LONDON (Alliance News) - FTSE 250-listed property and development company Great Portland Estates PLC said on Wednesday it saw a rise in its net asset value in its recent financial year due to the increased value of its portfolio, while also swinging to profit amid a jump in revenue from home sales.
Net asset value per share as at the end of March was 845.0 pence per share, up 5.8% from 799.0p on the same date the year before, as the value of its portfolio rose by 2.9% during the year, driven by development gains, rental values rising by 0.3% and lower investment yields.
Pretax profit for the year to March 31 was GBP76.7 million, swinging from a loss of GBP140.2 million the year before due to a surplus from investment properties of GBP35.5 million, swinging from a deficit of GBP136.9 million.
Net rental income rose to GBP92.0 million from GBP80.2 million, and revenue more than tripled to GBP386.5 million from GBP121.9 million, due to a contribution of GBP262.3 million coming from the sale of residential units within the mixed-use scheme at Rathbone Square, W1.
Great Portland Estates declared a final dividend of 7.3 pence per share, taking the total payout to 11.3p, up from 10.1p the year before.
"Whilst we expect, and are planning for, continued economic uncertainty, we look to our future with confidence: although we can expect a softening in market rents and some secondary asset yields, occupier demand remains healthy across our retail and office portfolio. With London's investment markets remaining competitive, we have no need to buy, preferring the relative returns on offer from investing in our portfolio. It is full of opportunity, including 1.7 million square feet of development potential, 400,000 square feet of which is now on site," said Chief Executive Toby Courtauld.
Shares in Great Portland Estates were down 1.1% at 668.70 pence on Wednesday.
