Duchy of Lancaster Final Results Year Ended March 31st 2012
The Duchy of Lancaster has today announced its financial results for the year ended March 31st 2012.
During the year:
- Net operating income down by 8.6% to £12.7m
- The net surplus down by 3.1% to £12.9m
- Net asset value increased by 5.8% to £405.3m
Paul Clarke, CEO and Clerk of the Duchy Council, said that despite difficult economic conditions, the portfolio had performed well and provided £12.9m to the Privy Purse.
He said: “Net Surplus fell by just over 3% but this was in light of a very significant fall in rental income in the year, arising from the decision to refurbish the office space within Wellington House on the Savoy Estate. However there has been encouraging and consistent income growth from the other asset classes within the Duchy.
“Capital has performed well, with an increase in Net Asset Value of 5.8% to £405.3m which is the first time that the Duchy has passed through the £400m barrier. The continued recovery from 2009 has been shared across all parts of the portfolio but again with particularly strong contributions from both the agricultural and commercial portfolios.”
The Duchy of Lancaster is a private landed estate which provides the Sovereign of the day with a source of income independent from Government and the public purse. The Duchy is self financing and does not rely upon public funds in connection with its activities.
Funding levels have been maintained for the Duchy’s two main charities, the Benevolent Fund and the Jubilee Trust, and trustees have been able to make grants at the same levels as in earlier years. In addition, the Duke of Lancaster Housing Trust is continuing to support the rural economy and its first affordable housing project in Dunsop Bridge, Lancashire, comprising of 12 new houses, is nearing completion.
Paul Clarke added: “As anticipated, 2012 has not been an easy year for occupiers or the Duchy but notwithstanding this, the results for the year have shown the resilience of the Duchy portfolio in adverse financial markets and the benefits to be gained from the continued drive to improve the quality of the assets within the portfolio. With the refurbishment of Wellington House, the purchase of a new agricultural estate in Lincolnshire and the consolidation of our ownership on the Tower Bridge Business Park, we believe that we are placing ourselves in a stronger position with these prime assets while continuing to work on new schemes and initiatives within the existing portfolio.”