Home » VectorVest » Great Portland Estates #GPOR better placed for growth than its London property market peer group, says VectorVest

Great Portland Estates #GPOR better placed for growth than its London property market peer group, says VectorVest

FTSE 250 company Great Portland Estates (GPOR.L) is a property investment and development group owning £2.8bn of real estate in central London. The group proactively manages its portfolio, flexing activities in tune with London’s property cycle to deliver long-term out-performance. GPOR creates in-demand spaces that people want to be part of; helping occupiers, local communities and the city to thrive.

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On July 5th2018, GPOR published a trading update for the quarter to 30 June 2018, highlighting another quarter of positive operational activity with healthy leasing, ahead of ERV (Estimated Rental Value), and encouraging occupier interest across the group’s three newly committed development schemes which are already 11% pre-let. GPOR said it continued to attract occupiers, with £4.4m of lettings currently under offer at a 4.4% premium to March 2018 ERVs. CEO Toby Courtauld said that despite the ongoing economic and political uncertainty…”GPE is in great shape with enviable long-term potential: five years of net sales activity gives us unprecedented financial capacity even after returning more than £400m to shareholders; our investment portfolio is well let, off low average rents and we are capturing its reversionary potential; our committed development programme is progressing well; our exceptional income-producing development pipeline offers more than 1.3m sq ft of flexible future growth potential; and we have a first-class team ready to capitalise on our many opportunities.”

Toward the end of May 2018, London property group GPOR flagged up as an opportunity for VectorVest members in the form of a Relative Value (RV) flag. Since moving above 1, the RV, an indicator of long-term price appreciation potential, has continued to climb, and today logs GPOR at 1.51, excellent on a scale of 0.0 – 2.0. Added to this the company logs a GRT (Earnings Growth Rate) of 32%, which also rates as excellent on the VectorVest stock and portfolio management system. Trading today at 711p, GPOR still offers plenty of upside against a current VectorVest valuation of 1,024p.

A daily candlestick chart of GPOR.L is shown above. The green line above the price shows the revaluation of the company as earnings per share rose during June 2018. The revaluation is a strong leading indicator of a move in the share price. At present the share is charting a “flag” pattern and a break above the trendline defining the pattern plus a VectorVest Buy signal should precede a strong upward move.

Summary: Although there have been several recent indicators that some London property companies are feeling the pinch, (in relative terms of course), GPOR has consistently shown that by successfully managing risk, it can continue to deliver on its strategic priorities. The group is solely focussed on central London, a market that it knows inside out, which means it is better placed to evaluate changing conditions, adjust activities and unearth opportunities that others may miss. These fundamentals, coupled with a bullish charting configuration, ensures that GPOR is better placed for growth than its London property market peer group. VectorVest recommends that traders and investors should wait for the move to be confirmed by a VectorVest Buy signal

Dr David Paul

August 1st 2018

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European Financial Publishing Limited T/A VectorVest UK (VectorVest) is authorised and regulated by the Financial Conduct Authority under register number 543038. You should remember that the value of investments and the income derived therefrom may fall as well as rise and you may not get back the amount that you invest. Past performance is not a reliable guide to the future. This material is directed only at persons in the UK and is not an offer or invitation to buy or sell securities. If investors are in any doubt of the suitability of an investment given their individual circumstances, they are recommended to contact an investment manager or independent financial adviser who may be able to provide tailored advice. Opinions expressed whether in general or both on the performance of individual securities and in a wider economic context represent the views of VectorVest at the time of preparation. They are subject to change and should not be interpreted as investment advice. VectorVest and connected companies, clients, directors, employees and other associates, may have a position in any security, or related financial instrument, issued by a company or organisation mentioned on this site. European Financial Publishing Limited is a company incorporated in Scotland under Company Number SC357322 with its registered address at Exchange Tower, 19 Canning Street, Edinburgh EH3 8EH. Email: support@VectorVest.com

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