Howard de Walden portfolio value drops despite booming healthcare sector

The Howard de Walden Estate saw income from its healthcare division offset losses in offices, residential and retail assets, as its portfolio value dropped in its latest annual results. The 92-acre family-owned estate, which stretches across Marylebone, fell by 4.9% on a like-for-like basis for the year ending 31 March, as the pandemic hit its office, residential and retail assets. That translated to an 8.7% reduction in rental income to £131.8m over the year, as its pretax loss rose to £101.8m. However, its healthcare empire, which includes the Harley Street medical district, increased its income by 5.2% to £50.4m. This represented 38% of income and portfolio value for the company. Chief executive Mark Kildea told EG that the impacts of the pandemic were “not as bad as we had expected”, despite the drops across offices, residential and retail. He added that while the pandemic had impacted those sectors negatively, they had been “quite positive” for some parts of the private medical sector, which he said helped alleviate growing pressure on the NHS, driving demand for occupiers. “While the future is more uncertain than it has been for many years, we are embarking upon a strategic assessment in order that the estate is well positioned for the future,” he said. Chairman Sir William Proby added: “The pandemic’s long-term effects on real estate remain uncertain. We expect continuing challenges to our business as London slowly recovers, however, we are optimistic that with our strong financial position and countercyclical healthcare portfolio we will see a return to a growth in income and profit in the medium term.” To send feedback, e-mail alex.daniel@eg.co.uk or tweet @alexmdaniel or @EGPropertyNews