Great Portland Estates (GPE) has delivered a 6.9% jump in NAV per share in the three months to the end of December.
The West End-focused investor reported an NAV per share of 680p, which was also 14.7% up on six month view and 29% up year-on-year.
Capital growth was the main driver of performance, with the value of the portfolio climbing 5.2% over the latest quarter. The valuation performance of GPE’s development properties was particularly strong, climbing 9.6%.
Toby Courtauld, chief executive of GPE, said: “Our outlook remains positive; we can expect higher rates of rental growth compared to last year; we will be increasing our development commitments during 2015, starting new schemes across central London; and the strength of our balance sheet will allow us to exploit our many portfolio opportunities to the full.”
The business also saw rental growth of 3% in the last three months of the year. Rents rose faster across its retail properties than its offices.
During the period, GPE completed 20 new lettings generating rent of £6.3m during the period, 4.9% ahead of March 2014 rental values.
The company’s committed development programme expanded by 100,000 sq ft to 600,000 sq ft across five schemes in the West End. These included an 89,700 sq ft new-build development at 73/89 Oxford Street, for which the expected profit on cost is 18%.
Regarding its six near term schemes totalling 500,000 sq ft, all have potential start dates in the next 18 months. GPE also has an additional 12 uncommitted pipeline schemes totaling 1.1 million sq ft.