Great Portland Estates shares 'good value' after recent falls, says Shore Capital

(Sharecast News) - Great Portland Estates is "worth a revisit" for investors following its recent share price weakness, according to Shore Capital, which reiterated a 'buy' rating on the stock on Friday. Shares in the London-focused real estate group have dropped by around 11% over the past month - something which Shore Capital said was "largely associated with the softening of bond yields".

The broker highlighted several reasons for investors to be optimistic, including: a stabilising office market in Central London, increased rental prices and stable yields, a recovery in transaction activity and strong occupier demand.

"This is fuelling further ERV growth - with company guidance of 4-7% for the financial year and prime spaces higher still (6-10%) where vacancy is close to zero and demand well outstripping the supply of both new and refurbished space," said analyst Andrew Saunders.

Despite a strong operational performance from GPE - as confirmed in July's first-quarter update - Shore Capital remains bullish, particularly since the share price is trading at a 42% discount to estimate net tangible asset estimates for 2026.

"With the company noting transaction activity picking up and a significant pipeline of new acquisition opportunities beginning to emerge, the shares continue to offer good value and we reiterate our BUY recommendation," Saunders said.