GPE slips to loss as retail suffers

Great Portland Estates has posted a full-year loss for the first time in four years, with the pandemic dealing a blow to the value of its retail portfolio. Revenue at the West End landlord fell to £88.5m during the year ending March, down 13.7% year on year. This led to a £202m pre-tax loss, compared with £51m profit in the previous year. The landlord previously fell into the red in 2017. The firm’s portfolio value fell by 8.7% to £2.5bn, driven by a 27.3% decline in retail. The value of its offices portfolio was down 1.7%. Retail rental values slipped by 16.7% during the course of the year. However, office rental values inched up by 0.5%. EPRA NTA per share dropped by 10.3% year on year to 779p. However, chief executive Toby Courtauld pointed to a “recovering market”. He also said the firm intends to grow its flex office offer and to bring forward its near-term development programme, which includes committing around £900m of capex to deliver net-zero carbon spaces. Courtauld said: “While uncertainty remains, we are encouraged by the recent acceleration in enquiries we are receiving from prospective occupiers, particularly for our prime grade-A and flex office products. “With limited supply across central London over the next few years, we can expect innovative, flexible and well-serviced space with strong wellbeing and sustainability credentials to command an increasing premium to poorer space.” He added: “Although it may take a little time for the full buzz of London to return, we believe it will, driven by this great capital’s magnetic appeal as the cultural and commercial heart of the UK, and its unique position as a global city.” To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews