|
|
31 December 2017 |
31 December |
Change (%) |
|
Net Asset Value (“NAV”) per share (p) (1) |
127.4 |
114.6 |
11.2 |
|
EPRA NNNAV per share (p) (1) |
128.9 |
114.6 |
12.5 |
|
EPRA NAV per share (p) (1) |
131.0 |
119.8 |
9.3 |
|
|
|
|
|
|
Operating profit before exceptional items (£'m) |
39.7 |
45.2 |
(12.0) |
|
Operating profit before exceptional items plus joint ventures (£'m) |
43.8 |
45.8 |
(4.4) |
|
Value gains (£'m) (2) |
41.6 |
43.7 |
(4.8) |
|
Value gains (including development properties) (£'m) (3) |
47.4 |
43.7 |
8.6 |
|
Profit excluding value gains (£'m) (4) |
2.2 |
2.2 |
1.2 |
|
|
|
|
|
|
Earnings per share (p) |
15.8 |
13.7 (5) |
15.4 |
|
Dividend per share (p) |
0.828 |
0.753 |
10.0 |
Harworth's Chief Executive, Owen Michaelson, said:
“These are another strong set of results where we have again delivered double digit EPRA NNNAV growth, reflecting our continued ability to maximise the value of our portfolio whilst simultaneously growing our strategic landbank and income base through acquisitions and new lettings.
“Our focus, on the “beds and sheds” sectors in the North of England and the Midlands, is firmly underpinned by strong economic and consumer trends in the regions, and reinforced by supportive Government policy. This favourable backdrop coupled with active management has been reflected in 2017's planning successes and the sales and lettings achieved at our major developments such as Waverley and Logistics North.
“Whilst our existing sites continue to perform well and have plenty of future potential, we are also pleased with the progress of the five new acquisitions to our strategic landbank, which were acquired with the cash proceeds from new equity raised last March. These acquisitions delivered significant revaluation gains in 2017 and provide a substantial pipeline for us to deliver further value gains through our market-leading planning and development expertise.
“2018 has started strongly, with over 50% of expected full year sales already agreed since the year-end and the completion of three new lettings generating additional recurring income, further demonstrating the success of our proven and robust strategy. This performance, together with the supportive market fundamentals in the areas in which we operate, means we look to the future with confidence.”
GOOD OPERATIONAL PERFORMANCE REFLECTED IN ALL KEY FINANCIAL METRICS
|
· |
Another year delivering double-digit EPRA NNNAV growth, up 12.5% (2016: 12.5%), with 80% of value gains(2) generated through active management |
|
· |
Value gains (including development properties)(3) increased by 8.6%, reflecting strong planning, lettings and sales progress and uplifts on acquisitions made in 2017 |
|
· |
Earnings per share up 15.4% to 15.8p (2016: 13.7p(5)) reflecting solid operating profit advances and positive improvements in deferred tax |
|
· |
Dividend per share increased by 10% to 0.828p (2016: 0.753p) in-line with our progressive policy |
|
· |
Prudent gearing maintained with net loan to value 7.0% (2016: 9.9%) or 20.8% when calculated against the income portfolio (2016: 31.3%) |
LAND BANK STRENGTH PROVIDING PLATFORM FOR CONTINUED TOTAL RETURN OUTPERFORMANCE
|
· |
March 2017 £27.1m equity proceeds fully invested through the acquisition of five sites, providing over 410 acres of development opportunities. Over the last three years, value gains on acquisitions of more than 15% p.a. |
|
· |
Planning secured in 2017 for the delivery of 825 residential plots and over 3m sq. ft of commercial space bringing our consented portfolio to 10,448 residential plots and 12.13m sq. ft of commercial space |
|
· |
622 residential plots sold (2016: 619 residential plots), across six parcels, at an average value of c.£37,000 per plot, achieving profit on sale of £3.8m. Over 850,000 sq. ft of commercial land sold (2016: c.500,000 sq. ft), across five parcels for £22.7m, delivering a profit on sale of £4.3m |
|
· |
Over 360,000 sq. ft of long-term lettings completed on five new commercial buildings, to logistics and manufacturing occupiers, at new headline rents alongside other portfolio rent improvements |
ALL AREAS OF THE BUSINESS SUPPORTING GROWTH STRATEGY AND 2018 PROGRESS
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· |
No shortage of acquisition opportunities: £0.6m spent in February 2018 on an adjacent site with direct development potential; six signed land option agreements in place; preferred bidder on a further significant acquisition opportunity; and Harworth has an option and planning promotion position on a major Midlands opportunity with the potential to deliver 3,000 residential plots and 500,000 sq. ft of commercial space |
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· |
Strongest ever start to a year with over 50% of expected full year 2018 sales agreed above book value |
|
· |
All completed, wholly-owned, direct commercial developments now let (c.120,000 sq. ft in 2018), with only three co-interest units (c.170,000 sq. ft) remaining to be let |
|
· |
Three-year planning targets of 4,500 residential plots and 5.9m sq. ft of commercial space, including applications currently in the planning system. Looking to achieve planning on over 1,000 plots and over 300,000 sq. ft during 2018 |
|
· |
Process begun for moving from standard to premium listing on the London Stock Exchange in 2018 |