St. Modwen Properties PLC (LSE: SMP), the UK’s leading regeneration specialist, has announced its half year results for the six months to 31st May 2015.
Financial Highlights
– 306% increase in profit before all tax to £203.1m (H1 2014: £50.0m)
– 21% increase in NAV per share to 394p (Nov 2014: 325p) and EPRA NAV per share up 25% to 427p (Nov 2014: 342p)
– Earnings per share up 281% to 75.4p (H1 2014: 19.8p)
– Initial recognition of New Covent Garden Market (NCGM) contributes £128.0m to net valuation increase of £170.2m (H1 2014: £33.7m)
– Realised property profits of £41.3m (H1 2014: £19.1m)
– 30% increase in interim dividend to 1.9p per share (2014: 1.463p per share)
Operational Highlights
– Major projects reaching significant milestones:
– NCGM – unconditional status achieved on 57-acre Nine Elms site in April 2015, with project now included on balance sheet
– Swansea University, Bay Campus – initial development phases on schedule to complete, ready to welcome first students in September 2015
– Longbridge – 150,000 sq ft Marks & Spencer store on track to open in November 2015
– Commercial property development pipeline delivers strong flow of profits
– Continued activity across the residential market, with good sales rates achieved across the Persimmon joint venture and for St. Modwen Homes, with continued housebuilder appetite for residential land
Bill Oliver, Chief Executive, St. Modwen said:
“These record-breaking results are underpinned by the growth in the UK property sector and are testament to our continued belief in the regional marketplace and our long-term approach to regeneration as a whole. They are positively supported by our three major projects reaching significant milestones in the period. Most notably the New Covent Garden Market site in Nine Elms, London reached unconditional status in April.
“We continue to increase our levels of both residential and commercial development and to add further value to our major projects and our broader £1.5bn property portfolio, delivering maximum returns for the business and for our shareholders.”
Steve Prosser, Midlands Regional Director for St. Modwen added:
“St. Modwen’s performance in the Midlands continues to be very strong across all areas of activity.
“At Longbridge, Birmingham – our award winning regeneration of the 468 acre former car works – we have recently handed over a 150,000 sq ft new Marks & Spencer store for fit out in preparation for its opening in November.
“We’ve also been granted planning consent for One Park Square, a striking, 90,000sq ft prime Grade A office building at the heart of our £100m Longbridge Town Centre, and we have generated strong interest in the remaining retail space with a number of national occupiers close to completion.
“The ExtraCare Charitable Trust is also on site delivering 260 apartments, to complete in 2017.
“With increasing tenant demand, we are experiencing greater design and build activity and are delivering a 214,000 sq ft distribution facility for Travis Perkins at Whitley Business Park, Coventry and are speaking to the company about other opportunities across the region.
“At Etruria Valley in Stoke-on-Trent, a 60,000 sq ft parcel distribution facility we are delivering for DPD (UK), will be complete in October. This is one of three such facilities we are building across the Country for DPD, all of which are now in Solicitors’ hands for sale of the investment.
“Our speculative schemes now total 250,000 sq ft, with facilities of 87,000 sq ft at Burton Gateway, Burton-upon-Trent, and 50,000 sq ft at Centurion Park, Tamworth, and a number of smaller unit schemes across the region.
“General tenant demand for all existing stock continues to increase, with total rents being £15.6 million.
“In terms of major achievements on our strategic planning front, we have obtained planning permission for a further 550 new homes at Meon Vale, Stratford-upon-Avon, and for up to 160,000 sq ft of commercial space, including a car show room, a public house and drive through restaurant at our Nunnery Way site outside Worcester.
“We are looking forward to this continued activity in the second half of the year.”