Great Portland Estates Plc · LSE:GPE
Great Portland Estates — Investor Presentation (March 2025)
26 slides from Great Portland Estates's investor presentation, March 2025
Slide 1: Investor & analyst Flex session - March 2025
Investor & analyst Flex session - March 2025 We unlock potential, creating premium sustainable space for London to thrive
Slide 2: Agenda
Agenda Our strong momentum Toby Courtauld, Chief Executive Our Flex offer & performance Nick Sanderson, Chief Financial and Operating Officer Our Flex leasing & pipeline Simon Rowley, Director of Flex Workspaces Summary & what's next Toby Courtauld, Chief Executive Q&A 2
Slide 3: Our Key Messages
Investor & analyst Flex session - March 2025 Our Key Messages Strong operational momentum; compelling investment case • New deliveries leasing faster and for more than underwrite • Adding to future growth; new accretive acquisition under offer Unique Flex offer; premium Fully Managed spaces (not co-
Slide 4: Our Compelling 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 5: Our Strong Operational Momentum
Our Strong Operational Momentum In a market with robust fundamentals 1. Strong Leasing; Delivering for Customers 3. Exceptional Pipeline • £17 million of leases signed (9 months to 31 Dec 2024) • Three premium HQ developments; healthy returns • 11.5%> Mar ‘2024 ERV; Flex £7.3m, 9.7%> Mar ‘2024 ERV •
Slide 6: 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 7: Why Flex matters to GPE
Why Flex matters to GPE Supportive structural themes playing to our strengths Supportive Structural Themes The Evolving Premium Workplace Growing demand for service and flexibility • Close proximity to public transport • Hassle free experience; all in one bill • Amenity rich, both in and around the
Slide 8: 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 9: 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 10: 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 11: Our Diverse Customer Mix
Our Diverse Customer Mix1 High-quality businesses, majority corporate and professional & business services Professional Corporates and business services 26% 29% Market leading NPS +48.3 15% Financial 30% Services TMT 1. At Feb 2025 11
Slide 12: Our Diverse Customer Mix
Our Diverse Customer Mix What they say about us “It is really easy to deal with our customer experience managers on a daily basis. We get on very well with "I just wanted to write and say thank you them, and I would say we are very lucky for welcoming the team and for all your to have them in this b
Slide 13: 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 14: 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 15: Recent Deliveries: SIX, EC4
Recent Deliveries: SIX, EC4 Strong Leasing to date; growing our Farringdon cluster Background • Bought May 2022 off-market; £30m; 46,200 sq ft • 39% discount to replacement cost • 9 floors, 1,200 – 5,850 sq ft • Large, high quality amenity provision • Welcome lounge and boardroom • Wellness facility
Slide 16: 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 17: Recent Deliveries: 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 18: Upcoming Deliveries: Summer '25
Upcoming Deliveries: Summer ‘25 170 Piccadilly, SW1 & 141 Wardour Street, W1; good pre-let potential 141 Wardour Street, W1 • Corner of two prime Soho streets (near Dufour's Place) • 29,900 sq ft; 6 floors: 2,400 to 4,600 sq ft • Gym, podcast studio, boardroom/screening room; shared rooftop terrace
Slide 19: With More to Come...
With More to Come... Gresse Street, W1 & The Courtyard, WC1 Gresse Street, W1 The Courtyard Building, Alfred Place, WC1 • In Fitzrovia cluster • In Fitzrovia cluster, opposite 31 Alfred Place • 37,000 sq ft Fully Managed offices • 40,000 sq ft Fully Managed offices • Unit range: 900 to 3,800 sq ft •
Slide 20: 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 21: Summary and What's Next
Summary and What’s Next GPE Positioning Strong • Flex spaces a core element of the GPE office offer • Prerequisite for maximising returns from smaller spaces • The customer base is widening & increasingly corporate • We have strong leasing momentum; beating our underwrite • Confidence for next round
Slide 22: Appendix
Appendix We unlock potential, creating premium sustainable space for London to thrive
Slide 23: 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 24: 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
Slide 25: 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 26: Disclaimer
Disclaimer This presentation contains statements that constitute forward-looking statements relating to the business, financial performance, results of operations, financial condition, liquidity, prospects, growth and strategies and results of GPE and the industry in which GPE operates. These statem
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