Warner Estates revealed a 4.25% fall in its net asset value in its half year results, but also saw significant outperformance from its portfolio.

The company saw NAV fall to 766p a share in the period to 30 September, compared to 800p in March.

The company also reported a pre-tax loss of £9.7m for the half-year, compared to a £48m profit the previous year, and said both decreases were caused by falling property values.

It said that its gearing level, at 86%, was higher than anticipated, but its loan-to-value ratio of 58% remained ‘comfortable’.

It said it expected to reduce gearing through more property sales.


Despite this, the company reported outperformance against its Investment Property Databank Benchmark, with its equity portfolio, which comprises directly owned property, interests in joint ventures and investment in funds, providing a total return of 2.1% against the IPD benchmark of 1.1%.

It also said that the occupier market remained robust, with rental income on its £3.3bn portfolio growing £4.8m to £179.9m.

Philip Warner, chairman, said: ‘The property market has been heavily influenced over the last few months by turmoil in the financial markets.

‘Although our results reflect that negative influence, there is much from which shareholders can draw encouragement both in the results and in the actions flowing from the strategy pursued in recent years in anticipation of more difficult times.’