(Alliance News) - Property investor and developer Great Portland Estates PLC on Thursday reported a "productive" third quarter which saw it complete 12 new lettings ahead of estimated rental value.
In the three months to December 31, the company secured 12 new lettings, with a total of 48,900 square feet, and they will generate an annual rent of GBP3.7 million. Great Portland said this is 1.4% of the March 2019 estimated rental value.
In addition, the company has seven letting under offer, totalling GBP9.2 million of yearly rent and 6.9% higher than the March estimated rental value.
The quarter also saw the FTSE 250 firm complete a GBP200 million share buyback, where it repurchased 27.8 million shares at an average price of GBP7.20.
Chief Executive Toby Courtauld said: "I am pleased to report on another productive quarter, combining healthy leasing ahead of estimated rental value, good progress at our six committed and near-term developments and continued capital discipline, profitably recycling out of mature assets and returning surplus equity to shareholders as we completed our share buyback programme."
"The clear outcome of the general election is encouraging increased transaction activity in our investment markets and, whilst further political and macro-economic turbulence is possible, Great Portland Estates is in great shape."
In January, so during the fourth quarter, Great Portland agreed to sell a London property to an overseas, unnamed investor for GBP64.5 million. The price, a 6.2% premium of the property's value as of September, represents a net initial yield of 4.07%, giving the site a value of GBP1,255 per square foot.
In its pipeline, Great Portland added, are three committed scheme totalling 414,900 square feet. Two of the schemes are penned for completion in 2020. The developments are 50% pre-let, or under offer, and located near Crossrail stations.
The Crossrail development is a London railway line under development, crossing the city from west to east.
"We are innovating across our portfolio, including the continued rollout of our flexible space offering. Our exceptional development pipeline provides us with nearly 1.4 million square feet of value creating opportunities. We are well positioned to maximise the opportunity we have to generate long-term value across our business," Courtauld added.
Shares in the company were 0.3% higher at 948.80 pence each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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