Brixton Estate has kept up its 31-year winning streak with a 10% rise in pretax profits to £22.9m in 1992. “It is nice to go out with a smile on your face,” says chairman Harry Axton, who retires in June, to be followed by managing director Douglas Gardner.
Net rental income is 9% up to £55.2m – particularly satisfactory, given the difficult letting market, says Axton. “Every rent review is a fight,” he notes.
During the year, Brixton let 486,000 sq ft, 200,000 sq ft of which came from the development programme. However, the void rate increased marginally to 7.5%.
Brixton’s portfolio is not immune to the downturn; investment properties are 9% down, excluding the currency movements. “The part that was worst hit was Holborn – there was a 15% to 17% drop in offices. That did surprise us,” says Axton. Otherwise, the central London properties – which, Axton points out, tend to be let at £30 rather than £60 per sq ft – fell relatively little. UK industrial property – about half of Brixton’s portfolio – fell 8%, while the overseas holdings held up well with the exception of Australia.
Including developments, the portfolio was valued externally at £679m (£724m), with net asset value per share 19% down at 183p. Gearing is now up to 114%.
Brixton’s development programme is minimal; rather, existing properties are being improved. However, there is planning consent for 600,000 sq ft. “We’re sitting on the starting blocks until we have confidence in the green shoots,” says Axton.
