ST. MODWEN DELIVERS STRONG RESULTS WITH NET ASSET VALUE INCREASES OF 8% AND £52.8M PROFIT BEFORE ALL TAX

Financial Highlights

  • Shareholders’ NAV up 8% to 251p per share (Nov 2011: 232p per share), and EPRA NAV up 9% to 272p per share (2011: 250p per share)
  • Profit before all tax £52.8m (2011: £51.7m)
  • Realised property profits up 22% to £29.0m (2011: £23.8m)
  • Net rental income continues to grow to £36.2m (2011: £35.5m)
  • 12% increase in net trading profit to £25.5m (2011: £22.8m)
  • Gearing at year end of 71% (2011: 73%) and completion of a successful £80m retail bond issue providing substantial headroom in facilities
  • Final dividend for the year increased by 10% to 2.42p per share, providing a total dividend for 2012 of 3.63p

Operational Highlights

  • Valuation gains of £48m (2011: £33m) generated through active asset management and planning gains, offsetting £20m market driven valuation loss (2011: £1m profit)
  • Continued positive outlook for residential land with London residential transactions driving valuation gains
  • On track to deliver target of shareholder equity NAV of 300p per share by November 2015
  • £2bn regeneration of New Covent Garden Market signed, providing a major opportunity in Central London and considerable potential to add further upside to targeted NAV
  • Swansea University £150m development to commence on site in H1 2013

As the Group utilises a number of joint venture arrangements, additional disclosures are provided to give a better understanding of our business. These include information on the Group including its share of joint ventures together with non-statutory measures such as trading profit and profit before all tax. A full of such measures is provided in Note 2 to the Group financial statements.

Bill Oliver, Chief Executive of St. Modwen commented:
”This has been another successful year during which we have achieved some significant milestones across our portfolio and, in particular, on our major development projects. These achievements underline our growing presence in the London and the South East market while also proving that there are still opportunities in the regions for well-placed and well-priced product.

“We cannot ignore the current upsurge in investor appetite for development activity in London and the South East and the prospects arising across the UK from our residential portfolio. We will therefore focus our attention throughout the coming year on these specific areas in order to drive optimal returns, as well as advancing our larger schemes, including of course the New Covent Garden Market and Swansea University developments.”

Enquiries:
St. Modwen Properties PLC
Bill Oliver, Chief Executive
Michael Dunn, Group Finance Director
Charlotte McCarthy, Corporate PR Manager
Tel: 0121 222 9400

FTI Consulting
Stephanie Highett
Dido Laurimore
Faye Walters
Tel: 020 7831 3113
stmodwen@fticonsulting.com

A presentation for analysts and investors will be held at 9.30am today at the offices of FTI Consulting, Holborn Gate, 26 Southampton Buildings, London, WC2A 1PB. If you would like to attend, please contact Faye Walters at FTI +44 (0)20 7269 7134 or faye.walters@fticonsulting.com

Alternatively, the dial-in details are as follows:
Participants, Local – London, United Kingdom: +44(0)20 7136 2054
Participants, National free phone – United Kingdom: 0800 279 4841
Confirmation Code: 6769486

REF: STM1182