Quintain has reported a 2% fall in full-year pretax profits to £15.8m but posted a rising net asset value per share.
Analysts had been forecasting a profit of £14m-£14.5m for the company.
The developer, which is leading two major regeneration projects at Wembley and Greenwich, has continued to sell assets from its investment portfolio.
During the second half of the financial year, the developer sold £145m of investment property on a 6.1% yield, down slightly on the £149m it sold in the first half.
It purchased £22m of property on an 8.1% yield, which was down from £64m in the first half. Gross rental income fell 14% to £36.2m.
Management fees from Quercus Healthcare Property Partnership ‑ for which Quintain acquired £48m of property to increase the fund to £289m ‑ were £1.4m.
This fee contributed to a £1m increase in profit from joint ventures to £4m.
NAV increased to 22% to 495p per share. Analysts had forecast 485p per share.
The increase was driven by revaluations at Wembley, the Meridian Delta project at Greenwich and York House, Wembley, as the schemes moved through planning stages.
Chairman Nigel Ellis said: “We have realised profits from the sale of properties in the core investment portfolio, achieving excellent returns from our fund management activities and have made substantial progress with our major projects.
“We have also significantly enhanced our financial firepower through the raising of new debt and a substantial reduction in our gearing.”
At Wembley’s 13-acre Palace of Industries site, where Quintain has a joint venture with Caesars Entertainment for a regional casino, the developer said it “remained fully committed to the project, notwithstanding the continuing political debate”.
Year-end valuations do not assume a casino will be built on the site. However, Quintain said: “If this is successful, it will generate significant value.”
Across the rest of the site, the developer has signed a joint venture with two housing associations for the first residential development, comprising 285 flats, for which detailed planning application is to be submitted shortly, with construction expected to begin by spring 2006.
The company’s undrawn banking facilities stood at £330m at year-end, while gearing fell to 27% from 55% at the beginning of the period.
References: EGi News 07/06/05
