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Great Portland Estates PLC on Thursday reported it swung to loss in the six months that ended September 30 as rising expenses more than offset revenue growth.
The London-based property developer and investor said it swung to an interim loss of £86.6 million from a profit of £62.2 million a year prior.
Revenue grew 3.1% to £43.5 million from £42.2 million, which was however outpaced by administrative costs, which rose by 8.6% to £17.6 million from £16.2 million. Further, cost of sales widened by 3.6% to £14.2 million from £13.7 million.
Great Portland declared an unchanged interim dividend of 4.7 pence per share.
Looking ahead, the firm said its property capital value indicators have deteriorated since May due to increased economic uncertainty. "In the short term, we expect investment activity in the central London commercial property market to remain muted, as higher interest rates reduce prospective returns, and prime yields to come under further upward pressure," it added.
For financial year 2023 ending March 31, the firm estimates a rental value growth of between a break-even and 2.5%, citing good performance of its office portfolio. In the first half, the company posted a like-for-like rental value increase of 0.7%.
Great Portland Estates shares fell 1.4% to 535.50 pence each in London on Thursday afternoon.
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