Canary Wharf owner Songbird Estates saw a 4.7% increase in net asset value per share to £1.99 for the first six months of the year, mainly thanks to a £95.4m uptick in portfolio valuation.
The group’s retail portfolio was a particularly strong performer, with valuations rising by 4.3%, while offices increased by 0.1%.
Songbird reported a pretax profit of £17.3m in the first half of 2012, compared with £6.6m for the same period last year.
The investment portfolio was let 95.6%, compared with 96.5% at the end of December 2011, buoyed by a number of significant lease extensions in the first half of the year. Songbird signed an eight-year lease extension with Bank of New York Mellon for 152,000 sq ft at One Canada Square, while Metlife took on an additional 12,900 sq ft in the building on a nine-year lease. However, HSBC exercised a break option on its 27,104 sq ft floor in One Canada Square, effective from March, and break options on a further 20,758 sq ft were exercised by other tenants.
Songbird acquired full control of the Wood Wharf joint venture in the first half of the year – a mixed-use scheme – having bought controlling stakes from former jv partners Ballymore and BWB in December and January respectively.
Group chairman David Pritchard said: “It has been a positive and productive first half of the year for the group, in spite of an uncertain economic environment. The success of the Olympic and Paralympic Games has undeniably brought the focus of the world onto the east of London and the group is proud to have been a catalyst for the regeneration of this dynamic area of the city. The board is confident that through the group’s demand-led pipeline, its commitment to diversification and its reputation for excellence, sound foundations are being put in place for its future growth. The group is well placed to build into the anticipated shortage of high-quality office and residential space as the economy upturns.”
sophia.furber@estatesgazette.com
