Financial Highlights

Non-statutory measures(1) 2019 2018   Statutory measures 2019 2018
EPRA NAV per share (pence)(2) 504.2 484.0   NAV per share (pence)(2) 484.2 470.2
Underlying total accounting return (%) 6.3 6.0   Total dividend per share (pence) 8.7 7.1
Adjusted EPRA earnings (£m) 38.7 31.7   Profit for the year (£m) 49.5 60.5
Adjusted EPRA EPS (pence) 17.4 14.3   Basic EPS (pence) 22.8 27.1
See-through loan-to-value (%) 19.6 16.9   Group net debt (£m) 314.1 274.3
  • NAV per share up 3.0% to 484.2 pence (2018: 470.2 pence)(2) despite 7.8 pence exceptional provision.
  • Underlying total accounting return of 6.3% (2018: 6.0%), before impact of 1.7ppt of exceptional provision.
  • Adjusted EPRA EPS up 21.7% to 17.4 pence (2018: 14.3 pence) reflecting successful delivery of strategy.
  • Total dividend for the year up 22.5% to 8.7 pence (2018: 7.1 pence) due to strong growth in earnings.
  • Profit for the year of £49.5m after £18.5m exceptional cost, with basic EPS of 22.8 pence (2018: 27.1 pence).
  • Conservative see-through LTV of 19.6% (2018: 16.9%) providing ample headroom for future investment.


Operational highlights

Strong progress across each of our three business units in delivering our growth-focused strategy, building on our existing deep pipeline of opportunities in three sectors with good structural growth prospects.

Industrial & Logistics: building leasing momentum; growing development activity

  • Grown industrial and logistics exposure to 44% of total portfolio by value (2018: 33%), driven by successful developments and underlying growth.
  • Delivered 0.9m sq ft of new space of which 97% will be retained (2018: 0.9m sq ft and 69%), with 58% of associated £5.5m ERV let or under offer, up from 54% for our 2018 completions this time last year.
  • Expect to deliver 1.5-1.7m sq ft of new space during 2020, of which 1.5m sq ft is already committed, 94% of which is set to be retained with an expected ERV of £9.5m, 18% of which is pre-let.
  • Grown total future pipeline to c. 19m sq ft, 45% of which already has planning with an associated ERV of c. £56m, providing substantial medium- and longer-term growth potential.


St. Modwen Homes: growing volume and margins; delivering high quality and customer service

  • Delivered 25% growth in volumes with 1,060 units sold during the year (2018: 848) and grown margins to 14.8% (2018: 14.4%), driving 28% growth in operating profit to £40.1m (2018: £31.3m).
  • Home Builders Federation customer satisfaction rating tracking over 90%, equivalent to 5* status, and net promotor score of 76 (2018: 63), underlining high quality and focus on customer service.
  • Pipeline in place to grow volumes by up to 20% p.a. to 2021 and opportunity to grow further, at a more normalised rate, beyond that, with clear steps identified to grow margins to c. 16-17% in medium term.
  • Current trading remains strong, with 34.0% of targeted full-year private sales forward sold (Feb 2019: 34.6%) and broadly similar improvement in margins expected for 2020 as for 2019.


Strategic Land & Regeneration: recycling capital; progressing longer-term opportunities

  • Sold £65m of non-core assets, including more than half of residual non-core retail, reducing non-core retail to just 2% of total portfolio by value, down from 16% at start of 2018.
  • Agreed sale of £30m of residential land (2018: £53m) in-year, and 663 plots at two large sites in South Wales for £25m since the year-end, with c. 900 plots across both sites in advanced legal discussions.
  • Prepared next phases of development at Longbridge for start on site in 2020, delivered latest phase of development at Swansea Bay Campus and progressed longer-term mixed-use opportunities.

On track to broadly double adjusted EPRA EPS from 2018 level of 14.3 pence in medium term and deliver on ambition to grow total return to low-double digit levels over time, assuming markets remain stable, capitalising on significant growth potential embedded in existing pipeline and capital base.