| Item | 2014 result |
|---|---|
| Returns | 13.10% |
| Pipeline | £5.5bn |
| AUM | £11.4bn |
| Pretax profit | £681m |
| Profit from revenue | £80.1m |
| Gearing | 23% |
Grosvenor turned towards more development in 2014 as it increased its total returns by 13.1%, according to its annual results.
The move towards development comes as certain markets’ pricing of investment product proved “pretty challenging”, said Mark Preston, Grosvenor’s group chief executive.
However, the shift in investment activity had long been a part of the company’s plan as it had exploited “weaker market conditions several years ago, which allowed us to get sites under our control that we are now building out”, said Preston.
However, the company will continue to both acquire and develop on a case-by-case basis depending on markets and opportunity, he said.
The group had assets under management of £11.4bn at the end of 2014 with a development pipeline of £5.5bn across the globe, down by £500m on the year before as more projects reached completion.
Of the assets under management, £6bn were held in direct property, up £500m on the year before.
Total return figures were driven by a pretax profit of £681.m based upon increased values and revenues across the group.
The company announced that profit from revenue alone rose to £80.1m in 2014, which contributed to a 10-year revenue profit growth rate of 7.7%.
Gearing, measured as economic gearing, was reduced through increased valuations on the portfolio and through liquidation and stood at 23% by the end of the 2014 financial year.
Preston also said he believed it was unusual that every region and division of the company had done well simultaneously.
The UK & Ireland division increased its net rental income by £12.7m and added 2,900 of new office and retail space over 2014.
Outside of the UK, Preston believed the US and Canadian west coast performed particularly well. San Francisco has been of interest to the company owing to a resurgence in office occupancy in the city.
“We are certainly seeing great opportunities there and as a result we have made a capital allocation of $100m [£65.8m] in the North America since the year end,” he said.
