The Crown Estate delivered a record £1.1bn net revenue profit for the 2023/24 financial year – up £658.1m on the profit recorded in 2022/23.
It attributed the improved performance to the “continued resilience of the portfolio and the short-term uplift from offshore wind leasing”, adding that its commercial property portfolios had outperformed its MSCI commercial property benchmark by 2.0 percentage points as occupancy rates and retail values recovered.
Vacancy rates in The Crown Estate’s London office portfolio fell from 4.6% to 2.2% and revenue increased 3.2% to £229.7m. More than 90 new leases were signed across its West End office assets in the reporting period with some rents rising by as much as 16%. The estate also signed more than 60 new retail leases in the period at rents 4% above estimated values on average.
However, the value of the estate’s total portfolio fell from £16.8bn to £15.5bn and the overall value of its real estate portfolio fell £443.3m to £8.4bn. Meanwhile, footfall across The Crown Estate’s retail portfolio remains 15% down on pre-pandemic levels, largely due to the cost-of-living crisis and the end of tax-free shopping for non-EU tourists.
Dan Labbad, chief executive officer at The Crown Estate, said: “Today’s record results are the product of years of commitment and investment into helping create the UK’s world-leading offshore wind sector, as well as the active management of our diverse and resilient portfolio. Our track record and remit are also enabling us to invest and lay the foundations for future value creation that will benefit the country and its finances.
“In support of this, we have welcomed the government’s commitment to bring forward legislation that will broaden our investment powers and enable us to have an even greater impact in the long-term national interest, from supporting the UK’s decarbonised, energy secure future to nature recovery, regeneration and economic growth.”
