JD Wetherspoon has been steadily building up its real estate, with freeholds now accounting for 69% of the pub chain’s portfolio.
The pub chain reported a 90% fall in pretax profit to £4.6m for the six months to the end of January 2023, while revenue rose to £916m.
In 2011, freeholds accounted for less than 44% of the portfolio. Since then Wetherspoons has been building that up through investment in freehold reversions where it was previously a tenant and freehold pub openings.
It opened two pubs during the first six months of its financial year and sold seven freehold pubs, at a total loss of £3m, resulting in a trading estate of 843 pubs.
The latest results show property plant and equipment of £1.4bn, £23m of investment property and lease liabilities of £512m.
It is currently holding one site for sale, at a book value of £1.5m.
The chain also confirmed it had settled its final claim arising from an alleged “property fraud” dating back to 2008. It has accepted £400,000 from property investor Jason Harris, formerly of First London and now of First Urban Group. Wetherspoon alleged that Harris was an accessory to frauds committed by Wetherspoon’s former retained agent Van de Berg. Harris contested the claim and has not admitted liability.
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