When Can We Expect A Profit From Great Portland Estates Plc (LON:GPOR)?
Great Portland Estates Plc’s (LSE:GPOR): We are a FTSE 250 property investment and development company owning over £3.2 billion of real estate in central London. The UK£2.16B market-cap posted a loss in its most recent financial year of -UK£139.40M and a latest trailing-twelve-month loss of -UK£51.30M shrinking the gap between loss and breakeven. Many investors are wondering the rate at which GPOR will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for GPOR.
See our latest analysis for Great Portland Estates
According to the industry analysts covering GPOR, breakeven is near. They anticipate the company to incur a final loss in 2017, before generating positive profits of UK£18.60M in 2018. GPOR is therefore projected to breakeven around a couple of months from now! How fast will GPOR have to grow each year in order to reach the breakeven point by 2018? Working backwards from analyst estimates, it turns out that they expect the company to grow 59.27% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, GPOR may become profitable much later than analysts predict.
Underlying developments driving GPOR’s growth isn’t the focus of this broad overview, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before I wrap up, there’s one aspect worth mentioning. GPOR has managed its capital judiciously, with debt making up 21.72% of equity. This means that GPOR has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of GPOR which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at GPOR, take a look at GPOR’s company page on Simply Wall St. I’ve also compiled a list of key aspects you should further examine:
Historical Track Record: What has GPOR’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Great Portland Estates’s board and the CEO’s back ground.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
