DB:G9KB

Stock Analysis Report

Great Portland Estates

Executive Summary

We are a FTSE 250 property investment and development company owning £2.6 billion of real estate in central London.

Rewards

Earnings are forecast to grow 9.41% per year

Risk Analysis

No risks detected for G9KB from our risk checks.


Snowflake Analysis

Questionable track record with limited growth.


Similar Companies

Share Price & News

How has Great Portland Estates's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: G9KB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.7%

G9KB

4.1%

DE REITs

1.7%

DE Market


1 Year Return

n/a

G9KB

44.7%

DE REITs

15.0%

DE Market

Return vs Industry: Insufficient data to determine how G9KB performed against the German REITs industry.

Return vs Market: Insufficient data to determine how G9KB performed against the German Market.


Shareholder returns

G9KBIndustryMarket
7 Day3.7%4.1%1.7%
30 Day6.9%8.4%0.8%
90 Day23.6%14.9%3.7%
1 Yearn/a49.3%44.7%18.5%15.0%
3 Year58.6%23.2%42.3%22.0%17.1%6.9%
5 Year15.7%-12.3%47.3%15.6%24.3%7.3%

Price Volatility Vs. Market

How volatile is Great Portland Estates's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Great Portland Estates undervalued compared to its fair value and its price relative to the market?

43.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: G9KB (€11.2) is trading above our estimate of fair value (€5.74)

Significantly Below Fair Value: G9KB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: G9KB is poor value based on its PE Ratio (43.1x) compared to the REITs industry average (9.6x).

PE vs Market: G9KB is poor value based on its PE Ratio (43.1x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: G9KB is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: G9KB is good value based on its PB Ratio (1.1x) compared to the DE REITs industry average (1.7x).


Next Steps

Future Growth

How is Great Portland Estates forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: G9KB's forecast earnings growth (9.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: G9KB's earnings (9.4% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: G9KB's earnings are forecast to grow, but not significantly.

Revenue vs Market: G9KB's revenue (8.4% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: G9KB's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: G9KB's Return on Equity is forecast to be low in 3 years time (4%).


Next Steps

Past Performance

How has Great Portland Estates performed over the past 5 years?

-53.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: G9KB has high quality earnings.

Growing Profit Margin: G9KB's current net profit margins (54.1%) are higher than last year (21.4%).


Past Earnings Growth Analysis

Earnings Trend: G9KB's earnings have declined by -53.9% per year over the past 5 years.

Accelerating Growth: G9KB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: G9KB had negative earnings growth (-23.9%) over the past year, making it difficult to compare to the REITs industry average (96.7%).


Return on Equity

High ROE: G9KB's Return on Equity (2.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Great Portland Estates's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: G9KB has a low level of unsold assets or inventory.

Debt Coverage by Assets: G9KB's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: G9KB's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if G9KB has a sufficient allowance for bad loans.

Low Risk Liabilities: G9KB reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if G9KB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: G9KB has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if G9KB has an appropriate level of bad loans.


Next Steps

Dividend

What is Great Portland Estates's current dividend yield, its reliability and sustainability?

1.26%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.3%markettop25%3.6%industryaverage2.7%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: G9KB's dividend (1.26%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: G9KB's dividend (1.26%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: G9KB's dividend payments have been volatile in the past 10 years.

Growing Dividend: G9KB's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.4%), G9KB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: G9KB's dividends in 3 years are forecast to be covered by earnings (59.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Toby Courtauld (51yo)

17.8yrs

Tenure

UK£905,000

Compensation

Mr. Toby Courtauld, MA, MRICS has been the Chief Executive Officer and Executive Director of Great Portland Estates Plc since joining it in April 2002. Mr. Courtauld was the President of British Property F ...


CEO Compensation Analysis

Compensation vs Market: Toby's total compensation ($USD1.18M) is below average for companies of similar size in the German market ($USD2.02M).

Compensation vs Earnings: Toby's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Toby Courtauld
CEO & Director17.8yrsUK£905.00k0.53% £15.7m
Nick Sanderson
Finance & Operations Director and Director8.6yrsUK£619.00k0.099% £2.9m
Robin Matthews
Investment Director3.4yrsno datano data
Martin Leighton
Director of Corporate Finance3.1yrsno datano data
Stephen Burrows
Director of Financial Reporting & Investor Relations0yrsno datano data
Andrew White
Development Director6.9yrsno datano data
Rachel Aylett
Head of Human Resources1.4yrsno datano data
Janine Cole
Head of Sustainability9.1yrsno datano data
Helen Hare
Head of Project Management3.1yrsno datano data
David O'Sullivan
Head of Occupier Services1.8yrsno datano data

3.4yrs

Average Tenure

Experienced Management: G9KB's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Toby Courtauld
CEO & Director17.8yrsUK£905.00k0.53% £15.7m
Nick Sanderson
Finance & Operations Director and Director8.6yrsUK£619.00k0.099% £2.9m
Richard Mully
Non-Executive Chairman1yrsUK£94.00k0.0065% £189.9k
Charles E. Philipps
Senior Independent Director2.8yrsUK£70.00k0.0016% £47.5k
Wendy Becker
Non-Executive Director3yrsUK£71.00k0.0033% £95.8k
Victoria Jarman
Non-Executive Director0yrsno datano data
Alison Rose-Slade
Non-Executive Director1.8yrsUK£60.00kno data
Nick Hampton
Non-Executive Director3.3yrsUK£66.00k0.0015% £44.0k

3.0yrs

Average Tenure

51.5yo

Average Age

Experienced Board: G9KB's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Great Portland Estates Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Great Portland Estates Plc
  • Ticker: G9KB
  • Exchange: DB
  • Founded:
  • Industry: Office REITs
  • Sector: Real Estate
  • Market Cap: UK£2.440b
  • Listing Market Cap: UK£2.931b
  • Shares outstanding: 252.76m
  • Website: https://www.gpe.co.uk

Number of Employees


Location

  • Great Portland Estates Plc
  • 33 Cavendish Square
  • London
  • East Lothian
  • W1G 0PW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GPORLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
G9KBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
GPEA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
GPORLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
GPORLSE (London Stock Exchange)ORD GBP0.15263157894GBGBPMar 2018
GPORLBATS-CHIXE (BATS 'Chi-X Europe')ORD GBP0.15263157894GBGBPMar 2018

Biography

We are a FTSE 250 property investment and development company owning £2.6 billion of real estate in central London. We proactively manage our portfolio, flexing our activities in tune with London’s property cycle to deliver long-term out-performance. We create in-demand spaces that people want to be part of; helping our occupiers, local communities and the city to thrive. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 20:59
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.