Interim Results

Great Portland Estates PLC
21 November 2000



                   INTERIM RESULTS FOR THE SIX MONTHS
                        ENDED 30th SEPTEMBER 2000


*   Adjusted earnings up 7% to 5.8p per share (1999: 5.4p)

*   Interim dividend up 4% to 3.25p (1999: 3.125p)

*   Net assets per share up 4% to 408p

*   Fully diluted net assets per share up 6% to 399p

*   80p per share returned to shareholders in accordance with timetable

*   Over £300 million of property sales in last six months

*   Over £1 billion of properties held in central London



Richard Peskin, Chairman, said:

'The period under review has seen the successful implementation of the
radical initiatives for the restructuring of the Group presaged in March,
and our aim to deliver greater shareholder value has been reflected by
the outperformance of Great Portland's share price.  I believe that there
is still good potential within our chosen spheres of operation and that
shareholder value will best be realised by our strategy of continued
investment and development in London and in South East offices.'


Enquiries:

Great Portland Estates P.L.C.                020 7580 3040

Peter Shaw, Managing Director
John Whiteley, Finance Director

Citigate Dewe Rogerson                       020 7638 9571

Sue Pemberton/Freida Davidson


                        Statement by the Chairman
                                    

INTRODUCTION
Since my Statement in the Annual Report and Accounts last June, most
shareholders will have received two further letters from me in August and
September and will be aware, therefore, that the period under review has
seen the successful implementation of the radical initiatives for the
restructuring of the Group presaged in March. The return of capital of
£285 million, or 80p per share, was duly made on 20th September, and our
aim to deliver greater shareholder value is, in my view, reflected by the
outperformance of Great Portland's share price against the FTSE All
Share, FTSE 100, FTSE 250 and FTSE Real Estate indices since the original
announcement of our strategic review.

RESULTS AND DIVIDEND
Profit on ordinary activities, before taxation and exceptional items, for
the six months to 30th September 2000, amounted to £26.8 million.   The
headline figure of £7.9 million is, therefore, misleading as it includes
£6.9 million of costs in connection with the restructuring, coupled with
disappointing losses of £12.0 million on the sale of investment
properties. Adjusted earnings per share, however, were 7% ahead at 5.8p
(1999: 5.4p) and your directors have declared an interim dividend of
3.25p (1999: 3.125p), an increase of 4%, payable on 4th January 2001.

CB Hillier Parker were instructed, for the first time at the half-yearly
stage, to provide an independent valuation of the entire investment
portfolio, and the properties have been valued at £1.58 billion,
representing an overall uplift of 2.2%. Continued strong occupational
demand in London has contributed to further good increases in rents,
which have been the main driving force in capital values rising by 5.6%,
with the City and Holborn holdings growing by 6.5%, and the West End and
Covent Garden by 5.3%.

However, negative sentiment towards retailing in general has meant a
softening of yields for shopping centres and, despite modest rental
growth, their values fell by 4.7%, whilst regional offices were down by
1.8%. Net assets per share, despite the previously mentioned exceptional
losses, stood at 408p, an uplift of 3.7% over the equivalent figure at
31st March 2000, and diluted net assets per share increased by 5.8% to
399p.

PORTFOLIO REVIEW
For the period under review, the main concentration has been on the
rationalisation of the portfolio. Our entire industrial, distribution,
retail warehousing and other non-core retail holdings were sold, together
with regional offices offering limited growth prospects. Aggregate
proceeds amounted to £305 million and since 30th September further
disposals of £12 million have been effected; this means that within
twenty months some 73 properties have been sold to realise £411 million.

With one half of the portfolio now situated in the West End and Covent
Garden, active management here, as elsewhere, is a key ingredient in
creating added value. We have succeeded in increasing rents north of
Oxford Street by 10% since March, and, within fifteen months of purchase,
28 Savile Row (12,000 sq.ft.) has been completely refurbished and 66% let
at rents well above original expectations. This was one of the properties
on the Pollen Estate where our active involvement resulted in a highly
satisfactory outcome, through the profitable sale of our beneficial stake
in the Pollen Trust and the simultaneous regearing of our long leasehold
interests.

As previously mentioned, modest rental growth was achieved in our
shopping centres. With 560,000 sq.ft. of space now under our control at
Harlow, we continue to consolidate our dominant position in the town and
we are constructing a 60,000 sq.ft. store for Woolworths which should be
open in the spring of 2002. Discussions are taking place with adjoining
developers and the local authority with a view to strengthening the town's
position in the retail hierarchy of the north east quadrant of the M25.
In High Wycombe our development partners and the local authority are
facing serious delays in fulfilling the conditions of our funding
arrangement, and we are, therefore, reviewing with them our commitment to
the proposed 400,000 sq.ft. Western Sector extension to our adjoining
Octagon Centre. Construction has started on the 200,000 sq.ft. Sol
Central leisure complex in Northampton, where the building is already 65%
pre-let and has a scheduled completion date of summer 2001. It is a
testimony to our management skills that the void element of our entire
portfolio remains at only1% of the current rent roll.

With regard to our medium-term office development programme, good
progress is being made with the relevant planning authorities at Frimley
(81,000 sq.ft.), 22/25 Northumberland Avenue, WC2 (18,000 sq.ft.), 190 Great
Portland Street, W1 (135,000 sq.ft.) and the scheme at Mortimer Street/Great
Titchfield Street, W1 (240,000 sq.ft.). In the City, a consortium is being
formed with two adjoining landowners to investigate the redevelopment
potential of a large site incorporating our holdings in St. Mary Axe, Camomile
Street and Bishopsgate, EC2.

FINANCIAL REVIEW
The portfolio rationalisation programme, capital reduction and return of
cash to shareholders generated a number of one-off, or exceptional, items
in the six months to 30th September 2000. £1.9 million of exceptional
administration costs were incurred on the capital restructuring, and the
£52.4 million 9.5% Convertible Unsecured Loan Stock 2002 was redeemed at
a premium of £5.0 million on 1st June. Without this redemption the
Company would neither have been able to effect the capital reduction nor
to buy in further shares, and it added 8p to diluted net assets per
share. Furthermore, by saving £3.2 million of interest over the following
two and a half years, the overall cost will only be £1.2 million after
tax. The loss on the sale of investment properties of £12.0 million
comprised selling costs of £3.8 million and a loss against March 2000
values of £8.2 million.

The redemption of the Loan Stock, as mentioned above, was the only change
in the Company's gross debt in the six months to 30th September 2000, and
the weighted average cost of debt remained at 8.3%. Following the capital
reduction, gearing at 30th September 2000 rose to 79% (31st March 2000: 60%)
net of cash balances of £23 million and the Group had in place undrawn bank
facilities of £40 million. Under Financial Reporting Standard 13, the market
value of the Group's financial instruments at 30th September 2000 exceeded the
amount at which they were shown in the consolidated balance sheet by £90
million, representing a potential reduction in net assets per share of 29p
after tax; there remained no inherent liability to taxation on capital gains
within the portfolio as a whole. The Company aims to maintain a sensible
balance of long-term, fixed rate and medium-term debt commensurate with the
size of the business which it helps to finance and, following the capital
reduction, steps are under consideration to address the size and nature
of the Group's borrowings.

In May, shareholders gave formal approval to the capital reduction, which
gained Court confirmation in early September, and 80p per share was duly
returned to shareholders on 20th September. Our shares were consolidated
on the basis of three for every five previously in issue, effective on
11th September, and the closing share price on that day was 257 1/2p, for
the purpose of tax on capital gains. At the Annual General Meeting in
July, shareholders renewed the authority to buy in a further 15% of the
issued share capital, and, in September, we bought back 250,000 shares at
a cost of 224p each, which had a small incremental effect on net asset
value per share.

Following the sale of most of our non-core properties, our rent roll now
stands at £97.7 million per annum, and is now estimated to be reversionary to
the tune of £14.0 million within the next five years; an analysis of the
portfolio at 30th September 2000 is set out after note 9.

BOARD CHANGES
David Godwin became Deputy Chairman on the retirement of Roger Payton
after the Annual General Meeting in July. In October, Patrick Hall, the
director in charge of acquisitions and disposals since joining us nine
years ago and joint managing director since last April, resigned from the
Board as he felt that, with the sales programme substantially complete,
it was an appropriate time for him to move on. Peter Shaw, who was
appointed joint managing director along with Patrick in April and who
also joined the Group in 1991, became managing director.

PROSPECTS
A great deal of work has been done during the past few months in
restructuring the portfolio and further sensible rationalisation is
proceeding. Although current economic conditions appear to remain
relatively calm, there are some indications that the United Kingdom
property market is slowing down and, indeed, it would be surprising to
expect the very strong rental and capital growth of the last two to three
years to be sustained. Having said that, however, I believe that there is
still good potential within our chosen spheres of operation and that
shareholder value will best be realised by our strategy of continued
investment and development in London and in South East offices.


                                    
RICHARD PESKIN
Chairman


                 Unaudited Group Profit and Loss Account
          -----------------------------------------------------
              For the six months ended 30th September 2000
                                    
   Year to                                 Six months to    Six months to
31st March                                30th September   30th September
      2000                                          2000             1999
        £m                               Notes        £m               £m
--------------------------------------------------------------------------
     119.8  Rent receivable                  2      57.5             58.7
      (2.0) Ground rents                            (1.0)            (0.9)
--------------------------------------------------------------------------
     117.8  Net rental income                       56.5             57.8

      (3.5) Property and refurbishment costs        (1.7)            (1.7)
      (4.5) Administration expenses          3      (4.7)            (2.2)
--------------------------------------------------------------------------
     109.8                                          50.1             53.9

       1.0  Trading profits                            -                -
--------------------------------------------------------------------------
     110.8  Operating profit                        50.1             53.9

            (Loss)/profit on sale of 
       4.7  investment properties                  (12.0)             1.3
--------------------------------------------------------------------------
            Profit on ordinary activities 
     115.5  before interest                         38.1             55.2

       3.0  Interest receivable              4       1.9              2.2
     (58.0) Interest payable                 5     (32.1)           (29.1)
--------------------------------------------------------------------------
            Profit on ordinary activities 
      60.5  before taxation                          7.9             28.3

            Tax on profit on ordinary 
     (14.4) activities                       6      (4.8)            (6.7)
--------------------------------------------------------------------------
            Profit on ordinary activities 
      46.1  after taxation                           3.1             21.6

     (34.5) Dividends                        7      (7.0)           (11.8)
--------------------------------------------------------------------------
            Retained (loss)/profit for 
      11.6  the period                              (3.9)             9.8
--------------------------------------------------------------------------

     12.3p  Earnings per share - basic       8       0.9p             5.7p
--------------------------------------------------------------------------

     11.1p  Earnings per share - adjusted    8       5.8p             5.4p
--------------------------------------------------------------------------

      9.5p  Dividend per share               7      3.25p           3.125p
--------------------------------------------------------------------------


                      Unaudited Group Balance Sheet
              --------------------------------------------
                        As at 30th September 2000
                                    
31st March                                30th September   30th September
      2000                                          2000             1999
        £m                               Notes        £m               £m
--------------------------------------------------------------------------
            Tangible fixed assets
   1,845.0  Investment properties            9   1,584.6          1,707.7
      14.9  Investments                                -             12.2
--------------------------------------------------------------------------
   1,859.9                                       1,584.6          1,719.9
--------------------------------------------------------------------------
            Current assets
       1.4  Stock of trading properties              4.5              3.6
      21.6  Debtors                                 32.7             12.8
      85.4  Cash at bank and short-term deposits    23.0             25.9
--------------------------------------------------------------------------
     108.4                                          60.2             42.3

            Creditors: amounts falling due 
      79.1  within one year                         63.3             68.9
--------------------------------------------------------------------------
      29.3  Net current (liabilities)/assets        (3.1)           (26.6)
--------------------------------------------------------------------------

            Total assets less current 
   1,889.2  liabilities                          1,581.5          1,693.3
--------------------------------------------------------------------------
            Creditors: amounts falling due 
            after more than one year
     454.1  Debenture loans                        454.1            456.0
     109.6  Convertible loans                       56.7            110.8
     197.7  Bank and other loans                   197.7             47.8
--------------------------------------------------------------------------
     761.4                                         708.5            614.6
--------------------------------------------------------------------------
   1,127.8                                         873.0          1,078.7
--------------------------------------------------------------------------

            Capital and reserves
     178.4  Called up share capital                107.0            188.7
     238.4  Share premium account                   24.3            238.4
     607.3  Revaluation reserve                    596.3            533.6
      19.3  Other reserves                          19.4             85.5
      84.4  Profit and loss account                126.0             32.5
--------------------------------------------------------------------------
   1,127.8  Equity shareholders' funds             873.0          1,078.7
--------------------------------------------------------------------------


     Unaudited Group Statement of Total Recognised Gains and Losses
         ------------------------------------------------------
              For the six months ended 30th September 2000
                                    
   Year to                                 Six months to    Six months to
31st March                                30th September   30th September
      2000                                          2000             1999
        £m                                            £m               £m
--------------------------------------------------------------------------
      46.1  Profit for the period                    3.1             21.6
            Unrealised surplus on revaluation 
      85.7  of fixed assets                         34.9                -
--------------------------------------------------------------------------
            Total recognised gains and losses 
     131.8  for the period                          38.0             21.6
--------------------------------------------------------------------------


          Unaudited Note of Historical Cost Profits and Losses
            -------------------------------------------------
              For the six months ended 30th September 2000
                                    
   Year to                                 Six months to    Six months to
31st March                                30th September   30th September
      2000                                          2000             1999
        £m                                            £m               £m
--------------------------------------------------------------------------
            Reported profit on ordinary 
      60.5  activities before taxation               7.9             28.3
            Realisation of revaluation 
      34.5  surpluses of previous years             45.9             22.5
--------------------------------------------------------------------------
            Historical cost profit on 
      95.0  ordinary activities before taxation     53.8             50.8
--------------------------------------------------------------------------
            Historical cost profit for the 
            period retained after taxation 
      46.1  and dividends                           42.0             32.3
--------------------------------------------------------------------------


                 Unaudited Group Statement of Cash Flows
                                                     
              For the six months ended 30th September 2000
                                    
   Year to                                     Six months to    Six months to
31st March                                    30th September   30th September
      2000                                              2000             1999
        £m                                                £m               £m
-----------------------------------------------------------------------------
     112.7  Net cash inflow from operating activities   35.6             46.2

            Returns on investments and servicing of 
            finance
-----------                                        -----------   ------------
       3.5  Interest received                            2.0              2.8
     (57.8) Interest paid                              (19.7)           (29.2)
-----------                                        -----------   ------------

            Net cash outflow from returns on 
     (54.3) investments and servicing of finance       (17.7)           (26.4)

     (13.0) Tax paid                                    (4.3)            (2.1)

            Capital expenditure
-----------                                        -----------   ------------
    (144.7) Payments to acquire investment properties  (11.4)           (24.0)
            Receipts from sale of investment 
      86.4  properties                                 288.4             31.7
      (0.5) Payments to acquire investments                -             (0.5)
         -  Receipts from sale of investments           14.9                -
-----------                                        -----------   ------------
            Net cash inflow/(outflow) from 
     (58.8) capital expenditure                        291.9              7.2
     (35.4) Equity dividends paid                      (22.7)           (23.6)
-----------------------------------------------------------------------------
            Net cash inflow/(outflow) before use of
     (48.8) liquid resources and financing             282.8              1.3

            Management of liquid resources
      87.4  Cash withdrawn from short-term deposit      65.7            150.4

            Financing
-----------                                        -----------   ------------
         -  Redemption of shares                      (285.4)               -
     (38.4) Purchase of shares                          (0.4)               -
      (3.5) Redemption of loans                        (57.9)          (170.0)
         -  Drawdown of bank loans                         -             20.0
-----------                                        -----------   ------------
     (41.9) Net cash outflow from financing           (343.7)          (150.0)
-----------------------------------------------------------------------------

      (3.3) Increase/(decrease) in cash                  4.8              1.7
-----------------------------------------------------------------------------


                   Reconciliation of Operating Profit
              to Net Cash Inflow from Operating Activities
                ----------------------------------------
                                    
                                    
   Year to                                     Six months to    Six months to
31st March                                    30th September   30th September
      2000                                              2000             1999
        £m                                                £m               £m
-----------------------------------------------------------------------------
     110.8  Operating profit                            50.1             53.9
            (Increase)/decrease in stock of 
       2.0  trading properties                          (3.1)            (0.2)
      (1.3) (Increase)/decrease in debtors              (4.9)            (3.9)
       1.2  (Decrease)/increase in creditors            (6.5)            (3.6)
-----------------------------------------------------------------------------
     112.7  Net cash inflow from operating activities   35.6             46.2
-----------------------------------------------------------------------------




         Reconciliation of Net Cash Flow to Movement in Net Debt
              -------------------------------------------
                                                                        

   Year to                                     Six months to    Six months to
31st March                                    30th September   30th September
      2000                                              2000             1999
        £m                                                £m               £m
-----------------------------------------------------------------------------
      (3.3) Increase/(decrease) in cash in the period    4.8              1.7
     (87.4) Decrease in short-term deposits            (65.7)          (150.4)
       3.5  Cash outflow from redemption of loans       57.9            170.0
         -  Cash inflow from increase in debt              -            (20.0)
-----------------------------------------------------------------------------
     (87.2) Change in net debt arising from cash flows  (3.0)             1.3
       0.2  Other non-cash movements                    (5.0)             0.1
-----------------------------------------------------------------------------
     (87.0) Movement in net debt in the period          (8.0)             1.4
    (590.5) Net debt at the beginning of the period   (677.5)          (590.5)
-----------------------------------------------------------------------------
    (677.5) Net debt at the end of the period         (685.5)          (589.1)
-----------------------------------------------------------------------------

                                    
                                    
                          Analysis of Net Debt
                -------------------------------------------
                                    
                             At                                      At
                      1st April   Cash flow    Non-Cash  30th September
                           2000                 Changes            2000
                             £m          £m          £m              £m
-----------------------------------------------------------------------------
Cash                       (1.5)        4.8           -             3.3
Short-term deposits        85.4       (65.7)          -            19.7
Debt due after one year  (761.4)       57.9        (5.0)         (708.5)
-----------------------------------------------------------------------------
                         (677.5)       (3.0)       (5.0)         (685.5)
-----------------------------------------------------------------------------

                 Notes Forming Part of the Interim Statement
                 -------------------------------------------
                                    
                                    
1    BASIS OF PREPARATION OF INTERIM FINANCIAL INFORMATION
The interim financial information has been prepared on the basis of the
accounting policies set out in the Group's 2000 statutory accounts. The
financial information contained in this report does not constitute
statutory accounts within the meaning of section 240 of the Companies Act
1985. The abridged accounts for the year ended 31st March 2000 are an
extract from the accounts for that year which, together with an unqualified
audit report, have been delivered to the Registrar of Companies.

2    TURNOVER AND SEGMENTAL ANALYSIS
Rent receivable by location:

   Year to                                     Six months to    Six months to
31st March                                    30th September   30th September
      2000                                              2000             1999
        £m                                                £m               £m
-----------------------------------------------------------------------------
      18.2  West End - North of Oxford Street            9.6              8.8
      19.9  Other West End and Covent Garden            10.3              9.8
      16.8  City and Holborn                             9.1              8.0
      22.7  South East of England                        9.9             11.5
      42.2  Rest of United Kingdom                      18.6             20.6
-----------------------------------------------------------------------------
     119.8                                              57.5             58.7
-----------------------------------------------------------------------------

Rent receivable is stated exclusive of value added tax, and arose wholly
from continuing operations in the United Kingdom. No operations were
discontinued during the period.

3    ADMINISTRATION EXPENSES
   Year to                                     Six months to    Six months to
31st March                                    30th September   30th September
      2000                                              2000             1999
        £m                                                £m               £m
-----------------------------------------------------------------------------
            Administration expenses
       4.5  Other                                        2.8              2.2
            Exceptional item
         -  Capital restructuring                        1.9                -
-----------------------------------------------------------------------------
       4.5                                               4.7              2.2
-----------------------------------------------------------------------------

4    INTEREST RECEIVABLE
   Year to                                     Six months to    Six months to
31st March                                    30th September   30th September
      2000                                              2000             1999
        £m                                                £m               £m
-----------------------------------------------------------------------------
       2.5  Short-term deposits                          1.5              1.9
       0.5  Other                                        0.4              0.3
-----------------------------------------------------------------------------
       3.0                                               1.9              2.2
-----------------------------------------------------------------------------

               Notes Forming Part of the Interim Statement
                 ---------------------------------------
                                    
                                    
5    INTEREST PAYABLE
   Year to                                     Six months to    Six months to
31st March                                    30th September   30th September
      2000                                              2000             1999
        £m                                                £m               £m
-----------------------------------------------------------------------------
           Interest payable
      10.5 Bank loans and overdrafts                     5.0              5.3
      47.5 Other                                        22.1             23.8
-----------------------------------------------------------------------------
      58.0                                              27.1             29.1
           Exceptional item
         - Premium on early redemption of loan stock     5.0                -
-----------------------------------------------------------------------------
      58.0                                              32.1             29.1
-----------------------------------------------------------------------------


6    TAXATION
Taxation has been calculated using the estimated effective tax rate for
the full year. The difference between the standard rate of tax and the
effective rate principally reflects the benefit of capital allowances
available on plant and equipment in respect of investment properties.


7    DIVIDENDS
An interim dividend of 3.25p per share (1999: 3.125p) will be paid on 4th
January 2001 to shareholders on the register at 1st December 2000.


8    EARNINGS PER SHARE
Earnings per share for the six months are based on income attributable to
ordinary shareholders of £3,100,000 (1999: £21,600,000) and on the
weighted average of 341,215,548 shares in issue (1999: 377,462,638
shares). There is no impact on earnings per share of conversion of the
convertible bonds, or the exercise of share options.

The directors believe that earnings per share before exceptional items
and profits or losses on sales of investment properties and investments
provide a more meaningful measure of the Group's performance. Accordingly,
earnings per share on that adjusted basis have been disclosed on the face of
the profit and loss account, and calculated as follows:

   Year to         Six months to  Six months to  Six months to   Six months to
31st March        30th September 30th September 30th September  30th September
      2000                  2000           2000           1999            1999
  Earnings                Profit       Earnings         Profit        Earnings
 per share             after tax      per share      after tax       per share
     pence                    £m          pence             £m           pence
------------------------------------------------------------------------------
      12.3 Basic             3.1            0.9           21.6            5.7
         - Exceptional items 4.8            1.4              -              -
           Loss/(profit) on 
           sale of investment
      (1.2)properties       12.0            3.5           (1.3)          (0.3)
------------------------------------------------------------------------------
      11.1 Adjusted         19.9            5.8           20.3            5.4
------------------------------------------------------------------------------

               Notes Forming Part of the Interim Statement
             -----------------------------------------------                  

9   INVESTMENT PROPERTIES
                                        Leasehold
                            Freehold/        over     Leasehold
                              Feuhold   900 years  50-250 years     Total
                                   £m          £m            £m        £m
------------------------------------------------------------------------------
At 1st April 2000             1,391.7       170.8         282.5   1,845.0
Additions at cost                 6.8         0.1          11.5      18.4
Disposals                      (254.3)      (54.8)         (4.6)   (313.7)
------------------------------------------------------------------------------
                              1,144.2       116.1         289.4   1,549.7
Surplus on revaluation           27.5         4.7           2.7      34.9
------------------------------------------------------------------------------
At 30th September 2000        1,171.7       120.8         292.1   1,584.6
------------------------------------------------------------------------------


                           Portfolio Analysis
             ----------------------------------------------------
                        As at 30th September 2000
                                    

                                               Offices  Retail   Total
                                                    £m      £m      £m
------------------------------------------------------------------------------
London  West End - North of Oxford Street        358.3    58.5   416.8   26.3%
        West End - Other                         225.9   131.3   357.2   22.6%
------------------------------------------------------------------------------
        West End - Total                         584.2   189.8   774.0   48.9%
        City                                     263.4       -   263.4   16.6%
------------------------------------------------------------------------------
        London - Total                           847.6   189.8 1,037.4   65.5%

South East Offices                               122.8       -   122.8    7.7%

Other Offices                                     83.8       -    83.8    5.3%

Shopping Centres                                     -   340.6   340.6   21.5%
------------------------------------------------------------------------------
                                               1,054.2   530.4 1,584.6  100.0%
------------------------------------------------------------------------------