The Duke of Westminster’s property business Grosvenor Group paid out £51.1 million in dividends in 2023, despite the business recording a loss as the value of its portfolio slid in a “challenging” year.
Grosvenor made a £28.6 million loss, due to a £56.7 million hit on the revaluation of its properties. Its operations were profitable, however, as the business recorded a ‘revenue profit’ of £41.5 million, down by a fifth, on net property income of £239.3 million.
The revaluation was mostly due to higher interest rates across the globe, which hit property values almost everywhere. Grosvenor noted that the values were “more resilient” in the UK. Grosvenor's London estate includes properties in Belgravia and Mayfair.
On the other hand, the revaluations were “most significant on our San Francisco assets, which have been heavily impacted by the difficulties in the Downtown area.”
Chief executive Mark preston said: “With a short-term lens, 2023 will go down as a challenging year of high interest rates, dampened investor confidence, and downward pressures on valuations. Our financial results reflect these challenges but are a resilient expression of the continued appeal and underlying revenue strength of our properties, and also reflect reduced trading profits given we deliberately slowed our development pipeline in anticipation of worsening economic times.”
The business slightly increased its dividend payments to £51.1 million.
A spokesperson said: “Our approach over the years has been not to significantly increase the dividend in the ‘good years’ nor drop it considerably in the more ‘challenging ones’. Instead, we pursue a smoother and more consistent level of dividend.”
The dividends are paid out to a number of trusts, and the business does not disclose how much goes to the Duke himself.
The Duke of Westminster, the 33-year-old Hugh Grosvenor, is one of the richest people in the UK. Bloomberg estimates his net worth at almost exactly £10 billion, which would make him the UK’s third richest person, and the sixth-richest person under 40 on the planet.
The Duke said: “In many ways, 2023 was a year of resilience and strategic progress. Looking ahead, we will continue to draw on these strategies with a clear focus on long-term value creation. We remain committed to advancing our sustainability goals, innovating our practices, and enhancing our contributions to the communities we serve.”
