Howard de Walden: Loss more than doubles at London property empire

The London property empire which includes Marylebone Village and Harley Street saw its pre-tax loss more than doubled during its latest financial year.

Howard de Walden Estates Holdings, which also includes some of the capital’s prime shopping areas as well as hundreds of homes, has reported a pre-tax loss of £254.2m for the year to 31 March, 2024, compared to a loss of £102.3m in the prior 12 months.

Its latest pre-tax loss figure includes a £331.8m loss from revaluing investment properties.

The company, which in which the aristocratic de Walden dynasty are shareholders, said property values decreased by 8.2 per cent on a like-for-like basis.

According to newly-released figures, the firm’s rental income increased by three per cent to £147.8m while it also signed £35.4m worth of new lettings in the year as well as 746 new leases, up 4.2 per cent.

Howard de Walden Estates Holdings’ net debt also increased from £552.3m to £604.1m in the year.

Howard de Walden in ‘strong financial position’

However, the company said it is in a “strong financial position” going forward with £204.3m of cash and undrawn facilities as of the end of the financial year.

Howard de Walden chairman, Sir William Proby, said: “During a period of consolidation, there have been exciting initiatives over the last 12 months. We are increasing investment to reposition our buildings towards uses with the highest potential for growth in income and capital.

“Higher interest rates, which now appear to have peaked, continued to adversely impact asset values in healthcare and offices and to a lesser extent residential.

“Our teams have worked extremely hard to deliver a robust performance for which we are extremely thankful.

“We have come through a testing time over the last four years. However, there are signs that we may have reached, or are very close to, the bottom of the current property cycle.

“Our strong financial position means we can expect good opportunities for the Estate to prosper.

“We are proud to continue our support of local community groups and always look to add to financial contributions through partnering and volunteering at events held throughout the year.” 

‘We have made excellent progress’

Chief executive Mark Kildea added: “This year we have invested into areas where we expect significant opportunities to grow net rental income and position for the future.

“We have made excellent progress against our strategic objectives, including the successful delivery of several high-quality developments across all sectors, launching our flexible office brand Elmtree, and we are now moving forward with our initiative to attract health technology innovators with three buildings currently under refurbishment. 

“In addition, we published our sustainability strategy, deCarbon in October 2023.

“The plan sets out short-, medium- and long-term priorities, all designed to ensure that the group achieves its net zero objective by 2040.

“Our efforts remain focused on growing long-term sustainable profits and meeting our sustainability requirements.

“We are confident that we are well positioned to meet these challenges, with significant financial capacity, high occupancy levels and a dedicated and motivated workforce in a unique and desirable part of London.”

The Howard de Walden Estate manages a portfolio of over 800 property interests, the majority of which are freehold-owned, in a 95-acre area of Marylebone, central London.

Its portfolio spans healthcare, residential, office, retail and leisure, and education sectors.