2025 Annual Report
Financial results for the year ended 31 March 2025.
SIGNIFICANT PROGRESS TOWARDS OUR STRATEGIC OBJECTIVES
9 September 2025: Howard de Walden Estates Holdings Limited (‘Howard de Walden’ or the ‘Company’), the business that owns and manages a portfolio of mixed-use property across Marylebone, including both Marylebone Village and the Harley Street Health District, today announces its financial results for the year ended 31 March 2025.
Highlights:
- Rental income increased by 7.8%, to £164.1m from £152.2m in 2024, driven by a strong performance across the portfolio
- 774 new lettings signed during the year, equating to £39.4m of income; an 11.3% increase on 2024
- Revenue profit before tax increased to £75.7m compared with £74.6m1 in 2024 as the Company continued to invest, refurbish and reposition its portfolio for the future
- Pre-tax profit of £172.0m included a £87.0m gain from revaluing investment properties. Property values increased by 1.1% on a like-for-like basis2
- The Company invested over £65m in the portfolio (maintenance and enhancements) with a particular focus on the Harley Street Health District and the continued repositioning of our office offering
- Net debt increased to £610.5m from £604.1m (gearing was 21.1% at 31 March 2025, down from 21.5% in 2024 due to property value increases)
- Charitable and local community support contributions were £0.9m over the year
- The Company is in a strong financial position with cash and undrawn facilities totalling £177.8m at 31 March 2025
- The Company’s preferred measure of profitability. It excludes the variable impact of gains and losses on disposals and the annual revaluation of assets and liabilities.
- Excludes acquisitions, disposals and capitalised refurbishment and development expenditure.
Rental income for the year increased 7.8% to £164.1m, driven by growth across all sectors -Healthcare, Residential, Retail & Leisure and Office.
The Healthcare portfolio remains the largest property use at just under 40% of income and value. Underpinned by the world leading Harley Street Health District (‘HSHD') brand and historic reputation, income grew by 4.8% during the year, with demand for space exceeding the limited availability. Continued growth within the sector is expected, supported by a development pipeline with an estimated rental value of £4.0m. Delivery of c.47,000 square feet of new space is targeted over the next two years.
Anchored by the renowned Marylebone Village brand, the Company’s Retail sector continues to be a key draw for residents and businesses, with Howard de Walden’s retail and leisure offering frequently cited as a reason for relocating to the area. Income for the retail portfolio grew 7.9% during the year as demand for space was outpaced by limited supply, reflected by occupancy levels of close to 100% throughout the year.
Office income rose 16.3% year-on-year, the largest increase across any sector. This growth reflects the success of the Company’s strategy of investing to reposition the Office portfolio in response to the pandemic, providing a wider variety of lease options. Strong letting activity at newly completed developments such as 20 Thayer Street on more traditional type leases, was complemented by strong occupancy levels in the flexible office brand Elmtree, where future additional income is forecast.
The Office portfolio is expected to see further growth in the coming years following the launch of Hale House in March 2025. Hale House specifically targets SME occupiers operating in health innovation and research, intertwining healthcare and office. Hale House consists of two buildings within the HSHD, in Portland Place, providing both co-working and self-contained offices in a collaborative environment that offers tailored facilities for innovators and entrepreneurial businesses.
Growth in Residential income continued with an increase of 10.0% on the prior year. Demand for residential properties in Marylebone remained high, leading to occupancy levels of close to 100% throughout the year.
During the financial year, the value of the investment properties, which encompass the renowned shopping destination of Marylebone Village and the world-class medical hub of the Harley Street Health District, increased by 2.5% on an overall basis to £4,273.3m due to rental income growth across all sectors. This equals an increase of 1.1% when capital additions and disposals are excluded.
The pre-tax headline profit of £172.0m was higher than the previous financial year (2024: loss £254.2m) because of the increase in property values.
Underlying profitability, including operating profit and revenue profit, was slightly improved when compared with the previous year as increased turnover offset higher costs from the continued investment into the portfolio for future growth. The Company has maintained a strong balance sheet and is well positioned for significant growth in income and value over the long term.
Howard de Walden Chairman, Sir William Proby, commented: “In the year ended 31 March 2025, we achieved a record rental income across the portfolio, we rebranded the Harley Street Health District, and launched Hale House as London’s work, event and networking destination for health innovation – marking a significant evolution in our strategy.
“Harley Street has been the Home of Health since 1860, and we aim for it to be the Home of HealthTech from 2025.
“As long-term stewards for Marylebone, we are proud to continue our support of local community groups and always look to add to financial contributions through partnering and volunteering at events held throughout the year.”
Howard de Walden Chief Executive, Mark Kildea, commented: “The positive results for the year are a direct reflection of the investment and hard work the team has undertaken over several years to deliver our strategy.
“Demand for space continues to outstrip supply in a number of our key portfolio areas, and this is supported by our brand recognition, with Marylebone Village providing a heightened community feel across our retail, office and residential sectors. The year also saw the rebranding of the Harley Street Health District, which we are hugely excited by as it reflects a transformation in our healthcare provision, embracing the adoption of technology and the surge in preventative care.
“Our focus is always on managing the portfolio with a long-term outlook. We have benefitted from
having a clear strategy established in 2022 which we continue to evolve as market conditions and forecasts allow. This puts the Company in a strong position to be able to deliver competitive returns while also delivering our sustainability ambitions through to 2040.”
To read the 2025 Annual Report, please click here.
