Great Portland Estates hits new leasing record in December quarter

Great Portland Estates reported a new leasing record in an update for the December quarter on Thursday, including its largest-ever letting at 2 Aldermanbury Square.

The FTSE 250 company said it signed 29 new leases and renewals in the period ended 31 December, generating annual rent of £34.3m, of which its share was £33.1m.

Market lettings were on average 2.1% ahead of March 2022 estimated rental values.

The form said that included its largest ever pre-let at 2 Aldermanbury Square of £24.7m on a 20-year term.

It also included six fitted and two fully-managed leases, achieving on average £196 per square foot on the fully-managed space, 7.1% ahead of March estimated rental values.

The quarter also saw 11 new retail leases inked, securing £4.6m of rent with market lettings 12.6% below March estimated rental values, including a “significant” letting to Reserved at 70-88 Oxford Street.

One rent review was settled, securing £0.8m of annual rent of which the company’s share was £0.4m, which was 9.4% ahead of the property’s previous passing rent.

Total space covered by new lettings, reviews and renewals was 438,000 square feet for the December quarter.

GPE said a further £2m of rent was under offer, with market lettings 20.1% ahead of March estimated rental values, while 99% of rent charged was collected within seven working days.

“We are pleased to announce that the leasing momentum we reported with our interim results continued through to the end of the 2022,” said chief executive officer Toby Courtauld.

“In a strong quarter, we signed our largest ever pre-let at 2 Aldermanbury Square with Clifford Chance, and made substantial progress leasing the remainder of our retail space at our Hanover Square and 70-88 Oxford Street developments.”

Courtauld said that with “robust demand” for “the best spaces” in central London, GPE was confident in the attractions of its “highly sustainable, flexible, tech-enabled spaces” in a market where high-quality product was increasingly scarce.

“Plus, given the combination of our low levels of leverage and the talents of our experienced team, we are well placed to benefit from opportunities as they arise.”

At 0815 GMT, shares in Great Portland Estates were up 1.76% at 550p.

Reporting by Josh White for Sharecast.com.