Grosvenor, the privately-owned international property group, has released a sturdy set of results this morning, with increased revenue profits in 2012 up by
8.2% to £87.4m. Pre-tax profit, which includes changes in property values, rose from £315m to £354.4m.
The biggest contributor to higher profits was Grosvenor Britain & Ireland, which increased revenue profit by a whopping 132% to £38.1m (2011: £16.4m), attributed in the main to the strong property market in central London, improved operational performance and “value added from active management”.
Total return, which includes the impact of property revaluations, was 7.2% in 2012, compared with 9.0% the previous year.
Here’s the 2012 results at a glance:
- Revenue profit increased 8.2% to £87.4m versus £80.8m
- Total return 7.2% versus 9%
- Pre-tax profit increased 12.5% to £354.4m versus £315m
- Grosvenor Britain & Ireland (GBI) increased revenue profit by 132% to £38.1m (2011: £16.4m)
Mark Preston, Chief Executive of Grosvenor: “This is another year of strong performance from Grosvenor with our London portfolio again contributing significantly. Looking ahead, our confidence in the future of the cities in which we are active around the world is reflected in a further rise in the value of our international development pipeline, from £3bn to £3.4bn.”
Within revenue profit, which excludes changes in property values, gross rents were maintained at £309.1m (2011: £309.2m). Overheads were lower for the third successive year, down by 2.8% to £117.1m (2011: £120.5m), “reflecting the continued focus on managing costs” across the Group. Fees from fund management and development activity and other income increased 4.0% to £57.0m (2011: £54.8m).
Shareholders’ funds increased 7.8% to £3.08bn (2011: £2.85bn) and now stand at their highest ever level. Total assets under management were slightly down at £12.2bn (2011: £12.5bn), but within that Grosvenor’s share of property assets was stable at £5.8bn (2011: £5.8bn).
According to a statement released today, Grosvenor Britain & Ireland’s standout performance reflected “buoyant demand in the London West End market” as well as improved operational performance (largely resulting from the “Fast Forward” operational review). GBI’s London estate comprises 300 acres of Mayfair and Belgravia – over 1,500 retail, residential and commercial properties.