The Crown Estate has reported a 5.5% increase to £12.4bn in the net asset value of its property portfolio for the year to 31 March.
Central London rental growth contributed to the NAV increase, with more than 400,000 sq ft of retail and office space let for a total rent of £34.4m per annum – 8.6% above the estimated rental value.
Across its entire portfolio, more than 640,000 sq ft of space was let across the business, with agreed rent totalling £43m per annum – over 7% above the estimated rental value.
The year was a record for capital activity which totalled £1.2bn from more than £500m of disposals, £350m of acquisitions, and more than £300m of capital spending, including spending on development.
Chief executive Alison Nimmo said: “This outperformance reflects many years of disciplined market positioning in our chosen sectors and has made our business resilient at a time of political and economic uncertainty.”
She added: “Looking ahead, we expect returns to remain subdued, but we are confident in the underlying strength of our markets and our commitment to quality in what we deliver.
“Following a record year of capital activity, this year will see the launch of two major retail schemes at Rushden and in Oxford, and the continued preparation of the next phase of our development pipeline in central London that will form the backbone of our long-term performance.”
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