Questor share tip: Great Portland Estates to benefit from office property boom

“With the current and prospective supply of space to let in central London remaining tight, we can expect rents to continue growing.”

So, it is a recovery in the underlying economy that is allowing rents to rise and this, in turn, is supporting higher prices, rather than purely speculative bidding from foreign buyers looking for a home for their cash.

The numbers in the Reit’s annual results reported last week back this up. Great Portland’s portfolio increased in value by 18.7pc and strong demand for office space in the West End meant the company could raise rents by 8.2pc.

The net asset value (NAV) increased to £1.93bn, from £1.54bn a year earlier. This meant the NAV per share rose 27.6pc to 569p for the year to March 31.

Reported profit before tax was £422.2m, compared with £180.6m a year earlier, after including the revaluation surplus.

The dividend was nudged up 2.3pc to 8.6p. For the long-term property investor, the shares remain a hold.

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