Results
Portfolio capital value return: +9.5% (IPD Monthly Index: -0.4%). 3-year compound annualised growth rate: +7.4%
EPRA NAV increased by 13.9% to £5.67
Net asset value return: 16.3% (2012: 10.1%)
50 redevelopment and refurbishment projects in the year across 165,000 sq.ft. (9% of total floor space) have temporarily constrained growth in net property income; completed schemes have let well.
Annualised current income: £85.9 million (2012: £80.9 million)
Portfolio activity
Continuing strong demand across all villages and for all uses - particularly restaurants, cafés and leisure:
- Vacancy space available to let and being marketed: 1.3% of ERV
- Lettings, rent reviews and lease renewals of £18.7 million in the year - average 4.5% above ERV
- Like-for-like ERV growth of 4.5% (2012: +3.8%)
Portfolio reversion now stands at £20.0 million, increased by 5.3% over the year.
Continuing to identify valuable new schemes within existing portfolio
Acquisitions totalling £28.0 million in period include eight shops, four restaurants and 5,100 sq.ft. of offices. Forward purchase of 6,500 sq. ft. of shops and a new restaurant in Soho
Finance
Committed unutilised bank facilities: £90.8 million
Conservative gearing (Loan-to-value ratio: 29.5%)
Earliest facility maturities 2016 - being addressed in advance of contractual maturities.
Brian Bickell, Chief Executive, commented:
"London's stature as one of the world's leading global cities continues to grow as it becomes an ever-more popular destination for visitors and businesses, and as a place to live. The West End and our central locations are clearly benefiting from London's dynamism and growing global reputation.
Following the successful staging of the 2012 Olympics and Paralympics, which showcased London across the world, there has been a noticeable increase in domestic and international visitors throughout the year. Coupled with a gradual recovery in consumer confidence in the UK and abroad, visitor spending is increasing, encouraging retailers, restaurateurs and other leisure-related businesses to establish new ventures, particularly in and around the West End.
This year, growth in our income and revenue profit has been tempered by the increased amount of redevelopment and refurbishment activity across the portfolio, particularly in Carnaby. The first of the two important schemes in Foubert's Place is now substantially let and, together with a number of other schemes in the portfolio, is now making an important contribution to the revenue growth we expect to see in the coming financial year.
The exceptional qualities of our unique portfolio, located in the centre of one of the world's most exciting, dynamic and prosperous cities, have again been demonstrated this year in the growth in our income and capital values. With our unrivalled knowledge of the areas in which we invest, and our innovative approach to managing our assets, we are confident that, as our business grows, we will continue to deliver good returns to shareholders in the years ahead."
