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Great Portland Estates expects fall in demand, raises dividend

The landlord also signed a new rental contract, established a community fund and vowed to go net-zero by 2030

Great Portland Estates - Great Portland Estates expects fall in demand, r dividend

Great Portland Estates PLC (LON:GPOR) has suspended guidance as it expects declines in rental and capital values as the pandemic hits property demand in London's West End.

However, the FTSE 250-listed firm said it is well-positioned thanks to a strong leasing record and high demand for its locations, as “92% of our portfolio is within walking distance of a Crossrail station”.

READ: Intu and Hammerson a ‘sell’, Great Portland Estates and Capital & Counties a ‘buy’ for Liberum though most real estate players to survive the crisis

In the year to 31 March, the portfolio valuation was flat with offices up 1% and retail down 3.5%.

Net asset value per share rose 1.8% to 868p with net assets of £2.2bn.

The total dividend was raised by 3.3% to 12.6p per share.

New contract, sustainable initiatives

Also on Wednesday, the property owner revealed a new contract with Exane BNP Paribas to pre-let a 39,970 square feet of office space in central London on three separate 15-year leases.

“Although a relatively small letting and no rent has been disclosed, it is encouraging to see tenants continue to sign leases,” Peel Hunt commented.

In another update, Great Portland Estates announced plans to become a net-zero carbon business by 2030.

The landlord also launched a community fund to donate the proceeds of salary cuts to charities in London.

Shares dipped 2% to 628.6p on Wednesday at the opening bell.

Quick facts: Great Portland Estates

Price: 676.8 GBX

LSE:GPOR
Market: LSE
Market Cap: £1.72 billion
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