(Alliance News) - Great Portland Estates PLC on Friday said it swung to profit in the first half of its current financial year amid improved leasing activity.
The London-based property development and investment company said its portfolio valuation was GBP2.5 billion on September 30, up 2.0% on a like-for-like basis. Great Portland said 35 new leases were signed during the first half, generating annual rent of GBP27.0 million, up from GBP6.1 million a year prior.
Total space covered by new lettings, reviews and renewals during the first half rose to 387,200 square feet from 136,400 square feet last year.
"We are pleased to report on a productive first half, delivering valuation gains, strong leasing at levels well ahead of rental values, exceptional development returns and profitable asset sales," said Chief Executive Toby Courtauld.
Net asset value and net tangible assets per share were 796 pence as at September 30, up 2.2% over six months.
Revenue from the company's wholly-owned properties for the six months to September 30 was at GBP42.2 million, down from GBP42.4 million a year earlier. Great Portland swung to a pretax profit of GBP62.3 million from GBP154.8 million loss a year earlier.
The company has declared an interim dividend of 4.7 pence per share, unchanged year-on-year.
In addition, Great Portland on Friday launched a social impact strategy to help its communities and create GBP10 million of social value by 2030.
"We have always worked hard to maintain sustainable relationships with our communities and this strategy sets out clear commitments and actions against which we will hold ourselves to account as we strive to deliver our social value vision," said Chief Financial & Operating Officer Nick Sanderson.
FTSE 250-listed Great Portland shares were trading 1.2% higher in London on Friday at 756.00p each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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