Great Portland Estates Plc · LSE:GPE
Great Portland Estates — Shareholder Meeting (2024)
17 slides from Great Portland Estates's shareholder meeting presentation, Jul 4, 2024
Slide 1: Annual General Meeting 2024
Annual General Meeting 2024 We unlock potential, creating sustainable space for London to thrive
Slide 2: Full Year 2024 Results
Full Year 2024 Results Well positioned to drive strong income growth and long-term value Strong Operational Performance • Excellent leasing continues; £22.5m 20.0% • 9.1%> Mar ‘23 ERV; Offices: 11.1% beat Investment Lettings Pre-lets Vacancy (right hand scale) 60 • Under Offer £4.8m, 4.0%> Mar ‘24 E
Slide 3: Financial Results
Financial Results Impacted by higher interest rate environment; NTA down 14.1% H1, 4.0% H2 12m EPRA NTA (pps) Portfolio and Net Assets Mar 24 Change Portfolio value1 £2,331.2m (12.1%2) 800 757 7 624 Rent Roll £107.5m +1.0% (105) (22) 550 (13) EPRA NTA & 624p (17.6%) IFRS NAV per share 300 Mar '23 Wh
Slide 4: Clear Strategy to Take Advantage
Clear Strategy to Take Advantage Successful contra-cyclical track record Strategy Our Track Record London GVA expected to continue to outperform wider UK GDP (2.1% vs 1.9% avg ‘25-’27)2 100% central London London business activity PMI healthier than UK (London 57.1, UK 52.1)1 Creating the best space
Slide 5: Compelling Acquisition Opportunities
Compelling Acquisition Opportunities Clear acquisition criteria; growing conviction on near-term opportunity Flex HQ Repositioning • Amenity-rich locations; excellent transport links • Tired, inefficient, poor EPC ratings, with angles to exploit • Clustering around existing GPE holdings: Soho, Mayfa
Slide 6: Compelling Acquisition Opportunities
Compelling Acquisition Opportunities Expect to unearth more in 2024 GPE Quoted Probability A+B Target Sub-Markets A+B Target Uses Targets1 Sites Price Capex Total Weighted By Value4 By Value4 A 8 £244m £491m £735m £350m2 Southwark 10% West End B 19 £1,168m WIP £1,168m £257m 63% HQ City 49% Flex A &
Slide 7: The Courtyard, WC1: Acquired
The Courtyard, WC1: Acquired Adding to our West End Fully Managed cluster Property swap exchanged April ‘241 • Bought: The Courtyard; £28.6m; £462 psf on existing area • 69% discount to replacement cost2 Goodge St • Sold: 95/96 New Bond Street, W1; £18.2m, £2,039 psf, in line with BV Existing GPE Ho
Slide 8: Soho Square, W1: Acquired
Soho Square, W1: Acquired Adding to our HQ development pipeline Bought off market: Aug 2023 • £70 million; 27% discount to replacement cost4 • Existing: 57,500 sq ft office & retail Best in class HQ redevelopment • 100,300 sq ft Grade A office & retail consented; potential to improve • Anticipated c
Slide 9: Significant Capex Programme
Significant Capex Programme 49% of portfolio; delivering into deep supply shortage Kent House, 7/15 Gresse St, The Courtyard, 33 Alfred Place, Soho Square Estate 2 Aldermanbury Minerva House, W1 (Flex) W1 (Flex) WC1 (Flex) WC1 (Flex) W1 Sq, EC2 SE1 3 Committed 50% pre-let1 0.5m sq ft 7 Flex Refurbs
Slide 10: Profit to come on Committed HQ Developments
Profit to come on Committed HQ Developments All Prime; exemplary sustainability; strong pre-let potential 2 Aldermanbury Square, EC2 French Railways House, SW1 322,600 sq ft; +83% 67,600 sq ft; +23% 100% pre-let; 1,500t of steel for re-use Consented; using steel from City Place Hse On budget Start o
Slide 11: Opportunity
Opportunity Well set to take advantage 1. Clear strategy • Central London; set to outperform; 74% West End, 93% Elizabeth Line • Best in class HQ & Flex; significant pipeline and ambition • Focus on customers’ needs & sustainability • Track record of contra-cyclical capital discipline • Maintain str
Slide 12: Appendix: Portfolio and Valuation
Appendix: Portfolio and Valuation We unlock potential, creating sustainable space for London to thrive Appendix
Slide 13: \u00a350m Rights Issue
£350m Rights Issue To accelerate growth through attractive new investment opportunities Timing right: valuations at or around trough; central London offices near 2009 real capital values Compelling opportunities: across HQ and Flex investment and development • Attractive acquisitions identified: £1.
Slide 14: Opportunity: Disrupted Investment Markets
Opportunity: Disrupted Investment Markets Significant yield & value correction; volumes lower than GFC Real Capital Values Nearing 2009 Low Significant Real Correction, even in Mayfair Central London Real Capital Value1 Real capital values (£ per sq ft) deflated by RPI2 125 Index, March 2000 = 100 2
Slide 15: Opportunity: Best Rents Set to Rise Strongly
Opportunity: Best Rents Set to Rise Strongly Demand up; vacancy low; prospective supply low; best and Flex rents rising Demand Up; Leasing Activity Robust; Flight to Quality Office Vacancy3 ; West End and City Prime Globally Low City & West End Leasing1 25.0% 24.8% Manhattan GPE Portfolio Vacancy 1.
Slide 16: 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 Professional Services 30% 6.0 Financial & Banking 25% 5.0 20% 4.0 Increasing 51% by area 15% 3.0 Decreasing 24% by area 10% 2.0 5% 1.0 0% 0.0 '14 '15 '16 '17 '
Slide 17: Aldermanbury Square. Steel re-use
2 Aldermanbury Square. Steel re-use 90% of existing steelwork reclaimed French Railways House; entire French Railways House, SW1 structure made of steel French Railways House, SW1 17