.4% at 736.00 pence each in London on Thursday morning.
By Scarlett Butler; scarlettbutler@alliancenews.com
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