Grosvenor delivers solid financial performance and announces new global carbon reduction commitment
25 April 2023
Resilient financial performance in line with expectation
o Urban property revenue profit of USD$64.9m (2021: $137m) and a total return of 3.5% (2021: 5.2%) reflect solid performance in the face of challenging economic conditions. Revenue profit increases in the UK but is impacted by lower trading profits in both our North American and Diversified Property Investments businesses, while Total Return was lower as rising interest rates led to modest falls in property values.
o Increased new and further investment totalling $134m (2021: $107.9m) in a growing portfolio of 28 Food & AgTech businesses.
o Net profits of $2.6m (2021: $3.3m) across Rural Estates with net income from properties up 8%, while Grosvenor Farms’ trading performance broadly flat due to investment in future projects.
Investment in long term positive impact and growth continues.
o New global carbon commitment will see all Grosvenor businesses reduce direct and indirect emissions to deliver, at a minimum, a science-based target reduction in line with limiting global warming to 1.5°C.
o The North American property business continues to drive their residential activities while advancing carbon reduction programs in their portfolio of properties.
· Design, entitlement and site preparation at two large scale mixed-use master planned developments is progressing, representing a USD$4.9bn development pipeline in Metro Vancouver
· In Washington D.C., work has begun on a 237-unit value-add apartment property acquired in 2022 while construction nears completion on a 260-unit build-to-core rental property in Union Market. The D.C. team is also exploring the use of mass timber for an office to residential conversion in Georgetown.
· In the San Francisco Bay Area, construction is underway for 165 all-electric homes in Berkeley and design is advancing for 225 homes in Oakland - both build-to-core multi-family rental properties.
o Diversified Property Investments business, which backs specialist investment teams globally, to double in size to $1.8bn of equity over the next five years further enhancing sectoral diversification currently encompassing industrials, logistics, student housing, life sciences, etc.
· Longstanding support for vulnerable children and young people expanded.
o $4.1m (2021: $4m) donated to philanthropic initiatives – predominantly to support the Westminster Foundation’s work to help provide structure and opportunity to vulnerable young lives.