Slough Estates is optimistic about its prospects, despite reporting a fall in year-end net asset value and profits this week.
Fully diluted NAV per share fell 1.5%, from 520p to 512p, after exceptional charges of 17p per share, amounting to £70m. And while pre-exceptional pretax profits for the year to December were up 7% to £137.3m (2000: £128.3m), after the exceptional charges the figure was almost halved to £67.3m.
The charges came from the £60.2m writedown of the value of the group’s power plant at its Slough Trading Estate, which has been hit by government regulations on energy trading.
Slough also recorded a £9.8m pretax deficit on the sale of its Toronto portfolio, owing to debt costs and the closure of its office.
The revaluation of Slough’s £3.5bn portfolio showed the UK assets falling 2% in value and the overseas assets rising 6%.
Chairman Sir Nigel Mobbs said: “Our core property income was up 13%, but the exceptional charges hit the headline figures. However, we believe the potential in the development portfolio will produce good returns in the future.”
He said the group expected £130m of income from the development programme, which will cost £950m to complete. Slough will spend £450m over the next two years.
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Slough: year to Dec |
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NAV per share fell from 520p to 512p |
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Source: Slough Estates |
