We will walk you through some of the key things to keep an eye on when trading Great Portland Estates shares. Financial reporting. This will let you know how the company is performing and will have a big impact on its share price. Company news.
For example, is the company planning to release anything new in the next few months? Is it looking to move into a new country or market?
Is it hiring or firing staff? All of these events will have an impact on its share price. Wider news. You should also be aware of other external events and news that may have an impact on the company's share price, for instance, news about the sector.
Does the company pay dividends? If a company pays dividends, it means that it pays some of its profits back to the shareholders. Shareholder meetings. These are often held annually and invite large shareholders to attend meetings and vote on matters relating to the company.
Your provider, however, may not allow it. Checklist before you invest in any company What does the company do? This might sound silly, but can you explain what the company does in a few sentences? Is it making profits? Who are the main competitors? Every company operates alongside competitors.
To ensure that we address the ever evolving workplace needs and future proof our developments, our Design Review Panel, chaired by our Director of Workplace and Innovation, meets weekly and challenges our professional teams to ensure that we create space that fulfils our occupiers' needs.
In particular, this means ensuring our developments meet the highest standards of sustainable design, embraces technology and provides a variety of adaptable and flexible working environments. Exceptional development pipeline Beyond our three committed schemes, we have a substantial and flexible pipeline of ten uncommitted schemes 1. These schemes include a number of exciting projects, including New City Court, SE1 in the London Bridge Quarter, where we have now submitted a planning application to materially increase the size of the existing 98, sq ft building, and Mount Royal, W1, located at the western end of Oxford Street, where we have started early discussions on redevelopment of this two acre block with both the freeholder and the hotel owner who also have an interest in the site.
Our potential development programme totals 1. These combined to drive rental growth and produce another strong year of operational performance. London's commercial property market has remained resilient to the ongoing economic uncertainty. Occupier demand for high quality space remained robust and, while rental values have remained broadly stable, our successful leasing activity has helped us deliver market lettings 6.
We have continued to capture reversion across the portfolio, and coupled with the leasing activity, this has helped drive like-for-like Group rent roll up by 6. Driving like-for-like rent roll growth Whilst we have been successful in leasing both our completed development at Old Street, EC1 and pre-letting a further 53, sq ft at our committed Hanover Square development see development section , we have also delivered significant leasing activity across our investment portfolio.
With some occupiers demanding more flexible lease terms, we successfully launched our flex space offering across a number of buildings, which now totals some 87, sq ft. We also saw healthy demand for our newly refurbished space. In March , we completed part of the extensive 26, sq ft refurbishment of Elsley House, W1, a building set in the heart of Fitzrovia. Capturing reversion through rent reviews One of our strategic priorities for the year was to capture the significant reversionary potential the difference between the passing rent and market rental value within our investment portfolio.
Of the reversion that could be captured this financial year, a large proportion was available through rent review. As a result, it was essential that we settled these reviews at, or ahead of, the market rental value. We had another busy year, settling 27 rent reviews, Together, the combination of settling rent reviews and letting new space increased our rent roll including share of joint ventures by 6.
Rent collection Our quarterly cash collection performance throughout the year remained very strong. We secured The average collection rate across the four quarters of the year was The recommendations are designed to make the financial statements of public real estate companies clearer and more comparable across Europe enhancing the transparency and coherence of the sector.
We consider these standard metrics to be the most appropriate method of reporting the value and performance of the business and a reconciliation to the IFRS numbers is included in note 9 to the accounts. When combined with ordinary dividends paid of This drop in income is predominantly due to the six commercial sales completed during the year offset by another strong leasing year.
Adjusting for acquisitions, disposals and transfers to and from the development programme, like-for-like rental income including joint ventures increased 3. The increase is largely due to increased partner loan contributions to fund ongoing development expenditure, in particular the land purchase at Hanover Square, W1. As a result, the Group's gearing increased to 6. At 31 March , the proportion of the Group's total net debt represented by our share of joint venture was The Group's weighted average cost of debt for the year, including fees and joint venture debt, was 3.
The weighted average interest rate excluding fees was 2. The Group, including its joint ventures, is operating with substantial headroom over its debt covenants. Robust occupier base One of our occupiers went into administration around the March quarter day March none and we had only two occupier delinquencies in the year two representing 0. The tax charge for the year results from property sales which fall outside our REIT ring-fence.
All entities within the Group are UK tax resident; as our business is located wholly in the UK, we consider this to be appropriate. The Group maintains an open working relationship with HMRC and seeks pre-clearance in respect of complex transactions.
These PIDs are then typically treated as taxable income in the hands of shareholders. Additionally, during January , HMRC circulated new draft guidance which states that it considers that the REIT exemption also does not extend to profits arising from the sale of investment properties which are undergoing a major redevelopment at the time of sale.
This guidance has yet to be issued in final form. The Group will continue to monitor this matter and consider its potential effect on any recent and future sales by the Group. The Group is otherwise subject to corporation tax. At 31 March , we had repurchased and cancelled Dividend growth The Group operates a low and progressive ordinary dividend policy.
Together with the interim dividend of 4. Promoting from within This year, we have further enhanced our Senior Management Team with the creation of a new Head of Office Leasing role, which includes responsibility for the oversight of our flex offering and which we were pleased to be able to fill internally with the promotion of Simon Rowley.
New ambitious energy and carbon targets We keep our approach to sustainability under constant review and identify climate risks both through utilising the expertise of our specialist in-house team and through stakeholder engagement. As part of our ongoing commitment to integrating our approach to ESG risk into our wider business processes, this year we commissioned a materiality review, undertaken by an external consultant, using best practice methodologies supported by the Global Reporting Initiative.
Climate change mitigation, energy efficiency and climate change adaptation were clearly identified as significant issues for both internal and external stakeholders and accordingly we have incorporated them within our analysis of the Group's business risks. The outcomes of the review were discussed and approved by the Board.
The value of investments can fall as well as rise, and you may get back less than you invested. Our activities will transform the existing building into 74, sq ft of Grade A office and retail space.
We comprehensively refurbished the property in to provide 95, sq ft of Grade A office and restaurant space. The recommendations are designed to make the financial statements of public real estate companies clearer and more comparable across Europe enhancing the transparency and coherence of the sector. You can compare platforms using the table, as well as the guides in our share trading hub. The headline price reflects a net initial yield of 3.
Robust occupier base One of our occupiers went into administration around the March quarter day March none and we had only two occupier delinquencies in the year two representing 0. The Group will continue to monitor this matter and consider its potential effect on any recent and future sales by the Group. At The Hickman, E1 formerly known as Cityside House , we have now finished demolition and started construction of the new building.
This expectation was borne out and we were once again a net seller as we continued to take advantage of the robust investment market but found limited opportunities to accretively invest. Our ability to deliver sustainable development returns requires a deep pipeline of opportunities, which, when conditions allow, will become the development schemes of tomorrow. Is it making profits? We are targeting a profit on cost of
The asset sales, and subsequent returns of capital, have increased the proportion of the portfolio in buildings more likely to deliver higher future returns over the long term, including our development programme. The increase is largely due to increased partner loan contributions to fund ongoing development expenditure, in particular the land purchase at Hanover Square, W1. We expect the sale to conclude prior to completion of the main development in Q1 As we set out in last year's annual report, our strategic priority for the current year was selective investment and recycling.
We have commenced the marketing campaign for the Bond Street retail and the remaining office space, and the strong interest we have had to date is very encouraging. We comprehensively refurbished the property in to provide 95, sq ft of Grade A office and restaurant space. Which broker should I choose? When combined with ordinary dividends paid of These schemes include a number of exciting projects, including New City Court, SE1 in the London Bridge Quarter, where we have now submitted a planning application to materially increase the size of the existing 98, sq ft building, and Mount Royal, W1, located at the western end of Oxford Street, where we have started early discussions on redevelopment of this two acre block with both the freeholder and the hotel owner who also have an interest in the site. All entities within the Group are UK tax resident; as our business is located wholly in the UK, we consider this to be appropriate.