(Alliance News) -Â Great Portland Estates PLC on Wednesday reported a slide in its portfolio value and earnings in a year which saw "some of the most challenging trading conditions" ever experienced.
The London-focused property investor and developer said its portfolio was valued at GBP2.46 billion at the end of March, down 8.7% on a like-for-like basis over 12 months - with offices down 1.7% and retail tumbling 27%. Rental values were down 4.0%, again driven by retail, while office rents actually saw a 0.5% increase.
IFRS net asset value per share was 779.00 pence at the end of March, down 10% over the past 12 months from 868p. EPRA earnings of GBP40.1 million were down 31% on the prior year.
The financial year was dominated by the pandemic, Great Portland said, with lockdowns disrupting businesses across London and exerting a "substantial economic toll". This resulted in declines in both rental collection performance and valuations, particularly for retail assets.
The firm swung to a pretax loss of GBP202.0 million from a profit of GBP51.6 million the year before, as it recorded a GBP156.8 million deficit from investment property, widened from GBP52.6 million.
Despite the loss, Great Portland maintained its final dividend of 7.9p. Together with the interim payout of 4.7p, this brings the total for the year to 12.6p, in line with the year before.
"Our markets in central London have been in lockdown for much of the time, affecting all aspects of life and impacting our operations. Despite this context, GPE remains in robust health with a strong balance sheet given our low leverage and high liquidity, allowing us the capacity for significant investment to drive growth," said Chief Executive Toby Courtauld.
The property developer's CEO was positive over the city's outlook, saying: "Although it may take a little time for the full buzz of London to return, we believe it will, driven by this great capital's magnetic appeal as the cultural and commercial heart of the UK, and its unique position as a global city. With a recovering market, our strong finances, a portfolio full of opportunity and a deeply talented and committed team, we can look to our future with confidence."
Shares were up 1.3% at 725.50p in London on Wednesday.
By Lucy Heming;Â lucyheming@alliancenews.com
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