One of The Crown Estate's key strategic pillars is to support the UK’s net zero ambitions. Image by Tomas Marek / Shutterstock The Crown Estate, which manages King Charles’ public property, has reported a record net profit of $1.4 billion (£1.1 billion) for the fiscal year ending March 2024, driven by a short-term boost from offshore wind leasing.
Record profit Its record profit, which showed a 148.9% surge from the year-ago period, was supported by decades of investment in offshore wind, combined with a diverse and resilient property and land portfolio, the Crown Estate said in its earnings report. The Crown Estate, which comprises tracts of land and most of Britain’s sea bed, is an independently run, commercial business, whose profits go to the UK's government Treasury. However, its overall portfolio value declined in line with expectations to nearly $20 billion by March this year from $21.7 billion for the year-ago period as the receipt of option fees and accelerated offshore wind delivery expectations were reflected in lower asset valuations for the marine portfolio, it said. Offshore wind leasing One of The Crown Estate's key strategic pillars is to support the UK’s net zero ambitions by enhancing energy security through its real estate portfolio and leasing the seabed for offshore wind and emerging technologies. Last year, The Crown Estate launched Offshore Wind Leasing Round 5 and accelerated Round 4, aiming to expedite the delivery of more clean energy. Offshore Wind Leasing Round 5 aims to introduce innovative floating wind farms in the Celtic Sea, with a generation capacity totaling 4.5GW. Additionally, The Crown Estate Environment Fund facilitated the planting of approximately 200 kilometers of new hedgerows and 400 acres of woodland. As many as 36 wind farms are operational across its marine holdings, boasting a combined capacity of 11.8GW, sufficient to provide renewable electricity for approximately 11 million homes. Crucial quote “Today’s record results are the product of years of commitment and investment into helping create the UK’s world-leading offshore wind sector, as well as the active management of our diverse and resilient portfolio,” said CEO Dan Labbad in a statement.
“Our track record and remit are also enabling us to invest and lay the foundations for future value creation that will benefit the country and its finances.”
Diverse portfolio The Crown Estate's extensive portfolio includes strategic land holdings spanning 10 million square feet across Regent Street and St James’s in London’s West End, 200,000 acres of rural land encompassing Windsor Great Park, and management responsibilities for the seabed around England, Wales, and Northern Ireland.
Big number Over $5.2 billion. That’s the net revenue generated by the Crown Estate to the Treasury in the last 10 years, added the statement.
