Great Portland Estates (GPOR)

Sector:

Property Investment Trusts

Index:

FTSE 250

719.20p
   
  • Change Today:
      1.00p
  • 52 Week High: 773.60
  • 52 Week Low: 649.40
  • Currency: UK Pounds
  • Shares Issued: 260.15m
  • Volume: 2,573,975
  • Market Cap: £1,871.01m
  • RiskGrade: 85

Barclays ups price target but cuts rating for Derwent London

By Abigail Townsend

Date: Tuesday 18 Jun 2019

LONDON (ShareCast) - (Sharecast News) - Barclays has cut its recommendation on London Derwent, despite upping its price target, pointing to a number of factors undermining the capital's otherwise strong office market.
The bank said that the London office market was performing well: "Tenant demand and investment volumes have performed strongly, defying expectations post the June 2016 European Union referendum."

But it added: "However, despite low vacancy levels, supply remaining controlled and the aforementioned strong take-up, rents have remained flat. Furthermore, yields remain at record low levels.

"While we see no clear reasons for the market to change, and therefore we again become sequentially less bearish on the outlook for London offices, we continue to see balance of risks asymmetrically skewed to the downside."

Derwent speculatively develops office schemes in the city, and has two major schemes in the pipeline: the 285,000 sq ft Soho Place and the 125,000 sq ft Featherstone Building, both of which are due to complete in 2022.

Said Barclays: "The desire to continue to deliver new product is borne from the distinct split the group observes between occupiers willing to sign up to new, efficient and high-quality space while avoiding existing, older space."

Barclays believes the two new developments will add around £32m worth of rent, equivalent to 18% of the current rent roll, "which will continue to drive earnings growth, although disposals will offset part of his impact".

But it added: "Our earnings per share forecasts reduced by up to 20% due to lower like-for-like rental growth assumptions and lost rent on the assumed development pipeline. We forecast net asset value, EPRA EPS and DPS compound annual growth rate of 2.1%, 3.5% and 7.4% respectively.

"Despite our NAV upgrades, which see our price target increase to 3,000p, the low TARs we forecast mean the strong total shareholder returns year-to-date of 14%, and relatively slim 17% discount to full-year NAV, in our view, do not warrant a higher rating compared to Great Portland and we downgraded to 'underweight'."

In the same research report, Barclays retained its 'underweight rating' on Derwent rival Great Portland Estates and increased its price target to 650p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

GPOR Market Data

Currency UK Pounds
Share Price 719.20p
Change Today 1.00p
% Change 0.14 %
52 Week High 773.60
52 Week Low 649.40
Volume 2,573,975
Shares Issued 260.15m
Market Cap £1,871.01m
RiskGrade 85

GPOR Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
61.52% below the market average61.52% below the market average61.52% below the market average61.52% below the market average61.52% below the market average
55.56% below the sector average55.56% below the sector average55.56% below the sector average55.56% below the sector average55.56% below the sector average
Price Trend
24.80% above the market average24.80% above the market average24.80% above the market average24.80% above the market average24.80% above the market average
8.11% above the sector average8.11% above the sector average8.11% above the sector average8.11% above the sector average8.11% above the sector average
Income
93.54% below the market average93.54% below the market average93.54% below the market average93.54% below the market average93.54% below the market average
94.12% below the sector average94.12% below the sector average94.12% below the sector average94.12% below the sector average94.12% below the sector average
Growth
55.67% below the market average55.67% below the market average55.67% below the market average55.67% below the market average55.67% below the market average
64.71% below the sector average64.71% below the sector average64.71% below the sector average64.71% below the sector average64.71% below the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 7
Sell 0
Strong Sell 7
Total 16
sell
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

GPOR Dividends

  Latest Previous
  Final Interim
Ex-Div 30-May-19 22-Nov-18
Paid 08-Jul-19 02-Jan-19
Amount 7.90p 4.30p

Trades for 20-Sep-2019

Time Volume / Share Price
16:48 5 @ 719.20p
16:44 901 @ 719.20p
16:35 1,337,255 @ 719.20p
16:29 67 @ 717.60p
16:28 550 @ 717.80p

GPOR Key Personnel

CEO Toby Courtauld
Finance Director Nick Sanderson

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