Howard de Walden Estates Holdings, the property business operating in London’s Marylebone neighborhood, has shown signs of recovery from the Covid-19 pandemic, according to its latest annual report. Although the company has faced challenges due to lower property valuations, it has experienced growth in rental income.

In the year ending in March, Howard de Walden Estates Holdings saw a 9.2% increase in rental income, reaching £147.8 million. This growth was primarily driven by the office and residential sectors, but the retail portfolio also experienced positive growth with a 7.5% rise in income. The company attributes this growth to strong occupier demand, trading, and a recovery in footfall.

The company’s profit after operating costs rose to £99.3 million, up from £88.4 million the previous year. Its preferred measure of profitability, ‘revenue profit before tax’, increased by 16.7% to £74.9 million. However, the company reported a pre-tax loss of £102.3 million, which included a £199.5 million loss from revaluing investment properties. Property values fell by 4.3% on a like-for-like basis.

Despite these challenges, Howard de Walden Estates Holdings managed to reduce its net debt from £572.3 million to £552.3 million. Chairman Sir William Proby highlighted the company’s strong trading performance, which reflected a return to normalcy as the effects of the pandemic diminished. He commended the resiliency of the company’s location, strategy, and employees for achieving impressive growth in rental income and gross profit.

CEO Mark Kildea emphasized the continued recovery experienced in the past year, attributing it to long-term decisions made during the pandemic. Investments in refurbishing and redeveloping buildings, as well as targeted support for customers, have contributed to the company’s success. These efforts have allowed Howard de Walden Estates Holdings to achieve its highest ever turnover and near pre-pandemic levels of revenue profit. Kildea expressed confidence in the company’s ability to overcome future challenges, citing its financial capacity, high occupancy levels, and dedicated workforce in a highly desirable part of London.

Overall, Howard de Walden Estates Holdings has made significant progress in recovering from the effects of the pandemic. Despite lower property valuations impacting its bottom line, the company has displayed resilience and strategic decision-making in driving growth and positioning itself for long-term sustainable profitability in Marylebone.

Useful links:
1. Howard de Walden Estates Holdings website
2. Marylebone Neighbourhood website