Great Portland Estates plc R.E.I.T. (GPE) AI Stock Analysis

• Market Cap: £1.09B
• Dividend Yield: 2.53%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: -2.73%
• EPS Growth: 91.05%
• Country: UK
• Employees: 139
• Sector: Real Estate
• Sector Strength: 69
• Industry: REITs
• EPS (TTM): -0.10
• Shares Outstanding: 406,188,660
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 311.00p
• Price Target Upside: 16.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Great Portland Estates plc scores a 54 due to mixed financial performance, weak technical indicators, and valuation concerns. However, the company's recent successful leasing deals and customer satisfaction highlight its strategic strengths in the market.

Positive Factors

Capital Deployment

Great Portland raised £350m of equity and has made progress to deploy capital with three acquisitions totaling £106.1m, plus a further £94.9m invested into developments.

Leasing Performance

GPE continues to demonstrate strong leasing capability, delivering the right product into an increasingly bifurcated market.

Negative Factors

Market Sentiment

The equity market has largely turned its back on London Office REITs, such that the shares will continue to remain at depressed levels.

Great Portland Estates plc R.E.I.T. Business Overview & Revenue Model

Company Description

Great Portland Estates PLC, or GPE, is a real estate investment trust involved in ownership and development of commercial property in central London. GPE invests in and redevelops London real estate. The company generates revenue from these assets through long-term lease agreements. Income is also derived from the management of other development projects. The majority of the company's real estate portfolio is comprised of office space, while retail locations also make up a significant percentage. Almost half of GPE's properties are located in the North of Oxford Street area. London's West End is home to a substantial share as well. GPE's tenants are primarily divided between retail and leisure shops; technology, media, and telecom companies; and professional and business services firms.

How the Company Makes Money

GPE generates revenue primarily through rental income derived from its portfolio of high-value commercial properties in central London. The company leases office and retail spaces to a diverse range of tenants, ensuring a steady stream of rental income. Additionally, GPE engages in property development and redevelopment projects, which can lead to capital appreciation and increased rental values. The company may also sell properties when market conditions are favorable, realizing gains from the increased value of developed or redeveloped assets. Strategic partnerships and joint ventures with other real estate firms or investors can also contribute to GPE's earnings, allowing for shared investment risks and returns on larger-scale projects.

Great Portland Estates plc R.E.I.T. Financial Statement Overview

Summary

Great Portland Estates plc is experiencing growth in revenue but faces significant profitability challenges with negative margins. The balance sheet remains relatively strong with a moderate leverage position, but cash flow issues are a concern, requiring strategic improvements in operational efficiency and cost management to enhance financial stability and performance.

Income Statement

The company has experienced a modest revenue growth rate of 4.61% from the previous year. However, the significant negative EBIT and EBITDA margins indicate operational challenges. The net profit margin is also negative, reflecting ongoing profitability issues. While revenue is increasing, the profitability metrics require attention.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.52, demonstrating a manageable level of leverage. Return on equity is currently negative due to net losses, impacting overall profitability. The equity ratio remains healthy at 63.87%, suggesting a strong equity base relative to total assets.

Cash Flow

The operating cash flow to net income ratio is negative, indicating cash flow challenges relative to reported net losses. Free cash flow is also negative, which can constrain future investments and financial flexibility. The company needs to improve cash flow generation from operations.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
95.40M	91.20M	84.20M	88.50M	102.40M
	Gross Profit
62.10M	57.20M	52.10M	62.10M	73.00M
	EBIT
-294.50M	19.90M	14.60M	30.80M	45.50M
	EBITDA
-288.50M	31.30M	16.20M	39.60M	47.00M
	Net Income Common Stockholders
-307.80M	-163.90M	167.20M	-201.90M	51.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.90M	19.40M	16.70M	11.10M	94.90M
	Total Assets
2.48B	2.51B	2.78B	2.56B	2.75B
	Total Debt
815.50M	527.20M	589.70M	533.20M	489.80M
	Net Debt
792.60M	507.80M	573.00M	522.10M	394.90M
	Total Liabilities
895.00M	588.20M	662.40M	588.30M	550.20M
	Stockholders Equity
1.58B	1.92B	2.11B	1.97B	2.20B
Cash Flow		Free Cash Flow
-7.70M	5.60M	15.90M	24.50M	43.10M
	Operating Cash Flow
-7.60M	5.80M	16.20M	24.90M	43.20M
	Investing Cash Flow
-231.70M	105.10M	-31.40M	-118.30M	-72.90M
	Financing Cash Flow
242.80M	-108.20M	6.30M	9.60M	-14.80M

Great Portland Estates plc R.E.I.T. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 266.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GPE, the sentiment is Negative. The current price of 266.5 is below the 20-day moving average (MA) of 276.25, below the 50-day MA of 278.01, and below the 200-day MA of 315.55, indicating a bearish trend. The MACD of -4.52 indicates Positive momentum. The RSI at 36.64 is Neutral, neither overbought nor oversold. The STOCH value of 37.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GPE.

Great Portland Estates plc R.E.I.T. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGRO	71 Outperform	£9.38B	15.52	5.18%	4.06%	-9.88%	―
BLND	61 Neutral	£3.53B	19.43	3.17%	6.44%	-30.83%	―
Sector *	61 Neutral	$4.76B	19.07	-3.20%	8.08%	6.43%	-19.69%
GPE	54 Neutral	£1.09B	―	-1.38%	2.53%	-2.73%	91.05%
LAND	54 Neutral	£4.16B	39.42	1.61%	7.14%	-1.73%	―

Great Portland Estates plc R.E.I.T. Corporate Events

GPE Secures Landmark Office Space Deal with Next

Great Portland Estates plc has secured its largest Fully Managed office space deal to date, leasing over 11,500 sq ft to retailer Next at 31 Alfred Place, Fitzrovia. This deal, part of a broader leasing success at the newly refurbished building, underscores the strong demand for GPE’s premium office offerings and highlights the company’s strategic positioning in the competitive London real estate market.

BlackRock Adjusts Holdings in Great Portland Estates

Great Portland Estates plc has announced a significant change in its shareholder structure, with BlackRock, Inc. adjusting its holdings in the company. As of March 4, 2025, BlackRock’s voting rights in Great Portland Estates stand at 16.28%, reflecting a slight adjustment from previous levels. This notification highlights BlackRock’s continued influence and investment in the company, which could have implications for its strategic direction and stakeholder engagement.

Great Portland Estates Enhances Employee Investment with Share Incentive Plan

Great Portland Estates plc has announced the acquisition of ordinary shares by its Executive Directors under the company’s 2010 Share Incentive Plan (SIP). The plan allows employees to purchase ‘Partnership Shares’ with their salary, which the company matches by awarding two ‘Matching Shares’ for each ‘Partnership Share’ acquired. This initiative reflects the company’s commitment to employee investment and aligns with its strategic goals, potentially enhancing stakeholder confidence and reinforcing its position in the real estate sector.

Great Portland Estates Director Takes on New Role at Aston Martin

Great Portland Estates plc announced that Vicky Jarman, a Non-Executive Director, has been appointed to the board of Aston Martin Lagonda Global Holdings plc as a Non-Executive Director. This appointment, effective from March 1, 2025, positions Jarman as Chair of Aston Martin’s Audit & Risk Committee and a member of its Nomination and Remuneration Committees, potentially strengthening the governance and strategic oversight at Aston Martin.

Great Portland Estates Achieves High Customer Satisfaction Scores

Great Portland Estates plc (GPE) announced a leading Net Promoter Score (NPS) of +26.1, outperforming the industry benchmark of +13.6. This high score underscores GPE’s strong customer loyalty and satisfaction, attributed to the quality of their spaces and effective communication. The company’s focus on a Customer First approach has resulted in an 88% retention rate for its Fully Managed portfolio and over 99% rent collection within seven days, demonstrating its robust operational performance and industry positioning.

Great Portland Estates Notified of BlackRock’s Increased Holdings

Great Portland Estates plc announced on February 17, 2025, that it received a Notification of Major Holdings from BlackRock, Inc., indicating a change in voting rights due to an acquisition or disposal. As of February 14, 2025, BlackRock’s total voting rights in the company increased slightly to 16.28%, comprising direct and indirect holdings. This notification is significant as it reflects BlackRock’s continued interest and influence in Great Portland Estates, potentially impacting company decisions and stakeholder considerations.

Great Portland Estates Secures Key Leasing Deals at Piccadilly Estate

Great Portland Estates plc has successfully secured four new Fully Managed leasing deals at its Piccadilly Estate, achieving a net premium of 98% compared to traditional leases. This success underscores strong demand for GPE’s offerings, enhancing its confidence for future projects, including the launch of a new premium office space at 170 Piccadilly.

Great Portland Estates Reveals Change in BlackRock’s Voting Rights

Great Portland Estates plc has received a notification of major holdings from BlackRock, Inc., indicating a change in their voting rights. As of February 11, 2025, BlackRock’s voting rights decreased to 16.13% from 16.82%, reflecting a shift in their investment stance within the company. This announcement highlights a material change in stakeholder holdings, which may influence future corporate governance and decision-making processes at Great Portland Estates.

GPE Secures New Tenants at 31 Alfred Place

Great Portland Estates plc announced the successful leasing of approximately 10,800 sq ft of Fully Managed office space at the newly refurbished 31 Alfred Place, WC1, with an additional 3,400 sq ft under offer. The deals were concluded faster than anticipated and at rates exceeding expected rental values. Four new tenants, including Smartly, BBL/P, Casual Films, and a multinational retailer, are set to occupy the space, reflecting strong demand for GPE’s premium workspaces. This achievement highlights GPE’s strategic positioning in the market, reinforcing their reputation for delivering sought-after office environments in central London.

GPE Announces Leadership Changes: William Eccleshare Appointed New Chair

Great Portland Estates plc (GPE) announced the appointment of William Eccleshare as the new Non-Executive Chair Designate, effective from May 1, 2025. He will succeed Richard Mully, who is retiring after over eight years of service, at the 2025 Annual General Meeting in July. William brings a wealth of experience in executive and non-executive roles across the advertising and media sectors, having held leadership positions at Centaur Media plc, Britvic plc, and Clear Channel Outdoor Holdings, among others. Additionally, Karen Green will assume the role of Senior Independent Director following Nick Hampton’s departure in April 2025. The transition aims to leverage William’s expertise in marketing, business transformation, and growth to strengthen GPE’s strategic direction and market opportunities.

Great Portland Estates Announces Monthly Share Incentive Plan Investments

Great Portland Estates plc has announced the monthly investment details related to its 2010 Share Incentive Plan (SIP). Under the SIP, employees can contribute from their salary to purchase ‘Partnership Shares,’ with the company matching these purchases by awarding two ‘Matching Shares’ for each one purchased by the employee. This announcement, detailing purchases made by executive directors on January 31, 2025, reflects the company’s commitment to employee engagement and long-term investment in its workforce, potentially enhancing stakeholder confidence.

GPE Achieves Rapid Leasing Success at Farringdon’s New Office Development

Great Portland Estates plc has successfully leased over 11,300 sq ft of office space at its new Fully Managed development, SIX, located in Farringdon, London. This rapid leasing, surpassing expected rental values, reflects strong market demand for GPE’s hassle-free, high-quality workspaces. The new tenants include Treatwell, Clavium, and the Green Finance Institute, occupying various floors of the 48,000 sq ft building. The successful leases highlight GPE’s strategic positioning in the real estate market, as they continue to attract diverse businesses with their innovative office solutions.

Great Portland Estates Reports Strong Q3 Leasing Performance

Great Portland Estates plc (GPE) has reported a strong leasing performance for Q3, securing £9.0 million in new deals, which is 16.3% above the estimated rental value (ERV). This success reflects high demand for GPE’s premium office spaces and supports a positive outlook in terms of rental growth and tenant retention. Despite volatile macroeconomic conditions, GPE’s occupational markets remain robust, with significant interest in their ongoing development projects and Fully Managed offices. The company has made strategic acquisitions and investments amounting to £200 million, positioning it well for future growth. The increase in vacancy rates to 6.3% indicates a strategic move to introduce new high-class office spaces to the market, such as the SIX St Andrew Street scheme, which has already attracted strong leasing interest.

ITN Renews Lease at GPE’s Gray’s Inn Road Media Hub

Great Portland Estates plc announced that Independent Television News Limited (ITN) has renewed its leases for 117,000 sq ft of workspace at 200 & 214 Gray’s Inn Road, a media hub building owned jointly with Ropemaker Properties. The renewal signifies ITN’s continued commitment to the location, which will undergo significant upgrades to improve customer experience, including the addition of a new floor with a roof terrace and enhanced connectivity features. This lease renewal, set for a ten-year term starting March 2025, reflects the confidence in GPE’s ability to deliver top-tier workspaces, reinforcing its market position and providing stability in rental income.

Great Portland Estates Enhances Employee Engagement with Share Incentive Plan

Great Portland Estates plc has announced the acquisition of shares by its Executive Directors through their 2010 Share Incentive Plan (SIP). Under this plan, employees purchase ‘Partnership Shares’ from their salary, and the company awards two ‘Matching Shares’ for each ‘Partnership Share’ bought. This initiative reflects the company’s commitment to employee investment and participation, highlighting its strategic focus on aligning employee interests with corporate performance. The move may enhance stakeholder confidence and strengthen the company’s market position by fostering a culture of ownership and engagement.