Financial Highlights

Non-statutory measures(1) May
Prior period(2)   Statutory measures May 2019 Prior period(2)
EPRA NAV per share (pence)(3) 492.5 484.0   NAV per share (pence)(3) 476.4 470.2
Total accounting return (%) 2.2 2.0   Interim dividend per share (pence) 3.6 3.1
Adjusted EPRA earnings (£m) 16.2 13.9   Profit for the half year (£m) 23.1 20.8
Adjusted EPRA EPS (pence) 7.3 6.3   Basic EPS (pence) 10.5 9.4
See-through loan-to-value (%) 20.7 16.9   Group net debt (£m) 326.1 274.3
  • NAV per share up 1.3% to 476.4 pence (Nov 2018: 470.2 pence)(3).
  • Total accounting return up to 2.2% (2018: 2.0%) despite a 1.2ppt drag from residual non-core retail.
  • Adjusted EPRA EPS up 15.9% to 7.3 pence (2018: 6.3 pence) notwithstanding major disposals during 2018.
  • Interim dividend up 16.1% to 3.6 pence (2018: 3.1 pence) reflecting solid growth in earnings.
  • See-through LTV up 3.8ppt to 20.7% (Nov 2018: 16.9%) due to reinvestment of disposal proceeds. 

Operational highlights

Strong momentum in executing our growth-focused strategy, building on the substantial opportunities in our existing portfolio across three sectors and areas with good structural growth prospects.

Industrial & logistics: substantial growth and capturing ERV

  • Continued to grow industrial & logistics exposure to 39% of total portfolio by value (Nov 2018: 33%) driven by successful developments and underlying growth.
  • Delivered 0.3m sq ft of new space during the period, of which 97% will be retained, with 91% of the associated £2.2m ERV let or under offer.
  • Grown committed pipeline from 1.5m sq ft to 1.6m sq ft since start of 2019, of which 1.5m sq ft will be retained with an ERV of £10.4m (start of 2019: 1.3m sq ft and £9.2m), 14% of which is under offer.
  • Continued to progress total pipeline of over 15m sq ft, c. 60% of which already has planning with an associated c. £60m ERV, providing clear opportunity to further accelerate development activity.

St. Modwen Homes: continued growth in volumes and margins

  • Delivered 36% growth in volumes with 411 units sold in the first half (2018: 302 units) and increased margins to 14.8% (2018: 14.6%), driving 37% growth in operating profit to £15.2m (2018: £11.1m).
  • Continue to target up to 25% growth in volumes and a c. 0.5ppt improvement in margins from last year’s 14.4% for the full year, with private order book up 25% compared to this time last year.
  • Clear visibility and full control of pipeline to continue to grow volumes by up to 25% p.a. until 2021, with new outlets focused on more affordable locations outside London and South East.

Strategic land & regeneration: monetising residential land and good progress across major projects

  • Sold 374 residential plots to third-party housebuilders for £13m during the half year (2018: £27m) and agreed terms for the sale of over 1,500 plots across two large sites in South Wales via two separate deals which are currently being progressed.
  • Completed latest phase of 411 student beds at Swansea Bay Campus and commenced latest phase of fully pre-let office development at Longbridge.
  • Sold £18m of non-core assets, leaving residual non-core assets of £143m including £72m of retail, with c. 25% of the latter sold or under offer and a further c. 40% in active negotiations.
  • Strong growth from existing pipeline and capital base expected to deliver meaningful improvement in return on capital and potential to broadly double adjusted EPRA EPS in medium term.