Great Portland Estates Plc · LSE:GPE
Great Portland Estates — Investor Day (April 2025)
28 slides from Great Portland Estates's investor day presentation, Apr 8, 2025
Slide 1: Full Year Results 2020
Great Portland Estates plc Full Year Results 2020
Slide 2: West End Tour of Recent Acquisitions and Deliveries
West End Tour of Recent Acquisitions and Deliveries Agenda HQ; acquired Nov 24 Whittington House, WC1 Flex; acquired Oct 24 Flex; acquired May 24 19/23 Wells Street, W1 The Courtyard, WC1 Flex; delivered Jan 25 31 Alfred Place, WC1 HQ; acquired Mar 25 One Chapel Place, W1 Other GPE holdings 2
Slide 3: Our Key Messages – Strong Operational Momentum
West End Tour Great Portland Estates plc Full Year Results 2020 Our Key Messages – Strong Operational Momentum Growing development returns • On-site HQ developments attracting strong customer demand; pre lets to accelerate returns • Adding to future growth; new accretive HQ acquisition at Chapel Pla
Slide 4: GPE at a Glance
GPE at a Glance Delivering a premium office and retail offer into the most prime central London locations Our Strategy: Targeting Returns in Excess of our Cost of Capital £2.5 billion1 Property Portfolio – 93% Near Elizabeth line 100% central London West End Focus Our locations (by value) 6% West En
Slide 5: GPE Investment Case
GPE Investment Case Our Compelling Investment Case 100% prime central London locations; global city, outperforming both UK and EU capitals 100% premium spaces; creating luxury HQ & Flex offices and retail, high NPS & customer retention Highly active, cycle led business model; supported by structural
Slide 6: Our Most Recent Acquisition; One Chapel Place
Our Most Recent Acquisition; One Chapel Place Best-in-class HQ redevelopment opportunity 6
Slide 7: Our Most Recent Acquisition; One Chapel Place
Our Most Recent Acquisition; One Chapel Place Best-in-class HQ redevelopment opportunity • Bought off market: £56.0m; £985 psf on the proposed NIA • 34,320 sq ft freehold interest 5 • 19% discount to replacement cost • Three-year income: c.£2.5m p.a. • Customers include: Carter Jonas, Beast, Pret A
Slide 8: Why Flex matters to GPE
Why Flex matters to GPE Prerequisite for maximising returns from smaller central London spaces What We Said Last Year What We Have Done • The default choice for sub 5,000 sq ft office space • Flex 90% of GPE’s sub 5,000 sq ft deals; YTD: 35 deals, 3 Ready to fit • 57% of West End lettings sub 5,000
Slide 9: Well-Located, Premium Buildings in Targeted Clusters
Well-Located, Premium Buildings in Targeted Clusters Proven in numerous buildings and locations: 582,000 sq ft; 155 units committed SIX St Andrew St, EC4 21 3,000 sq ft 31 Alfred Place, WC1 Buildings Avg unit size 77 3.7 years Customers Avg lease length City City Tower, Tower, EC2 EC2, Minerva House
Slide 10: Our Fully Managed Performance
Our Fully Managed Performance Strong leasing driving performance Growing Rents Faster Than Ready to Fit Leasing Momentum Driving Performance1 ERV growth GPE Fully Managed Trailing twelve months FY 22 FY 23 FY 24 FY 25 (year to date) Indexed GPE Ready to Fit £17.9 m 120 +17.3% Leasing well - FY25 to
Slide 11: Acquired; 19/23 Wells St, W1
This is19/23 Acquired; a titleWells St, W1 Adding to West End Fully Managed cluster Bought off market: Oct ‘24 • £19 million, £991 psf; 7.6% NIY; 45% discount to replacement cost 1 • Simultaneous regear with freeholder to new 125 yr LLH @ 15% gearing • Leasing activity commenced • Second floor refre
Slide 12: Acquired; 19/23 Wells St, W1
This is19/23 Acquired; a titleWells St, W1 Creating best in class amenity Creating a premium arrival experience New ground floor layout, connecting to lower ground amenity 12
Slide 13: Recent Deliveries: 31 Alfred Place, WC1
Recent Deliveries: 31 Alfred Place, WC1 Strong Leasing to date; growing our Fitzrovia cluster Background • Acquired 2015; £16.5m; 41,500 sq ft • Part of Fitzrovia cluster of five buildings • ERV £7.3 million; NOI £3.7million • Fully refurbished to high quality Fully Managed space • New shared roof t
Slide 14: Recent Deliveries: 31 Alfred Place, WC1
Recent Deliveries: 31 Alfred Place, WC1 Largest Fully Managed letting to date • Largest Fully Managed deal to date - signed March 25 • 11,500 sq ft over four floors: lower ground, duplex, third and fourth floors • Rent ahead of underwrite and ERV (£183 psf) • Five-year term certain; valuation benefi
Slide 15: Thirty One Alfred Place, WC1
Thirty One Alfred Place, WC1 Growing our Fully Managed Fitzrovia cluster 15
Slide 16: Thirty One Alfred Place, WC1
Thirty One Alfred Place, WC1 Growing our Fully Managed Fitzrovia cluster 16
Slide 17: Acquired: The Courtyard Building, WC1
Acquired: The Courtyard Building, WC1 Growing our Fully Managed Fitzrovia cluster • Property swap exchanged April ‘24 ; completed January ‘25 • Bought: The Courtyard; £28.6m; £462 psf on existing area • 69% discount to replacement cost1 • Sold: 95/96 New Bond Street, W1; £18.2m, £2,039 psf, in line
Slide 18: Acquired: The Courtyard Building, WC1
Acquired: The Courtyard Building, WC1 Growing our Fully Managed Fitzrovia cluster Premium Flex refurb opportunity • New 155 yr City headlease at peppercorn • 62,000 sq ft of sustainability-stranded vacant office & partially let retail • Anticipated capex c.£62m • Planning consent March 2025 • Unit r
Slide 19: Acquired: Whittington House, Alfred Place, WC1
Acquired: Whittington House, Alfred Place, WC1 Adding to our HQ refurbishment pipeline 19
Slide 20: Acquired: Whittington House, Alfred Place, WC1
Acquired: Whittington House, Alfred Place, WC1 Adding to our HQ refurbishment pipeline Bought Nov ‘24 • £58.5 million; c.60% discount to replacement cost1 • 105 year LLH at 10% gearing from City Corporation • 74,500 sq ft office; c.9,000 sq ft floor plates Whittington House • Within our Alfred Place
Slide 21: Full Year Results 2020
Great Portland Estates plc Full Year Results 2020
Slide 22: Three Flex Products
Three Flex Products We understand our customers GPE Flex Products Flex Fitted Fully Managed Partnerships GPE delivered; Partnership delivered; What Customers Want by floor /building by desk/room Dedicated, fully furnished space; customised branding ✓ ✓ Flexible agreements; space to grow ✓ ✓ ✓ Sustai
Slide 23: Attractive Growth Opportunity
Attractive Growth Opportunity Fully Managed space to drive returns; creating £76m of NOI & c.£200 psf of additional value 1 million sq ft total Flex Fully Managed today: Organic growth to deliver 538,000 sq ft of Fully Managed by ambition will deliver £76.0m 357,000 sq ft committed March 2030; targe
Slide 24: Our Fully Managed Offer
Our Fully Managed Offer Premium space; hassle-free experience; all-in-one bill • Short form lease (via DocuSign) Private floor with your own front door; not by desk/room • Managed via in-house GPE lawyer • Outside the Act; no alienation Customer branded, customisable space • Annual rental uplifts -
Slide 25: Our Fully Managed Offer
Our Fully Managed Offer With high quality service as standard All inclusive office offer: • Community manager • Business rates • Food & beverage • Utilities • Cleaning • Maintenance inc. handyman service • Planting • Waste management No. of units1 122 Annualised rent roll / NOI £32m / £16m Average l
Slide 26: Our Fully Managed Performance
Our Fully Managed Performance Platform in place driving efficiencies and economies of scale Platform built Clusters forming • Customer retention & growth • Lower friction & vacancy costs • Lower refresh spend (assume £5 psf p.a.) • Shared amenity Optimising opex costs and delivering first class serv
Slide 27: Flex Acquisitions
Flex Acquisitions Clear criteria GPE Flex Requirements • Amenity rich locations/excellent transport links • Clustering around existing GPE holdings desirable • Targeting Soho, Mayfair/St James’s, Fitzrovia, Southwark, Farringdon/Midtown • 30-60k sq ft with divisible floorplates • Target unit size of
Slide 28: Our Flex Performance
Our Flex Performance How we measure performance Target Lettings 12mths to Sep ‘24 Calculation Purpose Fitted Managed Fitted Managed Flex NE rent − opex − voids Book value + Capex Relative income return on capital Yield on cost 5.0%+ 6.0%+ 6.1% 6.8% invested Average over 10 years post refurb Fully Ma