Harworth Group chief executive Lynda Shillaw said the company had delivered a “strong strategic and operational performance” in the six months to 30 June 2023.
In a trading update, the company said its EPRA NDV as at 30 June 2023 will be broadly in line with its EPRA NDV as at 31 December 2022 as a “result of positive valuation movements driven by management actions across the portfolio, supported by continued demand from occupiers for industrial and logistics assets and from house builders for serviced residential land”.
Shillaw said market-driven outward yield movements in the industrial and logistics sector had continued in the first half of the year, but were not as significant as in H2 2022.
“Harworth has delivered a strong strategic and operational performance in the first half highlighting the resilience of our through-the-cycle model, and sustained demand for our serviced residential land and industrial and logistics assets,” she said. “In particular, the combination of this year’s sales of more mature industrial and logistics sites and our development of new high-specification space has accelerated the transition of our investment portfolio towards our goal of 100% Grade A.”
Shillaw added macroeconomic challenges still weighed heavy on investor sentiment. “Continued economic headwinds mean that the landscape for the second half of the year remains challenging, although there are early signs of some of the inflationary pressures easing. Against this backdrop, our focus markets of industrial & logistics and residential remain key drivers of economic growth and have favourable supply and demand dynamics.
“Harworth is a long-term through-the-cycle business, and we remain confident that our strategy will deliver long-term value. What is more, our strong financial position, differentiated products, and the scale and mix of our portfolio, position us well to maximise the significant value embedded in our sites.”
