Grosvenor has posted pretax profits of £526.6m for 2015, down 22% on 2014.
The fall is largely due to a slowdown in the capital increases across the group’s portfolio, which while still up 11% on 2014 showed a noticeable slowdown in capital returns.
In 2015 the capital value of the portfolio rose by £478.9m, compared with a £638m increase in 2014.
Rental incomes increased by 6% to £186.7m per annum.
The heartland of Grosvenor’s assets remained the West End of London, where the company has 53.9% of its portfolio, an increase from 52.6% in 2014. However, by value, the US was an increasing proportion of the portfolio, up from 15.9% to 16.6%.
The fund management business, which is to undergo restructuring, added £23.5m to Grosvenor’s bottom line, slightly down on the £25.7m of 2014. Fee income was down marginally from £15.3m to £15.1m.
Overall assets in the fund management portfolio were reduced from 78 in 2014 to 59 by the end of 2015.
As with the overall group, valuation uplifts in the fund management business slowed during 2015 to £189m from £229m in 2014.
The UK landed estate business, Grosvenor Britain & Ireland, made a total return for 2015 of 10.7%, its sixth year of returns above 10%.
It added £39m to the value of the portfolio through development in the London area, helping take the UK portfolio to £5.7bn. In total the UK arm made a profit of £31.4m.
In other regions, North American returns were 8.4% on the CAD4.5bn (£2.5bn) total portfolio, and the Asian business made a return of 6.6% on its HK$8.1bn (£729m) portfolio.
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