Great Portland Estates Plc · LSE:GPE
Great Portland Estates — FY2025 Earnings Presentation
99 slides from Great Portland Estates's earnings presentation, May 2025
Slide 1: Full Year Results 2025
Full Year Results 2025 We unlock potential, creating premium, sustainable space for London to thrive Minerva House, SE1
Slide 2: Executing growth strategy: accelerating activities
Full Year Results 2025 Executing growth strategy: accelerating activities • Strong operational performance • Committed Rights capital ahead of plan into growth opportunities • Creating more premium spaces into market starved of quality • Record investment leasing; strong Flex growth • Upgraded renta
Slide 3: 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 £2.9 billion1 Property Portfolio – 94% Near Elizabeth line 100% prime central London West End Focus Our locations (by value) 6% W
Slide 4: Delivering on Our Growth Strategy
Delivering on Our Growth Strategy Contra-Cyclical Capital Management; raise and buy when cheap...sell and distribute when too expensive £m Index 130.0 Central London Develop & net seller; equity returned real capital values1 (RHS) 166 138 336 250.0 120.0 Acquisitions less sales 110.0 - Acquisitions
Slide 5: Full Year 2025 Results
Full Year 2025 Results Strong Operational Performance Record investment lettings GPE Lettings (£m) & Vacancy Rate 20.0% • £38m; 10.6% > Mar ‘24 ERV1 Pre-lets Vacancy (right hand scale) 60 • Offices 11.5% beat 13.2% • FY ’26 to date £17.6m, 5.5% > Mar ’25 ERV1 £37.7m 10.8% • 62k sq ft pre-let, 15 yrs
Slide 6: Supportive Leasing Conditions
Supportive Leasing Conditions Best rents to continue rising despite macro uncertainty Jobs Up; Take Up In Line; Strong Active Demand Undersupply of New Offices: 74% Additional Supply Required London Office Jobs1 City & West End2 c.2/3 will only Spec completions (‘25-’28 avg)4 2.7m sq ft pa Millions
Slide 7: London Investment Market Recovering
London Investment Market Recovering Return of competitive bidding & larger deals Market Commentary Real Capital Values Inflecting; Remain Near 2009 Low Central London Real Capital Value1 • Capital values inflecting, driven by rental growth, but still low 125 Index, March 2000 = 100 • Turnover remain
Slide 8: Market Outlook; Strongly Supports Our Strategy
Market Outlook; Strongly Supports Our Strategy Rental value growth guidance upgraded Office Rents Yields Near Term Outlook Near Term Outlook Driver Nov ‘24 May ‘25 Driver Nov ‘24 May ‘25 GDP / GVA growth Rental growth Business confidence Weight of money Business investment Gilts Employment growth BB
Slide 9: Agenda
Agenda Delivering Our Strategy Toby Courtauld, Chief Executive Market Opportunity Platform for Growth - Acquisitions & Sales Toby Courtauld, Chief Executive - Development - Flex Nick Sanderson, Chief Financial & Operating Officer Financial Results Nick Sanderson, Chief Financial & Operating Officer
Slide 10: Successful Deployment of Rights Issue
Successful Deployment of Rights Issue Four acquisitions in year; more to come; and more sales Fully Managed Fully Managed HQ HQ The Courtyard Building, WC1 19/23 Wells St, W1 Whittington House, WC1 One Chapel Place, W1 Purchased May ‘24 Purchased Oct ‘24 Purchased Nov ‘24 Purchased Mar ‘25 2024 2025
Slide 11: Acquired: One Chapel Place, W1
Acquired: One Chapel Place, W1 Best-in-class HQ redevelopment opportunity Bought Mar ‘25 • £56.0m; £985 psf on the proposed NIA • 34,230 sq ft freehold Cavendish Square • 19% discount to replacement cost1 • Prime location; two minutes from Bond St Elizabeth line station • Three-year income: c.£2.5m
Slide 12: Acquired: One Chapel Place, W1
Acquired: One Chapel Place, W1 In design and planning discussions Potential for Significant Increase in Area Inherited planning application Existing Indicative Increase Net Lettable Area 34k sq ft 50 - 60k sq ft 45-75% Target HQ metrics Chapel Place Stabilised Yield 150-200 bps > cap rate Profit on
Slide 13: On Site HQ Developments; Good Progress
On Site HQ Developments; Good Progress All Prime; exemplary sustainability; strong pre-let potential 2 Aldermanbury Square, EC2 30 Duke Street St James’s, SW14 322,600 sq ft; +83% 70,900 sq ft; +30% 100% pre-let; c.1,700t of steel for re-use Steel reuse from City Place House = column free floors On
Slide 14: Near Term HQ Programme
Near Term HQ Programme Delivering into supply drought Soho Square Estate, W1 Whittington House, Alfred Place, WC1 93,200 sq ft; +62% New build; best in class amenity inc. extensive terracing Start on site H2 ‘25 Anticipated finish Q3 ’28 74,800 sq ft Major refurb / extension; in design Start on site
Slide 15: Significant Capex Programme
Significant Capex Programme 37% of portfolio; delivering into deep supply shortage Chapel Place, 19/23 Wells St, Whittington House, The Courtyard, 7/15 Gresse St, 2 Aldermanbury Minerva House, W1 W1 (Flex) WC1 WC1 (Flex) W1 (Flex) Sq, EC2 SE1 3 On site HQ Development 73% pre-let1 0.5m sq ft 4 On sit
Slide 16: Growth opportunities across the portfolio
This Opportunities Growth is a title …across the portfolio Value Mar ‘25 £240m 79% West End Pipeline 8% £921psf Bring to site; 3 near-term projects, 356,800 sq ft starting NTM HQ Developments 21% Committed 13% £373m Complete & lease £662psf Move into Long Dated Rent & value growth through… Kingsland
Slide 17: Agenda
Agenda Delivering Our Strategy Toby Courtauld, Chief Executive Market Opportunity Platform for Growth - Acquisitions & Sales Toby Courtauld, Chief Executive - Development - Flex Nick Sanderson, Chief Financial & Operating Officer Financial Results Nick Sanderson, Chief Financial & Operating Officer
Slide 18: Delivering our Unique Flex Strategy with Conviction
Delivering our Unique Flex Strategy with Conviction Prerequisite for maximising returns from smaller central London spaces What We Said Last Year What We Have Done Default choice for sub 5,000 sq ft office space Flex 90% of GPE’s sub 5,000 sq ft deals (66% central London1) Market is sizeable and gro
Slide 19: GPE Fully Managed: Exploiting a Growth Opportunity
GPE Fully Managed: Exploiting a Growth Opportunity Continuing to drive our Fully Managed NOI growth in a growing market £23m of Fully Managed Leasing in Year to Increasingly Corporate Customer Base 12 months to Lettings Mar ‘25 Mar ‘24 Target Absolute performance Yield on cost 6.6% 6.3% >6.0% Servic
Slide 20: GPE Fully Managed: Driving Income Growth
GPE Fully Managed: Driving Income Growth +4.5x NOI at 1m sq ft ambition Organic Flex Growth (to 0.7m sq ft) lifts Fully Managed NOI1 to £55m+; Acquisitions (to 1m sq ft) Lifts to £90m+ £90.2 m +4.5x 19.5 34.8 55.4 17.5 Service Profit generating 12.3 £200m+ +93% 6.3 +£36m, +2.5x additional value2 19.
Slide 21: Financial Results: Platform for Growth
Financial Results: Platform for Growth Strong foundations – we have passed the valuation and earnings trough Financial Priorities FY ’25 Performance Property value £2.9bn ↑ 3.6% Best continues to outperform 1. Drive value growth EPRA NTA 494p ↑ 4.4% First uplift since 2022 + EPRA earnings £20.2m ↑ 1
Slide 22: Strong Foundations: Platform for Growth
Strong Foundations: Platform for Growth Property valuation up 3.6% to £2.9 bn; opportunity-rich portfolio (83% offices) Attractive ERV growth; Prime Spaces Driving Value Growth Equivalent Yield of 5.5% (or 7.0% on share price implied basis 4) Property 8.7 % 12 months valuation1 ERV Growth1 Yield 8.0
Slide 23: Drive Value Growth
Drive Value Growth Deliver surpluses of £340m+ through capex and crystallising returns through sales c.£700m Capex Programme1; GDV £1.8bn Disciplined Portfolio Management to Continue 600 % of portfolio3 On-site Near- Total Surplus2 1% 2% £m (7) term (4) £576m HQ Capex £357m £343m £700m -25bp yield c
Slide 24: Drive Income Growth
Drive Income Growth HQ and Fully Managed deliveries to drive rent roll growth and potential >3x EPS growth Rent Roll Up 15% in year; Potential Further 131% Organic Growth 300 £25.1m £284.0m c.£50m £74.2m 250 Ready to Fit 200 £47.6m £8.1m +43% 150 £123.2m £5.8m +131% Retail 100 +15% Fully 50 LTM Mana
Slide 25: Consistent Financial Strength
Consistent Financial Strength LTV maintained post Rights Issue as invested into rising market GPE Target LTV Range = 10%-35% through the Cycle Robust Debt Metrics Mar ‘25 Mar ‘24 EPRA LTV (%) 40% EPRA LTV 30.8% 32.6% 35% 30.8% Interest cover3 10.9x 3.7x GPE LTV target Liquidity1 £376m £633m 20% rang
Slide 26: Financial Outlook: Investing for Growth
Financial Outlook: Investing for Growth Delivering our strategy of value and income growth to generate >10% ROE in medium term FY ’26 Medium Term Financial Priorities Key Actions Performance Guidance Outlook Deliver development surpluses of £340m+ Property value ↑ ↑↑ 1. Drive value growth Crystallis
Slide 27: Agenda
Agenda Delivering Our Strategy Toby Courtauld, Chief Executive Market Opportunity Platform for Growth - Development Toby Courtauld, Chief Executive - Acquisitions & Sales - Flex Nick Sanderson, Chief Financial & Operating Officer Financial Results Nick Sanderson, Chief Financial & Operating Officer
Slide 28: Outlook: More Growth
Outlook: More Growth Strengthening market opportunity • London; relatively attractive. Europe’s business capital • Healthy demand > supply drought • Rents rising; best outperforming the rest • Office values inflecting • Investment market; signs of recovery • Grade A yield compression possible Execut
Slide 29: Agenda
Agenda Toby Courtauld, Chief Executive Nick Sanderson, Chief Financial & Operating Officer Dan Nicholson, Executive Director Q&A: Janine Cole, Sustainability & Social Impact Director ir@gpe.co.uk Simon Rowley, Director of Flex Workspaces Marc Wilder, Leasing Director Andrew White, Development Direct
Slide 30: Disclaimer
Disclaimer This presentation contains certain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or impli
Slide 31: Appendix: Portfolio and Valuation
Appendix Appendix: Portfolio and Valuation 31
Slide 32: GPE Portfolio Mix
GPE Portfolio Mix1 At 31 March 2025 By Type (by value) By Location (by value) Midtown 6% Retail Southwark 17% 7% City 15% Noho 39% Office Rest of West End 83% 33% 1. Includes share of Joint Ventures 32
Slide 33: The Valuation
The Valuation Including share of Joint Ventures Movement % Office vs Retail1 To 31 Mar‘25 £m 12 months 6 months Offices Retail2 FY’25 North of Oxford St 938.7 3.6% 2.0% 4.3% FY’25 +1.0% Rest of West End 875.7 5.2% 3.4% Total West End 1,814.4 4.4% 2.7% Total City, Midtown & 507.7 2.8% 3.5% Southwark
Slide 34: The Valuation
The Valuation1 Drivers of valuation movement % movement Yield shift Rental value movement Residual 6 months (1.8%) 3.9% 0.7% 12 months (2.7%) 5.0% 1.3% (4.0%) (2.0%) - 2.0% 4.0% 6.0% 8.0% 1. Including share of Joint Ventures 34
Slide 35: The Valuation
The Valuation Including share of Joint Ventures Net Initial Yield1 Equivalent Yield Basis point +/- % % 12 month 6 month North of Oxford Street Offices 3.0% 5.6% 23 19 Retail 3.3% 5.4% -1 -3 Rest of West End Offices 3.0% 5.1% -1 -1 Retail 3.8% 4.7% 3 2 Total West End 3.1% 5.3% 12 10 City, Midtown an
Slide 36: The Valuation
The Valuation Including share of Joint Ventures 12 months to Value Mar’25 Change 6 months £m £m % % North of Oxford St 938.7 32.6 3.6% 2.0% Rest of West End 875.7 43.2 5.2% 3.4% Total West End 1,814.4 75.8 4.4% 2.7% City, Midtown and Southwark 507.7 13.9 2.8% 3.5% Investment portfolio 2,322.1 89.7 4
Slide 37: The Valuation
The Valuation Wholly Owned 12 months to Value Mar‘25 Change 6 months £m £m % % North of Oxford St 897.8 29.4 3.4% 1.7% Rest of West End 513.2 29.1 6.0% 3.1% Total West End 1,411.0 58.5 4.3% 2.2% City, Midtown and Southwark 410.3 18.2 4.6% 5.8% Investment portfolio 1,821.3 76.7 4.4% 3.0% Development
Slide 38: The Valuation
The Valuation Joint Ventures (100%) 12 months to Value Mar‘25 Change 6 months £m £m % % North of Oxford St 82.0 6.6 8.7% 8.0% Rest of West End 725.0 28.1 4.0% 3.9% Total West End 807.0 34.7 4.5% 4.3% City, Midtown and Southwark 194.7 (8.6) (4.2%) (5.1%) Investment portfolio 1,001.7 26.1 2.7% 2.3% De
Slide 39: The Valuation
The Valuation1 ERV and reversionary potential Average Office Average Reversionary Movement in ERV Rent Passing Office ERV Potential 12 months To 31 Mar‘25 6 months % £m % £ per sq ft £ per sq ft % North of Oxford St Offices 5.5% 2.4 4.0% 98.50 117.40 12.7% Retail 4.1% 0.6 2.9% 10.6% Rest of West End
Slide 40: GPE Leasing Progress
GPE Leasing Progress GPE: Investment Portfolio Lettings1 Lettings, % ahead of ERV2 £m (18.6) (6.0) 7.8 13.3 8.7 4.2 4.5 8.7 1.5 3.4 5.9 8.4 0.7 7.5 4.1 9.1 10.6 40 2009 – FY 2025 Avg +4.3% above ERV 30 20 10 0 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 24 25 GPE: Space Under Offer3
Slide 41: Portfolio Customer Mix
Portfolio Customer Mix Retail, hospitality and Corporates 18% leisure 28% Financial Services 24% Professional 19% and business services 11% TMT 41
Slide 42: Portfolio Management
Portfolio Management Customer retention, 12 months to Mar ‘251 Area (000 sq ft) 450 400 381 350 82 299 300 250 200 87% 150 100 50 7% 6% 0 Expiries & Breaks Refurbishment / Sub total Retained Relet / Under offer Remaining Development 1. Joint Ventures at 100% 42
Slide 43: Portfolio Management
Portfolio Management Expiry profile1 % by total rental income subject to lease expiry or break Years to March Investment Portfolio Near Term Developments 40.0 30.0 0.9 20.0 3.2 24.2 22.2 10.0 17.0 13.4 9.6 9.5 0.0 '26 '27 '28 '29 '30 After 1. Includes share of Joint Ventures 43
Slide 44: Portfolio Management
Portfolio Management Void rate, % by rental value1 % by rental value as at 31 March ‘25 50 Investment Portfolio Newly completed developments Development / refurbishment Pre-Let 45 9.8 40 11.2 11.6 35 CD&R pre-let 30 HQ 16.5% 2.4 3.3 12.2 3.5 4.2 7.1 13.1 25 14.5 4.7 5.5 15.4 4.7 5.8 6.4 30.4 20 12.9
Slide 45: Appendix: Financials
Appendix: Financials 45
Slide 46: Balance Sheet
Balance Sheet Proportionally consolidated for Joint Ventures £m Group JVs Total Mar ‘24 Investment property 2,368.5 500.8 2,869.3 2,331.2 Other assets 29.2 2.1 31.3 37.3 Net debt at book value (811.1) 15.9 (795.2) (691.8) Other liabilities (93.1) (11.6) (104.7) (94.1) Net assets and EPRA NTA 1,493.5
Slide 47: Income Statement
Income Statement Proportionally consolidated for Joint Ventures £m Group JVs Total Mar ’24 Rental income 67.3 15.9 83.2 91.5 Fees from joint ventures 2.5 - 2.5 1.7 Property and administration costs (50.3) (3.4) (53.7) (57.7) Revaluation of other investments (0.4) - (0.4) (0.2) Finance costs (5.9) (5
Slide 48: EPRA Performance Measures
EPRA Performance Measures Measure Mar ‘25 Mar ‘24 EPRA Net Tangible Assets £2,000.7m £1,582.6m EPRA NTA per share 494p 520p1 EPRA NDV £2,047.2m £1,633.7m EPRA NDV per share 506p 537p1 EPRA NRV £2,210.0m £1,752.7m EPRA NRV per share 546p 576p1 EPRA LTV 30.8% 32.6% Mar ’25 Mar ’24 EPRA earnings £20.2m
Slide 49: EPRA NTA and EPS Per Share
EPRA NTA and EPS Per Share NTA up 4.4% as valuations inflect; EPRA Earnings up 12.8% driven by lower admin & net interest pence EPRA NTA £m EPRA Earnings 5 500 25 3 494 495 21 6.5 8 20.2 490 20 1.6 17.9 485 3.9 480 15 475 473 4.8 1.7 470 10 465 460 5 455 450 0 Mar '24 Wholly owned JV valuation EPRA
Slide 50: Administration Costs
Administration Costs Reduction in admin driven by salaries and other corporate cost savings £m 50 Salaries and other employee costs Performance/share-based pay Other Average Headcount 45 158 150 145 40 129 10.3 124 35 9.8 114 111 110 11.6 30 8.9 12.0 25 7.9 11.9 8.6 8.0 7.8 9.6 6.9 20 7.7 15 3.7 5.6
Slide 51: Robust Debt Metrics
Robust Debt Metrics Low-cost debt book Mar ‘25 Mar ’24 Net debt excluding JVs1 (book value £m) 835.7 738.0 Gearing (net debt/net equity) 41.9% 46.8% Total net debt including 820.9 713.5 50% JV cash balances (£m) EPRA loan-to-property value 30.8% 32.6% Mar ‘25 Mar ’24 Interest cover ratio as per bank
Slide 52: Robust Debt Metrics
Robust Debt Metrics Debt maturity profile Attractive Debt Profile: 5.2yrs WADM3; Well Positioned £m3 500 £75m ESG-linked Term Loan £450m ESG-linked RCF £150m ESG-linked RCF £250m Sustainable Bond £450m ESG-linked RCF 175bp margin Partially drawn Partially drawn Baa2 rating2 £150m ESG-linked RCF 5.4%
Slide 53: Joint Venture Business
Joint Venture Business Contribution to Group % of net assets held in JV Net assets held in JV1 40 Access to new property Risk sharing £122.5m 35 £336.9m 30 25 £47.8m 20 Total £507.2m 15 As % of 25.4% Group net assets 10 Previous joint venture partners 5 0 Mar '14 Mar '15 Mar '16 Mar '17 Mar '18 Mar
Slide 54: ROE 10%+ into Medium Term
ROE 10%+ into Medium Term 5.8% Clear path to double digit annual TAR GPE Guidance 14.0% Upside potential 12.0% 10%+ 10.0% 4.0% - 5.0% Yields: • At cyclical high 8.0% • Best assets: potential compression (25bps = c.5% value uplift) 6.0% 4.0% - 5.0% Set to grow with 4.0% development & Flex completions
Slide 55: Appendix: Flex
Appendix: Flex 55
Slide 56: 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 25 3,100 sq ft 31/34 Alfred Place, WC1 Buildings Avg unit size 88 3.5 years Customers Avg lease length City City Tower, Tower, EC2 EC2, Minerva Ho
Slide 57: 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 58: Our Fully Managed Offer
Our Fully Managed Offer With high quality service as standard All inclusive office offer: Opex breakdown: Connectivity and IT 12% 10% • Community manager Housekeeping 10% 17% Service charge • Business rates Staff costs • Food & beverage c.£45 psf 11% Utilities • Utilities 5% Workplace experience Oth
Slide 59: Recent Deliveries: 31/34 Alfred Place, WC1
Recent Deliveries: 31/34 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, £2.1m p.a) • Five-year term certain; valu
Slide 60: Fully Managed: Four Significant Refurbishment Schemes
Fully Managed: Four Significant Refurbishment Schemes Collectively delivering best in class space into our target clusters 141 Wardour St, W1 The Courtyard, WC1 • On site; 29,900 sq ft • On site; 47,000 sq ft • ERV1 £250 sq ft • ERV1 £223 sq ft • Unit range: 2,400 to 4,600 sq ft • Unit range: 1,000
Slide 61: Fully Managed: our customer and submarket mix
Fully Managed: our customer and submarket mix Customer mix: predominantly well-established companies GPE submarket mix: focus on key clusters % committed at Mar ’25 (inc. on site refurbs) Avg Rent £psf at Mar ‘25 11% 18% 21% City 10% Avg Rent £175 psf 28% 76% of customers are 31% 30% Professionals/
Slide 62: Our Fully Managed Performance
Our Fully Managed Performance How we measure performance Lettings 12mths Target Calculation Purpose to Mar ‘25 Flex NE rent − opex − voids Yield on cost 6.0%+ 6.6% Book value + Capex Relative income return on capital invested Average over 10 years post refurb Fully Managed NE rent − Opex Excess inco
Slide 63: Appendix: Market Conditions
Appendix: Market Conditions 63
Slide 64: London Market Conditions
London Market Conditions London growing and set to outperform the wider UK Robust London Business Activity 1 London Remains in Upper Range of Activity; vs. Rest of UK Mar ‘25: 54.9 PMI March 25: Business activity index 70 London Jobs Business Activity 6 4 2 0 50 -2 -4 -6 Mar ‘25: 47.3 30 '06 '08 '10
Slide 65: London Market Conditions
London Market Conditions New Space Letting at Record Speed1 Investment Market; Pressure on Yields 25% 1200 40 Months to 75% let Cost of Debt2 City Prime Yields 30 City Capital Values3 20 1000 Let post PC (months) 20% 10 0 (10) 800 (20) Let pre PC (months) 15% 05 07 09 11 13 15 17 '19 '21 '23 Central
Slide 66: London Market Conditions
London Market Conditions Active Demand Occupiers Looking to Increase / Decrease Space by Area1 Active Demand by Sector1 m sq ft Tech & Media 25% 6.0 Professional Services Financial & Banking Increasing 5.0 20% 48% by area 4.0 15% 3.0 Decreasing 10% 14% by area 2.0 5% 1.0 0% 0.0 '14 '15 '16 '17 '18 '
Slide 67: Central London Active Demand
Central London Active Demand Active Demand Central London demand 10 year quarterly average m sq ft 14.0 13.0 12.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0 Q1 '07 Q1 '08 Q1 '09 Q1 '10 Q1 '11 Q1 '12 Q1 '13 Q1 '14 Q1 '15 Q1 '16 Q1 '17 Q1 '18 Q1 '19 Q1 '20 Q1 '21 Q1 '22 Q1 '23 Q1 '24 Q1 '25 Source: JLL. Demand ref
Slide 68: City Active Demand
City Active Demand >5,000 sq ft Change Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar 12 1st 6 2nd 6 000 sq ft ‘14 ‘14 ‘15 ‘15 ‘16 ‘16 ‘17 ‘17 ‘18 ‘18 ‘19 ‘19 ‘20 ‘20 ‘21 ‘21 ‘22 ‘22 ‘23 ‘23 ‘24 ‘24 ‘25 mths mths mths Professional 1,640 1,591 1,209 1,177
Slide 69: West End Active Demand
West End Active Demand >5,000 sq ft Change Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar 12 1st 6 2nd 6 000 sq ft ‘14 ‘14 ‘15 ‘15 ‘16 ‘16 ‘17 ‘17 ‘18 ‘18 ‘19 ‘19 ‘20 ‘20 ‘21 ‘21 ‘22 ‘22 ‘23 ‘23 ‘24 ‘24 ‘25 mths mths mths Professional 495 263 267 301 242
Slide 70: City Take-Up
City Take-Up m sq ft Secondhand Refurbished Newly Built Pre-let 10-Year Average 2.5 1.4m sq ft 2.0 1.5 1.0 0.5 0.0 Q1 '05 Q1 '06 Q1 '07 Q1 '08 Q1 '09 Q1 '10 Q1 '11 Q1 '12 Q1 '13 Q1 '14 Q1 '15 Q1 '16 Q1 '17 Q1 '18 Q1 '19 Q1 '20 Q1 '21 Q1 '22 Q1 '23 Q1 '24 Q1 '25 5.3 6.8 6.2 3.7 4.5 6.2 3.4 4.2 7.0 7.
Slide 71: West End Take-Up
West End Take-Up m sq ft Secondhand Refurbished Newly Built Pre-let 10-Year Average 0.9m sq ft 1.5 1.0 0.5 0.0 Q1 '05 Q1 '06 Q1 '07 Q1 '08 Q1 '09 Q1 '10 Q1 '11 Q1 '12 Q1 '13 Q1 '14 Q1 '15 Q1 '16 Q1 '17 Q1 '18 Q1 '19 Q1 '20 Q1 '21 Q1 '22 Q1 '23 Q1 '24 Q1 '25 3.1 3.5 4.6 3.1 2.1 3.7 3.2 2.5 3.4 3.2 3.
Slide 72: City Office Under Offer
City Office Under Offer m sq ft 2.0 10-year average: 1.5 1.4m sq ft 1.0 0.5 0.0 Q1 '04 Q1 '05 Q1 '06 Q1 '07 Q1 '08 Q1 '09 Q1 '10 Q1 '11 Q1 '12 Q1 '13 Q1 '14 Q1 '15 Q1 '16 Q1 '17 Q1 '18 Q1 '19 Q1 '20 Q1 '21 Q1 '22 Q1 '23 Q1 '24 Q1 '25 Source: CBRE 72
Slide 73: West End Office Under Offer
West End Office Under Offer m sq ft 2.5 2.0 1.5 10-year average: 1.2m sq ft 1.0 0.5 0.0 Q1 '04 Q1 '05 Q1 '06 Q1 '07 Q1 '08 Q1 '09 Q1 '10 Q1 '11 Q1 '12 Q1 '13 Q1 '14 Q1 '15 Q1 '16 Q1 '17 Q1 '18 Q1 '19 Q1 '20 Q1 '21 Q1 '22 Q1 '23 Q1 '24 Q1 '25 Source: CBRE 73
Slide 74: London Market Conditions
London Market Conditions Structural decline in rent as % of salary cost London Office Rent as a % of Salary Costs 60% 50% City West End 40% 30% 20% 10% 0% '72 '76 '80 '84 '88 '92 '96 '00 '04 '08 '12 '16 '20 '24 Source: ONS, PMA 74
Slide 75: Central London Vacancy
Central London Vacancy Newly built & total vacancy (sq ft) as a % of total stock Central London West End 10.0% 12.0% 8.9% 9.0% 8.6% 8.0% 6.0% 3.0% 1.6% 0.0% 6.0% '14 '16 '18 '20 '22 '24 City 4.0% 12.0% 9.0% 8.1% 2.0% 1.4% 6.0% 3.0% 1.1% 0.0% 0.0% '14 '16 '18 '20 '22 '24 '14 '16 '18 '20 '22 '24 Newly
Slide 76: Annual change in occupied stock, million sq ft
Annual change in occupied stock, million sq ft -6 -4 0 2 6 8 -8 -2 4 -10 M sq ft 2006 Q1 Source: CBRE 2007 Q1 2008 Q1 Q1 Net Absorption 2009 Q1 2010 Q1 2011 Q1 2012 Q1 Central London Demand 2013 Q1 Net Absorption 2014 Q1 2015 Q1 2016 Q1 Change in occupied stock (LHS) vs Central London Prime Rent Ind
Slide 77: London Market Conditions
London Market Conditions PMA: Office Market Balance Months supply West End 100 City Forecast 80 60 40 Rent falling 20 Rent rising 0 '07 '10 '13 '16 '19 '22 '25 '28 Source: PMA 77
Slide 78: West End Top Prime Rents
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Months Q1 1995 Source: CBRE Q1 1996 Q1 1997 Q1 1998 Q1 1999 vs. rent free periods Q1 2000 Q1 2001 Q1 2002 Q1 2003 Q1 2004 Q1 2005 West End Top Prime Rents Q1 2006 Q1 2007 Rent Free Periods (LHS) Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Rent (RHS) Q1 2013 Q1 2014
Slide 79: City Top Prime Rents
0.0 5.0 10.0 15.0 20.0 30.0 25.0 35.0 Months Q1 1995 Source: CBRE Q1 1996 Q1 1997 Q1 1998 Q1 1999 vs. rent free periods Q1 2000 Q1 2001 Q1 2002 City Top Prime Rents Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Rent Free Periods (LHS) Q1 2009 Q1 2010 Q1 2011 Q1 2012 Rent (RHS) Q1 2013 Q1 2014 Q1 2
Slide 80: Retail
Retail Vacancy continues to fall, rents continue to grow and retailers active Recent Central London Transactions1 Prime West End vacancy vs rents1 Vacancy Rate Prime WE ZA Rent Prime ZA Rental Index (Unit count) (YoY change) Prime West End vacancy rate average 180 Prime West End vacancy rate - 2019
Slide 81: History of Rental Lags to Yield Moves
History of Rental Lags to Yield Moves West End prime yields and rental growth Nominal Prime Rental Value (LHS) Prime Yields (RHS) 7.0% £150 6.5% £140 8 qtrs £130 6.0% £120 5.5% £110 4 qtrs 5.0% £100 1 qtr £90 5 qtrs 4.5% 6 qtrs 2 qtrs £80 4.0% £70 7 qtrs 3.5% £60 6 qtrs 3.0% £50 £40 2.5% Mar '96 Mar
Slide 82: Equity Demand and Supply
Equity Demand and Supply Central London investment & development property Equity Demand1 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 £bn May Nov May Nov May Nov May Nov May Nov May Nov Nov May Nov May Nov May Nov May Nov May SE Asia Private 6.5 6.5 9.0 9.0 7.5 14.0 15.5 15.5 14.4 13.
Slide 83: Acquisition Opportunities
Acquisition Opportunities Acquisition Criteria: Fully Managed Vendors’ Value Aspirations Continue to Soften • Amenity-rich locations; excellent transport links Stock Traded Near GPE ‘Fair Value’ • Clustering around existing GPE holdings: Soho, Mayfair/St James’s, Fitzrovia, Southwark, Farringdon/Mid
Slide 84: Asset Supply
Asset Supply1 Still Low at £4.4bn £bn 6.0 City West End £4.9bn £2.0bn £4.4bn £0.6bn 4.0 £0.2bn 2.5 2.4 £0.8bn £2.4bn £1.7bn 2.0 2.4 2.0 0.0 On the market Sold Under offer Withdrawn Still Available New for sale On the market Nov '24 May '25 Expect more acquisitions 1. GPE, available stock on market 8
Slide 85: Central London Deals
Central London Deals Number of Deals £100m + 25 20 15 Under 10 Offer 5 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source: JLL 85
Slide 86: Appendix: Sustainability
Appendix: Sustainability 86
Slide 87: Circularity: Continued Evolution of our Approach
Circularity: Continued Evolution of our Approach Market leading approach to circularity Circularity Score Circularity Case Study Launched Circularity score and targets for schemes commencing City Place House, EC2 after 1 April 2025 90% of existing steelwork reclaimed • Developments will have a minim
Slide 88: Social Impact Strategy Update – A Fairer Future for London
Social Impact Strategy Update – A Fairer Future for London £603k social value created FY ’25; total £4.5m created towards £10m 2030 target Social Impact Strategy Update Three core principles • New strategy builds on what we have learned since we first launched our strategy in 2021 • New strategy dou
Slide 89: Sustainability
Sustainability Statistics for end of FY ‘25 Progress on EPCs Progress towards Net Zero • 93% compliant with current EPC legislation • 35% reduction in energy intensity (kWh/m2) when compared • 43% of portfolio compliant with anticipated minimum B rating to 2016 baseline by 2030 (fell last year due t
Slide 90: Sustainability Impacting Asset Performance
Sustainability Sustainability Impacting Asset Performance Market analysts show increasing financial impact of a coherent sustainability approach at an asset level Total Returns Capital Growth Rental Value Growth Efficient Inefficient 120.0 120.0 120 100.0 100.0 100 80.0 80.0 80 Q1 Q4 Q3 Q2 Q1 Q4 Q1
Slide 91: Appendix: Investment and Development
Appendix: Investment and Development 91
Slide 92: Investing to Deliver Growth
Investing to Deliver Growth Total capex of £700m into supply constrained market meeting customer needs On Site Schemes – 3 HQ and 4 Fully Managed Refurbishments Expected Capex £357m Surplus to come New Build Earliest Capex to £m No ERV Area start come +10% ERVs 300 growth Millions HQ schemes 536,500
Slide 93: Strong Track Record of Recycling Discipline
Strong Track Record of Recycling Discipline Sales of £3.2bn since 2012 Major sales accounted for over 80% of sales Major sales have accounted for >80% of sales proceeds £m Sales ’12 - ‘25 >£50m £2.6bn (81%) 600 <£50m £0.6bn (19%) 400 200 0 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 12/1
Slide 94: 30 Duke Street, St James's, SW1
This Street 30 Duke is a title St James’s, SW1 Unlocking development potential in the existing GPE pipeline Full planning consent Best-in-class offices / retail: 70,900 (+30%) Works commenced: Q1 ’24 Anticipated completion: Q3 ‘26 Exemplary sustainability & circular economy credentials • Reused stee
Slide 95: Minerva House, SE1
This is Minerva a titleSE1 House, Unlocking development potential in the existing GPE pipeline • Existing: 91,700 sq ft • Full planning consent: 143,000 office led scheme (+56%) • Refurbish floors 1-5; retention of existing structure & north and west building elevations • Significant carbon saving o
Slide 96: Minerva House, SE1
Minerva House, SE1 Circular economy and innovative transport approach Circular Economy: Reuse / Recycling of Structure & Façade, Bricks, Floor, Carpets and Glass Reuse / Recycling 77% 35% Retained Reinforcement 362m2 776m3 structure reduction of whole bricks of crushed brick and to be reused marble
Slide 97: Strong Track Record of Creating Premium Spaces
Strong Track Record of Creating Premium Spaces Last cycle programme: 2.4m sq ft; £533m development surplus; 22% profit on cost 33 Margaret Street, W1 240 Blackfriars Road, SE1 New build Completions since May 2009 Completed area sq ft 184/190 Oxford St, W1 Apr ‘11 26,400 23 Newman St, W1 (Residential
Slide 98: Delivering The Developments
Delivering The Developments Managing construction costs: inflation Average Construction Inflation Index1 HQ developments Forecast Flex refurbishments 180 Minerva House 170 New Fetter Lane 33 Margaret St Walmar House 160 24 Britton St 240 Blackfriars Rd 2 Aldermanbury Sq 3 4 30 Broadwick St 2 95 Wigm
Slide 99: Our Integrated Team
Our Integrated Team GPE senior management Executive Committee Nick Sanderson Toby Courtauld Dan Nicholson Chief Financial & Chief Executive Executive Director Operating Officer Janine Cole Darren Lennark Carrie Heiss Andrew White Marc Wilder Sustainability & Social General Counsel & Company Human Re
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