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Great Portland Estates plc R.E.I.T.
(LSE:GPE)
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Rating:64Neutral
Price Target:
322.00 p
▼(-4.62% Downside)
Action:Reiterated
Date:08/22/26
The score is primarily held back by weak recent cash generation (negative operating and free cash flow) despite improving revenue and a profitability rebound. Offsetting this, the earnings call was strongly constructive with clear growth targets and strong leasing/rent roll momentum, and valuation appears attractive with a low P/E and a moderate dividend yield. Technicals are mildly positive but not strongly trending in the very near term.
Positive Factors
Leasing and rent-roll growth
Record leasing above estimated rental value, combined with a 46% increase in rent roll, indicates strong occupier demand and effective asset repositioning. This supports recurring income growth and provides a durable base for higher net operating income as completed and refurbished space is absorbed.
Negative Factors
Weak cash generation
Persistently negative operating and free cash flow weakens earnings quality and financial flexibility despite the recent profit rebound. It may constrain internally funded investment and means reported earnings are not yet translating into dependable cash generation across the property cycle.
Read all positive and negative factors
Positive Factors
Negative Factors
Leasing and rent-roll growth
Record leasing above estimated rental value, combined with a 46% increase in rent roll, indicates strong occupier demand and effective asset repositioning. This supports recurring income growth and provides a durable base for higher net operating income as completed and refurbished space is absorbed.
Read all positive factors
Great Portland Estates plc R.E.I.T. (GPE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.23B
Dividend Yield2.73%
Average Volume (3M)708.10K
Price to Earnings (P/E)7.7
Beta (1Y)1.21
Revenue Growth24.37%
EPS Growth29.61%
CountryUK
Employees164
SectorGeneral
Sector StrengthN/A
IndustryREIT - Office
Share Statistics
EPS (TTM)0.39
Shares Outstanding406,188,660
10 Day Avg. Volume589,304
30 Day Avg. Volume708,103
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)0.54
Price to Sales (P/S)9.68
P/FCF Ratio-36.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£370.00Price Target Upside9.60% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)0.1
Revenue Forecast (FY)£114.59M
Great Portland Estates plc R.E.I.T. Business Overview & Revenue Model
Company Description
Great Portland Estates Plc is a leading FTSE 250 company specializing in property investment and development, managing a substantial central London portfolio worth £2.6 billion. We adopt an agile and forward-thinking approach to portfolio manageme...
How the Company Makes Money
GPE generates earnings primarily from (1) rental income from letting completed commercial space to tenants under lease agreements and (2) profits from property development and trading, where it creates value through redevelopment/refurbishment and...
Great Portland Estates plc R.E.I.T. Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 19, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial story: record leasing, material rent roll and NOI growth, notable valuation gains on developments, disciplined contracyclical acquisitions at significant discounts and a healthy balance sheet with ample liquidity. Key risks noted were construction cost pressures, mixed investment market/yield uncertainty, dependency on crystallizing a large sales program and the timing required for dividends to be fully cash‑covered. On balance the company emphasised execution, multiple growth levers (lettings, developments, fully managed flex) and financial flexibility to manage downside.Positive Updates
Record Leasing Activity
Total lettings of GBP 70.9m (record), 10.3% ahead of ERV with Q4 a 15.8% beat; fully managed (flex) lettings of GBP 40.9m, 7.7% ahead of ERV.
Negative Updates
Retail Sub‑portfolio Underperformance
Retail assets (13% of portfolio) lagged office performance and weighed on some valuation dynamics compared with office outperformance.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Leasing Activity
Total lettings of GBP 70.9m (record), 10.3% ahead of ERV with Q4 a 15.8% beat; fully managed (flex) lettings of GBP 40.9m, 7.7% ahead of ERV.
Read all positive updates
Company Guidance
The guidance from the call was bullish and metric‑heavy: management reiterated office rental growth guidance of +4% to +7% for the year, targeted EPRA EPS of ~10p in the next 12 months (c. +20%), and reiterated a medium‑term ambition to deliver 3x EPS versus April 2025 and a return on equity >10% this financial year (three‑year ROE well ahead of cost of capital); they expect further c.20% earnings growth next 12 months, development surpluses of c. £260m (base case) rising to ~£330m at 20% rental growth or c. £427m with 25bp yield compression, and plan to crystallize sales in excess of £1.2bn (c. £200m near term) while remaining a net seller this year; operational targets include growing rent roll from £153m (up 46%) toward a potential £299m with completions/10% rent growth, capturing c. £42m of rent‑roll upside in the next 12 months (vacancy/reversion £16m + development/refurb £26m), doubling/strongly growing NOI (NI0 up >3x from £9m to £28m, medium‑term target c. £58m and ambition of c. £100m post acquisitions), and maintaining financial strength with LTV range 10–35% (current LTV 28.6%), £412m liquidity, WA debt maturity 5.4 years, WA interest rate 4.3% and a Moody’s Baa2 rating.Great Portland Estates plc R.E.I.T. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
34
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 117.90M | 94.20M | 95.40M | 91.20M | 84.20M |
| Gross Profit | 67.00M | 59.10M | 62.10M | 57.20M | 52.10M |
| EBITDA | 164.20M | 132.20M | -288.50M | 31.30M | 16.20M |
| Net Income | 154.50M | 116.00M | -307.80M | -163.90M | 167.20M |
Balance Sheet | |||||
| Total Assets | 3.12B | 3.03B | 2.48B | 2.51B | 2.78B |
| Cash, Cash Equivalents and Short-Term Investments | 22.70M | 18.20M | 22.90M | 19.40M | 16.70M |
| Total Debt | 878.00M | 935.00M | 815.50M | 527.20M | 589.70M |
| Total Liabilities | 990.10M | 1.03B | 895.00M | 588.20M | 662.40M |
| Stockholders Equity | 2.13B | 2.00B | 1.58B | 1.92B | 2.11B |
Cash Flow | |||||
| Free Cash Flow | -31.30M | -4.60M | -7.70M | 5.60M | 15.90M |
| Operating Cash Flow | -31.10M | -4.00M | -7.60M | 5.80M | 16.20M |
| Investing Cash Flow | 104.90M | -384.60M | -231.70M | 105.10M | -31.40M |
| Financing Cash Flow | -88.00M | 402.60M | 242.80M | -108.20M | 6.30M |
Great Portland Estates plc R.E.I.T. Technical Analysis
Negative
337.60
Price Trends
328.28
Negative
326.43
Negative
321.41
Negative
Market Momentum
-5.75
Negative
39.53
Neutral
29.71
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 337.6 is above the 20-day moving average (MA) of 305.47, above the 50-day MA of 328.28, and above the 200-day MA of 321.41, indicating a bearish trend. The MACD of -5.75 indicates Negative momentum. The RSI at 39.53 is Neutral, neither overbought nor oversold. The STOCH value of 29.71 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £2.66B | 6.39 | 9.48% | 3.21% | 9.10% | 20.49% | |
69 Neutral | £1.96B | 41.64 | 1.35% | 4.69% | 45.36% | -79.84% | |
67 Neutral | £4.01B | 8.37 | 7.73% | 6.01% | 15.13% | 29.40% | |
64 Neutral | £1.23B | 7.71 | 7.41% | 2.73% | 24.37% | 29.61% | |
58 Neutral | £692.65M | -5.58 | -8.83% | 7.43% | -2.05% | -2319.50% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | £201.97M | 36.01 | 1.34% | 7.29% | 4.03% | -79.67% |
* General Sector Average
GB:GPE
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-1.94%
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Great Portland Estates plc R.E.I.T. Corporate Events
Business Operations and Strategy
Great Portland Estates Directors Add Shares Under Incentive Plan
Positive
Oct 1, 2026
Great Portland Estates has disclosed that its trustee, Equiniti Share Plan Trustees, purchased ordinary shares on behalf of employees under the company’s 2010 Share Incentive Plan. The plan allows staff to buy partnership shares from salary,...
Business Operations and Strategy
GPE Pre-Lets Fully Managed Space at City Tower Ahead of 2027 Launch
Positive
Sep 24, 2026
Great Portland Estates has pre-let the initial floor of its latest phase of Fully Managed workspace at City Tower, EC2, with a further floor under offer, ahead of the scheme’s completion in early 2027. The deals, totalling more than 4,300 sq...
Executive/Board Changes
Great Portland Estates Director Emma Woods Joins Saga Board
Neutral
Sep 18, 2026
Great Portland Estates has announced that non-executive director Emma Woods has been appointed as a non-executive director at Saga plc, effective 18 September 2026. The cross-board appointment underscores the company’s access to experienced ...
Business Operations and StrategyProduct-Related Announcements
GPE Tops Out The Courtyard as Premium Managed Office Cluster Grows in Fitzrovia
Positive
Sep 16, 2026
Great Portland Estates has marked structural completion of The Courtyard, its latest Fully Managed building at 1/3 Alfred Place in Fitzrovia, following the company’s 2024 rights issue. The project will deliver about 47,000 sq ft of premium m...
Business Operations and StrategyFinancial Disclosures
Moody’s Reaffirms Great Portland Estates’ Baa2 Rating and Stable Outlook
Positive
Sep 10, 2026
Moody’s Ratings has reaffirmed Great Portland Estates’ Baa2 long-term issuer rating with a stable outlook following its periodic review, citing the company’s strong balance sheet and resilient strategy. The agency highlighted GPE...
Business Operations and StrategyFinancial Disclosures
GPE Fully Pre-Lets Sustainable 30 Duke Street St James’s at Above-Expectations Rents
Positive
Sep 3, 2026
Great Portland Estates has completed its 30 Duke Street St James’s development in London on time and on budget, with all office and retail space fully pre-let before completion. Global investment firm CDR signed for its new headquarters more...
Business Operations and StrategyRegulatory Filings and Compliance
Great Portland Estates directors add shares through incentive plan
Positive
Sep 1, 2026
Great Portland Estates plc has reported routine share purchases by senior executives under its 2010 Share Incentive Plan, a scheme that allows employees to buy partnership shares from salary and receive two matching shares from the company for eac...
Executive/Board ChangesRegulatory Filings and Compliance
Great Portland Estates Directors Increase Holdings Through Monthly Share Incentive Plan
Neutral
Aug 3, 2026
Great Portland Estates plc has disclosed routine share acquisitions by senior executives under its 2010 Share Incentive Plan, highlighting ongoing use of equity-based remuneration to align management with shareholders. Under the plan, employees bu...
Business Operations and StrategyFinancial Disclosures
GPE Fully Lets Carrington House at Record West End Office Rents
Positive
Jul 30, 2026
Great Portland Estates has fully let the office space at Carrington House, a Grade II listed building in London’s West End, after securing leases on over 6,900 sq ft of fitted workspace at record rents of up to £105 per sq ft, 8.1% abov...
Business Operations and StrategyFinancial Disclosures
GPE boosts leasing at revamped Soho office as demand for flexible space grows
Positive
Jul 23, 2026
Great Portland Estates has secured four new leases at its refurbished Fully Managed building at 16 Dufour’s Place in Soho, taking the property to 71% occupancy and leaving only two office floors available. The 9,312 sq ft of new lettings wil...
Business Operations and Strategy
GPE Showcases Circular Building Breakthroughs at 30 Duke Street
Positive
Jul 14, 2026
Great Portland Estates plc, a London-focused real estate investment trust, is expanding its portfolio of office and mixed-use developments while embedding circular economy principles into project design. The group works closely with a broad set of...
Business Operations and StrategyExecutive/Board Changes
Great Portland Estates announces departure of Development Director Andrew White
Neutral
Jul 13, 2026
Great Portland Estates has announced that Andrew White, its long‑serving Development Director, will leave the business later this year after more than thirteen years with the company. White has led many of GPE’s flagship central London...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.