The Crown Estate: revenues and property values to be ‘significantly down’ next year
Queen’s business announces big profit but value of portfolio drops by £550m as Covid crisis takes toll
The Crown Estate is predicting tough times ahead due as the coronavirus pandemic hits the Queen’s profits and asset values.
In a newly published annual report, the estate - an independent commercial business owned by the reigning monarch - has announced a net revenue profit of £345m for the 12 months ending 31 March, up by 0.4% year-on-year.
But the value of the Queen’s land and property decreased by 1.2% to £13.4bn, “mostly as a result of a £552.5m (17%) write-down of its regional portfolio due to the challenging retail market, including falling rental values”, Sky News reports.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The estate’s portfolio includes the majority of Regent Street and around half of St James’s in London, and the business also manages the Windsor Estate, including Windsor Great Park. All profits are returned to the Treasury, which passes 25% to the Queen through the Sovereign Grant.
Reflecting on the challenging retail market, The Crown Estate chief executive Dan Labbad said that “many of our real-estate markets were already facing long term structural challenges, which have now been accelerated as a result of Covid-19”.
“As we look ahead we are under no illusions about the challenges we face,” he continued. “Whilst it is too early to accurately forecast our performance for next year, we do expect our net revenue profit and property valuations to be significantly down.”
But on an upbeat note, Labbad added that “our resilient structure, established to operate in perpetuity and with no debt, coupled with our diverse portfolio, provides us with the means to navigate this current crisis, while continuing to invest for the long term”.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Mike Starling is the former digital features editor at The Week. He started his career in 2001 in Gloucestershire as a sports reporter and sub-editor and has held various roles as a writer and editor at news, travel and B2B publications. He has spoken at a number of sports business conferences and also worked as a consultant creating sports travel content for tourism boards. International experience includes spells living and working in Dubai, UAE; Brisbane, Australia; and Beirut, Lebanon.
-
Life in the post-truth era
Opinion The mainstream media can't hold back a tsunami of misinformation
By Theunis Bates Published
-
Magazine printables - November 8, 2024
Puzzles and Quizzes Issue - November 8, 2024
By The Week US Published
-
Magazine solutions - November 8, 2024
Puzzles and Quizzes Issue - November 8, 2024
By The Week US Published
-
Marmalade sales spike following Queen Elizabeth's death
Speed Read
By Anahi Valenzuela Published
-
New 50p coin features ‘softer’ image of King Charles
Speed Read Royal Mint says new coins will appear in your change within months
By The Week Staff Published
-
Center Parcs et al: a right royal PR fiasco
Talking Point Incident was merely the most extreme example of a brand making a mess of its royal tribute
By The Week Staff Last updated
-
Labour shortages: the ‘most urgent problem’ facing the UK economy right now
Speed Read Britain is currently in the grip of an ‘employment crisis’
By The Week Staff Published
-
Will the energy war hurt Europe more than Russia?
Speed Read European Commission proposes a total ban on Russian oil
By The Week Staff Published
-
Will Elon Musk manage to take over Twitter?
Speed Read The world’s richest man has launched a hostile takeover bid worth $43bn
By The Week Staff Last updated
-
Shoppers urged not to buy into dodgy Black Friday deals
Speed Read Consumer watchdog says better prices can be had on most of the so-called bargain offers
By The Week Staff Published
-
Ryanair: readying for departure from London
Speed Read Plans to delist Ryanair from the London Stock Exchange could spell ‘another blow’ to the ‘dwindling’ London market
By The Week Staff Published