Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Crown Estate matches record profits on windfarm windfall but warns boom is temporary

by July 1, 2025
July 1, 2025
Crown Estate matches record profits on windfarm windfall but warns boom is temporary

The Crown Estate has reported a record £1.1 billion in net revenue profit for the second consecutive year, thanks largely to a surge in offshore windfarm “option fees” paid by developers. However, the King’s property company has warned this windfall will soon pass, with profits expected to “normalise” from 2026.

The bumper profits were driven by payments from energy companies who secured leases to build six new offshore windfarms in January 2023. These projects—three in the North Sea and others off the coasts of Cumbria, Lancashire and North Wales—could eventually power eight million homes.

Until construction begins, the developers are required to pay annual option fees to the Crown Estate. These payments helped lift net revenue profit to a record £1.1bn in the financial year ending March 2025, matching last year’s record-breaking figure. However, the estate noted that excluding these extraordinary windfarm revenues, core profits were £366 million.

“We always knew the boost to our profits due to offshore wind leasing option fees from round four was short-term,” said Dan Labbad, chief executive of the Crown Estate. “We expect this year to be the high point for these returns before our net revenue profits normalise and move to more steady growth.”

The Crown Estate, which manages an extensive portfolio including central London property and the UK’s seabed, pays all profits to the Treasury. A portion of these profits—historically 25 per cent—is returned to the royal family in the form of the sovereign grant. This has since been reduced to 12 per cent to reflect the increase in Crown Estate earnings from offshore wind.

In the 2025-26 financial year, the royal family is set to receive £132.1 million from the sovereign grant, up from £86.3 million in previous years. This rise is based on earnings from two years ago, when the first wave of windfarm fees began to inflate the estate’s returns. The Treasury will next review the sovereign grant formula in 2026.

Elsewhere in the portfolio, the value of the Crown Estate’s central London holdings rose for the first time since the pandemic. Its West End real estate, including Regent Street, was valued at £7.1 billion—driven by strong demand for high-quality office space and a limited supply of prime real estate.

However, the estate’s overall net asset value fell by £500 million to £15 billion, largely due to a drop in the value of seabed holdings as the lucrative option fees phase out.

Despite this, Labbad said the Crown Estate remains well-positioned for the long term, highlighting a new partnership with his former employer, Lendlease, to develop major housing and innovation projects in London and Birmingham. Critics have questioned the tie-up given Lendlease’s delays on previous projects, but Labbad said the Crown Estate is well-placed to “unlock complexity at scale” in developments such as Euston, Thamesmead, and Silvertown.

“Given the housing shortage and the need for more life sciences space nationally, it’s very important these schemes come to fruition,” he added.

Read more:
Crown Estate matches record profits on windfarm windfall but warns boom is temporary

0
FacebookTwitterGoogle +Pinterest
previous post
Industry chiefs sound alarm over ‘horrific’ packaging tax threatening UK businesses
next post
Reeves to cut cash ISA allowance in push to revive UK capital markets

You may also like

Unlocking the Secrets of Forex Trading: A Beginner’s...

November 20, 2023

UK bans £2.2bn in hidden fees and fake...

April 7, 2025

A-level results: Number of top grades down on...

August 17, 2023

Getting To Know You: Paul Hargreaves, Founder &...

January 23, 2023

Shipping firms pause Red Sea journeys over attacks

December 15, 2023

Etsy to ‘substantially’ cut vendors’ funds held in...

August 3, 2023

Christmas party cancellations ‘near Omicron level amid UK...

December 9, 2022

Getting to Know You: Federico Charosky, Founder &...

January 24, 2024

Hunt rules out tax cuts before next general...

September 11, 2023

UK high streets risk becoming ‘wastelands’ with 15,000...

August 17, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • ‘Clear corruption’: Jeffries faces complaint for pressing judges to oust Alina Habba

      July 21, 2025
    • Democratic socialists torch AOC for voting against Republican anti-Israel amendment

      July 21, 2025
    • Biden’s stunning exit, one year later: The dropout heard around the country

      July 21, 2025
    • Tables turn as House GOP blasts Dems for suddenly demanding Epstein transparency from Trump admin

      July 21, 2025
    • 5 ways your political point of view may be damaging your mental health

      July 21, 2025
    • Trump heads to Scotland, continues ironing out trade deals after notching six months back in office

      July 21, 2025

    Categories

    • Business (8,535)
    • Investing (2,134)
    • Politics (16,132)
    • Stocks (3,222)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved