Interim Results

Great Portland Estates PLC
20 November 2001

PART 1

                      INTERIM RESULTS FOR THE SIX MONTHS

                          ENDED 30th SEPTEMBER 2001

-     Adjusted+ earnings up 6.9% to 6.2p per share (2000: 5.8p)

-     Dividend up 2.5% to 3.33p per share (2000: 3.25p)

-     Net assets per share* down 3.7% to 389p

-     Diluted net assets per share* down 3.5% to 382p

-     £335 million of disposals since April 2001

-     Some 90% of the portfolio is now in Central London

-     £30 million of share buy-backs since April 2001

-     £100 million 9 1/2% debenture 2016 repaid

-     Net gearing* is now down to 43%

+ excluding deferred tax, exceptional items and profits or losses on sales of
investment properties

*excluding deferred tax

Richard Peskin, Chairman, said:

'The events of 11th September have only served to increase the feelings of
uncertainty which were already appearing as a result of the global economic
slowdown. Indeed, we have been suggesting for some time that the exceptional
growth in value in our core portfolio was unlikely to be sustainable. However,
over the past few months we have taken further sensible actions to position
the Company to take advantage of opportunities which may arise, and we believe
that the Central London market in which we are now concentrated will remain
robust in the medium term.'

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

Interim Review

Introduction

In June 1999, we announced that, in order to deliver enhanced shareholder
value, we were embarking upon the rationalisation of Great Portland to create
a focused, more appropriately financed business. This process has continued
apace since 31st March 2001, with £335 million of property sales, the
repayment of an expensive debenture, and further share buy-backs.
Consequently, over 95% of the portfolio is now in Central London and offices
in the South East, and our average cost of debt has been reduced to 7.5%.

As a result of these transactions, and the capital reduction carried out in
September 2000, the figures on the face of the profit and loss account are
distorted by exceptional items, and are not directly comparable to those of
last year. However, excluding these items, adjusted earnings are up 6.9% to
6.2p per share (2000: 5.8p), and the Directors have declared an interim
dividend of 3.33p per share (2000: 3.25p), an increase of 2.5%, payable on 3rd
January 2002.

The investment portfolio was valued at 30th September 2001 at £1.4 billion,
representing a reduction of 2.1% in the last six months. The negative impact
of this valuation, coupled with the debenture repayment, was substantially
mitigated by the effect of the share buy-backs, so that diluted net assets per
share (adjusted to exclude the effects of FRS 19) at 30th September 2001 were
382p (31st March 2001: 396p).

Interim Valuation

The interim valuation of the investment portfolio at 30th September 2001 was
carried out by CB Hillier Parker. Rental values north of Oxford Street, which
represented 31% by capital value of the Group's portfolio, rose by 2.5%, but
were more than offset by a rise in investment yields which led to a fall in
capital values of 1.9%. Similarly, for the rest of our West End and Covent
Garden properties, although rental growth was 3.1%, capital values fell by
2.1%. Overall in the West End and Covent Garden, which comprised 55% of the
portfolio at 30th September 2001, rental values rose by 2.8%, but capital
values fell by 2.0%. In the City and Holborn - 18% of the portfolio - values
fell marginally by 0.7%, with the effect of rental growth of 2.9% being held
back by an easing of investment yields. Offices in the South East fell in
value by 2.8% despite an increase in rents of 1.7%, shopping centre values
remained broadly unchanged, and sundry non-core properties, which comprised
the final 3% of the portfolio, fell by 15.2%. Overall, the adverse movement in
investment yields produced a fall of 2.1% in the value of the entire
portfolio, despite rents increasing by 2.1%.

Property Review

In the West End and Covent Garden, the majority of rental growth since March
occurred in the early summer. Our portfolio is fully let, but there are signs
that a handful of tenants are seeking to assign their surplus space, which is
likely to have a dampening effect on future rental growth. Nevertheless, north
of Oxford Street the average rent being paid for offices in the portfolio is £
25 per sq.ft., and the average expected rental value ascribed to them by CB
Hillier Parker is £37 per sq.ft. We believe that this level of rent is not
demanding within the context of the West End as a whole, and at current levels
our West End and Covent Garden properties have a reversionary potential of £
12.5 million within the next five years. Since 1st April 2001, rent reviews in
the West End have added £1.4 million to the rent roll, including at 17/18 New
Bond Street, W1, purchased as part of the Ilex portfolio in 1997, where a rent
review has recently been completed at 61% above the previous rent.

Our City and Holborn properties are fully let, and important rent reviews have
been completed in the period, demonstrating higher than forecast levels. We
took the opportunity to acquire the freehold interest in our buildings at 13/
15 and 17 Moorgate, EC2 for £2.2 million to exploit the marriage value and to
create the potential for future asset enhancement.

Disposals

In accordance with our stated objective of focusing on Central London and
offices in the South East, all of our shopping centres have been sold since
April 2001 for some £300 million, in line with the March 2001 valuation. As
previously announced, The Rhiw Centre, Bridgend, Union Square, Torquay and The
Quedam Centre, Yeovil were sold for £66 million in June, and the remaining
four - Charter Walk, Burnley, Queen's Arcade, Cardiff, The Harvey Centre,
Harlow and The Octagon Centre, High Wycombe - were sold for £235 million in
November. In addition, at High Wycombe, we brought to an end the potential £90
million funding commitment of The Western Sector retail scheme. In October,
Key Point, Bristol was disposed of at its March 2001 valuation of £12 million,
and our non-core properties are now less than 5% of the total portfolio.

In April we disposed of a warehouse in Frimley, Surrey, where we had recently
received planning permission for an 81,000 sq.ft. office development; the
proceeds of £9.25 million represented a profit of 120% over its initial cost
five years ago. In Central London, we sold 22/25 Northumberland Avenue, WC2
for £5 million at £2 million over its March 2001 valuation, and 4/5 Bonhill
Street, EC1 for £7.75 million at £1.25 million in excess of its March value.

Developments

The leisure scheme at Sol Central, Northampton, comprising a ten screen
cinema, an hotel and restaurants, is scheduled to open in January, and the
development of twelve flats adjacent to our shopping mall in Chelsea was
completed in the spring, with six units having been sold since March to
produce a trading profit of £0.4 million.

Looking to the future, planning consent was granted in September for the
redevelopment of a 146,000 sq.ft. scheme at 190 Great Portland Street, W1,
comprising offices, retail and leisure, and representing a net increase of
more than one third over the existing area. The property is fully
income-producing, with its main tenants on leases until 2004. A final design
has been submitted for a 238,000 sq.ft. scheme at Great Titchfield Street/
Mortimer Street/Wells Street, W1, comprising offices, residential and retail,
and where the majority of leases is secured for the next five to seven years.
We are examining other development opportunities in the West End, and
discussions continue with a consortium of landowners for the longer-term
potential of our holdings in Bishopsgate/Camomile Street/St. Mary Axe, EC2.

Financial Reporting Standards

In the six months ended 30th September 2001, three new financial reporting
standards have applied for the first time, only one of which, FRS 19 Deferred
Tax, has had a material effect on the reported results. Under this standard,
we are required to provide for the potential tax payable on the reversal of
all capital allowances claimed to date on properties owned by the Group, and
to charge the full rate of tax in the profit and loss account, as if no
capital allowances had been claimed in the period. In practice, for property
investment companies such as ours capital allowances do not reverse, even on
property disposals, and so the Board believes that applying this new standard
produces inappropriate figures for earnings and net assets. Accordingly,
adjusted earnings and adjusted net assets, as referred to in this Interim
Report, are stated after reversing the effects of FRS 19.



Financial Review

The profit and loss account for the six months ended 30th September 2001 is an
amalgam of three distinct elements: the underlying core business, which
generated profits before tax of £18.2 million and earnings of 6.2p per share
(2000: 5.8p), before FRS 19; the disposal of £88 million of properties, which
earned 0.8p per share; and the early repayment of £100 million of expensive
long-term debt at a one-off cost of 9.4p per share.

The fall in rent receivable to £45.1 million from £57.5 million in the
corresponding six months last year was largely due to the loss of income of £
13.8 million from property sales; lease expiries also accounted for a £1.8
million fall in rent, but new lettings added £2.0 million, and rent reviews a
further £1.2 million. Property and administration expenses of £3.7 million
were £0.8 million lower than last year, due to a number of one-off items in
2000, and trading profits of £0.4 million have been made on the sale of flats
in Chelsea. The early repayment of expensive debt in both 2000 and 2001 has
led to the fall in net interest, before exceptional items, of £2.5 million to
£22.7 million.

Investment property disposals in the six months to 30th September 2001
generated proceeds of £88.0 million against a valuation of £85.3 million in
March, and the profit on sale was £1.7 million after selling costs. The early
repayment of our £100 million 9.5 per cent. First Mortgage Debenture Stock
2016 at £28.2 million over par is shown as an exceptional cost within interest
payable, and attracted incidental costs of £0.3 million within administration
expenses. The loss, which is expected to be fully relievable against profits
of the Group in the year to 31st March 2002, represented a net cost after tax
of £20.0 million. The underlying tax charge, excluding the effects of deferred
tax, the exceptional costs and capital profits, was 27.5%, which was less than
30% due primarily to the benefit of capital allowances.

Diluted net assets per share, excluding deferred tax, fell from 396p to 382p
in the six months to 30th September 2001. The fall of 14p per share comprised
a number of items: profit from the underlying core business added 5p, capital
profits 1p and share buy-backs 5p per share, against which the debenture
repayment cost 9p, the revaluation deficit 13p and the dividend 3p per share.

The repayment of the debenture was the only material change in the Company's
gross debt in the six months to 30th September 2001, and reduced the weighted
average cost of debt to 7.5%, from 7.8% in March. Gearing at 30th September
2001, excluding deferred tax, rose marginally to 73% (31st March 2001: 69%)
net of cash balances of £5.4 million, and the Group had in place undrawn bank
facilities of £60 million. Property disposals since 30th September 2001 have
reduced gearing to 43%, and increased cash balances and undrawn facilities to
over £300 million. Under FRS 13, the market value of the Group's financial
instruments at 30th September 2001 exceeded the amount at which they were
shown in the consolidated balance sheet by £61.8 million, representing a
potential reduction in net assets per share of 21p after tax, and there was a
contingent liability to taxation on capital gains of 22p per share.

At the Annual General Meeting in July, shareholders renewed the authority to
buy in a further 15% of the issued share capital, and since 31st March 2001 we
have bought back 5.23% of the shares in issue at that date, comprising some
11,207,130 shares (of which 2,347,130 were not cancelled until 2nd October) at
an average cost of 268.8p each. The effects of these purchases have been to
increase diluted net assets per share by 4.8p, and future annual earnings by
about 0.5p per share.

At 30th September 2001, our rent roll stood at £86.9 million per annum, and
was estimated to be reversionary to the tune of £18.9 million within the next
five years, and voids comprised less than 1% of lettable space.



Prospects

The events of 11th September have only served to increase the feelings of
uncertainty which were already appearing as a result of the global economic
slowdown. Indeed, we have been suggesting for some time that the exceptional
growth in value in our core portfolio was unlikely to be sustainable. However,
over the past few months we have taken further sensible actions to position
the Company to take advantage of opportunities which may arise, and we believe
that the Central London market in which we are now concentrated will remain
robust in the medium term.



Unaudited Group Profit and Loss Account

For the six months ended 30th September 2001
Year to                                          Six months to    Six months to
31st                                                      30th             30th

March                                                September        September
2001                                                      2001             2000
As restated                                                         as restated
£m                                      Notes               £m               £m
------------                         -------- ----------------  ---------------
106.8        Rent receivable                2             45.1             57.5
(1.9)        Ground rents                                (0.9)            (1.0)
-----------                                     --------------    -------------
104.9        Net rental income                            44.2             56.5
(2.8)        Property and refurbishment costs            (1.3)            (1.7)
(7.1)        Administration expenses        3            (2.7)            (4.7)
----------                                      --------------   --------------
95.0                                                      40.2             50.1
-            Trading profits                               0.4                -
----------                                      --------------   --------------
95.0         Operating profit                             40.6             50.1
             
(12.8)       Profit/(loss) on sale of                      1.7           (12.0)
             investment properties
----------                                       -------------   --------------
82.2         Profit on ordinary                           42.3             38.1
             activities before interest
2.8          Interest receivable            4              0.5              1.9
(60.6)       Interest payable               5           (51.4)           (32.1)
---------                                        -------------   --------------
24.4         (Loss)/profit on ordinary                   (8.6)              7.9
             activities before taxation
(8.2)        Tax on (loss)/profit           6              3.2            (4.2)
             on ordinary
             activities
--------                                         -------------    -------------
16.2         (Loss)/profit on ordinary                   (5.4)              3.7
             activities after taxation
(20.9)       Dividends                      7            (6.8)            (7.0)
--------                                         -------------  ---------------
(4.7)        Retained loss for the period               (12.2)            (3.3)
--------                                         ------------- ----------------
5.9p         (Loss)/earnings per            8           (2.6)p             1.1p
             share - basic
----------                                     ---------------   --------------
11.8p        Earnings per share -           8             6.2p             5.8p
             adjusted
---------                                      ---------------   --------------
9.75p        Dividend per share             7            3.33p            3.25p
---------                                      ---------------  ---------------

The group profit and loss accounts for the six months to 30th September 2000
and the year to 31st March 2001 have been restated for the adoption of FRS 19
(see note 16).

Unaudited Group Balance Sheet

As at 30th September 2001

31st March                                                30th             30th
                                                     September        September
2001                                                      2001             2000
as restated                                                         as restated
£m                                       Notes              £m               £m
--------                              --------   -------------   --------------
           Tangible fixed assets
1,502.6    Investment properties             9         1,403.4          1,584.6
---------                                       -------------- ----------------
           Current assets
6.9        Stock of trading properties                     3.5              4.5
24.9       Debtors                          10            33.6             41.9
96.0       Cash at bank and short-term                     5.4             23.0
           deposits
----------                                       -------------    -------------
127.8                                                     42.5             69.4
(72.2)     Creditors: amounts falling       11          (53.9)           (72.5)
           due within one year
---------                                        ------------- ----------------
55.6       Net current (liabilities)/assets             (11.4)            (3.1)
---------                                       --------------  ---------------
1,558.2    Total assets less current                   1,392.0          1,581.5
           liabilities
           Creditors: amounts falling due
           after more
           than one year
(454.0)    Debenture loans                  12         (353.9)          (454.1)
(56.8)     Convertible loans                13          (56.8)           (56.7)
(182.3)    Bank and other loans             14         (181.7)          (197.7)
(17.7)     Provisions for liabilities       16          (18.1)           (18.1)
           and charges
--------                                        -------------- ----------------
847.4                                                    781.5            854.9
--------                                       ---------------  ---------------
           Capital and reserves
107.1      Called up share capital          17           102.7            107.0
24.8       Share premium account            18            24.8             24.3
570.9      Revaluation reserve              19           538.6            596.3
19.4       Other reserves                   19            23.8             19.4
125.2      Profit and loss                  19            91.6            107.9
           account
---------                                      ---------------    -------------
847.4      Equity shareholders' funds                    781.5            854.9
---------                                      ---------------    -------------

The group balance sheets as at 30th September 2000 and 31st March 2001 have
been restated for the adoption of FRS 19 (see note 16).

The Interim Report was approved by the Board of Directors on 20th November
2001.



Unaudited Group Statement of Cash Flows

For the six months ended 30th September 2001

Year                                        Notes      Six months    Six months
to                                                             to            to
31st                                                         30th          30th
March                                                   September     September
2001                                                         2001          2000
£m                                                             £m            £m
---------                                             -----------   -----------
81.6       Net cash inflow from              21.1            33.7          35.6
           operating activities
           Returns on investments and servicing
           of finance
3.0        Interest received                                  0.6           2.0
(48.7)     Interest paid                                   (28.8)        (19.7)
           Net cash outflow from returns
           on investments
(45.7)     and servicing of finance                        (28.2)        (17.7)
(13.5)     Tax paid                                         (3.1)         (4.3)
           Capital expenditure
(23.3)     Payments to acquire investment                  (16.7)        (11.4)
           properties
385.9      Receipts from sale of investment                  90.4         288.4
           properties
14.9       Receipts from sale of investments                    -          14.9
377.5      Net cash inflow from capital                      73.7         291.9
           expenditure
(29.7)     Equity dividends paid                           (13.9)        (22.7)
---------                                             -----------  ------------
           Net cash inflow before management of liquid resources
370.2      and financing                                     62.2         282.8
           Management of liquid resources
(9.8)      Cash withdrawn from/(placed on)                   95.2          65.7
           short-term
           deposit
           Financing
(0.4)      Repurchase of shares                            (24.2)         (0.4)
(285.4)    Redemption of shares                                 -       (285.4)
0.6        Issue of shares                                      -             -
(72.9)     Repayment of borrowings                        (128.6)        (57.9)
(358.1)    Net cash outflow from financing                (152.8)       (343.7)
----------                                        --------------- -------------
2.3        Increase in cash                  21.3             4.6           4.8
---------                                         --------------- -------------



Unaudited Group Statement of Total Recognised Gains and Losses

For the six months ended 30th September 2001

Year to                                          Six months to    Six months to
31st                                                      30th             30th
March                                                September        September
2001                                                      2001             2000
as                                                                  as restated
restated
£m                                                          £m               £m
                                              ----------------  ---------------
16.2       (Loss)/profit for the period                  (5.4)              3.7
28.2       Unrealised (deficit)/surplus on              (29.5)             34.9
           revaluation of fixed assets
---------                                     ----------------  ---------------
44.4       Total recognised gains and losses            (34.9)             38.6
           for the period
-          Prior period adjustment (see note            (17.7)                -
           16)
----------                                     --------------- ----------------
44.4       Total recognised gains and losses            (52.6)             38.6
           since last annual report
--------                                     ----------------- ----------------

The group statements of total recognised gains and losses for the six months
to 30th September 2000 and the year to 31st March 2001 have been restated for
the adoption of FRS 19 (see note 16).

Unaudited Note of Historical Cost Profits and Losses

For the six months ended 30th September 2001

Year to                                            Six months to  Six months to
31st                                                        30th           30th
March                                                  September      September
2001                                                        2001           2000
as                                                                  as restated
restated
£m                                                            £m             £m
---------                                          ------------- --------------
24.4       Reported (loss)/profit on ordinary              (8.6)            7.9
           activities before taxation
64.6       Realisation of revaluation surpluses of           2.8           45.9
           previous years
----------                                           -----------  -------------
89.0       Historical cost (loss)/profit on                (5.8)           53.8
           ordinary activities before taxation
--------                                             ----------- --------------
           Historical cost (loss)/profit for the
           period retained after
59.9       taxation and dividends                          (9.4)           42.6
--------                                           -------------  -------------

The notes of historical profits and losses for the six months to 30th
September 2000 and the year to 31st March 2001 have been restated for the
adoption of FRS 19 (see note 16).


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