The Crown Estate has announced a record income return of £304.1m and a portfolio valuation now exceeding £12bn in its results for the year to March 2016.
Total return for the portfolio was 17.2%, against a bespoke IPD/MSCI benchmark – which measures comparable assets to those in the portfolio – of 13.2%, and an all property return of 11.3%. Over three years the estate has returned 19.3% to the bespoke benchmark’s 16.2%.
Property values in the portfolio rose 9.7% to £12bn, with the total portfolio now valued at £12.9bn. Capital activity – the buying and selling of assets – of £960m was weighted towards sales and development.
“With markets continuing to be fully priced, we have secured our long-term sustainable growth through the active management of world-class office and retail destinations, the strength and timing of the largest development pipeline in our history, together with the UK’s world leading position in offshore wind,” said chief executive Alison Nimmo.
Sales receipts added up to 633.2m and included non-core residential assets in central London, two retail parks and rural and strategic land. A total of £182.1m in capital expenditure was pumped into development.
In all, 100% of The Crown Estate’s annual profits are returned to the Treasury for the benefit of the public finances, and over the last 10 years it has returned more than £2.4bn to the Treasury.
With markets fully priced, acquisitions were small and strategic, totalling around £72.9m.
Nimmo added: “Looking ahead we remain cautious about the outlook for the market and are confident that with our focus on progressive management of high-quality assets in the best locations, we have prepared the business for the challenges ahead.”
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