Great Portland first half profit, NAV rise on solid leasing activity

Great Portland Estates posted a 15.7% rise in first half pre-tax profit and a 14% jump in net asset value per share on the back of solid leasing activity.

NAV per share rose to 808p in the six months to the end of September, while pre-tax profit came it at £24.3m, largely reflecting the acquisition of Starwood Capital’s interest in GSP and development management profits at 12/14 New Fetter Lane in London.

Total revenue for the period came in at £69.5m, up from £40.7m in the first half of last year.

Chief executive Toby Courtauld said: "We are pleased to report another strong set of results, driven by market-beating portfolio returns, particularly in our development business, and some outstanding leasing activity, including one of the largest ever lettings in the West End.

“In our investment markets, there remains a surfeit of buyers over assets for sale but we expect macro concerns to reduce investors' appetite for lesser quality assets, particularly where prices have run ahead of the rental growth on offer. Demand for prime properties remains robust.”

The company said vacancy rates in the West End are at record lows and with much of the inventory of space under development already pre-let, it expects to see a further increase in rents.