OTCPK:GPEA.F

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet second-rate dividend payer.


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: GPEA.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

GPEA.F

5.0%

US REITs

3.0%

US Market


1 Year Return

n/a

GPEA.F

-10.1%

US REITs

9.9%

US Market

Return vs Industry: Insufficient data to determine how GPEA.F performed against the US REITs industry.

Return vs Market: Insufficient data to determine how GPEA.F performed against the US Market.


Shareholder returns

GPEA.FIndustryMarket
7 Day0%5.0%3.0%
30 Day0%4.8%8.2%
90 Day-0.5%-13.7%0.4%
1 Yearn/a-6.3%-10.1%12.4%9.9%
3 Year28.3%28.3%10.1%-3.5%31.0%22.3%
5 Year-8.7%-8.7%40.5%11.5%58.1%40.3%

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?

32.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GPEA.F ($10.55) is trading above our estimate of fair value ($6.86)

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


Price To Earnings Ratio

PE vs Industry: GPEA.F is poor value based on its PE Ratio (32.8x) compared to the REITs industry average (27.4x).

PE vs Market: GPEA.F is poor value based on its PE Ratio (32.8x) compared to the US market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: GPEA.F is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: GPEA.F is good value based on its PB Ratio (0.8x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

How is Great Portland Estates forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

21.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPEA.F's forecast earnings growth (21.1% per year) is above the savings rate (2.2%).

Earnings vs Market: GPEA.F's earnings (21.1% per year) are forecast to grow slower than the US market (21.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if GPEA.F's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if GPEA.F's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GPEA.F's Return on Equity is forecast to be low in 3 years time (3.8%).


Next Steps

Past Performance

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

-55.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GPEA.F has a large one-off loss of £52.6M impacting its March 31 2020 financial results.

Growing Profit Margin: GPEA.F's current net profit margins (35.4%) are lower than last year (47.1%).


Past Earnings Growth Analysis

Earnings Trend: GPEA.F's earnings have declined by -55.7% per year over the past 5 years.

Accelerating Growth: GPEA.F's earnings growth over the past year (4.5%) exceeds its 5-year average (-55.7% per year).

Earnings vs Industry: GPEA.F earnings growth over the past year (4.5%) underperformed the REITs industry 5.3%.


Return on Equity

High ROE: GPEA.F's Return on Equity (2.4%) is considered low.


Next Steps

Financial Health

How is Great Portland Estates's financial position?


Financial Position Analysis

Short Term Liabilities: GPEA.F's short term assets (£111.5M) exceed its short term liabilities (£60.0M).

Long Term Liabilities: GPEA.F's short term assets (£111.5M) do not cover its long term liabilities (£490.2M).


Debt to Equity History and Analysis

Debt Level: GPEA.F's debt to equity ratio (20.2%) is considered satisfactory.

Reducing Debt: GPEA.F's debt to equity ratio has reduced from 26.7% to 20.2% over the past 5 years.

Debt Coverage: GPEA.F's debt is not well covered by operating cash flow (8.7%).

Interest Coverage: GPEA.F earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

1.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GPEA.F's dividend (1.92%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: GPEA.F's dividend (1.92%) is low compared to the top 25% of dividend payers in the US market (4.48%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86.3%), GPEA.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GPEA.F's dividends in 3 years are forecast to be covered by earnings (53.1% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Toby Courtauld (51yo)

18.08yrs

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 ($USD1.11M) is below average for companies of similar size in the US market ($USD4.77M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Toby Courtauld
CEO & Director18.08yrsUK£905.00k0.50% £10.9m
Nick Sanderson
Finance & Operations Director and Director8.83yrsUK£619.00k0.093% £2.0m
Robin Matthews
Investment Director3.67yrsno datano data
Martin Leighton
Director of Corporate Finance3.33yrsno datano data
Stephen Burrows
Director of Financial Reporting & Investor Relationsno datano datano data
Andrew White
Development Director7.17yrsno datano data
Rachel Aylett
Head of Human Resources1.67yrsno datano data
Janine Cole
Head of Sustainability9.33yrsno datano data
Helen Hare
Head of Project Management3.33yrsno datano data
David O'Sullivan
Head of Occupier Services2yrsno datano data

3.7yrs

Average Tenure

Experienced Management: GPEA.F's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Toby Courtauld
CEO & Director18.08yrsUK£905.00k0.50% £10.9m
Nick Sanderson
Finance & Operations Director and Director8.83yrsUK£619.00k0.093% £2.0m
Richard Mully
Independent Non-Executive Chairman1.17yrsUK£94.00k0.0098% £213.5k
Charles E. Philipps
Senior Independent Director3.08yrsUK£70.00k0.0015% £33.0k
Wendy Becker
Independent Non-Executive Director3.17yrsUK£71.00k0.0031% £66.9k
Victoria Jarman
Non-Executive Director0.25yrno datano data
Alison Rose-Slade
Independent Non-Executive Director2.08yrsUK£60.00kno data
Nick Hampton
Independent Non-Executive Director3.58yrsUK£66.00k0.0014% £30.6k

3.1yrs

Average Tenure

51.5yo

Average Age

Experienced Board: GPEA.F's board of directors are considered experienced (3.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GPEA.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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: GPEA.F
  • Exchange: OTCPK
  • Founded: 1957
  • Industry: Office REITs
  • Sector: Real Estate
  • Market Cap: UK£1.776b
  • Listing Market Cap: UK£2.187b
  • Shares outstanding: 270.26m
  • 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 Analysis2020/05/29 07:17
End of Day Share Price2020/03/11 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.