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Appendix 1
Central London office potential completions million sq ft
Forecast office-based employment growth in London (next five years) thousands of people
+ 182,000 office-based jobs over next five years
130
120
100
80
60
40
20
0
–20
130,000
53,000
(3,000)
2,000
Professional andbusiness services
Creativeindustries
Publicsector
Banking andfinance
CompletedCycle peaks
Source: 1. CBRE/GPE
1991 2003
10.2
6.5
4.0
1.72.2
3.4
6.0
3.4
4.6
5.8
4.6 4.43.7 3.8
3.3 3.6
14.1Vacancy rate14.5%
Vacancy rate10.5%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Pre-letSpeculativeWest End core
10
12
14
8
6
4
2
0
Source: CBRE/Oxford Economics
Source: CBRE/GPE
CompletedCycle peaks
Source: 1. CBRE/GPE
1991 2003
10.2
6.5
4.0
1.72.2
3.4
6.0
3.4
4.6
5.8
4.6 4.43.7 3.8
3.3 3.6
14.1Vacancy rate14.5%
Vacancy rate10.5%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Pre-letSpeculativeWest End core
10
12
14
8
6
4
2
0
Appendices 2019 Great Portland Estates plc1
Appendix 1
Source: CBRE/GPE
Source: Company data
London equity demand and asset supply £bn
Value of deals under review by GPE £bn
Nov2010
Nov2011
Nov2012
Nov2013
Nov2014
Mar2019
Nov2018
Nov2017
Nov2015
Nov2016
Equity demand On market asset supply Multiple (RHS)
12x
14x
16x
10x
8x
6x
4x
2x
0
35
30
25
20
15
10
5
0
40
Nov2010
Nov2011
Nov2012
Nov2013
Nov2014
Mar2019
Nov2018
Nov2017
Nov2015
Nov2016
Equity demand On market asset supply Multiple (RHS)
12x
14x
16x
10x
8x
6x
4x
2x
0
35
30
25
20
15
10
5
0
40
1.6
1.2
0.8
0.4
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2019
2018
Nov ’1048%Nov ’09
48%
May ’1039%
May ’170%
May ’180%
Nov ’1815%
May ’199%
Dec ’174%
Percentage of reviewed stock trading at/near GPE view of ‘fair value’
Value of deals under review £bn
1.6
1.2
0.8
0.4
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2019
2018
Nov ’1048%Nov ’09
48%
May ’1039%
May ’170%
May ’180%
Nov ’1815%
May ’199%
Dec ’174%
Percentage of reviewed stock trading at/near GPE view of ‘fair value’
Value of deals under review £bn
Appendices 2019 Great Portland Estates plc2
Appendix 1
Selected lead indicators1
Drivers of rents2018
Outlook2019
Outlook
GDP/GVA growth
Business investment
Confidence
Employment growth
Active demand/take-up
Vacancy rates
Development completions
Drivers of yields
Rental growth
Weight of money
Gilts
BBB Bonds
Exchange rates
Political risk
1. Near term market outlook assuming orderly Brexit.
Appendices 2019 Great Portland Estates plc3
Appendix 2
Portfolio performanceWholly- owned
£m
Jointventures1
£mTotal
£m
Proportion of portfolio
%
Valuation movement
%
North of Oxford Street Office 543.1 – 543.1 21.1 2.3
Retail 129.9 99.4 229.3 8.9 (8.3)
Residential 13.7 – 13.7 0.5 2.4
Rest of West End Office 252.1 – 252.1 9.8 (1.0)
Retail 241.6 34.4 276.0 10.7 1.2
Residential 5.5 – 5.5 0.2 1.3
Total West End 1,185.9 133.8 1,319.7 51.2 (0.6)
City, Midtown and Southwark Office 563.3 227.0 790.3 30.5 (0.5)
Retail 29.5 3.1 32.6 1.3 1.8
Residential 3.7 – 3.7 0.1 (0.2)
Total City, Midtown and Southwark 596.5 230.1 826.6 31.9 (0.4)
Investment property portfolio 1,782.4 363.9 2,146.3 83.1 (0.5)
Development property 207.5 225.2 432.7 16.9 4.1
Total properties held throughout the year 1,989.9 589.1 2,579.0 100.0 0.2
Acquisitions – – – – –
Total property portfolio 1,989.9 589.1 2,579.0 100.0 0.2
1. GPE share.
Portfolio characteristics
Investment properties
£m
Development properties
£m
Total property portfolio
£mOffice
£mRetail
£mResidential
£mTotal
£m
Net internal area sq ft
000’s
North of Oxford Street 786.1 178.5 964.6 617.7 333.1 13.8 964.6 740
Rest of West End 533.6 225.2 758.8 385.4 359.3 14.1 758.8 568
Total West End 1,319.7 403.7 1,723.4 1,003.1 692.4 27.9 1,723.4 1,308
City, Midtown and Southwark 826.6 29.0 855.6 819.4 32.6 3.6 855.6 1,337
Total 2,146.3 432.7 2,579.0 1,822.5 725.0 31.5 2,579.0 2,645
By use: Office 1,585.5 237.0 1,822.5
Retail 537.9 187.1 725.0
Residential 22.9 8.6 31.5
Total 2,146.3 432.7 2,579.0
Net internal area sq ft 000’s 2,230 415 2,645
Appendices 2019 Great Portland Estates plc4
Appendix 2
Long-term outperformance Relative returns vs MSCI Relative capital growth % pa1
North of Oxford Street £964.6m Rest of West End £758.8m City £445.7m Southwark £209.5m Midtown £200.4m
37%
30%
17%
8%
8%
Office £1,822.5m Retail £725.0m Residential £31.5m
71%
28%
1%
£2,579 million portfolio valuation
2.6 million sq ft
17% in committed development
100% BREEAM ‘Excellent’ targeted
37% in development pipeline
47 properties, 35 sites
326 occupiers
£55.20 average office rent per sq ft
£100.4 million rent roll
1.2% rental value uplift in year
8.3% reversionary potential
4.8% vacancy rate
92% <800 metres from a Crossrail station
GPE
240
280
320
200
160
120
80
MSCI Central London Universe
2004 2007 2010 2013 2016 2019
GPE
240
280
320
200
160
120
80
MSCI Central London Universe
2004 2007 2010 2013 2016 2019
1. 2004 – first pure comparability to MSCI central London.
Our portfolio – 100% Central London, with 54% in our development programme
Locations Business mix
Appendices 2019 Great Portland Estates plc5
Appendix 3
Sales for the year ended 31 March 2019
Price1
£m
Premium /(discount)
to book value %
Price persq ft
£NIY
%
Commercial
78/92 Great Portland Street, W1 48.2 2.4 1,362 3.90%
160 Great Portland Street, W1 127.3 (2.0) 1,328 4.08%
32/36 Great Portland Street, W1 18.9 7.3 1,465 3.94%
27/35 Mortimer Street, W1 38.5 0.8 1,242 3.90%
55 Wells Street, W1 64.6 (3.0) 1,674 3.99%
Percy House, 32/33 Gresse Street, W1 25.0 0.0 1,445 3.76%
Commercial total 322.5 (0.6) 1,429 3.98%
Residential
78/92 Great Portland Street, W1 12.0 0.0 1,682 n/a
Rathbone Square, W1 14.4 (2.8) 2,263 n/a
Total 348.9 (0.7) 1,459 3.98%
1. Joint ventures at share and after deductions for tenant incentives.
Wholly-owned and joint venture property values at 31 March 2019
Wholly-owned and joint venture property values at 31 March 2019
19%
4%
77%
Wholly-owned £1,989.8mRisk sharing £489.8mAccess to new properties £99.4m
Appendices 2019 Great Portland Estates plc6
Appendix 3
Our development pipeline
City Place House, EC2* 50 Finsbury Square, EC2
Proposed size 350,000 sq ft
Earliest start 2022
Opportunity area Crossrail
Proposed size 122,000 sq ft
Earliest start 2020
Opportunity area Crossrail
35 Portman Square, W1 Jermyn Street Estate, SW1 New City Court, SE1*
Proposed size 73,000 sq ft
Earliest start 2026
Opportunity area Core West End
Proposed size 133,100 sq ft
Earliest start 2021-2022
Opportunity area Core West End
Proposed size 373,100 sq ft
Earliest start 2022
Opportunity area London Bridge
French Railways House and 50 Jermyn Street, SW1
Kingsland/Carrington House, W1
Proposed size 75,000 sq ft
Earliest start 2021-2022
Opportunity area Core West End
Proposed size 51,400 sq ft
Earliest start 2022-2023
Opportunity area Prime retail
Mount Royal, W1 Minerva House, SE1 95/96 New Bond Street, W1
Proposed size 92,100 sq ft
Earliest start 2022-2023
Opportunity area Core West End
Proposed size 120,000 sq ft
Earliest start 2022
Opportunity area London Bridge
Proposed size 9,600 sq ft
Earliest start 2023-2024
Opportunity area Prime retail
* Computer Generated Image
Appendices 2019 Great Portland Estates plc7
Q2 Q3 Q4Q1
Lettings
15
12
9
6
3
0
5.2
2.8
2.4
5.6
3.4
4.2
2.3
11.9
Rent reviewsQ2 Q3 Q4Q1
Lettings
18
15
12
9
6
3
0
3.9
6.0
4.9
5.3
2.3
10.7
7.2
9.1
Rent reviews
Appendix 3
LTV and cost of debt %
Sources of debt funding1
Lettings and rent reviews by quarter 2018/19 £mGPE tenant mix %
2%Retailers and leisureTechnology, media and telecoms Professional servicesBanking and finance Corporates Government
32%
27%
18%
11%
10%
GPE occupier mix %
6
3
0 Q1 Q2 Q3 Q4
GPE occupier mix %
21
23
9
101
36
Retailers and leisureTechnology, media and telecomsProfessionalBanking and financeCorporatesGovernment
18
15
12
9
GPE occupier mix %
21
23
9
101
36
Retailers and leisureTechnology, media and telecomsProfessionalBanking and financeCorporatesGovernment
LTV (LHS)
25.7
3.5
3.7
8.7
2.7
2013 2015 20162014 2017 20192018
50
45
40
35
30
25
20
15
10
5
0
3.8
3.6
3.4
3.2
3.0
2.8
2.6
2.4
2.2
2.0
1.8
32.7
3.7
20.217.4
3.7
3.0
18.3
2.4
2.1
Weighted average interest rate (RHS)LTV (LHS)
25.7
3.5 3.7
8.7
2.7
2013 2015 20162014 2017 20192018
40
35
30
25
20
15
10
5
0
3.7
3.5
3.3
3.1
2.9
2.7
2.5
2.3
2.1
32.7
3.7
20.217.4
3.7
3.0
18.3
2.42.1
Weighted average interest rate (RHS)
33%
3%5% 5%
54%
Group bank facilityPrivate placement notesDebenture bondsJV bank debtJV non-bank debt
Sources of debt funding1
1. Based on committed facilities.
Appendices 2019 Great Portland Estates plc8
Appendix 3
Debt maturity profile1 £m
500
400
300
200
100
0
1. Based on committed facilities.
150
45
450
40
175
40 22 30 30
2018 2022202120202019 2023 2024 2028 2029 2030 2031 2032 2033
Group debt JV debt (our share)
500
400
300
200
100
0
1. Based on pro forma committed facilities.
45
450
40
175
40 22 30 30
2022202120202019 2023 2024 2028 2029 2030 2031 2032 2033
Group debt JV debt (our share)
500
400
300
200
100
0
1. Based on committed facilities.
150
45
450
40
175
40 22 30 30
2018 2022202120202019 2023 2024 2028 2029 2030 2031 2032 2033
Group debt JV debt (our share)
Appendices 2019 Great Portland Estates plc9
EPRA NAV pence
EPRA earnings £m
Appendix 4
900
880
860
840
820
800
780
760
740
720
700 Revaluation Loss ondisposals
Mar-2018 EPS Ordinarydividend
Sharebuyback
Tax and other
Mar-2019
845 22
19
12
54
853
Increase TotalDecrease
70
65
60
55
50
45
40
35
30 Rentalincome
Jointventure
fees
Mar-2018 JointventureEPRA
earnings
Propertycosts
Admincosts
Netinterest
Other Mar-2019
66.5
11.7 1.40.2
0.6 1.0
1.6 0.1 53.7
Increase TotalDecrease
900
880
860
840
820
800
780
760
740
720
700 Revaluation Loss ondisposals
Mar-2018 EPS Ordinarydividend
Sharebuyback
Tax and other
Mar-2019
845 22
19
12
54
853
Increase TotalDecrease
70
65
60
55
50
45
40
35
30 Rentalincome
Jointventure
fees
Mar-2018 JointventureEPRA
earnings
Propertycosts
Admincosts
Netinterest
Other Mar-2019
66.5
11.7 1.40.2
0.6 1.0
1.6 0.1 53.7
Increase TotalDecrease
Appendices 2019 Great Portland Estates plc10
Appendix 4
Debt analysisMarch 2019
March 2018
Net debt excluding JVs (£m) 156.6 (5.2)Net gearing 6.8% 0%Total net debt including 50% JV non-recourse debt (£m) 224.0 67.5Loan to property value 8.7% 2.4%Total net gearing 9.7% 2.9%Interest cover n/a n/aWeighted average interest rate 2.7% 2.1%Weighted average cost of debt 3.2% 3.2%% of debt fixed/hedged 100% 100%Cash and undrawn facilities (£m) 608 814
EPRA performance measures
Measure Definition of MeasureMarch 2019
March 2018
EPRA earnings* Recurring earnings from core operational activities £53.7m £66.5mEPRA EPS* EPRA earnings divided by the weighted average number
of shares 19.5p 20.4pDiluted EPRA EPS* EPRA earnings divided by the diluted weighted average
number of shares 19.4p 20.4pEPRA costs (by portfolio value)*
EPRA costs (including direct vacancy costs) divided by market value of the portfolio 1.2% 1.1%
EPRA net assets* Net assets adjusted to include the valuation surplus from trading properties and exclude the fair value of financial instruments and deferred tax £2,310.1m £2,371.2m
EPRA NAV* EPRA net assets divided by the number of shares at the balance sheet date on a diluted basis 853p 845p
EPRA triple net assets* EPRA net assets amended to include the fair value of financial instruments, debt, deferred tax and tax on sale of trading properties £2,301.5m £2,363.8m
EPRA NNNAV* EPRA triple net assets divided by the number of shares at the balance sheet date on a diluted basis 850p 842p
EPRA NIY Annualised rental income based on cash rents passing at the balance sheet date less non-recoverable property operating expenses, divided by the market value of the property increased by estimated purchasers’ costs 3.3% 3.6%
EPRA “topped up” NIY EPRA NIY adjusted to include rental income in rent-free periods (or other unexpired lease incentives) 3.6% 3.8%
EPRA vacancy rate ERV of non-development vacant space as a percentage of ERV of the whole portfolio 8.6% 8.6%
* Audited; reconciliation to IFRS numbers included in note 9 to the financial statements.
Appendices 2019 Great Portland Estates plc11
Appendix 5
Rental incomeWholly-owned Share of joint ventures
Rent roll £m
Reversionary potential
£m
Rental values
£mRent roll
£m
Reversionary potential
£m
Rental values
£m
Total rental values
£m
London North of Oxford Street Office 24.0 0.9 24.9 – – – 24.9Retail 6.3 – 6.3 6.5 (0.4) 6.1 12.4
Rest of West End Office 13.1 0.3 13.4 – – – 13.4Retail 9.7 1.7 11.4 2.1 0.1 2.2 13.6
Total West End 53.1 2.9 56.0 8.6 (0.3) 8.3 64.3City, Midtown and Southwark Office 25.4 4.7 30.1 10.6 1.0 11.6 41.7
Retail 2.6 – 2.6 0.1 – 0.1 2.7Total City, Midtown and Southwark 28.0 4.7 32.7 10.7 1.0 11.7 44.4
Total let portfolio 81.1 7.6 88.7 19.3 0.7 20.0 108.7Voids 6.7 0.6 7.3Premises under refurbishment 22.4 13.5 35.9Total portfolio 117.8 34.1 151.9
Rent roll security, lease lengths and voidsWholly-owned Joint ventures
Rent roll secure for five years
%
Weighted average
lease length Years
Voids %
Rent roll secure for five years
%
Weighted average
lease length Years
Voids %
London North of Oxford Street Office 31.7 4.9 0.9 – – –Retail 63.1 5.1 1.6 30.8 4.0 –
Rest of West End Office 5.7 2.9 2.2 – – –Retail 35.4 5.2 0.8 100.0 8.0 –
Total West End 29.8 4.5 1.4 47.9 5.0 –City, Midtown and Southwark Office 20.7 3.2 12.4 45.7 7.3 4.6
Retail 66.7 12.5 9.4 100.0 14.7 37.5Total City, Midtown and Southwark 25.0 4.1 12.4 46.2 7.4 5.0
Total portfolio 28.1 4.3 5.7 46.9 6.3 1.8
Rental values and yieldsWholly-owned Joint ventures Wholly-owned Joint ventures
Average rent £psf
Average ERV £psf
Average rent £psf
Average ERV £psf
Initial yield
%
True equivalent
yield %
Initial yield
%
True equivalent
yield %
London North of Oxford Street Office 68.6 74.5 – – 3.9 4.5 – –Retail 55.7 81.3 140.4 132.0 3.8 4.1 5.9 4.1
Rest of West End Office 74.6 74.8 – – 3.8 4.7 – –Retail 102.2 118.1 74.8 128.0 3.8 4.1 4.2 4.1
Total West End 72.4 76.7 115.4 117.7 3.9 4.4 5.5 4.1City, Midtown and Southwark Office 45.3 54.2 44.7 49.7 3.9 5.1 2.9 4.8
Retail 79.4 80.5 48.2 46.0 3.1 4.6 – 4.6Total City, Midtown and Southwark 47.2 54.4 44.8 49.6 3.9 5.1 2.8 4.8
Total portfolio 61.1 66.2 61.5 78.6 3.9 4.6 3.8 4.6
Appendices 2019 Great Portland Estates plc12
Appendix 5
Top ten occupiers
Occupier UseRent roll
(our share) £m% of rent roll
(our share)
1 Bloomberg L.P. Office 5.7 5.6
2 New Look Office 3.8 3.8
3 Turner Broadcasting Office 3.0 2.9
4 Richemont UK Limited Office 2.6 2.6
5 Winckworth Sherwood LLP Office 2.5 2.5
6 Kurt Geiger Limited Office 2.5 2.5
7 Carlton Communications Limited Office 2.4 2.4
8 Superdry Retail 2.1 2.1
9 ITN Limited Office 1.8 1.8
10 Dennis Publishing Limited Office 1.6 1.6
Total 28.0 27.8
Appendices 2019 Great Portland Estates plc13
Appendix 6M
arke
t ris
k
Risk
Impa
ctH
ow w
e m
onito
r and
man
age
risk
Like
lihoo
d
chan
ge
from
last
ye
ar
Impa
ct
chan
ge
from
last
ye
arC
omm
enta
ry
Cen
tral
Lon
don
re
al e
stat
e m
arke
t un
der
per
form
s ot
her U
K pr
oper
ty
sect
ors.
Red
uced
rela
tive
per
form
ance
.Th
e ex
ecut
ion
of th
e G
roup
’s st
rate
gy
cove
ring
the
key
area
s of
inve
stm
ent,
dev
elop
men
t and
por
tfol
io m
anag
emen
t is
ad
just
ed a
nd u
pd
ated
thro
ugho
ut th
e ye
ar, i
nfor
med
by
reg
ular
rese
arch
into
the
econ
omy,
inve
stm
ent a
nd
occu
patio
nal m
arke
ts.
The
Gro
up’s
stra
teg
ic p
riorit
ies
and
tran
sact
ions
are
co
nsid
ered
in li
ght
of r
egul
ar re
view
of d
ashb
oard
lead
in
dic
ator
s an
d op
erat
iona
l par
amet
ers.
The
Gro
up a
ims
to m
aint
ain
low
fina
ncia
l lev
erag
e th
roug
hout
th
e pr
oper
ty c
ycle
.
The
cent
ral L
ondo
n re
al e
stat
e m
arke
t mar
gina
lly o
utpe
rfor
med
th
e w
ider
UK
mar
ket,
dem
onst
rate
d by
MSC
I’s C
entr
al L
ondo
n TP
R
exce
edin
g its
uni
vers
e TP
R by
90
basi
s poi
nts o
n an
abs
olut
e ba
sis
durin
g th
e ye
ar e
nded
31
Mar
ch 2
019,
alth
ough
this
follo
ws t
wo
co
nsec
utiv
e ye
ars o
f und
erpe
rfor
man
ce. W
hils
t the
out
look
for r
etai
l pr
oper
ty o
utsi
de c
entr
al L
ondo
n ha
s wea
kene
d sig
nific
antly
, the
re
lativ
ely
mut
ed o
utlo
ok fo
r cen
tral
Lon
don
offic
e an
d re
tail
rent
s mea
ns
the
likel
ihoo
d of
this
risk
afte
r miti
gatio
n ha
s bee
n m
aint
aine
d.
Wea
keni
ng
mac
ro-e
cono
mic
en
viro
nmen
t fo
r pro
per
ty
inve
stm
ent.
Prop
erty
val
uatio
ns
may
dec
line,
with
in
crea
sed
prop
erty
yi
elds
and
redu
ced
oc
cupi
er d
eman
d
for s
pace
.
Reg
ular
eco
nom
ic u
pd
ates
are
rece
ived
and
sce
nario
pla
nnin
g
is un
dert
aken
for d
iffer
ent e
cono
mic
cyc
les,
incl
udin
g va
rious
po
tent
ial U
K ex
it ar
rang
emen
ts fr
om th
e EU
.
The
Gro
up a
ims
to m
aint
ain
low
fina
ncia
l lev
erag
e th
roug
hout
th
e pr
oper
ty c
ycle
.
The
UK
mac
ro-e
cono
mic
gro
wth
and
inte
rest
rate
out
look
has
re
mai
ned
mix
ed o
ver t
he la
st 1
2 m
onth
s, in
par
t driv
en b
y co
ntin
ued
g
eo-p
oliti
cal u
ncer
tain
ty a
ssoc
iate
d w
ith th
e on
goi
ng B
rexi
t ne
got
iatio
ns. W
hen
com
bine
d w
ith li
mite
d U
K st
ock
mar
ket g
row
th,
des
pite
incr
ease
d pr
ice
vola
tility
, the
like
lihoo
d of
this
risk
has
bee
n m
aint
aine
d.
Hei
ght
ened
p
oliti
cal u
ncer
tain
ty
and
pot
entia
l ne
gat
ive
econ
omic
im
pact
of o
ngoi
ng
neg
otia
tions
to e
xit
from
the
EU.
Relu
ctan
ce b
y in
vest
ors
and
oc
cupi
ers
to
mak
e in
vest
men
t d
ecis
ions
whi
lst
outc
omes
rem
ain
unce
rtai
n an
d/
or re
duc
ed
attr
activ
enes
s of
Lo
ndon
as
a g
loba
l co
mm
erci
al c
entr
e.
Dis
rupt
ion
to
dev
elop
men
t pr
ogra
mm
e th
roug
h p
oten
tial
impa
ct o
n su
ppl
y ch
ain
and
la
bou
r mar
kets
.
The
Gro
up’s
stra
teg
ic p
riorit
ies
and
tran
sact
ions
are
co
nsid
ered
in li
ght
of t
hese
unc
erta
intie
s.
The
Gro
up’s
finan
cial
fore
cast
s an
d b
usin
ess
plan
s co
ntin
ue to
b
e pr
epar
ed u
nder
a v
arie
ty o
f mar
ket s
cena
rios,
incl
udin
g to
re
flect
diff
eren
t pot
entia
l exi
t arr
ang
emen
ts fr
om th
e EU
.
The
Gro
up a
ims
to m
aint
ain
low
fina
ncia
l lev
erag
e th
roug
hout
th
e pr
oper
ty c
ycle
.
The
Gro
up h
as a
div
erse
occ
upie
r bas
e w
ith a
roun
d 9%
in th
e fin
anci
al s
ervi
ces
sect
or, i
nclu
din
g on
ly c
.1% in
the
inve
stm
ent
bank
ing,
sec
uriti
es tr
adin
g an
d in
sura
nce
sect
ors
(whi
ch a
re
per
ceiv
ed to
be
mos
t at r
isk
in L
ond
on to
any
ad
vers
e im
pact
of
the
UK’
s ex
it fro
m th
e EU
).
Revi
ews
und
erta
ken
of p
oten
tial f
or a
dva
nce
del
iver
y of
m
ater
ials
.
Alth
ough
inve
stor
and
occ
upie
r dem
and
for L
ondo
n co
mm
erci
al
prop
erty
has
rem
aine
d br
oadl
y re
silie
nt o
ver t
he la
st y
ear,
ther
e ha
s be
en a
slo
wdo
wn
in in
vest
men
t mar
ket a
ctiv
ity s
ince
the
star
t of 2
019
give
n th
e pr
evio
us e
xpec
tatio
n th
at th
e U
K w
ould
be
leav
ing
the
EU
on 2
9 M
arch
201
9 an
d th
e on
goin
g un
cert
aint
y as
to w
hen
a re
solu
tion
to th
e B
rexi
t neg
otia
tion
impa
sse
will
be a
chie
ved.
Whi
lst e
vide
nce
sugg
ests
that
UK
econ
omic
gro
wth
has
bee
n lo
wer
than
wou
ld h
ave
been
exp
ecte
d ha
d th
e EU
refe
rend
um n
ot ta
ken
plac
e, p
rinci
pally
as
inve
stm
ent d
ecis
ions
hav
e be
en d
elay
ed, l
ooki
ng a
head
it s
till
rem
ains
pos
sibl
e th
at th
e fin
al n
egot
iatio
ns to
leav
e th
e EU
may
resu
lt in
arr
ange
men
ts th
at a
re m
ater
ially
dam
agin
g to
the
UK
econ
omy
and
/or
cen
tral
Lon
don.
The
se c
ould
redu
ce le
vels
of in
vest
or a
nd o
ccup
ier
dem
and
as a
resu
lt of
redu
ced
trad
e an
d re
loca
tion
of c
orpo
ratio
ns
and
finan
cial
inst
itutio
ns a
way
from
the
UK
. The
se ri
sks w
ould
like
ly
be fu
rthe
r inc
reas
ed b
y an
y ad
ditio
nal i
mpe
dim
ents
for L
ondo
n’s
busi
ness
es to
acc
ess t
alen
ted
empl
oyee
s fro
m th
e EU
and
bey
ond,
al
ong
with
cha
lleng
es to
the
supp
ly c
hain
for o
ur d
evel
opm
ent a
ctiv
ities
.
In a
dd
ition
, the
con
tinui
ng u
ncer
tain
ty c
ould
als
o co
ntrib
ute
to a
p
oten
tial c
hang
e in
the
pol
itica
l lan
dsc
ape
at b
oth
a lo
cal a
nd U
K le
vel,
whi
ch c
ould
ad
vers
ely
impa
ct th
e pr
osp
ects
of b
oth
priv
ate
sect
or
bus
ines
s an
d th
e pr
oper
ty s
ecto
r.
Take
n to
get
her,
the
likel
ihoo
d of
this
risk
has
bee
n m
aint
aine
d at
an
elev
ated
leve
l, as
has
the
risk
afte
r miti
gat
ion
giv
en o
ur c
ontin
ued
net
sale
s ac
tivity
, our
fina
ncia
l str
eng
th (w
ith a
cur
rent
loan
to v
alue
of o
nly
8.7%
) and
our
cos
ts n
ow 9
8% fi
xed
with
our
con
trac
tors
on
our t
hree
co
mm
itted
dev
elop
men
t sch
emes
.
Appendices 2019 Great Portland Estates plc14
Appendix 6In
vest
men
t man
agem
ent
Risk
Impa
ctH
ow w
e m
onito
r and
man
age
risk
Like
lihoo
d
chan
ge
from
last
ye
ar
Impa
ct
chan
ge
from
last
ye
arC
omm
enta
ry
Inco
rrec
t rea
din
g
of th
e pr
oper
ty
mar
ket c
ycle
th
roug
h p
oor
inve
stm
ent
dec
isio
ns a
nd/o
r m
is-t
imed
recy
clin
g
of c
apita
l.
Not
suf
ficie
ntly
ca
pita
lisin
g
on m
arke
t in
vest
men
t co
nditi
ons.
The
Gro
up h
as d
edic
ated
reso
urce
s w
hose
rem
it is
to c
onst
antly
rese
arch
eac
h of
th
e su
b-m
arke
ts w
ithin
cen
tral
Lon
don
see
king
the
right
bal
ance
of i
nves
tmen
t and
d
evel
opm
ent o
pp
ortu
nitie
s su
itabl
e fo
r cur
rent
and
ant
icip
ated
mar
ket c
ond
ition
s.
Reg
ular
revi
ew o
f pro
per
ty c
ycle
by
refe
renc
e to
das
hboa
rd o
f lea
d in
dic
ator
s.
Det
aile
d d
ue d
ilig
ence
is u
nder
take
n on
all
acq
uisi
tions
prio
r to
pur
chas
e to
ens
ure
appr
opria
te re
turn
s.
Bus
ines
s pl
ans
are
prod
uced
on
an in
div
idua
l ass
et b
asis
to e
nsur
e th
e ap
prop
riate
ro
tatio
n of
thos
e b
uild
ing
s w
ith li
mite
d re
lativ
e p
oten
tial p
erfo
rman
ce.
Reg
ular
revi
ew o
f the
pro
spec
tive
per
form
ance
of i
ndiv
idua
l ass
ets
and
thei
r bus
ines
s pl
ans
incl
udin
g w
ith jo
int v
entu
re p
artn
ers
whe
re re
leva
nt.
The
Gro
up h
as c
ontin
ued
to p
rofit
ably
re
cycl
e ca
pita
l and
take
ad
vant
age
of s
tron
g
inve
stor
dem
and
for w
ell l
et, a
ttra
ctiv
ely
loca
ted
prop
ertie
s w
ith s
ales
tota
lling
£34
8.9
mill
ion
in th
e ye
ar. W
ith li
mite
d av
aila
bilit
y of
at
trac
tivel
y pr
iced
acq
uisi
tion
opp
ortu
nitie
s an
d th
e d
epth
of o
pp
ortu
nity
in o
ur e
xist
ing
p
ortf
olio
, we
mad
e no
acq
uisi
tions
in th
e ye
ar. W
ith o
ur s
trat
egic
focu
s an
d ca
pita
l d
isci
plin
e, th
ere
has
bee
n no
cha
nge
to th
e lik
elih
ood
of th
is ri
sk a
fter
miti
gat
ion.
Inap
prop
riate
ass
et
conc
entr
atio
n,
bui
ldin
g m
ix,
occu
pier
s’
cove
nant
qua
lity
and
exp
osur
e,
lot s
ize
and
join
t ve
ntur
e ex
pos
ure.
Red
uced
liq
uid
ity a
nd
rela
tive
prop
erty
p
erfo
rman
ce.
Reg
ular
revi
ew o
f por
tfol
io m
ix a
nd a
sset
con
cent
ratio
n. A
dju
stm
ent o
f the
por
tfol
io
as a
ppr
opria
te th
roug
h un
der
taki
ng a
cqui
sitio
ns a
nd/o
r dev
elop
men
t pro
ject
s in
join
t ve
ntur
e or
forw
ard
fund
ing.
Occ
upie
rs’ c
oven
ants
are
ana
lyse
d an
d se
curit
y so
ught
as
appr
opria
te a
s pa
rt o
f the
le
ase
appr
oval
pro
cess
. Reg
ular
con
tact
with
occ
upie
rs is
mai
ntai
ned
to id
entif
y if
occu
pier
s ar
e su
fferin
g fin
anci
al d
ifficu
lties
and
thei
r pro
pos
ed a
ctio
ns.
The
Gro
up c
ontin
ues
to m
onito
r its
por
tfol
io
mix
and
ass
et c
once
ntra
tion
risk.
The
Gro
up
has
a d
iver
se o
ccup
ier b
ase
with
its
ten
larg
est o
ccup
iers
repr
esen
ting
only
27.
8%
of re
nt ro
ll. O
ur la
rges
t ass
et is
onl
y 8.
7% o
f th
e to
tal p
ortf
olio
and
22.
8% o
f the
por
tfol
io
was
hel
d in
join
t ven
ture
s at
31
Mar
ch
2019
. In
add
ition
, fol
low
ing
the
sale
of 1
1 ap
artm
ents
in th
e ye
ar, r
esid
entia
l pro
per
ty
now
repr
esen
ts o
nly
1% o
f our
por
tfol
io. A
s a
resu
lt, th
ere
has
bee
n no
cha
nge
to th
e lik
elih
ood
of th
is ri
sk a
fter
miti
gat
ion.
Appendices 2019 Great Portland Estates plc15
Appendix 6Po
rtfo
lio m
anag
emen
t fol
io m
anag
emen
t
Risk
Impa
ctH
ow w
e m
onito
r and
man
age
risk
Like
lihoo
d
chan
ge
from
last
ye
ar
Impa
ct
chan
ge
from
last
ye
arC
omm
enta
ry
Poor
man
agem
ent
of v
oid
s, re
ntal
mis
-pr
icin
g, lo
w o
ccup
ier
rete
ntio
n, s
ub-
optim
al re
nt re
view
s,
occu
pier
failu
res
and
dis
satis
fact
ion,
an
d in
appr
opria
te
refu
rbis
hmen
ts.
Failu
re to
max
imis
e in
com
e fro
m
inve
stm
ent
prop
ertie
s.
The
Gro
up’s
in-h
ouse
por
tfol
io m
anag
emen
t and
leas
ing
team
s pr
oact
ivel
y m
anag
e oc
cupi
ers
to e
nsur
e ch
ang
ing
need
s ar
e m
et, w
ith a
focu
s on
reta
inin
g in
com
e in
lig
ht
of v
acan
t pos
sess
ion
req
uire
men
ts fo
r ref
urbi
shm
ents
and
dev
elop
men
ts, a
nd li
aise
re
gul
arly
with
ext
erna
l ad
vise
rs to
ens
ure
corr
ect p
ricin
g of
leas
e tr
ansa
ctio
ns.
Occ
upie
rs’ c
oven
ants
are
ana
lyse
d an
d se
curit
y so
ught
as
appr
opria
te a
s pa
rt o
f the
le
ase
appr
oval
pro
cess
. Reg
ular
con
tact
with
occ
upie
rs is
mai
ntai
ned
to id
entif
y if
occu
pier
s ar
e su
fferin
g fin
anci
al d
ifficu
lties
and
thei
r pro
pos
ed a
ctio
ns.
Ind
epen
den
t occ
upie
r sat
isfa
ctio
n su
rvey
s no
w u
nder
take
n ev
ery
two
year
s an
d ne
w
Hea
d of
Occ
upie
r Ser
vice
s ro
le c
reat
ed d
urin
g th
e ye
ar to
str
eng
then
our
ser
vice
d
eliv
ery.
EPC
ratin
gs
revi
ewed
in c
onte
xt o
f lea
se e
xpiri
es to
ens
ure
impr
ovem
ents
inte
gra
ted
in
to re
furb
ishm
ent p
lans
.
The
Gro
up c
ontin
ues
to a
ctiv
ely
man
age
the
por
tfol
io to
max
imis
e oc
cupa
ncy
and
d
rive
rent
al g
row
th. W
ith a
hea
lthy
occu
pier
re
tent
ion
rate
of 5
0% o
ver t
he y
ear,
the
Gro
up m
aint
aine
d a
rela
tivel
y lo
w v
oid
rate
w
hich
was
4.8
% a
t 31
Mar
ch 2
019
(4.9
% a
t 31
Mar
ch 2
018)
.
Dur
ing
the
year
, we
secu
red
£24.
5 m
illio
n of
ne
w re
ntal
inco
me,
with
37%
of t
otal
lett
ing
s re
pres
ente
d by
pre
-lets
or l
ettin
gs
at re
cent
ly
com
plet
ed d
evel
opm
ents
. The
rent
revi
ews
com
plet
ed o
ver t
he y
ear w
ere
sett
led
at a
n av
erag
e in
crea
se o
f 19.
2% a
bov
e th
e pr
evio
us
pass
ing
rent
.
Whi
lst t
here
was
an
incr
ease
in th
e nu
mb
er o
f ou
r occ
upie
rs o
n ou
r int
erna
l ‘w
atch
list’
(21
at
31 M
arch
201
9, c
ompa
red
to 2
2 a
year
ear
lier),
pa
rtic
ular
ly g
iven
the
chal
leng
es in
the
UK
re
tail
sect
or, o
ccup
ier d
elin
que
ncie
s d
urin
g
the
year
repr
esen
ted
only
0.17
% o
f tot
al re
nt
roll.
Mor
eove
r, at
31
Mar
ch 2
019
we
held
rent
d
epos
its a
nd b
ank
gua
rant
ees
tota
lling
£25
.1
mill
ion
(incl
udin
g fo
r som
e of
our
larg
er re
tail
occu
pier
s).
As
a re
sult
of th
ese
per
form
ance
s an
d ou
r cu
rren
t ini
tiativ
es, t
here
has
bee
n no
cha
nge
to th
e lik
elih
ood
of th
is ri
sk a
fter
miti
gat
ion.
Failu
re to
reac
t to
ev
olvi
ng o
ccup
ier
need
s in
clud
ing
co
nsid
erat
ion
of
wel
lbei
ng, i
ncre
ased
fle
xibi
lity
and
enha
nced
su
stai
nabl
e b
uild
ing
d
esig
n (in
corp
orat
ing
en
viro
nmen
tal
per
form
ance
and
cl
imat
e ch
ang
e re
silie
nce)
, com
bine
d
with
impa
ct o
f te
chno
log
ical
ad
vanc
es
on w
ays
of w
orki
ng.
Bui
ldin
gs
and
leas
e st
ruct
ures
cea
se to
ap
pea
l to
occu
pier
s an
d in
vest
ors,
re
duc
ing
inco
me
and
valu
atio
ns.
Our
Dire
ctor
of W
orkp
lace
and
Inno
vatio
n is
resp
onsi
ble
for k
eepi
ng th
e B
oard
up
to
dat
e on
mar
ket d
evel
opm
ents
and
inco
rpor
atin
g in
nova
tion
in th
e G
PE p
ortf
olio
.
New
Hea
d of
Offi
ce L
easi
ng ro
le c
reat
ed, w
hose
rem
it in
clud
es m
anag
ing
the
Gro
up’s
appr
oach
to fl
exib
le o
ffice
offe
ring
s.
Revi
ews
und
erta
ken
of fu
rthe
r op
por
tuni
ties
for fl
ex s
pace
offe
ring
acro
ss th
e p
ortf
olio
, inc
lud
ing
broa
den
ing
our p
rod
uct o
fferin
g.
Gui
din
g Pr
inci
ples
of D
esig
n d
evel
oped
to o
utlin
e ou
r exp
ecta
tions
of a
ll pa
rtie
s in
volv
ed in
our
refu
rbis
hmen
t and
dev
elop
men
t pro
ject
s.
Our
flex
spa
ce o
fferin
gs
now
repr
esen
t 4%
of o
ur o
ffice
spa
ce, w
hich
wou
ld ri
se to
10
% w
hen
incl
udin
g sp
ace
curr
ently
und
er
appr
aisa
l.
To e
nsur
e th
at w
e ad
dre
ss th
e ev
er e
volv
ing
w
orkp
lace
nee
ds
and
futu
re p
roof
our
d
evel
opm
ents
, our
Des
ign
Revi
ew P
anel
, ch
aire
d by
our
Dire
ctor
of W
orkp
lace
and
In
nova
tion,
mee
ts w
eekl
y an
d ch
alle
nges
our
pr
ofes
sion
al te
ams
to e
nsur
e th
at w
e cr
eate
sp
ace
that
fulfi
ls o
ur o
ccup
iers
’ evo
lvin
g
need
s.
Dur
ing
the
year
, par
tner
ing
with
five
co
ntin
enta
l Eur
opea
n of
fice
REIT
S, w
e ca
rrie
d
out r
esea
rch
to u
nder
stan
d w
hat e
nd u
sers
w
ant a
nd h
eld
a se
ries o
f foc
us g
roup
s to
un
ders
tand
wha
t peo
ple
expe
ct fr
om th
eir
offic
e in
the
futu
re.
Appendices 2019 Great Portland Estates plc16
Appendix 6D
evel
opm
ent m
anag
emen
t
Risk
Impa
ctH
ow w
e m
onito
r and
man
age
risk
Like
lihoo
d
chan
ge fr
om
last
yea
r
Impa
ct
chan
ge
from
last
yea
r C
omm
enta
ry
An
inap
prop
riate
leve
l of
dev
elop
men
t und
erta
ken
as a
per
cent
age
of th
e p
ortf
olio
.
Und
er
per
form
ance
ag
ains
t KPI
s.
Reg
ular
revi
ew o
f the
leve
l of d
evel
opm
ent u
nder
take
n as
a p
erce
ntag
e of
por
tfol
io, i
nclu
din
g
the
impa
ct o
n th
e G
roup
’s in
com
e pr
ofile
and
fina
ncia
l gea
ring,
am
ong
st o
ther
met
rics.
Dev
elop
men
ts o
nly
com
mitt
ed to
whe
n pr
e-le
ts o
btai
ned
and
/or m
arke
t dem
and
and
sup
ply
cons
ider
ed to
be
suffi
cien
tly s
upp
ortiv
e.
The
Gro
up h
as m
ade
no n
ew
deve
lopm
ent c
omm
itmen
ts d
urin
g th
e ye
ar, a
lthou
gh c
omm
itted
dev
elop
men
t ex
posu
re h
as in
crea
sed
from
11%
of
the
tota
l por
tfolio
12
mon
ths a
go to
17
% to
day
give
n ca
pita
l exp
endi
ture
. H
owev
er, t
he G
roup
’s sp
ecul
ativ
e de
velo
pmen
t risk
has
redu
ced
give
n pr
e-le
ttin
gs d
urin
g th
e ye
ar, i
ncre
asin
g
the
pre-
let p
ropo
rtio
n fro
m 11
% to
21%
. A
s a re
sult,
the
impa
ct o
f thi
s risk
and
lik
elih
ood
afte
r miti
gatio
n is
unch
ange
d,
part
icul
arly
giv
en th
e qu
ality
of t
he
spac
e th
at w
e ar
e de
liver
ing,
all i
n cl
ose
prox
imity
to C
ross
rail s
tatio
ns.
Inab
ility
to p
rofit
ably
d
eliv
er th
e d
evel
opm
ent
prog
ram
me
and
pi
pel
ine
thro
ugh:
– in
corr
ect r
ead
ing
of th
e pr
oper
ty c
ycle
;–
inap
prop
riate
loca
tion;
– fa
ilure
to g
ain
viab
le
plan
ning
con
sent
s;–
failu
re to
reac
h ag
reem
ent w
ith
adjo
inin
g ow
ners
/fre
ehol
der
s on
ac
cept
able
term
s;–
inap
prop
riate
leve
l of
sp
ecul
ativ
e d
evel
opm
ent;
– in
corr
ect c
ost a
nd
prog
ram
me
estim
atio
n;–
cons
truc
tion
cost
in
flatio
n;–
cont
ract
or a
vaila
bilit
y an
d in
solv
ency
risk
;–
insu
ffici
ent s
uppl
y of
la
bou
r;–
insu
ffici
ent
Dev
elop
men
t M
anag
emen
t tea
m
reso
urce
;–
a b
uild
ing
bei
ng
inap
prop
riate
to
occu
pier
dem
and;
– q
ualit
y an
d b
ench
mar
ks
of th
e co
mpl
eted
b
uild
ing
s;–
cons
truc
tion
and
pr
ocur
emen
t del
ays;
– in
effe
ctiv
e m
arke
ting
to
pros
pec
tive
occu
pier
s;
and
– p
oor d
evel
opm
ent
man
agem
ent.
Poor
d
evel
opm
ent
retu
rns.
See
Mar
ket r
isk
abov
e.Pr
ior t
o co
mm
ittin
g to
a d
evel
opm
ent,
the
Gro
up c
ond
ucts
a d
etai
led
finan
cial
and
op
erat
iona
l ap
prai
sal p
roce
ss w
hich
eva
luat
es th
e ex
pec
ted
retu
rns
from
a d
evel
opm
ent i
n lig
ht o
f lik
ely
risks
. Dur
ing
the
cour
se o
f a d
evel
opm
ent,
the
actu
al c
osts
and
est
imat
ed re
turn
s ar
e re
gul
arly
m
onito
red
to s
ignp
ost p
rom
pt d
ecis
ions
on
proj
ect m
anag
emen
t, le
asin
g an
d ow
ners
hip.
arly
eng
agem
ent w
ith lo
cal r
esid
ents
and
com
mun
ity g
roup
s.A
ctiv
e en
gag
emen
t with
pla
nnin
g au
thor
ities
. Ea
rly e
ngag
emen
t with
ad
join
ing
owne
rs a
nd fr
eeho
lder
s.B
ench
mar
king
of c
osts
with
com
para
tive
sche
mes
.In
-hou
se P
roje
ct M
anag
emen
t tea
m u
tilis
e ap
prop
riate
pro
cure
men
t met
hod
s to
opt
imis
e th
e ba
lanc
e of
pric
e ce
rtai
nty
and
risk.
Inte
rnal
and
ext
erna
l res
ourc
ing
req
uire
men
ts re
gul
arly
revi
ewed
by
the
Exe
cutiv
e C
omm
ittee
, D
evel
opm
ent D
irect
or a
nd H
ead
of P
roje
ct M
anag
emen
t. Th
ird p
arty
reso
urce
exp
ertis
e us
ed
to s
upp
ort i
n-ho
use
team
s, w
here
ap
prop
riate
.Su
stai
nabl
e D
evel
opm
ent B
rief i
n pl
ace
to e
nsur
e su
stai
nabl
e b
uild
ing
des
ign.
Wor
king
with
ag
ents
, pot
entia
l occ
upie
rs a
nd p
urch
aser
s to
iden
tify
thei
r nee
ds
and
as
pira
tions
incl
udin
g su
stai
nabi
lity,
wel
lbei
ng a
nd te
chno
log
ical
ad
vanc
es d
urin
g th
e pl
anni
ng
appl
icat
ion
and
des
ign
stag
es.
Des
ign
Revi
ew P
anel
revi
ews
bui
ldin
g d
esig
n an
d sp
ecifi
catio
n to
ens
ure
it is
ap
prop
riate
for
likel
y oc
cupi
er n
eed
s, in
clud
ing
appr
opria
te s
usta
inab
ility
ben
chm
arks
.In
-hou
se L
easi
ng/M
arke
ting
team
liai
se w
ith e
xter
nal a
dvi
sers
on
a re
gul
ar b
asis
and
mar
ketin
g
timet
able
s d
esig
ned
in a
ccor
dan
ce w
ith le
asin
g/m
arke
ting
obje
ctiv
es.
Sust
aina
ble
bui
ldin
g d
esig
n, in
clud
ing
clim
ate
chan
ge
miti
gat
ion
and
adap
tion,
con
sid
ered
at
an
early
des
ign
stag
e. A
ll ou
r maj
or d
evel
opm
ents
are
sub
ject
to a
min
imum
BRE
EA
M
ratin
g re
qui
rem
ent o
f ‘Ve
ry G
ood
’ for
maj
or re
furb
ishm
ents
and
‘Exc
elle
nt’ f
or n
ew
bui
ld d
evel
opm
ents
.Se
lect
ion
of c
ontr
acto
rs a
nd s
uppl
iers
bas
ed o
n tr
ack
reco
rd o
f del
iver
y an
d cr
editw
orth
ines
s.In
-hou
se P
roje
ct M
anag
emen
t tea
m c
lose
ly m
onito
r con
stru
ctio
n an
d m
anag
e co
ntra
ctor
s to
en
sure
ad
equa
te re
sour
cing
to m
eet p
rog
ram
me.
Revi
ews
und
erta
ken
of p
oten
tial f
or a
dva
nce
del
iver
y of
mat
eria
ls.
Reg
ular
revi
ew o
f the
pro
spec
tive
per
form
ance
of i
ndiv
idua
l ass
ets
and
thei
r bus
ines
s pl
ans
with
join
t ven
ture
par
tner
s.Po
st-c
ompl
etio
n re
view
s un
der
take
n on
all
dev
elop
men
ts to
iden
tify
bes
t pra
ctic
e an
d ar
eas
for i
mpr
ovem
ent.
The
Gro
up’s
com
mitt
ed d
evel
opm
ent
exp
osur
e ha
s no
t mat
eria
lly c
hang
ed
over
the
year
with
the
thre
e on
-site
sc
hem
es p
rog
ress
ing
wel
l. Th
ese
sche
mes
hav
e a
com
bine
d G
DV
£775
.9
mill
ion
of w
hich
21.
3% is
alre
ady
de-
riske
d th
roug
h pr
e-le
ttin
gs w
ith c
apex
to
com
e of
£13
9.5
mill
ion,
dow
n fro
m
£239
.6 m
illio
n a
year
ag
o. A
s a
resu
lt,
the
impa
ct o
f thi
s ris
k an
d lik
elih
ood
af
ter m
itig
atio
n is
unc
hang
ed, w
ith
occu
pier
dem
and
rem
aini
ng h
ealth
y fo
r prim
e, n
ew b
uild
spa
ce in
cen
tral
Lo
ndon
and
the
sup
ply
of s
uch
spac
e re
mai
ning
tig
ht.
Appendices 2019 Great Portland Estates plc17
Appendix 6Fi
nanc
ial r
isks
Risk
Impa
ctH
ow w
e m
onito
r and
man
age
risk
Like
lihoo
d
chan
ge
from
last
ye
ar
Impa
ct
chan
ge
from
last
ye
arC
omm
enta
ry
Lim
ited
avai
labi
lity
of fu
rthe
r cap
ital.
Gro
wth
of b
usin
ess
is c
onst
rain
ed o
r un
able
to e
xecu
te
bus
ines
s pl
ans.
Cas
h flo
w a
nd fu
ndin
g ne
eds
are
reg
ular
ly m
onito
red
to
ens
ure
suffi
cien
t und
raw
n fa
cilit
ies
are
in p
lace
.
Fund
ing
mat
uriti
es a
re m
anag
ed a
cros
s th
e sh
ort,
med
ium
an
d lo
ng te
rm.
The
Gro
up’s
fund
ing
mea
sure
s ar
e d
iver
sifie
d ac
ross
a ra
nge
of b
ank
and
bon
d m
arke
ts.
Stric
t cou
nter
part
y lim
its a
re o
per
ated
on
dep
osits
.
The
Gro
up h
as c
ontin
ued
to b
e ac
tive
in m
anag
ing
its d
ebt f
acili
ties,
en
surin
g an
att
ract
ive
mat
urity
lad
der
and
mai
ntai
ning
div
erse
fu
ndin
g so
urce
s, p
red
omin
antly
bor
row
ing
on a
n un
secu
red
basi
s.
Dur
ing
the
year
, the
Gro
up re
finan
ced
its £
450
mill
ion
com
mitt
ed
revo
lvin
g cr
edit
faci
lity,
ext
end
ing
bot
h its
mat
urity
and
low
erin
g its
co
st, d
rew
dow
n on
£10
0 m
illio
n ne
w p
rivat
e pl
acem
ent n
otes
and
re
dee
med
its
£150
mill
ion
conv
ertib
le b
ond.
As
a re
sult,
the
Gro
up’s
w
eig
hted
ave
rag
e d
ebt m
atur
ity h
as in
crea
sed
to 6
.4 y
ears
, and
the
Gro
up h
as c
ash
and
und
raw
n cr
edit
faci
litie
s of
£60
8 m
illio
n. W
ith
our l
iqui
dity
and
deb
t pos
ition
rem
aini
ng e
xcep
tiona
lly s
tron
g, th
e lik
elih
ood
of th
is ri
sk h
as n
ot c
hang
ed.
Incr
ease
d in
tere
st
rate
s an
d/o
r a fa
ll in
cap
ital v
alue
s,
alon
g w
ith a
dve
rse
exch
ang
e ra
te
mov
emen
ts.
Ad
vers
e m
arke
t m
ovem
ents
ne
gat
ivel
y im
pact
on
deb
t cov
enan
ts
and
cost
of
imp
orte
d m
ater
ial
for d
evel
opm
ents
.
Con
sist
ent p
olic
y of
con
serv
ativ
e fin
anci
al le
vera
ge.
Reg
ular
revi
ew o
f cur
rent
and
fore
cast
deb
t lev
els
and
fin
anci
ng ra
tios
und
er v
ario
us m
arke
t sce
nario
s.
Our
ann
ual B
usin
ess
Plan
, whi
ch is
reg
ular
ly u
pd
ated
, in
clud
es s
tres
s te
sts
cons
ider
ing
the
impa
ct o
f a s
igni
fican
t d
eter
iora
tion
in th
e m
arke
ts in
whi
ch w
e op
erat
e.
Form
al p
olic
y to
man
age
inte
rest
rate
exp
osur
e by
hav
ing
a
high
pro
port
ion
of d
ebt w
ith fi
xed
or c
appe
d in
tere
st ra
tes
thro
ugh
deriv
ativ
es.
Sig
nific
ant h
ead
room
ove
r all
finan
cial
cov
enan
ts
at 3
1 M
arch
201
9.
Exc
hang
e ra
tes
fixed
at t
he e
arlie
st o
pp
ortu
nity
on
dev
elop
men
t sub
-con
trac
ts.
Whi
lst b
road
er e
cono
mic
and
pol
itica
l unc
erta
intie
s ha
ve k
ept g
loba
l in
tere
st ra
tes
at re
lativ
ely
low
leve
ls, t
he B
ank
of E
ngla
nd B
ase
Rate
in
crea
sed
by 0
.25%
in A
ugus
t 201
8 to
a s
till m
odes
t 0.7
5%, s
ome
way
b
ehin
d ra
tes
in th
e U
S. T
he e
xpec
tatio
n of
any
sig
nific
ant i
ncre
ases
in
UK
inte
rest
rate
s ov
er th
e ne
xt 1
2 m
onth
s is
low
. Mor
eove
r, 10
0%
of th
e G
roup
’s d
ebt i
s cu
rren
tly a
t fixe
d or
hed
ged
inte
rest
rate
s, a
nd
the
Gro
up’s
wei
ght
ed a
vera
ge
inte
rest
rate
rem
ains
low
at o
nly
2.7%
(fa
lling
to 2
.3%
on
a fu
lly d
raw
n ba
sis).
As
a re
sult,
the
risk
likel
ihoo
d
afte
r miti
gat
ion
is u
ncha
nged
, par
ticul
arly
giv
en th
at w
e es
timat
e pr
oper
ty v
alue
s co
uld
fall
arou
nd 7
5% fr
om th
eir 3
1 M
arch
201
9 le
vels
bef
ore
Gro
up d
ebt c
oven
ants
cou
ld b
e en
dan
ger
ed, e
ven
bef
ore
fact
orin
g in
miti
gat
ing
man
agem
ent a
ctio
ns.
Inap
prop
riate
ca
pita
l str
uctu
re.
Sub
-opt
imal
NA
V
per
sha
re g
row
th.
Reg
ular
revi
ew o
f cur
rent
and
fore
cast
cap
ital r
equi
rem
ents
, g
earin
g le
vels
and
oth
er fi
nanc
ing
ratio
s.
Mai
ntai
n ba
lanc
e sh
eet d
isci
plin
e, w
ith s
urpl
us e
qui
ty c
apita
l re
turn
ed to
sha
reho
lder
s in
ap
prop
riate
circ
umst
ance
s.
The
Gro
up’s
exis
ting
capi
tal s
truc
ture
rem
ains
wel
l pla
ced
to ta
ke
adva
ntag
e of
op
por
tuni
ties
as th
ey a
rise
and
to d
eliv
er o
ur c
urre
nt
dev
elop
men
t com
mitm
ents
. As
a re
sult,
the
risk
likel
ihoo
d af
ter
miti
gat
ion
is u
ncha
nged
.
Appendices 2019 Great Portland Estates plc18
Appendix 6Pe
ople
Risk
Impa
ctH
ow w
e m
onito
r and
man
age
risk
Like
lihoo
d
chan
ge
from
last
ye
ar
Impa
ct
chan
ge
from
last
ye
arC
omm
enta
ry
Inab
ility
to a
ttra
ct,
dev
elop
, mot
ivat
e an
d re
tain
tale
nt in
or
der
to e
xecu
te
our b
usin
ess
plan
s an
d m
aint
ain
our
incl
usiv
e an
d co
lleg
iate
cu
lture
.
Stra
teg
ic p
riorit
ies
not a
chie
ved.
Reg
ular
revi
ew is
und
erta
ken
of th
e G
roup
’s re
sour
ce
req
uire
men
ts a
nd s
ucce
ssio
n pl
anni
ng.
The
Gro
up h
as a
rem
uner
atio
n sy
stem
that
is s
tron
gly
link
ed
to p
erfo
rman
ce a
nd a
form
al s
ix-m
onth
ly a
ppr
aisa
l sys
tem
to
prov
ide
reg
ular
ass
essm
ent o
f ind
ivid
ual p
erfo
rman
ce.
Ben
chm
arki
ng o
f rem
uner
atio
n pa
ckag
es o
f all
empl
oyee
s is
un
der
take
n an
nual
ly.
Ann
ual p
erso
nal d
evel
opm
ent p
lann
ing
and
ong
oing
trai
ning
su
pp
ort f
or a
ll em
ploy
ees
tog
ethe
r with
focu
sed
initi
ativ
es
to n
urtu
re p
oten
tial s
ucce
ssor
s, in
clud
ing
intr
oduc
tion
of
men
torin
g pr
ogra
mm
e.
Cle
ar a
rtic
ulat
ion
of G
PE v
alue
s so
all
exis
ting
and
pros
pec
tive
empl
oyee
s un
der
stan
d ou
r cor
e b
elie
fs a
nd b
ehav
iour
s.
Hea
lth a
nd w
ellb
eing
pro
gra
mm
e im
plem
ente
d fo
llow
ing
ea
rlier
roll
out o
f men
tal h
ealth
trai
ning
pro
gra
mm
e.
Focu
s on
peo
ple
eng
agem
ent w
ith re
gul
ar tw
o-w
ay
com
mun
icat
ion
and
resp
onsi
ve e
mpl
oyee
-focu
sed
activ
ities
e.
g. e
mpl
oyee
eng
agem
ent s
urve
ys a
nd fl
exib
le w
orki
ng.
Hig
h pr
ofile
, att
ract
ive
dev
elop
men
t pip
elin
e an
d hi
gh
qua
lity
asse
ts to
man
age.
The
mot
ivat
ion
of o
ur p
eopl
e an
d m
aint
aini
ng o
ur s
tron
g
colla
bor
ativ
e cu
lture
rem
ains
fund
amen
tal t
o th
e d
eliv
ery
of o
ur
stra
teg
ic p
riorit
ies.
Dur
ing
the
year
, thr
oug
h ou
r ‘To
get
her w
e th
rive’
in
itiat
ive
invo
lvin
g al
l our
em
ploy
ees,
we
artic
ulat
ed o
ur c
orp
orat
e va
lues
whi
ch w
e ar
e em
bed
din
g in
to a
ll ou
r act
iviti
es, i
nclu
din
g
empl
oyee
ap
prai
sal a
nd re
crui
tmen
t pro
cess
es. W
e al
so la
unch
ed
our h
ealth
and
wel
lbei
ng p
rog
ram
me
for o
ur e
mpl
oyee
s, a
nd h
eld
ou
r ina
ugur
al a
nnua
l Com
mun
ity D
ay w
orki
ng w
ith o
ur c
harit
y pa
rtne
r Cen
trep
oint
.
Our
sta
ff re
tent
ion
rem
ains
hig
h at
87%
and
our
con
tinue
d fo
cus
on g
row
ing
the
brea
dth
and
dep
th o
f our
tale
nt, p
rovi
din
g fo
cuse
d
dev
elop
men
t sup
por
t whe
re n
eed
ed, m
eans
the
risk
likel
ihoo
d af
ter
miti
gat
ion
has
falle
n m
arg
inal
ly o
ver t
he y
ear.
Appendices 2019 Great Portland Estates plc19
Appendix 6Re
gula
tory
Risk
Impa
ctH
ow w
e m
onito
r and
man
age
risk
Like
lihoo
d
chan
ge
from
last
ye
ar
Impa
ct
chan
ge
from
last
ye
arC
omm
enta
ry
Evol
ving
pla
nnin
g,
tax,
env
ironm
enta
l, fir
e sa
fety
and
oth
er
reg
ulat
ion
and
pr
actic
e re
duc
ing
th
e re
lativ
e at
trac
tiven
ess
of o
ur b
uild
ing
s an
d im
ped
ing
th
e fin
anci
al
and
oper
atio
nal
per
form
ance
of t
he
Gro
up, i
nclu
din
g
incr
easi
ng c
osts
of
com
plia
nce
and
/or
risk
of n
on-
com
plia
nce.
Impa
irmen
t of t
he
Gro
up’s
abili
ty to
d
eliv
er b
usin
ess
plan
s, in
crea
sed
co
st b
ase
and
p
oten
tial n
egat
ive
impa
ct o
n pr
oper
ty
valu
es g
iven
re
duc
ed in
vest
or
and
occu
pier
in
tere
st in
bui
ldin
gs
and
/or r
eput
atio
nal
dam
age.
Seni
or G
roup
repr
esen
tativ
es s
pen
d co
nsid
erab
le ti
me,
usi
ng
exp
erie
nced
ad
vise
rs a
s ap
prop
riate
, to
ensu
re c
ompl
ianc
e w
ith c
urre
nt a
nd p
oten
tial f
utur
e re
gul
atio
ns.
The
Gro
up a
ctiv
ely
eng
ages
with
loca
l pol
itici
ans,
pla
nnin
g
offic
ers
and
exp
erie
nced
sp
ecia
list a
dvi
sors
to e
nsur
e ou
r pro
pos
als
are
dev
elop
ed to
com
ply
with
cur
rent
and
em
erg
ing
pol
icy.
The
Gro
up a
lso
eng
ages
with
loca
l res
iden
ts
and
com
mun
ity g
roup
s ea
rly in
the
des
ign
proc
ess
to e
nsur
e th
at th
eir f
eed
back
is c
onsi
der
ed a
s sc
hem
es e
volv
e.
Lob
byin
g of
pro
per
ty in
dus
try
mat
ters
is u
nder
take
n by
act
ive
part
icip
atio
n of
the
Exe
cutiv
e D
irect
ors
and
othe
r Exe
cutiv
e C
omm
ittee
mem
ber
s th
roug
h re
leva
nt in
dus
try
bod
ies.
Sust
aina
bilit
y C
omm
ittee
mee
ts a
t lea
st q
uart
erly
to c
onsi
der
st
rate
gy
in re
spec
t of e
nviro
nmen
tal l
egis
latio
n an
d to
ad
dre
ss
key
area
s of
clim
ate
chan
ge,
car
bon
, ene
rgy,
was
te a
nd
biod
iver
sity
.
Envi
ronm
enta
l man
agem
ent s
yste
m in
pla
ce.
Ener
gy
red
uctio
n pl
an fo
r eve
ry k
ey p
rop
erty
.
We
mai
ntai
n a
low
-ris
k ta
x st
atus
and
hav
e re
gul
ar m
eetin
gs
with
HM
RC.
IIn a
dditi
on to
the
signi
fican
t reg
ulat
ory
and
tax
unce
rtai
nty
asso
ciat
ed
with
the
UK’
s exi
t fro
m th
e EU
, the
intr
oduc
tion
of c
apita
l gai
ns ta
x fo
r ov
erse
as in
vest
ors o
n U
K co
mm
erci
al p
rope
rty
from
Apr
il 20
19 m
ay
impa
ct th
e w
eigh
t of i
nves
tmen
t app
etite
. In
addi
tion,
upd
ated
dra
ft
guid
ance
from
HM
RC re
gard
ing
tax
on s
ales
of d
evel
opm
ents
prio
r to
co
mpl
etio
n by
REI
Ts m
ay im
pact
act
ivity
goi
ng fo
rwar
d.
We
are
clos
ely
mon
itorin
g a
num
ber
of l
ocal
pla
n an
d ot
her p
olic
y co
nsul
tatio
ns b
y ou
r key
loca
l aut
horit
ies
and
the
New
Lon
don
Pl
an E
xam
inat
ion
in P
ublic
. In
Wes
tmin
ster
, in
part
icul
ar, w
e ha
ve
subm
itted
repr
esen
tatio
ns o
n th
e dr
aft C
ity P
lan
and
Oxf
ord
Stre
et
Dis
trict
Con
sulta
tions
.
The
sust
aina
bilit
y re
qui
rem
ents
of t
he e
mer
gin
g Lo
ndon
Pla
n ha
ve
bee
n in
teg
rate
d w
ithin
our
long
-ter
m s
usta
inab
ility
str
ateg
y an
d
Sust
aina
ble
Dev
elop
men
t Brie
f.
Onl
y 0.
4% o
f our
por
tfolio
(by
area
) is E
PC F
or G
rate
d. W
here
uni
ts
are
vaca
nt th
ey a
re b
eing
refu
rbish
ed to
impr
ove
the
ratin
g or
whe
re
they
are
cur
rent
ly le
t pla
ns a
re in
pla
ce to
impr
ove
the
ratin
g w
hen
they
be
com
e va
cant
.
We
have
not
ed th
e co
nclu
sion
of T
he In
dep
end
ent R
evie
w o
f B
uild
ing
Reg
ulat
ions
and
Fire
Saf
ety.
We
have
revi
ewed
our
ow
n pr
oces
ses
and
we
are
intr
oduc
ing
occu
pier
saf
ety
chec
ks to
sup
por
t ou
r occ
upie
rs w
ith m
anag
ing
fire
safe
ty.
Take
n to
get
her,
the
risk
likel
ihoo
d af
ter m
itig
atio
n ha
s m
arg
inal
ly
incr
ease
d ov
er th
e ye
ar.
Hea
lth a
nd S
afet
y in
cid
ents
.
Loss
of l
ife o
r inj
ury
to m
emb
ers
of th
e p
ublic
, occ
upie
rs,
cont
ract
ors
or e
mpl
oyee
s.
Resu
ltant
re
put
atio
nal
dam
age.
The
Gro
up h
as d
edic
ated
hea
lth a
nd s
afet
y pe
rson
nel t
o
over
see
the
Gro
up’s
man
agem
ent s
yste
ms w
hich
incl
ude
regu
lar r
isk
asse
ssm
ents
and
ann
ual a
udits
to p
roac
tivel
y m
anag
e he
alth
and
saf
ety
risk
in c
onne
ctio
n w
ith o
ur
empl
oyee
s, c
ontr
acto
rs, m
embe
rs o
f the
pub
lic a
nd o
ccup
iers
.
Com
pet
ency
che
cks
are
und
erta
ken
for a
ll co
nsul
tant
s an
d co
ntra
ctor
s.
We
have
a th
orou
gh a
ccid
ent i
nves
tigat
ion
proc
ess s
uppo
rtin
g
our e
mpl
oyee
s and
sup
ply
chai
n to
lear
n fro
m a
ccid
ents
and
in
cide
nts t
o im
prov
e sa
fety
out
com
es.
Reg
ular
saf
ety
tour
s ar
e un
der
take
n by
our
Sen
ior
Man
agem
ent T
eam
and
Exe
cutiv
e C
omm
ittee
.
We
cont
inue
to fo
cus
on e
nsur
ing
that
we
have
a b
est i
n cl
ass
and
pr
oact
ive
heal
th a
nd s
afet
y cu
lture
at G
PE, w
hich
we
rein
forc
ed
dur
ing
the
year
with
the
recr
uitm
ent o
f an
add
ition
al H
ealth
and
Sa
fety
Man
ager
. Whe
n co
mbi
ned
with
no
sig
nific
ant c
hang
e to
our
le
vel o
f dev
elop
men
t and
refu
rbis
hmen
t act
iviti
es o
ver t
he y
ear,
incl
udin
g in
our
occ
upie
d b
uild
ing
s, th
e lik
elih
ood
of th
is ri
sk a
fter
m
itig
atio
n is
unc
hang
ed. T
he G
roup
had
thre
e re
por
tabl
e ac
cid
ents
d
urin
g th
e ye
ar.
Appendices 2019 Great Portland Estates plc20
Appendix 6B
usin
ess
inte
rrup
tion
Risk
Impa
ctH
ow w
e m
onito
r and
man
age
risk
Like
lihoo
d
chan
ge
from
last
ye
ar
Impa
ct
chan
ge
from
last
ye
ar
Com
men
tary
An
exte
rnal
ev
ent s
uch
as
a p
ower
sho
rtag
e,
extr
eme
wea
ther
, en
viro
nmen
tal
inci
dent
, civ
il unr
est
or te
rroris
t att
ack
that
sig
nific
antly
af
fect
s th
e G
roup
’s
oper
atio
ns,
part
icul
arly
giv
en
our p
ortf
olio
co
ncen
trat
ion
in c
entr
al L
ond
on.
Sig
nific
ant
dam
age,
dis
rupt
ion
and
/or r
eput
atio
nal
dam
age
to th
e G
roup
’s p
ortf
olio
an
d op
erat
ions
.
The
Gro
up h
as a
Bus
ines
s C
ontin
uity
Pla
n w
ith p
red
eter
min
ed
proc
esse
s an
d es
cala
tion
for t
he C
risis
Man
agem
ent T
eam
. A
sset
em
erg
ency
pla
ns e
xist
for i
ndiv
idua
l pro
per
ties.
Phys
ical
sec
urity
mea
sure
s ar
e in
pla
ce a
t pro
per
ties
and
se
curit
y th
reat
s ar
e re
gul
arly
ass
esse
d th
roug
h lin
ks w
ith
secu
rity
agen
cies
.
The
Gro
up’s
insu
ranc
e p
olic
ies
incl
ude
cove
r for
cat
astr
ophi
c ev
ents
incl
udin
g fir
e, s
torm
, rio
ts a
nd te
rror
ism
.
The
likel
ihoo
d of
this
risk
is u
ncha
nged
giv
en th
e H
ome
Offi
ce/
MI5
con
tinue
to a
sses
s th
e U
K th
reat
from
inte
rnat
iona
l ter
roris
m
as s
ever
e.
Cyb
er th
reat
or
att
ack.
Bus
ines
s d
isru
ptio
n to
the
Gro
up’s
p
ortf
olio
and
op
erat
ions
and
/or
rep
utat
iona
l d
amag
e fro
m
dat
a lo
ss.
The
Gro
up’s
Bus
ines
s C
ontin
uity
Pla
n is
reg
ular
ly re
view
ed
and
reco
very
of d
ata
at o
ff-si
te re
cove
ry c
entr
e is
test
ed
dur
ing
the
year
.
Reg
ular
test
ing
of IT
sec
urity
is u
nder
take
n in
clud
ing
p
enet
ratio
n te
stin
g of
key
sys
tem
s.
The
Gro
up’s
dat
a is
reg
ular
ly b
acke
d up
and
repl
icat
ed.
Empl
oyee
aw
aren
ess
trai
ning
on
cyb
er ri
sk is
und
erta
ken
reg
ular
ly. C
yber
risk
insu
ranc
e in
pla
ce.
Giv
en th
e in
crea
sed
inci
den
ce o
f att
empt
ed c
yber
att
acks
on
UK
bus
ines
s, w
e ha
ve c
ontin
ued
to in
vest
tim
e an
d re
sour
ces
in
our
cyb
er s
ecur
ity m
easu
res,
bot
h in
our
hea
d of
fice
and
acro
ss
our p
ortf
olio
.
Appendices 2019 Great Portland Estates plc21
