Harworth Group delivered a NAV total return of 9.1% over 2024, after seeing EPRA net disposal value (NDV) increase 8.5% driven by gains on development sites and land sales.

Over the last five years the company has posted average annual returns of 8.4% against the MSCI All Property Index of 5.1%. EPRA NDV per share at 31 December 2024 was 222.3p (2023: 205.1p).

The total dividend per share was 1.614p, up 10% (2023: 1.466p) after a final dividend of 1.125p. As the company continues to move to a develop and hold strategy, its dividend should grow considerably over the next few years.

During 2024, the company sold land worth £215.8m across 2,385 residential plots and 4.4m sq ft of industrial & logistics land. This included the £106.6m land sale to Microsoft (for a new data centre), of which £47.9m was recognised during 2024 and at Ansty (Rugby) for £53.5m to Frasers Group.

The record residential plot sales of 2,385 boosted coffers by £104.1m (which was broadly in line with or ahead of HY24 book values before transaction costs).

Portfolio valuation gains were also boosted by taking schemes through the planning process, with approvals secured for 6.8m sq ft of industrial & logistics space and 818 residential plots. It now has 8.4m sq ft of consented industrial and logistics space and 4,568 residential plots.

Harworth’s wider land bank has capacity to deliver up to 33.6m sq ft of industrial & logistics space and 31,264 residential plots across the Midlands and the North of England.

The company’s core investment portfolio space was valued at £297.2m (2023: £221.4m), with a reduced EPRA vacancy rate of 5.6% (2023: 9.9%). Leasing activity added £0.7m of headline rental income on a like for like basis, 4.3% ahead of December 2023 estimated rental value (ERV), with renewals and rent reviews achieving, on average, a 22% uplift to previous passing rents. The portfolio’s current rent is 19.3% below its ERV, demonstrating the vast reversion potential available.

Available liquidity at the year end was £192.4m (2023: £192.2m), which alongside cash generation through land sales, gives the company the firepower needed to fund its development pipeline.

Year-end net debt was £46.7m (2023: £36.4m), representing a net loan to portfolio value (LTV) of 5.4% (2023: 4.7%)

Lynda Shillaw, chief executive, commented: “Harworth delivered record revenue and land sales in 2024, generating significant value gains, with EPRA NDV up 8.5% year on year. Our strong total accounting return of 9.1% is yet again among the best in the sector and the result of management actions, consistent with our focus on driving value as we continue to progress our sites through development. This included two landmark land sales, to Microsoft for a hyperscale data centre and Frasers Group for their global headquarters, alongside record residential plot sales. Our performance continues to demonstrate the resilience of our through-the-cycle business model and highlights our ability to capitalise on emerging sectors, such as data centres, to accelerate our sites. The last four years of investment in strengthening our business to enable growth is bearing fruit and the business is performing across the board.

“While we remain cautious in light of the current macro-economic backdrop, our financial flexibility and careful capital allocation, and alignment to structurally undersupplied sectors fundamental to the UK’s growth, mean we are well placed to navigate uncertainty.

“Our consented pipeline and land bank and our ability to deliver at scale are significant strengths against a backdrop of site scarcity in our regions, and a planning system that remains sluggish as the reforms introduced by the government bed in. With a significant number of our sites coming on line for development, we are well positioned to continue to deliver strong returns, creating long-term value for our investors as we recycle capital to unlock the material underlying value of our land bank and increase the development of modern Grade A Industrial & Logistics assets. All of these actions provide the foundations for achieving our targets of £1bn of EPRA NDV by the end of 2027 and growing our core Investment Portfolio to £0.9bn by the end of 2029.”