Great Portland Estates Reports Strong Leasing Activity in Q3

Great Portland Estates, a leading real estate investment trust, has announced that it secured 12 new leases and renewals during the third quarter of the fiscal year. This significant achievement reaffirms the company's confidence in rental value growth guidance.

The leases and renewals signed between October and December 31 are expected to generate an annual rent of £5.0 million ($6.4 million). It is noteworthy that the lettings are on average around 6.5% higher than the estimated rental value in March.

Moreover, the company has already signed leases worth £16.1 million for the first nine months of fiscal 2024, surpassing March's estimated values by approximately 10.4%. This outstanding performance supports Great Portland's rental value guidance, projecting a growth rate of 2.5% to 5.0% for the entire fiscal year.

In addition to these achievements, Great Portland Estates currently has rental offers totaling £6.0 million, which is around 5% higher than the estimated rental values. This further demonstrates the company's positive outlook and potential for continued growth.

Despite the ongoing challenges posed by the macroeconomic landscape, including the recent improvement in interest rates, Great Portland remains cautious with its investment activities. The company has observed selective upward pressure on yields, particularly for non-prime spaces. However, Chief Executive Toby Courtauld expressed optimism about the future, stating, "As we start the new year, we are encouraged by early indications that acquisition opportunities are starting to emerge." This confident stance positions Great Portland Estates favorably to capitalize on potential opportunities.