Songbird Estates, owner of Canary Wharf, has reported a fall in first half pretax profit based on higher administrative expenses and cost of sales, but added that it is well positioned to meet future market conditions. The company said pretax profit for the six months to June 30 fell to £466 mln (EUR 666 mln) from £600 mln last year. Adjusted net asset value per share also reduced by 5.7% to £2.49 following the payment of dividends totaling 70.5 pence per share.
Songbird Estates, owner of Canary Wharf, has reported a fall in first half pretax profit based on higher administrative expenses and cost of sales, but added that it is well positioned to meet future market conditions. The company said pretax profit for the six months to June 30 fell to £466 mln (EUR 666 mln) from £600 mln last year. Adjusted net asset value per share also reduced by 5.7% to £2.49 following the payment of dividends totaling 70.5 pence per share.
However, the interim results which were the group's first set of results presented in accordance with International Financial Reporting Standards (IFRS) also showed net assets increased from £2.4 bn at 31 December 2006 to £2.6 bn at 30 June 2007.
According to the company statement, this increase was driven primarily by the revaluation of the group's properties carried as non-current assets by £4.8 bn or 7.5%. The market value of the property portfolio increased by 9.6%, from £6.7 bn to £7.5 bn. Rental income also rose from £137 mln to £152 mln after spreading of lease incentives.
The UK company also said that agreements were concluded on seven transactions over 62,000 m2 and construction has commenced on four new buildings at Canary Wharf, together totalling 121,000 m2.