Great Portland Estate reaffirms guidance on strong quarterly leasing

Thu, 10th Oct 2024 12:11

(Alliance News) - Great Portland Estates PLC on Thursday celebrated continued "leasing momentum", with strong letting number sin the most recent quarter.

For the three months to September 30, the London-based commercial property company signed 15 new leases and renewals, generating annual rent of GBP6.1 million. Market lettings were on average 6.4% ahead of March's estimated rental value.

In total, 28 new leases and renewals were signed over the first half, generating annual rent of GBP10.5 million. This included 11 full-managed leases signed, generating an additional GBP5.5 million of rent roll.

The group's rent roll is now GBP109.6 million, up 2% since April 1.

Taking into account current leasing to date, Great Portland reiterated its rental growth guidance for the financial year of between 3% and 6%. For prime office space, guidance is for 5% to 10% growth.

"With economic conditions improving and interest rates now falling, London's unique characteristics set it apart as a global office hub with healthy long-term growth prospects; strong customer demand for our market-leading HQ and Flex spaces is enabling us to lease ahead of expectations in a market starved of such centrally-located, quality space and underpinning our conviction in our sizeable near-term pipeline," said Chief Executive Toby Courtauld.

"Meanwhile, favourable investment markets play to our acquisition ambitions and with our balance sheet strength we expect to add to our recent purchases, enhancing our already attractive growth prospects."

Shares in Great Portland Estates were trading 1.3% lower at 337.65 pence each in London on Thursday afternoon.

By Holly Beveridge, Alliance News senior reporter

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GPE