Cadogan Annual Report 2024

Annual REPORT 2024

Overview

DEFINED BY OUR heritage. DEDICATED TO THE future.

Who We Are

Cadogan is a family business which owns and manages an extraordinary property portfolio of mainly retail, residential and office assets in Chelsea and Knightsbridge. Our long heritage provides a remarkable foundation upon which to base a contemporary, forward looking and dynamic business able to anticipate and respond swiftly to the changing needs of its customers and markets.

Cadogan’s association with Chelsea began when Charles, Baron Cadogan, wed Elizabeth Sloane in 1717, over 300 years ago. Since that time, the family and place have grown together – today the Cadogan Estate is one of London’s most characterful and distinctive neighbourhoods.

Stewardship and community are central to our approach. Our long-term commitment comes with responsibility to ensure that we are making a positive contribution towards a sustainable environment, protecting the area’s unique heritage and supporting a thriving community.

Our Core Objectives

▶ We aim to protect and enhance the Estate’s position as one of the world’s leading locations in which to live, work and visit.

▶ We have a proud heritage and aim always to safeguard our future and protect the portfolio as a long-term investment –creating and maintaining outstanding buildings and environment.

▶ As long-term stewards of Chelsea, we have a responsibility to make a positive contribution towards a sustainable environment and a thriving community.

▶ Our reputation is paramount. We always seek to: recruit and retain the strongest internal team and select the best external advisers to drive performance; maintain strong financial results; deliver excellent customer service; be good neighbours; and ensure that integrity is at the heart of all business decisions.

Water2024 Highlights

+11.8%

increase

+16.6%

increase in operating profit

(before

Financial Environmental Community

+1.3%

like-for-like increase in value of property portfolio

(to £5.7bn from £5.4bn in 2023)

invested in acquisitions and development (£231m in

£90m decarbonisation programme

94% construction waste recycled or reused

17% increase in Urban Greening Factor (from 2021 baseline)

80% green leases across our commercial portfolio (70% in 2023)

175% biodiversity net gain improvement (delivered through the Sloane Street transformation project)

£4.5m+

community projects fund, including £1.1m annual subsidy of keyworker and community housing (£4m in 2023)

349 live performances at Cadogan Hall, attracting over 200,000 attendees in its 20th anniversary year

23,300+

of our most disadvantaged and vulnerable residents reached, across 106 charitable projects (21,000 in 2023)

412,000 combined audience of our community publications (29% growth from 320,000 in 2023)

66

long-term unemployed local people successfully placed into work through our Employment Opportunities initiative

92%

customer satisfaction, with a Net Promoter Score of 60, against an industry benchmark of 14.2 (88.6% in 2023)

Our Year at a Glance

▶ Chelsea in Bloom celebrates ‘Floral Feasts’ –115 floral displays transform the area into a colourful spectacle, drawing 1.4 million visitors and supporting food charity The Felix Project (watch the film here)

▶ Brazilian fashion brand Farm Rio opens first stand-alone store in Europe on the King’s Road

▶ Installation of 40ft mural celebrating the cultural legacy of Chelsea icon Dame Mary Quant

▶ The Chelsea Heritage Quarter launches, a collaboration between Chelsea Physic Garden, National Army Museum, Royal Hospital and Cadogan

▶ American ready-to-wear brand Veronica Beard opens on Sloane Square

▶ Biggest ever summer art-trail opens for Kensington + Chelsea Art Week

▶ Cadogan holds long-service awards for team members who have been with us for 10 or 15 years

▶ Trinny Woodall opens her flagship Trinny London store at Duke of York Square

▶ King’s Road buzzes with new signings – Vuori, Yse, Birkenstock – and a new impresario at legendary 151 Club

▶ ‘Summer in Sloane Square’ – a collaboration of the Royal Court, Cote, The Botanist & Azzurra – draws thousands to al fresco pop-up

▶ Duke of York Square wins ‘Best Lifestyle Street’ at the London Lifestyle Awards 2024

▶ Launch of the Cadogan Community Grant Programme

▶ Valentino opens their flagship Townhouse on Sloane Street

▶ Micro-fungi in focus – striking photo exhibition at Pont Street pocket forest created by Sugi, Louis Vuitton & Cadogan

▶ Chelsea Dog Day sees 25,700 visitors flock to the neighbourhood for a doggie-themed market, events and activity, with 80 businesses participating

Spring Autumn Summer Winter

▶ ‘Great Estates’ book launch – New London Architecture – tells the story of London’s great estates and their contribution to the UK

▶ Cadogan wins the ‘President’s Cup’ for services to the community from the Kensington & Chelsea Chamber of Commerce

▶ Chelsea welcomes the ‘Little Egg Hunt’ –

HM The Queen’s Charity reveals a playful art trail of giant artist-designed eggs around Sloane Square

▶ Cadogan Hall celebrates its 20th anniversary and launches new charitable partnership with Nucleo, using music to empower young people

▶ Cadogan hosts Chelsea Art Society’s Summer Exhibition Private View – 15% of sales support Kensington + Chelsea Foundation

▶ New partnership announced for Sloane Street with art fair Frieze London

▶ ‘State of London Luxury’ report released in partnership with Walpole, spotlighting London’s arts and culture as its enduring superpower

▶ Launch of the Cadogan family book at the Chelsea History Festival

▶ ‘At Sloane’ hotel, a collaboration between Cadogan and Jean-Louis Costes, wins ‘Best Restaurant’ and ‘Best Lobby & Reception Area’ at the AHEAD Awards

▶ Launch of the Sloane Street Excellence Programme

▶ Completion of £46 million Sloane Street public realm ‘green transformation’, in partnership with Royal Borough of Kensington and Chelsea (RBKC)

▶ Temperley London opens new flagship on Sloane Street, alongside Brunello Cucinelli and Saint Laurent opening new, larger stores. New signings for Zimmerman and L’Objet

▶ The Chelsea Townhouse is listed in Condé Nast Traveller’s Readers’ Choice Awards, only one year after opening

▶ The community is celebrated at The Chelsea Awards, held at Royal Hospital Chelsea

▶ The Gingerbread City pops up at The Gaumont, attracting over 10,000 visitors

▶ Chelsea Christmas Lights Switch-On – King’s Road pedestrianised and thousands attend in support of The Kensington + Chelsea Foundation

▶ Glassdoor Sleepout at Duke of York Square raises over £66,000 to support people out of homelessness

▶ Employment Opportunities Co-ordinator places 66th local person into work

▶ Jason Atherton opens ‘Three Darlings’ in the Pavilion Road courtyard

▶ New Christmas Lights scheme on Sloane Street, along with a ‘Winter Pavilion’ on Sloane Square

Chairman’s Statement

It

is pleasing to report strong performance for 2024, combined with great progress with our stewardship strategy covering both environmental and community objectives.

Chelsea is home to me and my family; I live here as do my grown-up children and their families. Chelsea is a place I love. It constantly delights me and frequently gives me cause for great pride.

At the heart of Chelsea’s attractions – the unique charm that draws people to live, work and gather here – is its rich heritage, woven into the very fabric of its architecture, institutions and community. Chelsea has long been a cradle of creativity, from the ambitious vision of my ancestor, the first Earl, who laid the foundations of the first ‘New Town’ beyond London’s borders in the late 1770s, to the nineteenth-century haven it became for celebrated artists and bohemians such as JMW Turner, Rossetti and Edward Burne-Jones.

The neighbourhood has hosted luminaries like Whistler and Oscar Wilde, and later, the ‘Bright Young Things’ of the 1920s, alongside literary giants like Somerset Maugham,

Sir John Betjeman, AA Milne and Ian Fleming. As the years marched on, Chelsea continued to be at the forefront of cultural revolutions through the swinging 60s and 70s, and it became home to fashion icons like Mary Quant and Vivienne Westwood. To be a custodian of Chelsea is to navigate the balance between the risqué and respectful, heritage and future, encouraging constant progress while celebrating the past.

In the shadow of turbulent geopolitics and a sober domestic economy, our gross income rose by 11.8% to £241.4m in 2024, and the value of the portfolio increased by 1.3% to £5.7bn*. We maintain a conservative capital structure and financial head room, so that we are well prepared for adversity and can respond to opportunities as they arise.

The Earl Cadogan DL

‘Strawberries

and Screen’ at Duke of York Square Below Cadogan Hall

This also allows us to invest further in charitable work, at the heart of our stewardship and close to my heart. It is one of the ways in which I am able to express my personal values, reflected in the quote from the fascinating diaries of my great great grandfather, the 5th Earl Cadogan: Left

‘See in rank, an obligation; In possessions, are trust; And in duties, a privilege’

music. The diverse programming and community initiatives make the Hall a vibrant cultural hub for London.

To me this invokes an understanding that with the privilege that this estate confers, comes responsibility, service and humility. In 2024 our Community Fund committed over £4.5m to supporting those in need in the locality, including a subsidised keyworker housing portfolio, employment support and new Community Grant Programme to make a difference where it matters most.

It is a sadness that my father –Charles, 8th Earl Cadogan – was not with us in 2024 as he would have taken particular pride from the 20th anniversary of Cadogan Hall, opened as a concert hall in 2004 after a painstaking restoration of this Listed building. He took great pleasure, as do I, from what it has become; its success and contribution to Chelsea. Ticket attendance exceeded 200,000 in 2024, a new record, with over half being local people. To celebrate its 20th anniversary, Cadogan Hall has partnered with Nucleo, a charity that empowers young people through

I am very fortunate to have the guidance and support of a strong Board of Directors who make a considerable contribution to the success of the business. I would particularly like to express my great thanks to James Bruce, who will retire at the end of 2025 after serving Cadogan as a director and a trustee for 25 years. In that time, I have benefited immeasurably from James’s wise counsel and sage guidance, and I am grateful to him for his loyalty and service.

I would also like to welcome Stuart Wetherly as Finance Director to the Board, who brings a wealth of financial and property experience, and I look forward to working with Stuart in the years ahead.

We invest continuously in developing the capabilities of our very talented management team to enhance collaboration, leadership and management skills, and ultimately performance. I am grateful for the impressive work delivered by our highly capable people, which is critical to the success of the business.

The Earl Cadogan DL 2 May 2025

Strategic REPORT

Chief Executive’s Review

Hugh Seaborn Chief Executive

In last year’s report, I expressed optimism for the business over the year ahead, despite the uncertainty that prevailed.

This was founded on the considerable momentum built over many years through strong leasing activity, development schemes, public realm

improvements and consistently applying our focused management approach.

This has indeed had a lasting impact for Chelsea, and with the help of good fate, this optimism has proved warranted, as we have had another successful year.

gradually lowering interest rates, although admittedly slower and shallower than hoped, which limited the scope for yield compression and consequential value increases. Meanwhile, economic growth remained subdued.

report, supports our purpose beyond profit and puts sustainability, place and community front-and-centre in our decision making, as follows:

Total income increased by 11.8% to £241.4m (from £216.0m in 2023). total income operating

+16.6%

This produced a 16.6% increase in operating profit before capital items (an indicator of underlying operating performance as it excludes profit on the sale of investment properties and revaluation movements), from £120.3m to £140.2m.

+1.3%

The capital value of our property portfolio increased by 1.3%*, from £5.4 billion to £5.7 billion. This contributed to a total return, on standing investments, of 5.7% for 2024.

These results were delivered in a year characterised by a more stable monetary environment, with inflation under control and the start of

This strong performance was underpinned by healthy footfall (4% higher than 2023) and consumer spend (3% higher than 2023) supporting our retailers’ profitability and ultimately, market sentiment towards Chelsea. This has resulted in good rental growth through letting, review and renewal activity.

There are several characteristics which support this performance.

The geographical concentration of assets allows us to curate the area. This means we can select occupiers based on their quality, compatibility and potential contribution, allowing a holistic estate management approach supported by our unique leasing structure and intimate local knowledge. By forging close working relationships and a partnership approach with occupiers and stakeholders, we are also able to drive the success of the area and support our retailers’ trade.

Cadogan has a long and successful history of over 300 years as a family business. This allows us to be patient, consistent and tenacious in pursuing our strategic objectives. The generational stewardship, which Lord Cadogan expressed earlier in this

▶ Sustainability: All parts of the business are engaged in delivering our net zero pathway. The work towards installation of secondary glazing, solar panels and insulation, together with the removal of gas boilers, is underway at scale across the estate.

▶ Place-led approach: We create and enhance special places in Chelsea that people will love; illustrated by the £46m transformation of Sloane Street over the past two years into a beautiful green boulevard.

▶ As for community: If Chelsea thrives over the long term then so do we, so our £4.5m community fund works hard delivering a wide range of support including providing subsidised community housing; placing long-term unemployed local people into jobs; delivering local grants to small charities helping the most deprived; supporting the St Giles Project helping young people out of gangs and violence; being Principal Supporter to the Kensington and Chelsea Community Foundation so it can focus on those most in need across the Borough, and so much more.

We aim to strengthen and protect Chelsea as a community and a local economy through creating an environment that encourages thriving

businesses, attracts visitors and nurtures a desirable and vibrant place to live. We deliver this by creating places rather than buildings, seeking to strengthen the wider destination, enriching community life and having a real stake in the local economic and social viability.

This approach requires places and spaces which catch people’s attention and capture their affection. It demands animation through occupier selection and the layering of different uses to provide texture, diversity and variety. All complemented by the staging of events and activations to delight and surprise. It requires an infrastructure that enhances security and cleanliness and convenes a community of purpose. We aim to be a force-for-good, consistently

contributing to an evolving place to ensure Chelsea looks forward to future generations while meeting the needs of today.

The characteristics of our ownership –long term, family business with a large and concentrated property portfolio –demands this aspirational purpose. At Cadogan we are fortunate to have a highly talented team who are equipped to deliver on these ambitious aims and work tirelessly to strengthen the neighbourhood by creating an exciting, relevant and compelling place.

Previous Page Strategic Report: Marching Band on Pavilion Road for the Chelsea Christmas Lights Switch-On

Below

* After adjusting for purchases, sales and capital expenditure

Playing in the fountains at Duke of York Square

Activity Overview

Demand for shops on the King’s Road continued to be healthy, with a depth of demand for each available retail unit. Sloane Street benefited from existing retailers seeking to upsize, as well as strong interest from new luxury brands as the transformation works progressed, although the tempering in the international luxury market has slowed decision making. Retail vacancy levels averaged 2.9%, below the previous year’s average of 3.2%, and 40 new retail lettings and renewals amounting to annual rents of £15.2m achieved an average rent of 8.3% above our valuer’s estimated rental values.

Demand for office space was resilient, supported by high occupancy and limited supply. Average vacancy rate in 2024 was 0.5%. Rents of £2.9m p.a. on the 22 new office lettings and renewals were 12.6% above our valuer’s estimated rental values.

The residential letting market continues to benefit from healthy occupier demand. Total rental growth from the residential let portfolio on new lettings, rent reviews and extensions was 4.1%, supported by a constant programme of investment in the quality of accommodation.

result of a successful partnership with the Royal Borough of Kensington and Chelsea and invaluable support of neighbouring owners and businesses. I feel confident that this major investment in the public realm will deliver on our aspirational vision –to reinforce Sloane Street as the best luxury shopping street in the world, while providing a beautiful environment for local residents and visitors to enjoy.

During 2024 we have been marketing The Gaumont, a mixed-use development on the King’s Road. The commercial space includes a Curzon cinema and Waitrose supermarket, both pre-let, as well as flagship retail units, community shops, high-quality offices and a rooftop bar. There are also 47 residential flats including affordable housing, arranged around two landscaped squares. We have secured major international retail fashion brands for the flagship King’s Road shops, which will draw footfall westwards, strengthening trade along the street. These are complemented by small shops on Chelsea Manor Street which we have reserved for community-related uses.

creative enterprises. Having searched London, we have secured a bookshop, wine and coffee bar cultivating a vibrant literary scene through author talks, book clubs and events; a vinyl cafe and boutique record shop which will host live gigs; and a not-for-profit artists’ studio which encourages artists of all talents, from novices to highly experienced. To complement this, we have secured a pub which will host comedy and music events. This is an example of how we are able to celebrate Chelsea’s rich heritage of art, literature, fashion and music.

Leasing activity in 2024 was buoyant across all sectors of the portfolio.

One of the standout highlights of 2024 was completion of the Sloane Street transformation, which resulted in a beautiful green boulevard over the full 1km length of the road. This £46m project, delivered on time and within budget, was the

The clustering of uses around a theme strengthens our ability to create compelling destinations, as demonstrated by the success of Pavilion Road, which is based on carefully selected artisan food uses. Following extensive local consultation, we identified the Chelsea Manor Street ‘community’ units for a new ‘creative quarter’, nurturing young

Opposite

The ‘Little Egg Hunt’ on Pavilion Road Below New planting along Sloane Street (image: John McAslan + Partners / © Hufton + Crow)

We have adopted a strategy of growing our directly operated hotel portfolio over the past few years, with the aim of delivering high-quality hospitality venues with a diversity of styles and pricing to maximise our revenues, ensuring that they appeal equally to both the local community and discerning international visitors. We operate eight boutique hotels and serviced apartment accommodation in partnership with experienced managers.

The newest luxury hotel ‘At Sloane ’ at 1 Sloane Gardens was launched following a painstaking

redevelopment including an exquisite interior design by Francois Graff. It is run by the feted French hotelier Jean-Louis Costes and is his first hotel outside France. This hotel, restaurant and bar business is growing as its reputation percolates amongst the fashionable, voguish and cool of London, and it receives critical acclaim across Europe. We acquired the Draycott Hotel and re-christened it ‘ The Chelsea Townhouse ’ following an extensive refresh. This business is growing under the management of our partner Iconic Luxury Hotels, who also operate No. 11 Cadogan

Gardens on our behalf. Both properties have already received multiple industry and consumer awards over the last year.

It is well known that to survive and prosper over the past few decades, retailers have had to adapt to the rise of digital sales, and this has of course impacted the property sector. Since the pandemic, these changes have matured and the rapid growth of online sales has stabilised. Today, successful retailers understand that they must deliver a seamless customer experience combining their digital and physical channels,

Opposite …At Sloane Hotel

Above Musicians at Duke of York Square

‘Best Restaurant’ ‘Best Bar, Club or Lounge’

Hotel Awards 2024

allowing customers to interact with the brand effortlessly, whether shopping on a desktop, mobile app, or visiting a physical store equipped with digital technologies.

As part of this market shift, the best retailers have come to understand that physical space in the right location and environment allows them to drive performance across all channels by creating experiences, building community, connection and brand loyalty. This aligns with our long-term strategy of creating and evolving a successful destination based on these principles and balancing short-term profit against long-term prosperity, to ensure we provide the best location for stores to trade successfully.

We pride ourselves on delivering high standards of customer service because high-quality relationships allow us to do better business.

This outstanding customer service coupled to a collaborative approach to managing the various destinations within Chelsea, supports strong and effective working relationships with our occupiers and achieves better outcomes. We hold regular face-toface briefings with businesses to communicate our activities and encourage feedback. Our approach is improved through these relationships as well as local knowledge, sales and footfall data, which informs our estate management approach.

We also engage directly with local property owners, occupiers and wider stakeholders including the local council and residents both individually and through representative groups. We work closely with two local Business Improvement Districts covering King’s Road and Knightsbridge respectively, having led their creation in partnership with other local property owners. These have become highly effective by providing improved support for local businesses including heightened security, business networks, costsaving advice, enhanced street cleaning and representation with local and central government.

2024 was also a year when we were proud to be involved in the launch of two new books. We were thrilled to work with author Tamsin Perrett, editor Camilla Mountain and Unicorn publishers, to launch Cadogan – A Chelsea Family a meticulously researched book that traces the history of the Cadogan family from Wales a thousand years ago, through Ireland, the Duke of Marlborough’s wars, the auspicious marriage to Sir Hans Sloane’s daughter, Elizabeth, to the development of Chelsea and the events of the twentieth century.

To quote one Amazon review ‘a rip-roaring read…highly recommended for anyone with an interest in British history’.

New London Architecture published the second edition of their definitive book Great Estates – Models of Modern Placemaking, telling the enduring story of the appeal and contribution made by estates old and new to London’s unique character, heritage and economy.

‘Historic estates…deliver essential benefits for the capital, its planning, architectural heritage, public spaces, stewardship and its future’

– Peter Murray, NLA, Great Estates

Chelsea 2030 – A Sustainable Future

As a company with a 300-year history and an aspiration to continue successfully for at least as long into the future, it is in our direct interests to commit to long-term stewardship and aim for a sustainable environment and a thriving community.

‘Chelsea 2030’ is our commitment to integrating sustainability into every aspect of our business. This strategy sets out ambitious environmental targets to reduce our carbon impact, improve air quality, enhance biodiversity and green infrastructure, and reduce waste and water usage. Alongside this, we make contributions through our Community Fund which amount to over £4.5m annually towards positive social impact, including a subsidised keyworker housing portfolio, as well as employment and skills support.

We made strong progress in 2024 towards many of our targets, such as green infrastructure, waste management and a significant drive towards ‘green leases’ across our commercial and residential occupiers. Reducing carbon emissions remains our most pressing and challenging area.

It is a point of particular pride that in 2024 our investment in the public realm contributed to a 175% biodiversity net gain improvement. We also received a rewarding response to the launch of the Cadogan Community Grant Programme. In addition, our joint Employment Opportunities initiative with the Council placed the 66th person into work and in so doing potentially changed that person’s life.

The Kensington + Chelsea Foundation’s Impact Report

2024 Financial Performance – Overview

I am delighted to report excellent financial results for 2024, with healthy revenue growth leading to improved profitability.

Total income increased by 11.8% to £241.4m (from £216.0m in 2023), resulting in a 16.6% increase in operating profit before capital items (an indicator of underlying operating performance as it excludes profit on the sale of investment properties and revaluation movements), from £120.3m to £140.2m.

The capital value of our property portfolio increased by 1.3% (after adjusting for purchases, sales and capital expenditure) from £5.4 billion to £5.7 billion. This remains 8% below the 2018 peak of £6.2 billion (lower by 13% after adjusting for capital items). This contributed to a total return, on standing investments, of 5.7% for 2024.

In 2024, we invested £211m in purchases and development, following an investment of £231m in 2023. This included acquisitions of one commercial and four residential properties on the Estate with a total cost of £27m, and eight commercial properties in our regional commercial property portfolio with a total cost of £145m.

We have taken the opportunity in benign market conditions to grow our regional commercial property portfolio. The portfolio stands at £369.1m (up from £221.4m in 2023) and provides resilient income from a diversified commercial portfolio which includes logistics, industrial and retail warehouse assets. The purpose of this portfolio is to contribute to meeting the substantial liability represented by the 10-yearly inheritance tax charge (IHT) levied on the trusts that are the ultimate owners of the business.

Over the 10-year period preceding the latest IHT charge in 2022, dividends of £210m (representing 65% of total dividends in the period) were paid to our parent company to fund this tax charge. The next 10-yearly charge is payable in 2032 and the funding is expected to be of a similar magnitude.

Rental collection remains strong, averaging 99% for commercial rents and 98.5% for residential rents during the year.

Left Picnics on the Duke of York Square running track, opposite Saatchi Gallery

Enjoying Duke of York Square

Our People and Culture

We have a high-performing team and this is key to delivering our ambitious business objectives and strong performance.

Our recent staff survey tells us that collectively our people have a thorough understanding of our purpose and what is expected from them, a strong commitment to delivering high-quality work and that they feel ‘satisfied’ or ‘extremely satisfied’ with Cadogan as a place to work.

We achieve this by investing in our team members to ensure we attract, retain and develop the best performers. This includes a rigorous recruitment evaluation process to ensure we appoint strictly on merit and compatibility; carefully structured on-boarding to establish new recruits with the best start; instilling personal self-awareness across the team to aid performance and effective interpersonal relations; and consistent application of performance management to give everyone the opportunity to be their best and to derive job satisfaction.

We actively seek a culture of mutual respect and equality, a make-ithappen orientation, energy and ambition, high standards, a strong sense of responsibility and accountability, collaboration, trust and productivity between individuals and teams. Everyone is expected to contribute towards these values in a supportive, honest and respectful working environment.

We are a small team of c. 75 people enabling us to communicate and engage thoroughly, taking in views from across the team through informal dialogues, regular townhall briefings, pulse surveys, numerous working groups and frequent workshops, including this year reviewing our values.

Our retention rate at 85.3% (90.9% in 2023), together with an average term of almost nine years, reflects a loyal and stable workforce.

Outlook

Despite the unpredictable geopolitical backdrop and muted domestic economy, I am delighted to report another year of strong performance.

There has been healthy letting activity introducing new and exciting retail brands and restaurant businesses that complement the impressive existing offer and meet our exacting requirements. Footfall has grown, supporting our occupiers’ profitability and positive market sentiment. Sloane Street’s transformation has strengthened its international reputation. The pipeline of high-quality development schemes provides an attractive source of growth over the coming years. Together with the delivery of exceptional high standards of customer service, as evidenced by our Net Promoter Score of 60.9, and progress on all fronts of our sustainability and stewardship strategy, means that overall, it has been a successful year.

As we look to the future, I am conscious of the cooling in the global luxury market and the potential for weaker domestic employment which will impact consumer confidence. Expectations are that domestic economic growth will remain modest

and there is well posted potential of significant external downside risks, particularly from United States’ foreign trade policies and wideranging tariffs, which will have a negative impact on international economic activity.

The interest rate cycle changed in late 2024 as the Bank of England undertook the first tentative cuts, although these have been slower and shallower than anticipated. This pattern is expected to continue in the coming year. This change has supported an improved sentiment towards UK commercial property, which saw values rise in 2024.

The Cadogan portfolio has proved resilient due to the strength of Chelsea as a destination, exceptionally high-quality assets, the strong positioning of our occupiers and the demographics of the loyal local consumer, coupled with a strong team consistently delivering our proactive and holistic management approach. These characteristics allied to the momentum created through

busy letting activity, new and ongoing developments, placemaking and strengthening the destination, mean I am confident that we are well placed to deliver positive performance over the current year and maintain sustainable returns over future years to come.

It is a particular strength that we have such a talented and capable team equipped to drive performance through impressive collaboration and teamwork. Therefore, it is fitting to close my statement by expressing my gratitude to every one of them for their vital contribution to our success. Because we are a small and agile team, we also rely on a range of valued advisors and partners to support our business, to whom I also owe my thanks and appreciation.

Hugh Seaborn Chief Executive 2

May 2025

Operating Review

Investment Performance Highlights

£5.7bn

£4.3bn

£1.4bn

Healthy estimated rental value (ERV) growth and contracted rent movement resulted in marginally increased values. Yields were stable across the portfolio for the second consecutive year.

Retail remains our largest sector at 46.2% of the portfolio by value. Retail gross rental income increased by 3.1% to £99.0m per annum (45.3% of the total rent roll).

The Residential sector represents 25.3% of the portfolio by value and 19.9% by income. The Residential portfolio value is £1.4bn; down slightly by 1.2%, but residential rents increased by 6.5% to £43.5m from £40.8m, driven by market let income.

Leisure and Other uses represent 15.7% of the portfolio by value, an increase from 13.3% in 2023 largely due to the regional portfolio acquisitions. Gross rental income increased by 30.3% to £35.6m (16.3% of the total rent roll) for the same reason.

Offices represent 12.8% of the portfolio by value and continued to remain virtually fully let. Office rental income increased by 3.3% to £40.2m per annum (18.4% of the total rent roll).

Retail is our largest sector, accounting for 46.2% (unchanged from last year) by capital value and 45.3% (2023: 47.3%) of income.

The increase in capital value was mainly the result of ERV growth primarily across King’s Road and Duke of York Square, as a result of rental levels achieved on new lettings and renewals. Investment yields have remained static.

The Cadogan portfolio is geographically concentrated, providing us with a competitive advantage as we adopt a holistic approach to management to ensure Chelsea is an exciting and compelling destination for visitors and residents.

We aim to enhance the experience for consumers from the moment they enter the area, through a combination of complementary uses along with beautiful public spaces and iconic cultural attractions. We seek out a variety of best-in-class restaurants and create and enhance engaging spaces that encourage people to visit and to dwell. This is complemented with events and activations from the now famous ‘Chelsea in Bloom’ when the area becomes a festival of colour with floral installations drawing 1.4 million visitors, to ‘Strawberries & Screen’ during the Wimbledon Tennis Championship; ‘Summer in Sloane Square’ in collaboration with the Royal Court Theatre; Chelsea Dog Day; Chelsea Christmas Lights and switch-on event; Glassdoor’s annual sleepout at the Duke of York Square raising funds to support the homeless, and so much more.

Our approach is to seek first-toLondon flagship stores and independent shops as a point of difference, and to encourage retail and restaurant businesses to deliver a distinct and different offer to that of their other boutiques. This is achieved through store fit-out variations, unique products or food offering and tailored in-store animations. We frequently install architect-designed shopfronts rather than delegating this to retailers, to create a more characterful streetscape which will engage visitors.

This approach has contributed to positive revenue growth for our occupiers, outperforming London footfall and consumer spend trends. Strengthening Chelsea as a target location for brands through 2024 has seen strong leasing demand across both retail and food and drink sectors, yielding healthy financial returns.

As the impact of online shopping has matured, successful retailers have recognised that the consumer experience is paramount, and this has led them to combine their digital and physical channels to provide their customers with a seamless experience whether they are shopping through desktop, mobile or visiting a store equipped with digital technologies. These retail businesses now require fewer stores, but these must be in the best locations. This supports our strategy of managing the whole area to create a compelling

and exciting destination, and in so doing, strengthening the ability of retailers to trade successfully.

Strong occupational demand across the King’s Road and Duke of York Square resulted in rents achieved exceeding estimated rental values by 10.53% and 8.33% respectively during 2024. This healthy occupational demand continues to allow us to be exacting in retailer selection, while maintaining our core leasing criteria and protecting our ability to curate the neighbourhood.

Our success in securing first-toLondon brands is illustrated by exciting new businesses that arrived in 2024; Trinny Woodall’s first flagship beauty boutique, Trinny London; chic women’s clothing and accessories brand, Soeur; vibrant Brazilian

womenswear Farm Rio opened their first stand-alone store in Europe; and Elad Yifrach’s first London boutique

L’Objet, offering handcrafted artisanal designs. In addition, we welcomed Californian athletic and performance clothing Vuori; New York fashion house Veronica Beard; German shoemaker Birkenstock; and cool Parisian ready-to-wear brand APC.

The completion of the Sloane Street transformation took place in 2024. This has resulted in a beautiful green boulevard over the full 1km length of the street. This £46m project was the product of a successful partnership with the Royal Borough of Kensington and Chelsea, alongside the invaluable support of neighbouring owners and businesses.

The Sloane Street transformation,

designed by renowned public space architects John McAslan and Partners, features carefully selected highquality Yorkstone paving, wider pavements and extensive planting designed by multi-award-winning landscape designer Andy Sturgeon. It includes over 100 new Amelanchier trees, together with bespoke street lighting designed with inspiration from the Arts and Crafts movement drawn from Holy Trinity Church, Sloane Street.

The comprehensive scope, quality of design, careful selection of materials and attention to detail of this complex project reflects our commitment to creating beautiful spaces that will delight people for generations to come. It is rewarding that already more people are walking and enjoying the length of the street.

Left

Temperley London’s new flagship opening party on Sloane Street

Above Vinyl at new music store Next Door Records, part of The Gaumont development (image: Anna Delf)

We feel confident that this major investment in the public realm will deliver on our aspirational vision for the project – to reinforce Sloane Street as the best luxury shopping street in the world, while providing a beautiful environment for local residents and visitors to enjoy.

Sloane Street remains highly attractive to both major international brands and emerging players, especially following the transformation, reaffirming London’s position alongside Paris and Milan as a premier luxury fashion destination. The Sloane Street transformation has been delivered as the global luxury fashion market has cooled. This softening has had the effect of slowing decision making both for existing brands who are considering investing through upsizing or new fit-outs, and new brands taking stores. Nevertheless, 2024 proved an active year for Sloane Street and we are now in a strong position to benefit further as this market recovers and luxury consumers seek the highest level of customer experience.

The south of Sloane Street benefited from an earlier completion of the transformation works and has been subject to robust demand from target brands, including L’Objet, offering handcrafted artisanal designs, cult women’s fashion house Zimmerman and bohemian fashion brand Temperley London. At the north of Sloane Street, Italian luxury fashion brand Brunello Cucinelli, known for its high-quality cashmere, upsized, tripling the size of their boutique; and French luxury fashion house, Saint Laurent famous for innovative designs, opened their doors to their new enlarged Maison in the year.

The Gaumont, a £235m mixed-use development in the heart of the King’s Road, has commercial space including a Curzon cinema and a Waitrose, both pre-let, together with further retail, ‘community’ shops,

rooftop bar – all let to brands that align with our strategy of drawing footfall westwards to strengthen the King’s Road.

We have learnt that by clustering uses within a theme we can amplify compelling destinations, as demonstrated by Pavilion Road, which is based on carefully selected artisan food uses. Following extensive local consultation, we identified the Chelsea Manor Street ‘community’ units for a new ‘creative quarter ’. Subsequently we have secured a bookshop (Book Bar) which also offers wine and coffee and runs a book club; a record shop (Next Door Records) hosting gigs; and a not-forprofit artists’ studio (Art Play) which encourages artists of all talents, from novices to highly experienced. To complement this theme, we will reopen a pub (The Trafalgar) which will also host comedy and music events, and the famous 151 Club has reopened under a new impresario as the Rex Rooms, a glamorous evening and night club. These are examples of how we are able to celebrate Chelsea’s rich heritage of art, literature, fashion and music by creating an exciting new hub in Chelsea which will engage people of all ages.

Retail vacancy levels continued to remain low, ending the year at 2.9%, reflective of the strong leasing demand and high renewal rate seen throughout 2024.

Offices

Offices account for 12.8% (2023: 13.1%) by capital value, and 18.4% (2023: 19.2%) by income. Gross rents increased by 3.3% over the year, achieved through rental increases on new lettings and renewals, in addition to inflationlinked indexation on existing leases.

Our office portfolio continued to be virtually fully let, with only 0.5% vacancy, based on estimated rental values, at the end of 2024.

The benefit of maintaining occupation across the office portfolio is to limit supply, which supports rental levels. The volume of office space in the area is restricted by planning policy and high residential values, which underpin our portfolio.

Office occupiers are generally attracted to Chelsea because of the lifestyle characteristics promoted through our ‘curated’ estate management approach, and proximity to central London. This provides their staff with an attractive

environment and access to a wide range of shops, restaurants, cultural venues and public spaces. Meanwhile the office occupiers contribute to the local ecosystem, supporting our retailers, restaurants and hotels.

We continue to invest in the office space to deliver accommodation to meet the demands of the market. In 2024 we commenced the redevelopment and upgrade of more than 35,000 sq. ft of office space at 51 – 52 Sloane Street, 30 – 33 Sloane Street and 166 Sloane Street. We anticipate healthy interest when we take this space to market as the works complete.

Left/Above

The new ‘Walpole Townhouse’ on Cadogan Gate, offices and members lounge (image: @tomallportphoto)

Residential

The gross value of our residential portfolio represents 25.3% (27.4% in 2023) of the total value and 20.0% (20.1% in 2023) of total income.

This has declined by 1.2% despite acquisitions and development expenditure totalling £13.4m in the year, mainly because of planned disposals of non-core properties and leasehold enfranchisement, proceeds totalling £40.7m.

The residential portfolio is second in total value after retail. In the context of a mixed-use estate, the residential portfolio supports our ability to contribute to enriching community life and provides diversification of commercial returns.

High residential values combined with low long leasehold ground rent income and our market let private rented sector (PRS), generates a lower income yield compared to the commercial portfolio. Reduced income returns are in part offset by

increased capital receipts derived from long-leasehold enfranchisement, that grow in value as the lease length reduces.

Our residential portfolio comprises over 1,650 tenancies, including 700 PRS homes. Rental income has grown by 6.5%, ending 2024 at £43.5m (2023: £40.8m).

Our overarching objectives for the residential portfolio are to provide best-in-class customer service (Net Promoter Score of 66) and to retain occupiers for longer (2024 retention average 3.9 years), combined with delivering high-quality specification and finishes to meet market expectations.

Leasehold Reform

The Leasehold and Freehold Reform Act 2024 received royal assent on 24 May 2024, after being accelerated through in the ‘wash up’ following announcement of the general election. The stated intention was to strengthen leaseholder rights in England and Wales, including making it easier and cheaper to extend leases or buy freeholds.

We welcomed the government’s proposed simplification of the statutory process that governs the enfranchisement of residential leaseholds. However, the Act has introduced further complexity and added uncertainty, which is unhelpful.

It has also undermined longestablished UK property rights by proposing:

▶ the transfer of 100% marriage value to the leaseholder (currently 50/50). This one-off transfer of wealth does not impact the leasehold system but rather provides an unearned windfall for existing leaseholders.

▶ decreasing the proportion of residential accommodation to facilitate a collective claim (from 75% to 50%) undermining the management of mixed-use buildings and retail high streets. ▶ introducing complex mandatory leasebacks without regard to practical implications nor building safety management.

The reforms as they presently stand will result in a material financial loss to Cadogan and impair our ability to manage and invest in the area. We have engaged extensively with government ministers and civil servants fruitlessly and so have taken legal steps to protect our interests.

Our valuers have removed marriage value from the valuation and in line with RICS guidance, maintained a material uncertainty clause in respect of the long leasehold portfolio.

Leisure and Other

This category comprises hotels, restaurants, public houses, the growing regional commercial portfolio and a variety of other properties such as schools, cultural and artistic venues, medical uses and car parks.

Leisure and Other uses account for 15.7% of the value of the portfolio, up from 13.3% in 2023. Rental income increased by 30.3% and now accounts for 16.3% of the total portfolio, up from 13.4% in 2023.

These increases were primarily the result of further deployment of capital in the regional commercial portfolio during 2024. The Chelsea element – excluding the regional portfolio – showed a like-for-like increase in value of 1.4%.

The regional commercial portfolio grew in 2024, due to eight acquisitions amounting to £145.2m. These purchases increased the total value to £369.1m across 24 property assets. The diversified portfolio largely comprises logistics, industrial and retail warehouse assets, geographically spread across the country. This is a central part of the strategy to fund the 10-year inheritance tax charge levied on the trusts that ultimately own the business. For this reason, we intend to continue to grow this portfolio over coming years subject to market conditions.

Consumer tastes have evolved and demand has increased for experiences which go beyond shopping and provide moments

to enjoy and remember. One way of delivering these is by providing an eclectic, distinguishable and inclusive food and drink offering in Chelsea.

Over the last five years, the number of food and drink locations (including those in development) has increased by 70% from 33 to 56. These include an exciting rooftop bar and restaurant at The Gaumont; a new flagship restaurant on Sloane Square to bring a bustling Italian trattoria to Chelsea; Cafe Linea next to the Saatchi Gallery, which will offer an all-day bistro; and The Rex Rooms at 151 Club, which reinvents the famous late-night haunt.

When Partridges, the Chelsea purveyor of fine foods which has served locals for over 50 years, decided to close their doors due to wider economic pressures, we stepped in to run it and preserve this special Chelsea store. It will reopen as The Chelsea Grocer to bring it up to date and ensure it continues to serve the local community.

Our directly operated hotel portfolio has continued to progress over the past few years, achieving the aim of delivering high-quality hospitality venues with a diversity of styles and pricing and to maximise our revenues. We operate a number of boutique hotels and serviced apartment accommodation in partnership with

Above

The Cadogan Arms, King’s Road

Left

The Cadogan Hotel, managed by Belmond

Above

Artist Charlotte Colbert with her‘Tutti Frutti’ sculpture on Pavilion Road

experienced managers, these include The Cadogan, a Belmond Hotel, Beaverbrook Town House and No. 11 Cadogan Gardens.

The newest luxury hotel ‘At Sloane’ at 1 Sloane Gardens, was launched following a painstaking redevelopment including an exquisite interior design by Francois Graff. It is run by the feted French hotelier Jean-Louis Costes and is his first hotel outside France. The hotel, restaurant and bar are growing in popularity as their reputation percolates amongst the fashionable, voguish and cool of London, and it has received critical acclaim across Europe. We acquired the Draycott Hotel and re-christened it as ‘The Chelsea Townhouse’ following an extensive refresh. This business is growing under the management of our partner Iconic Luxury Hotels, who also operate No. 11 Cadogan Gardens on our behalf, and won Condé Nast Traveller’s Readers’ Choice Award only one year after opening.

Leisure uses include cultural establishments such as Cadogan Hall, the Saatchi Gallery and Royal Court Theatre, which contribute to the identity and character of Chelsea while collectively attracting thousands of visitors, ensuring that Chelsea’s cultural heritage is celebrated and remains at the forefront of the London culture and arts scene. Similarly, schools and doctors’ and dentists’ surgeries are intrinsic to the Chelsea community and as such we aim to protect and retain them.

The Gingerbread City at The Gaumont

Chelsea Grocer at Duke of York Square

Developments

We are constantly investing in upgrading the Estate through maintenance, restoration, refurbishment and redevelopment activities.

This enables us to enhance the wider environment and deliver homes and business space that meet the needs of our customers and contribute to Chelsea being a beautiful place where people want to live, work and visit.

Our aim is to be exemplary in the way in which we consult and engage, because it is crucial to understand local views and keep the community informed. Through this approach, we build trust and adapt and respond to the changing needs of society, customers and markets. This helps to ensure the area remains relevant and desirable to both residents and visitors, now and for the future.

In 2024 we invested £64.6m (£74.0m in 2023) in development and refurbishment projects including:

▶ Sloane Street public realm transformation in partnership with the Royal Borough of Kensington and Chelsea – this £46m scheme achieved practical completion in 2024.

▶ 30–33 Sloane Street – a £171m mixed-use development which includes Sloane Street flagship retail units, new top-quality office space and a rooftop restaurant with fabulous views. Due to be completed in 2027, this scheme will set a new benchmark for the street.

▶ 51 – 52 Sloane Street – delivering a ground-floor restaurant and retail boutique with modernspecification offices behind a restored red-brick period facade.

Sloane Street’s Public Realm transformation by John McAslan is now complete. The pavements have been widened and repaved with traditional Yorkstone, extensive greening introduced with over 100 new trees, beautifully landscaped by award-winning Chelsea landscape architect Andy Sturgeon, and elegant street furniture including bespoke heritage-inspired lamp columns throughout the street.

The result is a dramatically improved public realm which offers residents, visitors and businesses an exceptional experience, supporting our luxury brands on Sloane Street by attracting more visitors for longer, introducing enhanced security and easing the impact of vehicular traffic.

A total of 18 projects were completed during 2024, including the refurbishment

of The Chelsea Townhouse and the fit-out of commercial and retail areas of The Gaumont, the 220,000 sq. ft redevelopment on the King’s Road. The development pipeline at the end of 2024 comprised 62 projects, eight of which were under construction. The overall pipeline of expenditure was £430m.

As long-term stewards aspiring to be the most trusted local developer, we consult widely and communicate extensively with our neighbours and stakeholders to understand their views and where possible to adapt to their concerns. We give painstaking consideration to design quality and materials and seek to appoint the best consultants and contractors to maintain exacting standards and create buildings that stand the test of time.

‘As we aim to make and keep our Borough’s streets the best in London, the

new

and

improved

Sloane Street is the

standout example in our amazing spaces programme. This corner of Chelsea has always been very special – with a shopping experience to rival Paris and New York. Now it is even better, with spacious pavements and beautiful greenery creating a street that makes you want to stick around and enjoy the area.’ – Councillor Elizabeth Campbell, Leader of the Royal Borough of Kensington and Chelsea

Financial Review

The year-on-year increase in gross rental income reflects a number of favourable factors.

With lettings activity across all sectors continuing a strong run from 2023, we benefited from the full-year effect of lettings and RPI-indexed increases agreed in the previous year, as well as lettings at rents above ERV and RPI-linked rent reviews in 2024.

Acquisitions of properties at a total cost of £167.4m, of which £145.2m was in our regional portfolio, also brought incremental income in the year. Rent collections averaged over 99% for commercial occupiers and 98% for residential tenancies.

The 11.8% growth in turnover reflects both an underlying improvement in gross rental income and an increase in income from hotels, serviced apartments and Cadogan Hall, which grew to £20.1m (2023: £11.8m), reflecting the full-year income from the two new hotels which opened in 2023, The Chelsea Townhouse and At Sloane.

Operating profit before capital items increased by 16.6% to £140.2m (2023: £120.3m). The conversion of income growth to a higher percentage

increase in operating profit was achieved by holding property expenses and administration costs at a similar level to the previous year despite the operational costs of the two new hotels.

Property expenses have been elevated over the past three years mainly due to expenditure on the Sloane Street public realm project, which is all expensed and completed in December 2024. In total across the whole of 2024, we expensed £13.1m on public realm projects across the Estate (2023: £9.2m).

The profit from the sale of investment properties in 2024, which includes profits from leasehold enfranchisements, contributed £7.4m from net proceeds of £40.7m compared to £15.1m in 2023 from net proceeds of £88.6m. There was a lower number of transactions completed at 40, compared to 71 in 2023, comprising 25 leasehold enfranchisements and 15 sales of residential properties.

The consolidated income statement reflects the movement on the annual revaluation of the investment property portfolio. All categories apart from residential (lower by 1.2% on a like-for-like basis) increased in value during the year resulting in a net revaluation gain of £73.2m (2023: gain of £157.0m).

Turnover increased 11.8% to £241.4m (2023 – £216.0m)

Trading Highlights

Residential disposal and enfranchisement proceeds decreased to £40.7m (2023 – £88.6m)

Decrease of 54.0%

Gross rental income increased 8.5% to £213.7m (2023 – £197.0m)

Operating profit before capital items increased to £140.2m (2023 – £120.3m)

Increase of 16.6%

Gain on revaluation of investment properties £73.2m (2023 – Gain of £157.0m)

Increase of 1.3% in capital values on a like-for-like basis

Profit on disposals and enfranchisement sales decrease to £7.4m (2023 – £15.1m)

Profit on ordinary activities before taxation (including revaluation gains) of £178.2m (2023 – £253.0m)

Stuart Wetherly Finance Director

The charge for current taxation in the year was £23.0m, a decrease of £0.3m compared to 2023, despite the increase in operating profit. The primary reason for the decrease is a lower gain chargeable to corporation tax in 2024 from the sale of investment properties. The overall figure for taxation in the income statement for 2024 was a charge of £42.8m (2023: charge of £67.0m). The reduction is due mainly to a lower deferred tax charge in 2024 on a lower revaluation gain compared to the previous year.

The dividend paid to shareholders in December 2024 was £46.7m. A significant proportion of our annual dividends is set aside by the major shareholder to provide funds for 10-yearly IHT charges, the next charge being due for payment in 2032. A further portion of the dividend (4.15%) is paid to a charitable trust set up by the Cadogan family which uses the funds to make charitable donations.

Cadogan is mindful of its tax obligations and is liable for, and collects on behalf of HMRC, various taxes in its operations. The table below shows the tax paid by Cadogan and that collected and remitted to HMRC by Cadogan. As in previous years, the tax collected is significantly greater than the direct tax charge shown in our accounts, demonstrating our wider contribution to the UK economy.

In addition to the tax set out in the table, Cadogan Group’s dividends flow through to several family trusts and are (save in the case of a charitable trust) subject to income tax. Furthermore, a substantial proportion of the dividend is used to provide for the 10-yearly charge to IHT in relation to certain of the trust assets. In the case of the principal trust, it paid the latest 10-yearly charge in 2022 where the total dividends required by the family trusts from Cadogan to pay the IHT charge due amounted to £210m.

The next 10-yearly charge is due in 2032 and is expected to be higher as it is based on the value of the assets held by the group, which is forecast to increase over the period. The family trusts have already started to put funds aside from Cadogan Group dividends in anticipation of this.

Balance Sheets and Borrowings

The value of our properties at the end of 2024 was £5.67bn (2023: £5.42bn), an increase on a like-for-like basis of 1.3%. Consequently, Group shareholders’ funds increased to £3.67bn from £3.58bn. Net assets per share grew to £30.62 from £29.87, an increase of 2.5%.

The Leasehold and Freehold Reform Bill 2023 passed by Parliament in 2024 potentially affects our long leasehold portfolio valued at £301m, 5.5% of total property value. As was the case in 2023, our residential property valuers have included a material uncertainty clause in their valuation report which is in line with RICS guidance given the uncertainty relating to the impact of the enacted legislation (see note 11 in the notes to the financial statements).

Cash inflow from the Group’s operating activities rose to £126.3m (2023: £110.3m), reflecting the increase in operating profits.

Year-end borrowings, excluding cash of £3.8m (2023: £6.2m), increased during 2024 from £912.7m to £1,040.9m. At the year end, £153m of the £350m revolving credit facility (RCF) was drawn (2023: £70m of £350m drawn). There were loan repayments in the year totalling £4.0m. £50m was received in the year from the deferred funding on the private placements arranged in 2022. There was a decrease of £0.8m in 2024 after translating our dollar denominated borrowings at the year-end exchange rate and recognising the fair value of the related cross currency swaps.

At 31 December 2024 the average maturity of our debt was 14.5 years (2023: 15.4 years). The weighted average effective rate of interest across all drawn loans reduced from 4.31% in 2023 to 4.26%, due to the receipt of the £50m deferred private placement funds at low interest rates offset by higher drawings at the year-end on the bank RCF which is on floating rates.

There was an increase in year-end balance-sheet gearing to 28.2% from 25.3%. Gearing as measured under our loan covenants increased by 2.4% to 23.0%. Interest cover improved to 3.5 times from 3.4 times. Both ratios remain comfortably compliant with our bank and private placement financial covenants.

At the year-end there were total undrawn facilities available to the Group of £197m under RCF

arrangements. During the year we exercised one of the two 1-year extensions on the RCF, extending the expiry to September 2027.

In 2022, we arranged £300m of long-term debt from three private placement deferred loans, taking advantage of low interest rates in anticipation of projected funding requirements. £100m of this funding was drawn in December 2022 and £50m was drawn in September 2024.

Of the remaining £150m, £50m was drawn in March 2025, and a further £50m will be drawn in each of September 2025 and September 2026. The initial tranche of £100m matures in 2043 and the remaining tranches have maturities in 2060 and 2062.

Going Concern

We have undertaken a stress test with a severe but plausible downside scenario of an economic downturn beginning in the second half of 2025, to assess the potential impact on headroom for liquidity and loan covenant compliance, taking account of mitigations available. Details of the stress test are provided in the Going Concern section of the Directors’ Report on pages 54 to 55 and the conclusion is that, in the severe but plausible downside scenario modelled, we would have sufficient liquidity and satisfy all our loan covenants in 2025 and 2026.

Approach to Risk Management

Cadogan has a well-developed strategy and process for risk management. Overall responsibility lies with the Group board, which is responsible for determining the Group’s risk appetite and ensuring that the Group’s risk management system properly identifies, understands and manages all relevant risks.

The Group’s risk appetite and processes for managing risk are regularly reviewed by the board. The Finance Director, supported by the senior management team, is responsible for compiling the Risk Register, which is updated on a regular basis. The Risk Register identifies the principal risks impacting on the business and the Group’s financial position. It provides an assessment of the likelihood of the identified risks materialising and includes an estimate of the potential impact of each area of risk on the business. The Register is formally reviewed by the Board at least annually and this forms an important part of the overall risk management process. The Group also makes use of appropriate external specialists to advise on compliance with established policies and external regulations.

Cadogan is a long-term property investor with a clear focus on high-

quality property assets located in central London. Because of its private ownership and long-term outlook, the Group aims for, and is able to achieve, a high level of resilience in all areas of the business.

Cadogan assesses risk under three principal headings:

▶ Strategic risks

▶ Financial risks

▶ Operational risks

Risk Outlook

The headline rate of inflation was lower in 2024 than the elevated levels of 2022 and 2023; however, it remains above that experienced for most of the previous 10 years. 2024 saw two reductions in interest rates from the peak in 2023, but expectations over the pace and quantum of further interest rate reductions tempered in the course of the year.

UK commercial and Prime Central London residential property markets have remained relatively subdued, although Chelsea has remained robust. Demand for office space on the Estate has remained strong since the key drivers for occupiers looking for space in Chelsea are different from the large office market in the West End and City, and our vacancy levels remain low.

The abolition of tax-free shopping has reduced overseas visitor numbers

compared to other major European cities, but while our Estate has not been immune from this, Sloane Street, supported by the recently completed public realm improvements, remains a highly attractive location for luxury retailers.

In 2024, the UK’s commercial real estate market saw a rebound from 2023 with total transactional volumes up by 21%, although this remained 18% below the 10-year average[1]. We continued to take advantage of buying opportunities within our regional property portfolio, making a total of £145.2m of new acquisitions in the course of 2024.

The combination of subdued growth levels, higher cost of debt, and wage and cost inflation make for a challenging environment within the construction industry, and we remain vigilant about the financial health of our key contractors, performing increased levels of due diligence conducted both before a contract is awarded and during the term of the contract where large developments are involved.

Looking ahead, the consensus of projections for the UK economy has growth remaining at muted levels for the short to medium term and the volatile geopolitical environment continues to be a significant driver of uncertainty for the UK and global economies.

Strategic Risks

Property market risks – the risks arising from property cycles and from shorter-term unexpected changes in the market for property investment, development and occupation. Retail has been subject to structural changes for many years, most notably the impact of online transactions. These trends were accelerated by COVID-19 but have tempered in recent years with online growth in many categories stabilising or declining from the highs of the pandemic. Cadogan has a diversified asset portfolio, positioning its Estate towards luxury and distinctive retail propositions, increasing non-retail leisure and food and beverage options to enhance attractiveness and increase dwell time in the area. Cadogan led on the establishment of the first two Business Improvement Districts (BIDs) in 2021 in the Royal Borough of Kensington and Chelsea, on the King’s Road and Brompton Road. These continue to play a valuable role supporting the promotion of these areas, enhancing their vitality and attractiveness.

The move to more flexible working that spiked in the aftermath of the COVID-19 pandemic has dampened the demand for office space in the UK; however Cadogan has not experienced a reduction in office demand to date and vacancy levels remain low at less than 1%.

Most property markets are cyclical, and this is particularly true of central London. As a long-term investor the Group is less reliant than others on predicting property market cycles and aims to manage the impact of the property cycle and any other short-term fluctuations in values or activity levels by ensuring a relatively high proportion of committed long-term loan finance, planning for significant headroom against external financial covenants and high levels of available liquidity. These factors also assist the Group in managing cash flow and liquidity risks.

Leasehold Reform

The Leasehold and Freehold Reform Act 2024 will have an impact on Cadogan. The key changes of note are:

▶ The ‘abolition’ of marriage value

▶ The decrease in allowable residential space in order for a building to qualify for collective enfranchisement, from 75% to 50%

▶ On a collective claim, mandatory leasebacks of commercial units to be forced on the landlord, without compensation

We no longer reflect marriage value in our valuations, with the exception of that relating to a small number of advanced lease extension claims. However, we believe the cumulative effect of these proposals will have a significant financial impact due to

the loss of leasehold enfranchisement income but also affects our ability both to curate and to invest confidently in the Estate. We have been taking steps to increase our holdings in buildings where our ownership is less than 50% in order to protect our position on the second item.

In addition to the Bill, in 2023 the government published a consultation paper putting forward the capping of ground rents in existing residential leases of flats and houses. The consultation closed in January 2024. The government has yet to publish their findings from the consultation.

The Act provides for the Secretary of State to set the capitalisation and discount rates to be used to assess compensation (we understand the government will consult on the rates to be used during the summer 2025). The consequence of this change is presently unknown and will be implemented via secondary legislation.

In response to the Leasehold and Freehold Reform Act our valuers removed the majority of marriage value from our residential valuations and therefore the immediate visible balance-sheet impact is limited. However, the residential valuers have again included a material uncertainty clause in their valuation report on the £301m long-leasehold portfolio, which is in line with RICS guidance,

given the uncertainty of the final outcome of the implemented legislation.

Geographic concentration – the Group accepts the risks inherent in the relatively small geographic area in which the large majority of the Group’s properties are concentrated. The Group’s properties are primarily located in the Royal Borough of Kensington and Chelsea, which for many years has been an area renowned for long-term prosperity and economic resilience. The Group also seeks to balance this geographic concentration through a diversified portfolio of uses and through close attention to the balance between sectors. The largest individual property represents 4.9% of the total portfolio value and the highest individual tenant represents 3.9% of total annual rental income.

Cadogan has carefully curated its Estate over many years to create a vibrant local neighbourhood where spending is dominated by its residents and less reliant on visitor footfall. This was evidenced by the comparatively smaller reduction in footfall during the pandemic than other central London areas and the strong rebound to pre-pandemic levels thereafter.

The Group monitors and is actively involved in consultation with the Royal Borough of Kensington and Chelsea where it considers that it

could be affected by changes or developments to local planning policies. The Group is committed to close liaison with stakeholders and the community to ensure that its strategy and developments are understood externally. In addition, there are statutory and regulatory risks which are closely monitored.

Development risks – Cadogan regularly undertakes substantial development projects but carefully considers the timing to ensure that the Group’s exposure to development risk is controlled, both relative to the overall portfolio and to potentially competing schemes in the same area. Cadogan consults widely with diverse stakeholders on development schemes to ensure that schemes are designed to the highest quality and to assist in obtaining the most appropriate planning consent.

Recent years of high-cost inflation and a higher interest rate environment combine to increase the risk of contractor failure. We carry out extensive due diligence on the financial strength of contractors during the appointment process, particularly on high-value projects, and we support their cash flow by paying promptly.

Risks associated with London’s position as a global capital – London’s position as a global capital has been a significant factor in the overall prosperity of central London in recent years. There are risks to this position

from several factors, most significantly from the continuing fallout from Brexit, from terrorism, from underinvestment in infrastructure and from adverse changes to the tax regime, particularly affecting overseas investors. The Group cannot manage or control these risks, but Cadogan takes an active role in lobbying through organisations such as BusinessLDN and the British Property Federation amongst others, to ensure that the long-term health of London is at the forefront of the minds of national and local government.

COVID-19 reduced the number of international visitors to the UK, which adversely impacted retail on the Estate in the short term. This was exacerbated by the withdrawal of tax-free shopping by the Government, making the UK the only major European country that does not have a practical taxfree shopping scheme for overseas tourists. Inbound tourism has still not returned to pre-pandemic numbers unlike in some competing capital European cities, which is thought to be partially linked to this.

Financial Risks

Interest rate risk – the majority of long-term borrowings are at fixed rates of interest, either embedded in the underlying agreement or through interest rate derivatives. The board requires at least 75% of long-term debt to be fixed. The Group does not

undertake financial instrument transactions that are speculative or unrelated to trading activities, and Board approval is required for any new financial instrument. In 2021/2022, the Group took advantage of low prevailing interest rates to raise £300m of fixed-rate long-term deferred borrowing with maturity dates ranging from 2043 to 2062 to be drawn in tranches. £100m of this funding remains to be drawn over the rest of 2025 and 2026 and reduces interest rate risk on our planned investments over these years.

Inflation risk – recent years have seen elevated levels of global inflation triggered initially by the reopening of the world economy following the pandemic and then exacerbated by the conflicts in Ukraine and the Middle East. Interest rates have rebased to quell inflation, affecting the cost of debt and the economic outcome of investment decisions. Operational costs have also been affected by wage and materials inflation. Rents on most of Cadogan’s commercial and residential leases are linked to RPI, mitigating against cost inflation. On construction projects we mitigate this through design and build contracts that aim to achieve cost certainty at the outset. High inflation can help retailer profitability where they are able to pass on costs through higher pricing, providing retail occupiers, particularly luxury retailers, with a hedge against higher rents.

Refinancing risk – the Group seeks to manage refinancing risk using a spread of loan maturities. In normal circumstances loan terms, other than bank loans, are for an initial period of 10 years or more. The incidence of maturities is spread to ensure that major refinancing is spaced out over time. On 15 March 2023, the Group agreed a new £350m syndicated revolving credit facility with a 3½year term expiring in September 2026 with two 1-year extension options, the first of which has subsequently been exercised.

Foreign currencies – some of the private placings of debt which the Group has undertaken have included a significant proportion of US dollar borrowings. All exposure to US dollars in relation to both interest and capital repayments has been swapped into sterling on the date on which the loans were committed, and as a result there is no residual foreign exchange risk exposure to the Group. Operationally the Group has no foreign currency exposure.

Compliance with financial covenants – the Group has provided financial covenants to its lenders to support its unsecured borrowings. The Group’s financial position is regularly monitored against the covenant requirements to ensure that the Group has significant financial headroom and is not at risk of breaching any of the covenants. Scenario planning is used to assess the sensitivity of potential changes

to the principal financial measures which might impact the ability to meet covenant requirements.

Customer creditworthiness – Cadogan has a diverse tenant portfolio which offers some protection from tenant default. Rent collection rates have returned to pre-COVID levels and the historic levels of bad debt experienced are low. We receive turnover data from most of our retail and hospitality occupiers which we monitor to assess their performance and financial health. We carry out quarterly Experian monitoring of the commercial tenant population and our asset managers monitor businesses that are assessed as above-average risk. Credit control meetings are held twice each quarter and appropriate, timely actions agreed to ensure outstanding debt is chased and collected.

Operational Risks

Property loss and damage – all the Group’s properties are insured against loss or damage on a full reinstatement basis, including three years’ loss of rental income. Cover includes terrorism risk, which is provided by a major insurer and member of Pool Re. COVID-19 illustrated the limitations of insurance cover and highlights the importance of maintaining a strong financial position and liquidity headroom to enable the business to withstand uninsurable or unknown future events.

Health and safety risks – the Group accords a high priority to health and safety. Health and safety issues are always discussed at the monthly Operational Board meeting of senior leadership, and all incidents are reported and reviewed on a monthly basis. From time to time the Group undertakes external reviews and audits of its health and safety policies and procedures, the results of which have confirmed the quality and integrity of health and safety practices.

We have a flexible working policy, and staff are required to complete online assessments to ensure their equipment, furniture and home environment are suitable for working from home, in addition to workplace safety assessments. Mental health awareness training has been provided for staff as well as access to confidential helplines with trained professionals, and there are mental health first aiders in place.

A similar emphasis is placed on health and safety on our construction sites, with our consultants monitoring contractors’ compliance with safety rules.

Risk of energy shortages – the war in Ukraine highlighted the risk to the business and its occupiers of shortages in energy. We have back-up generators for our main site which can provide electricity for short periods of outage. Our teams are equipped to work from home for

longer periods if necessary. We have collated a list of vulnerable residential tenants to ensure that vital support can be provided to them if there are prolonged power cuts, especially during cold weather.

Climate change – climate-related risks are considered to be principal risks and their management is integrated with the overall risk management strategy. We undertake a climate risk review in line with the TCFD recommendations and the conclusions continue to inform our approach to climate risk management as part of our Chelsea 2030 strategy.

Specifically, we consider climate risks grouped into the following categories:

Physical Risk

We worked with our insurers Zurich to understand the physical risks climate change poses to our Estate, taking a building-by-building approach to modelled global risks through qualitative and quantitative scenario analysis.

We considered risk in the short term until 2030, and medium term up to 2050, with long-term information to 2100 provided for context. Climate scenarios modelled included one where global average temperature increases by under 2°C by the end of the century, and a scenario where temperatures increase by over 4 °C by 2100.

The key risks identified included an increase in precipitation potentially resulting in surface flooding, due to the capacity of drainage systems being exceeded. River flooding was also considered and two properties were identified as having a significant increase in flood risk by end of century. Properties with basements are generally more vulnerable to river and precipitation flooding, and account for over 40% of the total building value and annual rent on the Estate.

The occurrence of severe drought conditions is projected to increase by 2050 in both scenarios and its impacts include subsidence, potentially causing cracking and damage to pipes including water and gas, as well as water availability.

From the near-term out to the end of the century, heating is likely to remain an important requirement, although the number of hot days is also likely to increase over the century in both climate-change scenarios.

This physical risk is managed through both extensive consideration in new developments, and refurbishment works identified through theoretical risk assessments and actual incidents. For example, the decarbonisation plan for the Estate forecasts heating being electrified, and insulation protection provided against both extreme heat and cold.

We continue working closely with our principal insurer and external experts to support physical and transition climate risk assessments and strategies to implement mitigations.

Regulatory and Market Risk

This area considers the risk of continuing changes in environmental and climate regulation. Legislation is proactively monitored, assimilated and estate management policies adapted accordingly. Through our membership of the British Property Federation we respond to consultations, contribute to industry papers and work to shape forthcoming legislation, ensuring we can follow a compliant approach and support the country’s transition to a net zero economy.

We are also considering the risk of increasing energy and carbon pricing. Our extensive energy efficiency and carbon-reduction investment programme will deliver significant energy savings and protection against rising energy costs. Combined with proactive purchasing and exploration of other energy and carbon-offset procurement models (such as energy trading, power purchase agreements for energy and pending issuance units for carbon offsets) will mitigate energy cost and carbon pricing risk.

Social and Transitional Risk

This area includes a risk of being perceived not to be acting in the wider interests of the area and the country, which may lead to reputational damage as well as losing our social licence to operate.

We transparently report on progress and investment against our Chelsea 2030 strategy. In the process, we engage with the local council the Royal Borough of Kensington and Chelsea, and numerous stakeholders in the community.

We also consider the risks (and opportunities) from our retail occupier concentration in high fashion and luxury goods, and the fashion industry not adopting stronger ESG strategies. These risks are mitigated through our Chelsea 2030 strategy and working in partnership with occupiers and suppliers to create a more sustainable Chelsea in which brands with strong ESG strategies want to locate.

IT, telecommunications and business continuity risks – the Group ensures its IT and telecommunications systems are robust and fit for purpose, with an emphasis on the development of inherent resilience and backup capability. The Group has a detailed business continuity plan which is regularly reviewed and updated and now includes a cyber incident management response plan. The

Group undertakes regular external cyber security reviews and implements any resulting recommendations for security improvements. The group maintains Cyber Essentials Plus accreditation and staff are regularly reminded of e-mail and IT security threats and undergo rolling training on IT security throughout the year. All electronic files are stored and backed up in the Microsoft Azure Cloud. We have cyber insurance in place ostensibly to provide ready access to the best IT, legal and security expertise in the event of a cyber breach or attack.

Compliance with General Data Protection Regulations (GDPR) is embedded within the organisation, with GDPR Champions appointed for each team who undergo training every six months. New joiners are required to undergo compulsory GDPR training on joining and all staff undergo refresher training annually.

Stuart Wetherly Finance Director

2 May 2025

Our COMMUNITY

Overview

As a long-term family business, we believe that it is vital to create an equitable and thriving city for future generations. Contributing towards a flourishing and sustainable community has always been central to Cadogan’s strategy and purpose.

‘Chelsea 2030’ is our commitment to integrating sustainability into every aspect of our business. The strategy sets out ambitious environmental targets to reduce our carbon impact and to contribute to a healthier London, along with community contributions which amount to over £4.5m annually towards positive social impact, including a subsidised keyworker housing portfolio, as well as employment and skills support.

While 2024 saw strong progress towards many targets such as green infrastructure, waste management and a significant drive towards ‘green leases ’ across both our commercial and residential occupiers, reducing carbon emissions remains our most pressing and challenging area.

To ensure that our carbon reduction is genuine, it is essential that we have high-quality, consistent data across our portfolio. We have improved our data sets to ensure a consistent baseline for measurement – 92% of tenant data is now primary data, compared to c. 50% in 2023. This clarity is informing an ongoing review of our net zero pathway to ensure we are creating meaningful, long-lasting change. To do this, it has become clear that we need to work even more collaboratively with our community, as most of our carbon footprint is Scope 3 emissions – produced by

occupiers in our buildings and developments on the Estate. 2025 will see the launch of a tenant engagement campaign to accelerate our collaborative drive in energy and emissions reductions.

Creating social value lies at the heart of our commitment to a sustainable future. Our key partner in much of this philanthropic work remains The Kensington + Chelsea Foundation. Cadogan continues to be their Principal Supporter, covering the majority of the organisation’s core costs to ensure that they reach grassroots initiatives across the Borough. In 2023 – 2024, 106 local projects were supported, reaching over 23,300 of our most disadvantaged and vulnerable residents.

Cadogan Hall celebrated its 20th anniversary this year and to mark this, launched a new charitable partnership with Nucleo, who use music to empower young people, build communities and change lives. It is the only programme of its kind in England – providing instruments and all activities free of charge, they make a high-quality musical education possible for all.

This year also saw the launch of the Cadogan Community Grant Programme, in partnership with The Kensington + Chelsea Foundation.

This new initiative will support projects that foster a strong community and encourage sustainability, by bringing locals together and helping to make a difference where it matters most.

The following pages bring this work to life, reviewing our performance against ambitious targets and outlining both our successes so far and the challenges faced in achieving them:

1. Environmental Sustainability:

▶ Carbon emissions

▶ Waste

▶ Air quality

▶ Green infrastructure

2. Community Investment and Social Impact:

▶ Enhance community cohesion and improve community wellbeing

▶ Maximise local employment and skills development

3. Community Engagement and Customer Commitment

£90m decarbonisation programme

£4.5m+

community projects fund, including £1.1m annual subsidy of keyworker and community housing (£4m in 2023)

92%

customer satisfaction score, with a Net Promoter Score of 60, against an industry benchmark of 14.2 (88.6% in 2023)

Water

Environmental Sustainability: Carbon Emissions

Meeting net zero is at the heart of our environmental strategy. During 2024, our decarbonisation programme took further shape, with a focus on delivery, scale and impact.

Decarbonising the Portfolio – Ongoing Initiatives

WHOLE-BUILDING DECARBONISATION PILOT

WINDOW UPGRADES

MAJOR BOILER UPGRADES

Replacing key centralised boilers with low-carbon solutions

The table to the right shows the programme outline and demonstrates the breadth of action needed. Retrofitting buildings remains one of the most impactful interventions, and engagement with key stakeholder groups remains a critical priority: occupiers and supply chain make up a significant portion of our value chain emissions. Our engagement programmes with these key groups leverage established partnerships to influence and drive shared reductions in these indirect emission areas.

A

Data-Driven Approach

to a Low-Carbon Portfolio

The overarching principles for successfully retrofitting historic buildings are well established. In 2024, we analysed these retrofit principles in the context of Chelsea and our net

zero ambitions. We took it back to basics – counting windows and boilers across the Estate, while employing dynamic simulation modelling to test various interventions for a pilot decarbonisation project. We also deployed targeted heat and electricity metering at some of our largest heating plants, to better understand how the buildings operate and ensure more tailored and efficient retrofit solutions.

This work is laying solid foundations to deliver our £90m decarbonisation programme. This includes a programme to add secondary glazing to 6,000 windows, identifying the largest and oldest central boiler installations and progressing the replacement of the existing plant with air-source heat pumps – a change that will save 85% in carbon emissions in the lifetime of just the first phase of eight buildings (just

under 17,000 tCO2e by 2050). We further developed simple whole life cost and carbon models to get a holistic understanding of how interventions would perform over the long term.

While looking at individual buildings in detail, we are also exploring the potential for a district heating network to take an area-wide approach that could deliver low carbon heat to many buildings across the Estate.

SOLAR PV INSTALLATIONS At Cadogan Hall and Block B at Duke of York Square

DISTRICT HEATING NETWORK (DHN) FEASIBILITY

EPC UPGRADE WORKS

OCCUPIER ENGAGEMENT & BEHAVIOURAL INTERVENTIONS

The network would have the capacity to serve large buildings across the Estate, mainly on Sloane Street

All new commercial fit-outs are achieving EPC B as a minimum. For domestic units, EPC works are addressed as part of the lease event cycle and during refresh works

Energy efficiency pilot launched in Q4 2024, involving detailed energy monitoring and efficiency interventions, aiming to determine effective and replicable measures. The second stage would invite further occupiers to pledge to behavioural and low-cost actions based on pilot findings

SUPPLY CHAIN ENGAGEMENT

EMBODIED CARBON IN DEVELOPMENT

Programme involving 140 suppliers now in its third year. Well over 100 suppliers submitted their carbon footprint, and more than half have passed rigorous quality checks

All major projects undergo embodied carbon assessments and target reductions aligned with best practice

Landlord emissions, high impact: electrification will remove oil and gas emissions; the first eight installations could save 17,000 tCO2e by 2050[1]

Landlord & tenant emissions, medium impact: zero carbon electricity generated, meeting a portion of these buildings’ electricity needs

Landlord & tenant emissions, high impact: low-carbon heat provided centrally could decarbonise the Estate’s largest buildings

Tenant emissions, low to medium impact: EPCs and Net Zero alignment is complex but their basic principles are complementary. In 2024 commercial A–B rated EPCs increased to 40% (2023: 31%), and residential A–C ratings increased to 79% (2023: 75%)

Tenant emissions, low to medium impact: low- and no-cost interventions can lead to approximately 10% energy cost reductions[2]. Given the size of tenant emissions (around one third of total), this reduction could have a sizeable impact

Supply chain emissions, high impact: with high dependence on third parties and industry maturity

Development emissions, high impact: with high dependence on market maturity and product availability

1 Accounting for the decarbonisation of the grid in accordance with UK Government projections as of August 2024

2 The Carbon Trust, The business case for energy efficiency

Spotlight on Data – Carbon and Energy

Streamlined Energy and Carbon Reporting

* Historical data has been restated where new, more accurate data has been obtained. Refer to the Methodology section for more information + We have obtained limited assurance on 2024 Scope 1 and 2 Greenhouse Gas emissions and associated landlord energy consumption (metrics identified with a + on the table) Energy relating to transport (including business travel) is very low and therefore excluded from the table above, but

in our

carbon footprint (Emissions Data)

Renewable Energy Generation

Following the installation of solar photovoltaic (PV) panels on our headquarters in Duke of York Square (which generated over 65 MWh in 2024), we progressed further installations on two of our largest roofs: a 120-panel array on a residential block in Duke of York Square and a 240-panel array on the historic Cadogan Hall. Both installations have now received planning permission and works are due to be completed in 2025.

MEES Compliance and Green Leases

As a result of the targeted campaign to improve the energy efficiency of our buildings and our wider decarbonisation approach, our EPC A–B ratings have risen from 31% to 40% of commercial premises, while A–C ratings for residential have also risen from 75% to 79%.

Over 80% of Cadogan’s commercial leases are now ‘green leases’ (70% in 2023), with tenant-landlord collaboration at their heart and a future-proofing requirement for premises to achieve an EPC rating of B or better. First deployed in 2015, there are now more than 350 green leases across our commercial

portfolio. We have also more recently introduced green lease clauses in our residential tenancy agreements, with just under a quarter of tenancies now featuring these.

Data Collection Improvements

First introduced in 2023, our approach to occupier data collection through the energy database was completed in 2024 and resulted in just under 92% actual tenant emission data (previously calculated using industry benchmarks). This compares to less than 1% in 2019, a statistic that demonstrates the progress in this area and with it the level of confidence we can now have on our data.

Given this fundamental change in methodology, to enable a meaningful comparison over the years we are now evaluating how best to address historic tenant emissions and how that impacts our Net Zero Pathway.

Right Pavilion Road

Emissions Data

Scope 1 and 2 Landlord emissions represent those under our direct control and include fuel that we procure directly. These have reduced by approximately 2.5% compared to the previous year and are 10.5% below the 2019 baseline. The reduction translates to a small decrease in overall energy (gas and electricity) procured directly. Building energy intensity slightly increased from 175 to 176 and remains 5.4% below the baseline year.

In terms of Scope 3, a key contributor is occupier operations – where we have a varying level of influence and associated timelines. With increased confidence in our energy data set, we can now better target interventions to the appropriate portion of emissions. Carving and disaggregating our carbon footprint in more detail enables us to focus on impact – and a key parameter to that is the level of control over the emission category.

Emissions from buildings with long leases[3] will be a long-term target, with the short- and medium-term focus being on those where lease events and ongoing occupier interactions enable interventions. While total tenant emissions show an increase year on year, the growth of the Cadogan Income Fund (67% by property valuation) accounts for 1,365 tCO2e of the 2024 total (long leases excluded). When excluding emissions associated with planned

growth, we are seeing a decrease of 1.7% in total tenant emissions (and 5% when excluding long leases).

In terms of consumption, when excluding long leases, there is a decrease in gas and increase in electrical consumption, a trend which aligns with electrification of heat. However, drawing any conclusions from these comparisons must be done with caution: the source of tenant energy data has changed in 2024, meaning that year-on-year comparisons may be less informative when trying to explain trends.

Total emissions from development projects and purchased goods and services were approximately 28,300 tCO2e, higher than in 2023, reflecting additional investment in regeneration and construction works.

Case Study: Cygnet House – A pilot project for the delivery of practical building retrofit

Cygnet House is an early 20th century building comprising 29 apartments on the King’s Road. Its current oil boiler must be replaced to meet operational and sustainability goals – and with external redecorations and roof works scheduled over the same timeline, it provides an ideal pilot project for a whole-building decarbonisation approach.

A building energy model was developed that allowed simulation of various retrofit options. A whole life cost and carbon calculation was undertaken for windows (reviewing double and secondary glazing), while options for replacing the oil boiler included air-source heat pumps (AHSP) and direct electric heaters, rather than the standard practice of a gas boiler.

The combination of energy, cost and carbon models for windows enabled us to take a holistic view – the analysis indicated that secondary glazing is the most effective intervention for the building.

In terms of heating, AHSP were optimal from a carbon perspective but carry the highest installation costs. As energy is metred in the building, ASHP is the preferred solution to help bring costs down for the building. Installation is planned for summer 2025.

All works will be carried out with tenants in-situ, requiring careful planning of strip-out and installation works, with temporary heat sources in place to ensure comfort and continuity for residents. The combination of secondary glazing and ASHP will reduce the energy consumption in the building by around 60% and result in over 70% reduction in the building’s CO2 emissions in just the first year of operation.

Case Study: Window Upgrades at Scale

It has been a priority to accelerate window improvement works to improve the thermal performance of our buildings and prepare for lowcarbon heating solutions. The size of the challenge was assessed through a residential window count that totalled just under 9,000 windows across the Estate. Of those, almost 6,000 presented opportunity for interventions to improve thermal performance.

In parallel, we established the most appropriate intervention to deploy at this scale: replacing existing windows with new, double-glazed units or adding secondary glazing to existing windows. After considering several parameters including energy use reduction, installation and maintenance cost, constructability and speed of deployment, heritage constraints and the condition of the existing windows, we concluded that secondary glazing is the optimal solution to deploy at scale and speed. Buildings have now been grouped into a phased programme to be delivered over the next five years.

Case Study: Central Boiler Installations

Removing gas from landlord installations is one of the most impactful and direct interventions. In 2024, we selected the first cohort of eight buildings and conducted feasibility and technical design to quickly reduce their carbon emissions through the installation of low-carbon heating solutions. It has been identified that an 85% reduction in carbon emissions can be achieved over a system lifetime up to 2050, a total of close to 17,000 tCO2e.

To evaluate optimal low-carbon solutions, we compared a number of alternatives, including replacement of gas boilers. The resulting reductions in emissions, installation costs and future fuel costs were all considered to select the best solution for each building. The results support the well-established industry fact that air-source heat pumps will outperform other electric solutions from a carbon and energy perspective. Design work also underlines the importance of actual energy data. We fit meters to show how heating, hot water and electricity is being used, enabling designers to refine sizing assumptions and develop bespoke solutions that reflect the actual needs of the building and its occupants, resulting in lower upfront installation costs, longterm energy savings and contribute to lower embodied carbon emissions over the long term.

Case Study: Supplier Engagement and Use of Technology

Our suppliers remain key stakeholders. We have invested in upskilling and supporting SME suppliers with their emission measurements through a programme of workshops and a dedicated learning framework. In 2024, we continued to support this group through offering an easy-to-use platform that can accurately measure, track and report supply chain emissions. This tool also enables suppliers to calculate their carbon footprint[4], harnessing AI technology to categorise each spend line to the most appropriate emissions category. The platform also provides a database of emissions reduction ideas and the ability to calculate and track science-aligned emission reduction targets.

In 2024, over 100 suppliers directly submitted their emissions data, helping us together to reduce our collective carbon footprint while making a meaningful contribution towards addressing the skills gap in the wider industry.

‘Thank you for all your support on this. We really do appreciate this carbon initiative. Without you we would be floundering around with desire and no action.’ Hub Property Care

Left Aerial view of Sloane Street, Knightsbridge and beyond

Water

Environmental Sustainability: Waste

Waste remains a key focus and a fundamental consideration for our occupiers. In 2024 we continued to invest resources into supporting our occupiers with our shared recycling targets, and construction projects continued to meet high standards in waste reduction and management.

Operational Waste

Waste generated by our occupiers’ operations at Duke of York Square and Pavilion Road accounts for over half our commercial operational waste by weight[5]. These areas have therefore been the focus of an intensified waste-reduction engagement programme in 2024. This includes quarterly waste audits to identify common issues causing contamination and reducing the recycling rate. Following each waste audit, we meet with occupiers in-store to review outcomes and individual actions with them.

A survey conducted during ‘Recycling Week’ helped us to identify key

opportunities to improve recycling rates, clearly indicating the need for further staff training (particularly cleaning staff), as well as bin signage and placement. The annual recycling rate has remained stable at Duke of York Square at 40%, however we have seen two positive trends: a small (1%) reduction in the overall amount of waste and a 30% increase in the volume of food recycling. At Pavilion Road, the recycling rate has also stayed relatively static (51% 2023 vs 50% 2024), however the data shows a significant drop in overall weight of waste, from 778.3 to 599.5 tonnes. This is partly due to improved data quality, as we have moved from estimated data to actual data, with trucks now using innovative weighing technology.

5

TARGET

Zero non-hazardous waste to landfill and majority recycling or reuse

Construction Waste

Our recycling rate remained stable at 94% (with a further 1% reused), outperforming our 90% target. In 2024, we trialled a reuse platform and delivered training to key contractors to help improve their fit-out environmental reporting data. As with operational waste, this strengthens the quality and robustness of our construction data set. Our construction and fit-out waste has dropped by 20% in 2024 (6,656 vs 5,336 tonnes), largely due to the stages of various projects reaching completion.

Case Study: Weekly market at Duke of York Square

In Autumn 2024 we trialled food waste bins at the Saturday Market, a food market held in Duke of York Square which attracts around 10,000 visitors each week. The trial showed high contamination in the public-facing bins, while trader bins were used well. In 2025 we will focus on introducing further recycling streams to the market, while simultaneously working to ensure that the public-facing contamination stays low enough for this to be viable.

Left The Duke of York Square Saturday Market

themed Easter Market

Duke of York Square

Water

Environmental Sustainability: Air Quality

To improve monitoring and contribute to greater understanding of air quality patterns, causes and improvements in London, Cadogan continues to sponsor two air quality monitoring stations located at Sloane Street and Sloane Square as part of the BreatheLondon network.

Data collected by this sensor network monitors PM2.5 particulate matter and Nitrogen Oxide levels is made publicly available and contributes to the Royal Borough of Kensington and Chelsea (RBKC)’s Air Quality Action Plan.

Contributing to Pollution Removal

2024 marked the completion of the Sloane Street public realm project which included the planting of 105 trees along with significant climateresistant planting at ground level. ‘i-Tree Eco’[6] was used to compare the ecosystem service benefits associated with this project, with air pollution removal one of the key metrics[7].

The analysis shows positive pollution interception and removal, which will increase 33% immediately following project completion and 300% at the 30-year mark (measured as kg air pollution removed/year). This is especially important given the location within an Air Quality Management Area (AQMA) and ensures that the greening of the site aligns with the Council’s Green Plans to improve air quality in the Borough.

Supplier consolidation, zeroemission transport and EV charging infrastructure

Left

Artist Amy Jackson’s living sculpture on Sloane Square

Water

Environmental Sustainability: Green Infrastructure

The Estate is situated in one of the most heavily urbanised areas of London. Faced with increasing urbanisation putting pressure on local natural ecosystems, Cadogan is seeking to redress this balance through considered and informed planting and green infrastructure management.

2024 saw a 17% increase in our urban greening factor from the baseline (2023: 13%), largely achieved through our Sloane Street transformation project which has created a stunning green boulevard spanning from Knightsbridge to Sloane Square, with a diverse and climate-resilient mix of flowers, shrubs and over 100 additional trees. The planting scheme, delivered in partnership with RBKC and designed by multiple RHS Chelsea Flower Show award winner Andy Sturgeon, is not only beautiful, but also delivers significant biodiversity gains.

Modelling shows that the scheme delivered a 175% improvement using the Statutory Biodiversity metric (SBM), successfully increasing the number of biodiverse habitats on site.

In particular, the additional trees (increased from 39 to 141), saw tree cover increase by 51%, predicted to rise further by 214% in 30 years’ time as the trees mature.

In addition, an assessment of the natural capital value of ecosystem services[8] showed impressive uplifts of over 100%. The largest gains were delivered in relation to water availability (+300%), water quality regulation (+225%), erosion protection and flood regulation (both +200%). The scheme has also boosted climate change mitigation through

improving carbon stock by 67%, and a 44% boost to carbon sequestration, forecasted to rise further to 631% by the thirtieth year. Finally, the street greening also improves air quality and provides a 33% increase in pollution removal value.

The significant street greening will generate both short- and long-term benefits and is a proactive step towards tackling biodiversity decline and enhancing the climate resilience of our portfolio.

The report concludes that ‘Cadogan is positioning itself as a champion for a more sustainable future for RBKC and London more widely’[9] .

‘As we aim to make and keep our borough’s streets the best in London, the new and improved Sloane Street is the standout example. This corner of Chelsea has always been very special – with a shopping experience to rival Paris and New York. Now it is even better, with spacious pavements and beautiful greenery creating a street that makes you want to stick around and enjoy the area. We are fortunate to have Cadogan as a partner, working with the Council to make these improvements happen.’ – Cllr Elizabeth Campbell, Leader of Royal Borough of Kensington and Chelsea

Water Enhance Community Cohesion and Improve Community Wellbeing

‘The Kensington + Chelsea Foundation has unparalleled knowledge about issues affecting local people and grassroots charities that address them. Working together enables us all to make a bigger difference and reach those who need it most.’ – Hugh Seaborn

Despite being a highly affluent borough, nearly 1 in 4 (23%) of Kensington and Chelsea neighbourhoods are amongst the poorest in England and Wales. We share The Kensington + Chelsea Foundation’s vision of a borough where everyone has the opportunity to live happy, healthy, fulfilled lives and support their mission to tackle the most vital issues in the community around education, health and employment.

The Foundation remains our key partner in much of this philanthropic work. Cadogan continues to be their Principal Supporter, covering the majority of core costs and has donated £1.25m since 2011 to ensure that they reach grassroots initiatives across the Borough. In 2023–2024, 106 local projects were supported, reaching 23,300 disadvantaged and vulnerable residents.

Launch of the Cadogan Community Grant Programme

In September 2024, we launched the Cadogan Community Grant. This supports local projects which foster a thriving community and a sustainable environment in Chelsea, awarded to organisations based in our geographical focus area (see right) which demonstrate a clear understanding of the issues facing the local community and deliver programmes that address them.

The Grant will be awarded twice annually to reach £30,000 donated each year, ensuring both longterm security and impact.

Applications are considered by The Kensington + Chelsea Foundation, representatives from Cadogan, feedback from local authorities and key members of the community. The first round of funding was awarded in January 2025.

Right

Community Housing

Cadogan commits over £1.1 million each year to subsidise affordable, community and keyworker housing. This ensures that many people, including local teachers, nurses and police officers, can afford to live at the heart of the community to which they make a valuable contribution.

St Giles Trust SOS

Careworker

Cadogan has funded a dedicated caseworker through the St Giles ‘SOS Programme’ since 2020. This charity uses expertise and real-life past experiences to empower and engage people held back by poverty, exploited, dealing with addiction or mental health problems, or caught up in crime. Over the past year, this caseworker has provided intensive mentoring and support to help young

people move away from criminal exploitation, serious youth violence and criminal activity.

In 2024, he worked with 21 children and young people (the majority aged 16–24), directing them to re-engage with education and improve their relationships and wellbeing. His intensive mentoring, guidance and support has enhanced young people’s feeling of safety, reduced their levels of risk and increased community safety:

▶ 97% of clients are at reduced risk*

▶ 15 re-engaged in education or upskilled in training

▶ 10 were supported with job searches and training opportunities

* at case closure as measured by professional judgement, risk/closing assessments and self-evaluation

Case Study: Jay’s* Story

‘I am over the moon with my home, as it allows me to live in the borough that I work in. Without Cadogan, I wouldn’t be able to afford to live here. Their key-worker housing makes a big difference to people who work in healthcare. I appreciate what they do for us.’ – Nurse at Chelsea & Westminster Hospital

Jay was 13 when he was referred to the caseworker, following an incident in which he was subject to a serious assault by six older boys. Jay had been exploited by these older boys, who had given him vapes to sell and were now demanding money and threatening violence if he did not comply. As well as understanding his exploitation, the St Giles Trust SOS caseworker identified that Jay had low self-esteem and confidence, which meant he struggled to stay focused in school despite a keen interest in science.

Since October 2024, alongside weekly sessions with his caseworker, Jay has had frequent sessions with his mentor,

who helps him to stay engaged in constructive activities, giving him consistent support and a positive role model. He also has weekly boxing sessions, helping him manage stress, build self-discipline, and channel his energy positively. The caseworker has ensured a holistic co-ordination of support for Jay, with regular meetings with his mum and school staff to identify concerns and help to manage his behaviour.

Jay’s confidence has significantly increased as a result of the activities, and while he continues to exhibit some defiant behaviour, he is continuing to work together with his caseworker to stay on track for the long term.

*Client name changed to protect anonymity

Right

Keeping the community connected

Accessibility and Public Realm

Cadogan focuses on creating healthy spaces and supporting community wellbeing – we are committed to high standards of accessibility and inclusivity. We believe that the space between buildings is as important as the property itself and investing in high-quality public space is vital to the wellbeing of community. 2024 saw the completion of Sloane Street as a greener ‘boulevard’ from Knightsbridge to Sloane Square, the creation of Chelsea Manor Street as a new destination focused on delivering creative uses for the local area as well as planning approved to create a new public area at Duke of York Square.

In 2024, Cadogan created opportunities for hundreds of people to take part in activities benefiting their health, including school and community use of the Duke of York Square running track with sports days, running clubs, yoga and walking tours.

In partnership with AccessAble, one of the UK’s leading providers in accessibility information, we offer detailed access guides to each of our destinations, making crucial information available to visitors so that they can ensure a safe and enjoyable visit to Chelsea.

Cadogan Hall

2024 marked the 20th anniversary of Cadogan Hall. Cadogan transformed a disused place of worship into a world-class music venue, to create a community gathering place, safeguard a characterful Listed building and celebrate Chelsea’s artistic and musical heritage. We continue to subsidise the maintenance and running of what is now one of London’s leading concert venues and home to the Royal Philharmonic Orchestra, as well as a lively programme of theatre and debate.

This year saw the Hall announce a charitable partnership with Nucleo, a charity dedicated to empowering young people through collective music-making. It is the only programme of its kind in England – a free, immersive, ensemblebased after-school programme for students aged up to 20. Providing instruments and all activities free of charge, they make a high-quality musical education possible for all, with 51% living in the poorest 20% of neighbourhoods nationally. Nucleo offers children and young people the opportunity not only to learn music, but also to develop the learning and life skills that playing an instrument can offer, and to build lifelong friendships by growing up as part of a strong, connected musical community.

‘We had been seeking to establish a charitable partner and upon discovering Nucleo, it became immediately apparent that our shared values, aspirations and commitment to community were perfectly aligned. We look forward to playing our part in supporting Nucleo, its ambitions and the tremendous work they do.’ – Adam McGinlay, Managing Director of Cadogan Hall

Opposite Yoga at Duke of York Square

Left

The Nucleo Project, Cadogan Hall’s charity partner

The Cadogan Charity

As a shareholder of the business, the Cadogan Charity receives 4.15% of Cadogan’s dividends, totalling over £1.9m in 2024.

The Cadogan Charity is managed by the Cadogan family and chaired by Lord Cadogan, separately from business operations, and has continued to grant donations to both local and national charities of in excess of £13m over the last five years – to causes including London’s Air Ambulance service, The Children’s Trust, Glassdoor, The King’s Trust and Alzheimer’s UK, in addition to cultural icons such as the Saatchi Gallery and Royal Hospital. The family also supports and chairs the London Playing Fields Foundation, which transforms lives through sport and physical activity by protecting and promoting London’s playing fields, running social inclusion projects and directly managing several grounds across the capital.

Chelsea Heritage Quarter

The Chelsea Heritage Quarter is London’s newest heritage destination. It launched in 2024 as a close collaboration by The National Army Museum, the Royal Hospital, Chelsea Physic Garden and Cadogan. It brings together these four remarkable

institutions to tell a unique story of London and Britain from 1660 to the present day. Including magnificent architecture, military history and London’s oldest botanic garden, the Quarter presents a fascinating and wide-ranging experience for those interested in exploring Britain’s history. The partners look forward to co-programming activities and events for visitors throughout the year and contributing to a Chelsea that is creative, vibrant and enjoyable for all. The Chelsea History Festival will be their flagship annual event each September.

‘The Chelsea Heritage Quarter is one of the UK’s most remarkable and fascinating heritage destinations, which tells a unique story of London and Britain from 1660 to the present day. Chelsea is a vibrant, exciting and picturesque neighbourhood with a fascinating history and we are delighted to be able to further highlight the breadth of heritage here through this new collaboration.’ – Hugh Seaborn

Community Events Programme

Our programme of over 60 complimentary events for the community this year was enjoyed by thousands of people and included Chelsea Dog Day, the Chelsea in Bloom floral festival, London Fashion Week celebrations, a weekly food market and running club. The Chelsea Christmas Lights switch-on saw the King’s Road part-pedestrianised for a spectacular day which welcomed thousands for an afternoon of enchanting entertainment, culminating in a 360-degree explosion of lights and music. Organised by Cadogan, the day was busier than ever, seeing a footfall uplift of over 58%, while the event raised profile and funds for The Kensington + Chelsea Foundation. The Chelsea Awards returned to the Royal Hospital, to recognise and celebrate those who contribute so greatly to Chelsea’s unique character, with hundreds gathering to see awards for categories including ‘Only in Chelsea’ (awarded to the Saatchi Gallery) and ‘Cultural Champion’ (won by Green & Stone). Cadogan is also principal sponsor of The Chelsea History Festival, which aims to entertain, educate and inspire through local, national and global history and the Chelsea Art Society’s Summer Exhibition.

The Chelsea Awards at The Royal Hospital

Dog Day

The Chelsea History Festival

Case Study: Place2Be

Carol Concert at Holy Trinity Church

Cadogan partnered with Place2Be once more, to raise funds for vital mental health support for children and young people across the UK. The annual carol concert, held at local Holy Trinity Church, Sloane Square, saw a cast of incredible performers and artists –including actor Simon Callow and mezzo Soprano Laura Wright – along with primary school children create a sparkling evening which raised a phenomenal £100,000 to support the vital work.

Case Study: Chelsea in Bloom

With this year’s ‘Floral Feasts’ theme, Chelsea in Bloom welcomed joyous floral installations throughout the neighbourhood and saw the highest levels of footfall ever recorded. London’s largest free flower festival is organised by Cadogan, in collaboration with the RHS.

From a giant interactive ‘Very Hungry Caterpillar’ in Sloane Square to Winnie the Pooh picnicking with friends on Royal Avenue, 115 incredible displays enticed visitors to explore the florally adorned stores, hotels and restaurants. This year, charity partners included The Felix Project, for whom we raised funds through sales of a limitededition t-shirt, and not-for-profit Confetti Club, who recycle petals to create confetti with proceeds going to Cancer Research.

Case study: Glassdoor Big Sleep Out at Duke of York Square

Rough sleeping in London is at its highest levels since records began. Cadogan once more hosted the ‘Big Sleep Out’ in 2024 to support local charity Glassdoor, providing targeted and long-term transitional help for the homeless. This one night in October alone raised over £66,000 for the charity.

Glassdoor provides year-round advice through a team of expert caseworkers and co-ordinates London’s largest emergency winter shelter network. They save lives and create a route out of homelessness for good. Over the past 12 months, the need for Glassdoor’s services has surged, with a 30% increase in the number of people accessing its caseworkers for support. Last winter, there was an 80% increase in demand for a space at its emergency winter shelters.

Place2Be Carol Concert at Holy Trinity Below

Central display on Sloane Square as part of Chelsea In Bloom ‘Floral Feasts’

Right Glassdoor Sleepout at Duke of York Square

Water Maximise Local Employment and Skills Development

The Royal Borough of Kensington and Chelsea contains one of the most diverse communities in the country, with the wealth and outcomes gap widening even further in the past two years[10].

The number of residents in the Borough claiming in-work benefits increased from 2,139 people in 2020 to 3,125 in 2023, a significant rise of 46%[11]. 5,100 RBKC residents are not in employment yet wanting to work (2023: 5,500)[12], and this has driven our decision to continue to invest in supporting local skills development and recruitment.

Employment

Opportunities

Co-ordinator

In 2020, we created the role of Employment Opportunities Coordinator (EOC) – jointly funded in partnership with RBKC. This role is dedicated to working proactively with local businesses to support their recruitment requirements, while simultaneously creating employment opportunities for local residents.

This work focuses on residents in marginalised communities, young people and the long-term unemployed. Outreach is undertaken in some of the most deprived areas of

the Borough, such as the World’s End Estate, meaning that the EOC has developed a deep understanding of the barriers into work faced by residents most in need and how these can be overcome. This entails working with businesses to identify and support their recruitment needs, while sourcing, screening and preparing candidates for local positions, and delivering recruitment and training activities and events to connect residents with potential roles.

In 2024, the programme worked with over 100 employers and approximately 200 local residents, assisting them with their job goals, CV development and preparation for interviews. Of these, over 70 candidates were submitted for roles, 27 of whom were successful in securing a role at employers such as Balibaris, OSKA and Jigsaw. 70% had previously been longterm unemployed – meaning these placements could have a lifechanging impact.

This brings the total number of residents employed via the EOC to 66 over the last two years, over a third of whom are still employed in the same position.

Pathways to Property

Pathways to Property has had a considerable impact on raising awareness of careers in property and supporting young people from diverse backgrounds who aspire to enter the industry. Cadogan has been supporting the programme since 2016, helping young people from across the country learn more about the property industry and the opportunities available to them. In 2024, Cadogan’s contribution has directly supported:

▶ 6 participants at Summer School

▶ 4 participants at an Insight Day

▶ 2 work experience bursaries

▶ 61 students engaged at a school event

Each summer, we offer work experience and guidance to young people who might not otherwise have access to such opportunities. We have also created a bursary through the Worshipful Company of Chartered Surveyors, funding a student from an underprivileged background through their Real Estate degree and providing support and guidance along the way, including work experience with the Cadogan team.

‘We are excited to be building a strong partnership with Cadogan, linking local businesses with residents who need help to get on the employment ladder. This is an innovative collaboration which focuses on sustainable outcomes by bringing local businesses and communities closer through often lifechanging chances.’ –

Albena

Karameros, Employment and Skills Manager, RBKC

‘My colleague and I first heard about the recruitment support when the EOC popped into our Chelsea store. We had been looking to recruit a full-time team member and had tried all the usual channels but couldn’t find the right fit for our team. The EOC was in touch a week later with a prospective candidate, who we employed and is a great asset to the team. I couldn’t recommend this service enough and only wish it was available in other locations in the UK.’ –

Duke

of York Square Store Manager

‘I lost my job this year and it was devastating. I really had to work hard at picking myself up and staying focused. One day I was walking through my estate on my way to do some shopping – there was a man sitting at a table with a flip chart saying “Job help”. He helped me restructure my CV and set me up with a job that was tailor-made for me. He even helped negotiate my contract. I’m dyslexic and a mature citizen and I’m so thankful for your help.’ – Resident on World’s End Estate

WaterOur Community Engagement and Customer Commitment

We are committed to delivering an outstanding experience for our customers who live and work within the Estate, to foster long-lasting relationships and contribute to a strong sense of community across the neighbourhood.

Our Team

We listen carefully to customer feedback and respond accordingly where we can. We receive real-time feedback through our customer research partner RealService[13] which provides the insight to improve continually the customer experience and helps to shape our business strategy.

(against an industry benchmark of 14.2)

Our team regularly volunteer for local causes, supporting the local community not only across the Estate, but also in the wider community. Staff members volunteered over 40 hours in 2024 to local causes including: mentoring and tutoring a bursary student; discussing careers in property with other local students; mock interviews; and assisting a site transformation for a charity which supports adults with learning difficulties. We also donated clothes to help women returning to work and put together Boxes of Hope with Christmas presents to bring festive cheer to vulnerable community members.

Communication and Engagement

We are in frequent contact with our customers, neighbours and the wider community throughout the year. This helps us to understand their priorities and work in partnership, as well as keeping them informed.

Our interaction includes the ‘Welcome Pack’ received by all occupiers on arrival to the Estate, regular newsletters and magazines, seminars for our retail and hospitality customers to update them on neighbourhood news and working closely with them on destination marketing and events programmes. In 2024, we hosted seven breakfast briefings with over 820 attendees, providing an opportunity to network and share these neighbourhood updates.

Cadogan launched the King’s Road Privilege Card scheme in 2022, which has grown significantly to over 13,000 members and 100 participating businesses. It aims to encourage localism – supporting businesses while rewarding residents and local workers for doing so.

All of our residential and commercial customers receive complimentary access to our premium Cadogan

Concierge service, which assists with day-to-day requests as well as bringing our community closer together – retail customers benefit from reaching an exclusive residential audience, while our residents enjoy invitations and exclusive offers from the array of shops, restaurants and cultural attractions on their doorstep.

Road, each works independently to reach a combined audience of over 400,000 both locally and beyond, keeping followers up to date and creating continual reasons to enjoy the local area, or visit Chelsea.

This extensive information helps customers become familiar with the area and their new home or business space, as well as informing them of the services we provide.

The team ‘on the ground’ includes Area Supervisors who live locally and are key to our customer-facing service provision. They are usually ‘first responders’, central to our 24/7 emergency response capability and carry out regular inspections of all buildings. The feedback on this team consistently highlights how approachable, friendly, helpful and knowledgeable they are.

Our newsletters, magazines and digital channels ensure that we keep audiences across the Estate informed.

From Sloane Square magazine to Cadogan VIP and destination websites, newsletters and social feeds from the King’s Road, Sloane Street, Duke of York Square and Pavilion

Cadogan initiated and led the creation of two new neighbourhood Business Improvement Districts (BIDs) in 2022 – the King’s Road and Knightsbridge Partnerships – which are now firmly established and making a difference to occupiers across the estate, securing significant new private sector investment into the district over five years, focusing on pressing issues such as security, environmental upgrades and promoting the area.

Net Promoter Score (NPS)

Consultation

We are constantly investing in upgrading the Estate through maintenance, restoration, refurbishment and redevelopment activities – allowing us to enhance the wider environment and deliver homes and business space that meet the needs of our customers.

Our aim is to be exemplary in the way in which we consult and engage locally, because it is crucial to understand local views and keep the community informed. Through this approach, we build trust and are able to adapt and respond to the changing needs of society, customers and markets. This helps to ensure the area remains relevant and desirable to both residents and visitors, now and for the future.

Our Suppliers

We work with a wide range of external advisors, contractors, suppliers and partners and particularly value long-term relationships with people and organisations who share our values and desire to deliver excellent results. They are expected to operate ethically and responsibly, ensure high standards of health and safety and support a positive relationship with our customers and the communities within which we operate. We pride ourselves on being a good client that

consistently treats our suppliers fairly and transparently, while expecting commercially competitive outcomes.

We host events and webinars for groups such as construction contractors, through which we can share knowledge and best practice on topics including sustainability, health and safety and community engagement. Our suppliers are selected carefully because we see them as an extension of our own team, working in genuine collaboration, motivated by the same values and highest of standards.

STATEMENT OF COMPLIANCE WITH SECTION 172 OF COMPANIES ACT 2006

Throughout 2024, the Directors have performed their duty to promote the success of the Group under section 172 of the Companies Act 2006, taking consideration of:

▶ The likely long-term consequences of decisions

▶ The interests of stakeholders, including amongst others: employees, customers, suppliers, local authorities and local communities, by engaging with them to understand the issues to which they must have regard

▶ The impact of our actions on our local communities and the environment

▶ The company’s purpose and values including maintaining a reputation for high standards of business conduct

▶ The need to act fairly between members of the Group

The Cadogan Group has an association of over 300 years with Chelsea, where it has been and remains the largest landowner. The Group has always taken a long-term view, promoted by its members who see it as their duty to hand over the business to the next generation in a better condition than they inherited it, and strongly supported by the Board. The Group’s success is judged by its members not only on measures of commercial returns but also its reputation, based on the way it deals with and treats its stakeholders and local communities.

Our core objectives, set out in page 4 of this report, encapsulate the above.

More information on the Group, its purpose and relationships with stakeholders is provided in the Strategic Report pages 10 to 32, Our Community pages 34 to 51 and our website:

www.cadogan.co.uk

Below Brunello Cucinelli’s extensive new store on Sloane Street

Governance & FINANCIAL STATEMENTS

WaterThe Board

Directors

The Earl Cadogan DL*

The Hon. James Bruce*

Hugh Seaborn CVO

Stuart Wetherly

Charles Ellingworth*

John Gordon*

Harry Morley*

Dame Alison Nimmo DBE*

Francis Salway*

*Non-executive

Secretary Paul Loutit

(Chairman) (Deputy Chairman) (Chief Executive) (Finance Director)

Water Directors’ Report

The directors present their report and the financial statements for the year ended 31 December 2024.

Risk Management

A summary of the principal risks and uncertainties has been included in the Strategic Report on pages 29 to 32.

Directors

Principal Activity and Review of the Business

The principal activity of the Group during the year continued to be property investment. The Group’s other activities include the operation of a concert hall and hotels. A review of the Group’s business during 2024 and its future prospects is contained in the Strategic Report on pages 9 to 32.

Dividends

Interim dividends of £46,671,000 (2023 – £36,642,000) were declared and paid during the year.

The directors holding office during the financial year and up to the date of this report are listed on page 53, except Mr S A Wetherly who was appointed to the board on 3 February 2025. Mr S Patel resigned as a director on 31 December 2024.

The ultimate holding company maintains liability insurance for its directors and officers and for those of its subsidiaries in respect of proceedings brought by third parties, subject to the conditions set out in section 234 of the Companies Act 2006. Such qualifying third-party indemnity provision remains in force as at the date of approving the Directors’ Report.

Charitable Contributions

The Group’s direct charitable contributions for the year were

£286,000 (2023: £221,000). In addition, the Cadogan Charity, a shareholder in the company, makes donations to a variety of local and national charities.

Going Concern

The Group’s business activities, together with the factors likely to affect its future development, its financial position, financial risk management objectives, details of its financial instruments and derivative activities, and its exposures to price, credit, liquidity and cash flow risk are set out in the Strategic Report on pages 9 to 32.

The Group has considerable financial resources derived from an established investment property portfolio in prime central London. The Group has substantial long-term committed financing arrangements and has access to overdraft and revolving credit facilities from its bankers. The overdraft is renewed annually and therefore not committed for the full review period.

The directors have considered the appropriateness of adopting the going concern basis in preparing the

financial statements for the year ended 31 December 2024 taking into account recent inflationary pressures on the economy, consumers and our tenants and the possibility of an economic downturn. The assessment is based on the Group’s experience over the last three years and financial forecasts for the periods to 31 December 2026 overlaid with a severe but plausible downside economic downturn scenario.

The budget for 2025 has been prepared prudently with the base case maintaining very significant levels of headroom against the Group’s financial covenants. Assumptions regarding rent receipts and lease renewals are consistent with our actual experience during 2024. Development and investment activity is lower than 2024. Property values are assumed to rise by 3% on average in 2025.

The Group has also assessed a severe but plausible downside scenario based on the occurrence of an economic downturn having an impact similar to that of the pandemic in its first year. An economic downturn would reduce sales for our retail, leisure and hospitality tenants, damaging their

cash flow and ability to pay rent. Trading would take at least 12 months to recover. The main impacts would be a further fall in property values, a decline in rent collections for at least 12 months, with a slow recovery thereafter and an increase in impairments and rent concessions.

The severe but plausible downside scenario modelled demonstrates that over the period to 31 December 2026 the Group has the liquidity to fund its ongoing operations and is operating with ample headroom above its debt financing covenants. Asset values would have to fall by 29% from 2024 closing values when the covenant is measured as at 31 December 2025 and by 27% from closing 2024 values over two years as at 31 December 2026 to breach the gearing covenant. To breach the interest cover covenant, operating profit before capital items would have to fall by 66% compared to forecast in 2025 and by 67% compared to the plan for 2026.

Based on these considerations, our experience of the past impact of economic downturns on the business and the directors’ knowledge of Cadogan’s property portfolio and the market in which we operate, the directors have a reasonable

expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.

Directors’ Responsibilities Statement

The directors are responsible for preparing the annual report and financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the company and of the profit or loss of

the Group for that period. In preparing those financial statements, the directors are required to:

▶ select suitable accounting policies and then apply them consistently;

▶ make judgements and estimates that are reasonable and prudent;

▶ state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

▶ prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Group’s website.

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of Information to the Auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information, being information needed by the auditor in connection with preparing its report, of which the auditor is unaware. Having made enquiries of fellow directors and the Group’s auditor, each director has taken all the steps that they are obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Auditor

A resolution concerning the reappointment of BDO LLP as auditor will be proposed at the forthcoming annual general meeting.

By order of the board

Paul Loutit, Secretary 2 May 2025

Water Independent Auditor’s Report

Opinion on the financial statements

In our opinion:

▶ the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at 31 December 2024 and of the Group’s profit and the Parent Company’s profit for the year then ended;

▶ the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

▶ the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements of Cadogan Group Limited (‘the Parent Company’) and its subsidiaries (‘the Group’) for the year ended 31 December 2024 which comprise the Income Statement, the Statement of Comprehensive income, the Statement of Financial Position, the Statement of Changes in Equity, and notes to the financial statements, including a summary of significant accounting policies.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.

Emphasis of matter:

Property valuations

We draw attention to Note 11 to the financial statements which explains that the valuations of reversionary residential assets are subject to a

‘material valuation uncertainty’ in line with RICS guidance. This is a consequence of Government intervention in that market via the proposals contained in the Leasehold and Freehold Reform Act 2024.

Other information

The Directors are responsible for the other information. The other information comprises the information included in the Directors report and financial statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material

misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Other Companies Act

2006 reporting

In our opinion, based on the work undertaken in the course of the audit:

▶ the information given in the Strategic report and the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

▶ the Strategic report and the Directors’ report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

▶ adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

▶ the Parent Company financial statements are not in agreement with the accounting records and returns; or

▶ certain disclosures of Directors’ remuneration specified by law are not made; or

▶ we have not received all the information and explanations we require for our audit.

Responsibilities of Directors

As explained more fully in the Statement of Directors Responsibilities, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as

the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Group’s and the Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities

for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably

be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Non-compliance with laws and regulations

Based on:

▶ our understanding of the Company and the industry in which it operates;

▶ discussion with management and those charged with governance; and

▶ obtaining an understanding of the Company’s policies and procedures regarding compliance with laws and regulations.

We considered the significant laws and regulations to be the Companies Act 2006, United Kingdom Accounting Standards, including

Financial Reporting Standards 102

The Financial Reporting Standard applicable in the UK and Republic of Ireland and UK tax legislation.

The Company is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be the health and safety legislations.

Our procedures in respect of the above included:

▶ review of minutes of meetings of those charged with governance for any instances of non-compliance with laws and regulations;

▶ review of financial statement disclosures and agreeing to supporting documentation; and

▶ enquire with management and those charged with governance regarding any non-compliance with laws and regulations.

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

▶ enquiry with management and those charged with governance regarding any known or suspected instances of fraud;

▶ obtaining an understanding of the Company’s policies and procedures relating to:

• detecting and responding to the risks of fraud; and

• internal controls established to mitigate risks related to fraud.

▶ review of minutes of meetings of those charged with governance for any known or suspected instances of fraud;

▶ discussion amongst the engagement team as to how and where fraud might occur in the financial statements; and

▶ performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.

Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of controls and investment property valuations.

Our procedures in respect of the above included:

▶ testing a sample of journal entries throughout the year, which met a

defined risk criteria, by agreeing to supporting documentation;

▶ testing a sample of journal entries throughout the year, which do not meet a defined risk criteria, by agreeing to supporting documentation (to address variability within management override); and

▶ assessing significant estimates made by management for bias (including inputs to the investment property valuations).

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in

the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Parent Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Parent Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Parent Company and the Parent Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Thomas Edward Goodworth (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor London, UK

Date: 2 May 2025

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

Financial Statements

Consolidated Income Statement For the year ended 31 December 2024

of Changes In Equity

Consolidated statement of changes in equity

Company statement of changes in equity

Notes 1 to 23 form an integral part of these financial statements.

The Earl Cadogan DL - Director Hugh Seaborn - Director

The group financial statements consolidate the financial statements of Cadogan Group Limited and all its subsidiary undertakings drawn up to 31 December each year. No income statement is presented for Cadogan Group Limited as permitted by section 408 of the Companies Act 2006. The profit for the company for the year is set out in note 9.

The Earl Cadogan DL - Director

Hugh Seaborn - Director

2 May 2025

Notes 1 to 23 form an integral part of these financial statements.

Consolidated Statement of Cash Flows For the Year Ended 31 December 2024

Investing activities

Financing activities

Notes to the Financial Statements

(a) Statement of compliance

Cadogan Group Limited is a private company limited by shares incorporated in England (registered number 2997357). The Registered Office is 10 Duke of York Square, London, SW3 4LY.

The financial statements of Cadogan Group Limited were authorised for issue by the Board of Directors on 2 May 2025.

(b) Basis of preparation

The Group’s and company’s financial statements have been prepared in compliance with FRS 102.

The financial statements have been prepared on a historical cost basis except investment properties and derivative financial instruments that have been measured at their fair value. The financial statements are prepared in sterling which is the functional currency of the Group and rounded to the nearest £000.

Through the Group’s risk management process a number of material risks to the business were identified including climate risk. By

their nature these risks were not identified as a material factor to going concern during the relevant period. However, climate related factors will increasingly influence investment property valuations as relevant property characteristics are valued by the market. To the extent that these exist and are significant they will be embedded in the external valuation provided to the Group and held on the consolidated statement of financial position.

Going concern

The Group’s business activities, together with the factors likely to affect its future development, its financial position, financial risk management objectives, details of its financial instruments and derivative activities, and its exposures to price, credit, liquidity and cash flow risk are set out in the Strategic Report on pages 9 to 32.

The Group has considerable financial resources derived from an established investment property portfolio in prime central London. The Group has substantial long-term committed financing arrangements and has access to overdraft and revolving

credit facilities from its bankers. The overdraft is renewed annually and therefore not committed for the full review period.

The directors have considered the appropriateness of adopting the going concern basis in preparing the financial statements for the year ended 31 December 2024 taking into account recent inflationary pressures on the economy, consumers and our tenants and the possibility of an economic downturn. The assessment is based on the Group’s experience over the last three years and financial forecasts for the periods to 31 December 2026 overlaid with a severe but plausible downside economic downturn scenario.

The budget for 2025 has been prepared prudently with the base case maintaining very significant levels of headroom against the Group’s financial covenants. Assumptions regarding rent receipts and lease renewals are consistent with our actual experience during 2024. Development and investment activity is lower than 2024. Property values are assumed to rise by 3% on average in 2025

The Group has also assessed a severe but plausible downside scenario based on the occurrence of an economic downturn having an impact similar to that of the pandemic in its first year. An economic downturn would reduce sales for our retail, leisure and hospitality tenants, damaging their cash flow and ability to pay rent. Trading would take at least 12 months to recover. The main impacts would be a further fall in property values, a decline in rent collections for at least 12 months, with a slow recovery thereafter and an increase in impairments and rent concessions.

The severe but plausible downside scenario modelled demonstrates that over the period to 31 December 2026 the Group has the liquidity to fund its ongoing operations and is operating with ample headroom above its debt financing covenants. Asset values would have to fall by 29% from 2024 closing values when the covenant is measured as at 31 December 2025 and by 27% from closing 2024 values over two years as at 31 December 2026 to breach the gearing covenant. To breach the interest cover covenant, operating profit before capital items would have to fall by 66% compared

to forecast in 2025 and by 67% compared to the plan for 2026.

Based on these considerations, our experience of the past impact of economic downturns on the business and the directors’ knowledge of Cadogan’s property portfolio and the market in which we operate, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.

Basis of consolidation

The Group financial statements consolidate the financial statements of Cadogan Group Limited and all its subsidiary undertakings drawn up to 31 December each year. No income statement is presented for Cadogan Group Limited as permitted by section 408 of the Companies Act 2006.

Subsidiaries are consolidated from the date of their acquisition, being the date on which the Group obtains control and continue to be consolidated until the date that such

control ceases. Control comprises the power to govern the financial and operating policies of the investee to obtain benefits from its activities.

(c) Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgement (apart from those involving estimates) has had the most significant effect on amounts recognised in the financial statements:

Operating lease commitments

The Group has entered into commercial property leases as a lessor on its investment property portfolio. The classification of such leases as operating or finance lease requires the Group to determine, based on an evaluation of the terms

1 Accounting Policies (continued)

and conditions of the arrangements, whether it retains the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.

(d) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.

The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

Revaluation of investment properties

The Group carries its investment property at fair value, with changes in fair value being recognised in the income statement. The Group

engaged independent valuation specialists to determine fair value at 31 December 2024. The valuers used market value, in accordance with the Appraisal of Valuation Manual of the Royal Institution of Chartered Surveyors. The determined fair value of the investment property is most sensitive to the estimated yield and estimated rental values. Investment properties under construction are measured based on estimates prepared by independent real estate valuation experts. The key assumptions used to determine the fair value of investment property are further explained in note 11.

Estimation of net realisable value for properties under development

Development property is stated at the lower of cost and net realisable value (‘NRV’).

NRV for completed development property is assessed by reference to market conditions and prices existing at the reporting date and is determined by the Group, based on comparable transactions identified by the Group for properties in the same geographical market serving the same real estate segment.

NRV in respect of development property under construction is

assessed with reference to market prices at the reporting date for similar completed property, less estimated costs to complete construction and an estimate of the time value of money to the date of completion.

Capital gains tax and deferred tax liability

The Group establishes provisions based on reasonable estimates of the expected tax liability under the legislation. The amount of such provisions is based on various factors, such as experience with previous tax audits and takes into account uncertain tax positions where tax authorities could have differing interpretations of tax regulations.

Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. Further details are contained in note 7.

Impairment of lease receivables

The Group makes an assessment over the recoverability of its lease receivables on a lease by lease basis. Estimation of recovery is judgemental

and is based on the Group’s detailed knowledge of the sector in which the tenant operates and the credit risk of the tenant.

Cash flow forecasts

As part of the Group’s assessment of going concern, monthly cash flow forecasts are prepared using estimates and assumptions based on management’s knowledge of the business and the experience of rental receipts, tenant default and expenditure.

Pension and other postemployment benefits

The cost of defined benefit pension plans is determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long-term nature of these plans, such estimates are subject to significant uncertainty. In determining the appropriate discount rate, management (as advised by its actuaries) considers the interest rates of corporate bonds in the respective currency with at least AA rating, with extrapolated maturities

corresponding to the expected duration of the defined benefit obligation. The underlying bonds are further reviewed for quality, and those having excessive credit spreads are removed from the population bonds on which the discount rate is based, on the basis that they do not represent high-quality bonds. The mortality rate is based on publicly available mortality tables for the UK. Future salary increases and pension increases are based on expected future inflation rates for the UK. Further details are given in note 19.

(e) Turnover and revenue recognition

Revenue is recognised to the extent that the Group obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, net of VAT and comprises gross rents including reverse premium received on early lease termination, commissions and other fees receivable. Turnover in the hotel and concert hall operations represents amounts derived from the provision of goods and services, stated net of VAT.

The following criteria must also be met before revenue is recognised:

The Group is the lessor in operating leases. Rental income arising from operating leases on investment property is recognised in the income statement on a straight-line basis over the lease term, except for contingent rental income which is recognised when it arises.

Lease incentives are recognised as a reduction of rental revenue on a straight-line basis over the term of the lease. The lease term is the non-cancellable period of the lease together with any further term for which the tenant has the option to continue the lease, where, at the inception of the lease, the directors are reasonably certain that the tenant will exercise that option. Amounts received from tenants to terminate leases or to compensate for dilapidations are recognised in the income statement when the right to receive them arises.

Interest income

Interest income is recognised as it accrues using the effective interest rate (‘EIR’) method. The EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial

Rental income

1 Accounting Policies (continued)

instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset. Interest income is included in finance income in the income statement.

(f) Tangible fixed assets

Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all plant and equipment, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Plant and Equipment – 7% to 20%

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value not to be recoverable.

(g) Land and buildings

Land and buildings represent owner occupied properties and are initially recognised at cost which includes purchase cost and any directly attributable expenditure of a capital

nature only. They are included in the financial statements at fair value at the year end.

The surplus or deficit on revaluation is recognised in the non-distributable reserve and accumulated in the reserve unless a deficit, or its reversal, is below original cost in which case it is recognised in the income statement for the year.

(h) Investment property

Investment property comprises completed property and property under construction or redevelopment that is held to earn rentals or for capital appreciation or both. Property held under a lease is classified as investment property when it is held to earn rentals or for capital appreciation or both, rather than for sale in the ordinary course of business or for use in production or administrative functions.

Investment property is measured initially at cost, including transaction costs. Transaction costs include transfer taxes, professional fees for legal services and initial leasing commissions to bring the property to the condition necessary for it to be capable of operating. The carrying amount also includes the cost of replacing part of an existing

investment property at the time that cost is incurred if the recognition criteria are met.

Subsequent to initial recognition, investment property is stated at fair value, which reflects market conditions at the reporting date. Gains or losses arising from changes in the fair values of investment properties are included in the income statement in the period in which they arise, including the corresponding tax effect. For the purposes of these financial statements, in order to avoid double counting, the fair value reported in the financial statements is reduced by the carrying amount of any accrued income resulting from the spreading of lease incentives.

Transfers are made to (or from) investment property only when there is a change in use. For a transfer from investment property to owneroccupied property, the deemed cost for subsequent accounting is the fair value at the date of change in use.

Investment property is derecognised either when it has been disposed of or when it is permanently withdrawn from use and no future economic benefit is expected from its disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in

the income statement in the period of derecognition.

(i) Profit on sale of investment properties

Profits or losses on the sale of investment properties are calculated by reference to the book value at the end of the previous year, adjusted for any subsequent capital expenditure. Such transactions are recognised on the exchange of contracts, providing that no material conditions remain outstanding.

(j) Investments

Investments in subsidiary undertakings are included at cost, less a provision for impairment in value where applicable.

(k) Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in the arrangement.

Group as a lessee

A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the Group is classified as a finance lease.

An operating lease is a lease other than a finance lease. Operating lease payments are recognised as an operating expense in the income statement on a straight-line basis over the lease term, except for contingent rental payments which are expensed when they arise.

Group as a lessor

Leases in which the Group does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Contingent rents are recognised as revenue in the period in which they are earned.

(l) Cash and cash equivalents

Cash in the statement of financial position comprises cash at bank and in hand and is stated net of outstanding bank overdrafts.

All interest-bearing loans and borrowings which are basic financial instruments are initially recorded at the present value of future payments discounted at a market rate of interest for a similar loan. After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method.

(n) Short-term debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in administrative expenses.

(o) Taxation

Current taxation including UK corporation tax is provided at the amounts expected to be paid (or recovered) using the tax rates and laws that have been substantially enacted at the balance sheet date.

Deferred tax is recognised in respect of all material timing differences between taxable profits and total comprehensive income that arise from the inclusion of income and

(m) Loan notes

1 Accounting Policies

expenses in tax assessments in periods different from those in which they are recognised in the financial statements.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantially enacted at the balance sheet date. Deferred tax relating to investment property that is measured at fair value is measured using the tax rates and allowances that apply on the sale of the asset.

(p) Foreign currencies

Transactions in foreign currencies are initially recorded in the entity’s functional currency by applying the spot exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the income statement.

(q) Derivative financial instruments and hedge accounting

The Group uses forward foreign currency contracts to reduce exposure to foreign exchange rates. The Group also uses interest rate

swaps to adjust interest rate exposures. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

The criteria for forward foreign currency contracts are:

▶ the instrument must be related to a firm foreign currency commitment;

▶ it must involve the same currency as the hedged item; and

▶ it must reduce the risk of foreign currency exchange movements on the Group’s operations.

The Group’s criteria for interest rate swaps are:

▶ the instrument must be related to an asset or a liability; and

▶ it must change the character of the interest rate by converting a variable rate to a fixed rate or vice versa.

At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The

documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the entity will assess the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for which they were designated.

Cash flow hedges

For the purpose of cash flow hedge accounting, hedges are classified as cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognised firm commitment.

The effective portion of the gain or loss on the hedging instrument is recognised in the Statement of Comprehensive Income (‘SOCI’) in the non-distributable reserve, while

any ineffective portion is recognised immediately in the income statement. Amounts recognised as other comprehensive income are transferred to the income statement when the hedged transaction affects profit or loss, such as when the hedged financial income or financial expense is recognised.

If the forecast transaction or firm commitment is no longer expected to occur, amounts previously recognised in the SOCI are transferred to the income statement. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover (as part of the hedging strategy), or if its designation as a hedge is revoked, or when the hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss previously recognised in SOCI remains separately in equity until the forecast transaction occurs or the firm commitment is met.

When a derivative is held as an economic hedge for a period beyond 12 months after the end of the reporting period, the derivative is classified as non-current consistent with the classification of the underlying item. A derivative instrument that is a designated and effective hedging instrument is

classified consistent with the classification of the underlying hedged item.

(r) Pension benefits

For defined benefit schemes, the regular cost of providing pensions to employees during the year is charged to operating profit in the year. The full cost of providing amendments to benefits in respect of past service is also charged to operating profit in the year.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, at the start of the period taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or costs.

Re-measurements, comprising actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability (excluding amounts included in net interest) are recognised immediately in other comprehensive income in the period in which they occur.

The defined net benefit pension asset or liability in the statement of financial position comprises the total for each plan of the present value of the defined benefit obligations (using a discount rate based on high-quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information and in the case of quoted securities is the published bid price.

For defined contribution schemes, the value of amounts charged to the income statement in respect of pension costs is the value of the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayment in the statement of financial position.

Turnover and Analysis by Class of Business

Turnover, group profit before taxation and net assets are analysed as follows:

3 Profit on Sale of Investment Properties

4 Interest Payable and Similar Expenses

Included within directors’ remuneration above are contributions to money purchase pension schemes for one director amounting to £63,000 (2023: one director – £56,000).

The remuneration, excluding pension contributions, of the highest paid director was £1,575,000 (2023 –£1,556,000). Pension contributions of the highest paid director were nil (2023 – nil).

5 Operating Profit

remuneration for the company is not disclosed in the individual financial statements as the consolidated financial statements are required to comply with regulation 5(1)(b) of Companies (Disclosure of Auditor Remuneration and Liability Limitation Agreements) Regulations 2018 and present this information on a consolidated basis.

The average monthly number of persons employed by the Group, including executive directors, during the year was 87 (2023 – 88). 75 (2023 – 75) persons were employed within the property investment business and 12 (2023 – 13) persons were employed within the hotels and concert hall business.

Staff costs for the company were in respect of directors’ remuneration and amounted to £562,000 (2023 – £563,000). There were no pension contributions made by the company in the year (2023 – nil).

(c) Factors affecting tax charge for the year

The tax charge for the current year is lower than (2023 – higher than) the current standard rate of corporation tax in the UK of 25.0% (2023 – 23.5%). The difference is explained as follows:

(d) Deferred tax

The deferred tax included in the statement of financial position is as follows:

for liabilities and charges

The liability/(asset) for deferred tax comprises the following:

The Group expects no deferred tax liabilities to reverse in 2025.

(e) Factors that may affect future tax charges

The UK corporation tax rate increased on 1 April 2023 from 19.0% to 25.0%. Accordingly, the Group’s result for the accounting period is taxed at an effective rate of 25.0% (2023 – 23.5%).

Any future rate changes will also impact the amount of future tax payments to be made by the Group.

9 Retained Profit for the Year

The profit for the year has been retained by:

The parent company’s profit before dividends for the financial year was

10 Earnings Per Share

The calculation of earnings per ordinary share for 2024 is based on the earnings attributable to ordinary shareholders of £135,394,000 (2023 – £185,954,000) and on 120,000,000 ordinary shares (2023 – 120,000,000 ordinary shares) being the effective number of such shares in issue during the year.

This calculation relates to both the basic and diluted loss per share as there is no potential for future shares or share options in the company.

11 Tangible Fixed Assets

11

Tangible Fixed Assets (continued)

The valuation of the Group’s freehold and leasehold properties at 31 December 2024 was carried out by CBRE and Knight Frank (commercial properties) and Cluttons (residential properties), the firms are independent and regulated by the Royal Institution of Chartered Surveyors (‘RICS’), on the basis of fair value, in accordance with the version of the RICS Valuation – Global Standards (incorporating the International Valuation Standards) and the UK supplement (‘The Red Book’) as at the Valuation Date. The key assumptions used to determine the fair value of investment property are set out below:

(2023 –

Material Valuation Uncertainty

Valuations of reversionary residential assets with a total value of £301,016,000 are presently being valued subject to material uncertainty as a consequence of Government’s intervention in that market via the Leasehold and Freehold Reform Act 2024. Cluttons valuation is therefore reported on the basis of ‘material valuation uncertainty’ in line with RICS guidance.

Details of the investments in which

Location of Registered offices:

Companies marked * – 10 Duke of York Square, London, SW3 4LY

Hugo House Limited – Hugo House, 178-180 Sloane Street, SW1X 9QL

13/14 Herbert Crescent Residents Limited – Office Suite 1, Haslemere House, Haslemere, GU27 2PE

Cadogan House Residents Limited – 2 Tower Centre, Hoddesdon, EN11 8UR

15/16 Herbert Crescent Residents Association Limited – 15/16 Herbert Crescent, London, SW1X 0HB

13 Debtors

Cadogan Developments Limited*

Cadogan Hall Limited*

Cadogan Holdings Limited*

Cadogan Income Properties Limited*

Chelsea Land Developments Limited*

Frederick Court Limited*

Sloane Gardens Hotel Limited*

Cadogan Estates Management Limited*

Cadogan Group Management Limited*

26 Cadogan Gardens Limited*

115 Sloane Street Hotel Limited*

Hugo House Limited

13/14 Herbert Crescent Residents Limited

Sloane Court East Garden Limited*

7 Redburn Street Limited*

Cadogan House Residents Limited

15/16 Herbert Crescent Residents

Association Limited

the above investments are holdings of ordinary shares. All companies are registered in England.

The amounts owed by parent undertakings are expected to be recovered after more than one year.

14 Trade and Other Creditors

Bank Loans and Other Borrowings

Bank Loans and Other Long-Term Borrowings

At 31 December 2024 the Group had committed but undrawn credit facilities of £197m (2023 – £280m) under revolving credit facility arrangements expiring in September 2027.

falling due after more than five years:

15 Borrowings (continued)

The commercial mortgage loan is secured by fixed charges over specific freehold investment properties of the Group. £982,106,000 (2023 – £931,926,000) of the total bank loans and long-term borrowings (excluding the Group’s Revolving credit facility) is subject to fixed rates of interest to maturity which average 4.03% (2023 – 4.14%).

All the interest payments and principal repayments relating to the loan notes issued in US dollars were swapped into sterling at fixed exchange rates. This currency swap has the effect of reducing the effective interest rate on the US dollar loans from the rates shown above to an average effective rate of 5.62% (2023 – 5.62%). This, combined with the fixed interest rates payable on the sterling loans gives an overall effective interest rate across all the series of notes, fixed until maturity, of 3.88% (2023 – 3.98%).

16 Called Up Share Capital

17 Reserves

Profit and loss account

This reserve is used to record:

– increases in fair value of freehold and leasehold investment properties and decreases to the extent that such decreases relate to the increase on the same asset. These figures are stated net of the associated deferred tax asset or liability;

– increases and decreases in fair value of freehold land and building;

– increases and decreases in the net fair value of derivative financial instruments. The figure is stated net of the associated deferred tax release or charge; and

– distributable profits.

(a) Reconciliation of profit to net cash inflow from operating activities

profit for the year

to reconcile profit for the year to net cash flow from operating activities:

18 Notes to the Statement of Cash Flows (continued)

(b) Net debt reconciliation

Debt due within one year

19 Pension Arrangements

The Group operates both defined benefit and defined contribution funded pension schemes for its employees. The assets of these schemes are held separately from those of the Group in independently administered funds.

Defined benefit scheme

The Group’s defined benefit pension scheme, which was closed to new members in 1994 and closed to future accrual for active members on 31 March 2014, is called the Cadogan Pension & Assurance Scheme (‘the Scheme’). The following disclosures exclude any allowance for defined contribution schemes operated by the Group. The liability value does not include allowance for any discretionary benefits.

The Scheme is subject to the Statutory Funding Objective under the Pensions Act 2004. A valuation of the Scheme is carried out at least once every three years to determine whether the Statutory Funding Objective is met. As part of the process the Group must agree with the Trustees of the scheme the contributions to be paid to address any shortfall against the Statutory Funding Objective.

The most recent comprehensive actuarial valuation of the Scheme was carried out as at 31 December 2022 and the next valuation of the Scheme will be as at 31 December 2025. In the event that the valuation reveals a larger deficit than expected the Group may be required to increase contributions above those set out in the existing Schedule of Conditions. Conversely, if the position is better than expected, it is possible that contributions may be reduced.

The Group is committed to supporting the Scheme in the long term on a basis more prudent than the Scheme Funding basis used in the formal actuarial valuation as at 31 December 2022 but wants to avoid overfunding the Scheme, and therefore an Escrow Account has been established to provide additional security to the Scheme. Details regarding the Escrow Account are set out in a separate Framework Agreement.

Under the current Schedule of Contributions, contributions of £1,800,000 were paid by the Group to be paid into the Scheme from the Escrow account in the year to 31 December 2024 (2023 – £900,000).

At the Review Date the Escrow Account balance was £1,014,000 (2023 – £1,711,000), which has not been included in the disclosures below. If the Escrow Account balance was included in the Scheme’s assets, the deficit in the Scheme would be reduced by the amount of the Escrow Account balance to £3,163,000.

The Scheme is managed by a board of Trustees appointed in part by the Group and in part from elections by members of the Scheme. The Trustees have responsibility for obtaining valuations of the fund, administering benefit payments and investing the Scheme’s assets. The Trustees delegate some of these functions to their professional advisors where appropriate.

There were no plan amendments, curtailments or settlements during the period.

Risk Mitigation Strategies

The Scheme invests a proportion of its assets in LDI funds which are designed to hedge the interest rate risk within the Scheme.

Profile of defined benefit obligation

The weighted average duration of the defined benefit obligation is around 14 years.

Disclosures

Figures for disclosure in accounts for the period ending 31 December 2024 under FRS 102 are set out below. Results are shown in pounds, rounded to the nearest £000.

19 Pension Arrangements (continued)

Scheme

retirement mortality assumption

80% of the S2NXA tables with CMI 2023 projections using a long-term improvement rate of 1.25% per annum and an initial additional parameter of 0.5%. The 2020 and 2021 weight parameters are nil and the 2022 and 2023 weight parameters are 15%. 80% of the S2NXA tables with CMI 2022 projections using a long-term improvement rate of 1.25% per annum and an initial additional parameter of 0.5%. The 2020 and 2021 weight parameters are nil and the 2022 weight parameter is 25%.

The major categories of assets as a proportion of total assets are as follows:

category

Growth Assets:

Multi Asset Growth Fund (24%, 2023 – 25%)

Diversified Fund (27%, 2023 – 20%)

Cash (2%, 2023 – 3%)

Protection Assets:

LDI Funds (29%, 2023 – 37%)

Stirling Liquidity (2%, 2023 – nil)

Buy and Maintain Credit Fund (16%, 2023 – 15%)

The actual return on the Scheme’s assets was an increase of £1,028,000 (2023: increase of £1,210,000). The assets do not include any investment in shares or property of the Group.

19

Pension Arrangements (continued)

Reconciliation of assets and defined benefit obligation

The change in fair value of assets over the year was:

of assets at 1

(4)

The change in present value of the defined benefit obligation over the year was:

Defined contribution schemes

The pension charge in respect of defined contribution schemes represents contributions payable by the Group to such schemes and amounted to £768,000 (2023 – £757,000), of which nil (2023 – nil) was unpaid at the balance sheet date.

20 Hedging Activities and Derivatives

The Group has entered into foreign currency and interest rate swap contracts with notional amounts of $298m (2023 – $298m) whereby it pays a fixed rate of interest of between 5.25% and 7.40%. The swaps are used to hedge the exposure to the variable foreign currency and interest rate payments on the US dollar variable rate unsecured loans (note 15).

The loans and interest rate swaps have the same critical terms and are fully effective. Cash flows are expected to occur between February 2025 and June 2051 and will be recognised through the income statement at that time.

The aggregate fair value of the interest rate swaps at the end of the reporting period was an asset of £94,168,000 (2023 – £89,205,000).

The Group enters into foreign currency and interest rate swap contracts with various counterparties, principally financial institutions with investment grade credit ratings. The valuation techniques applied to fair value these derivatives employ the use of market observable inputs and include swap models which use present value calculations. The model incorporates various inputs including the credit quality of counterparties and forward rates.

As at 31 December 2024, the marked-to-market value of derivative asset positions is net of a credit valuation adjustment attributable to derivative counterparty default risk. The changes in counterparty credit risk had no material effect on the hedge effectiveness assessment of these derivatives designated in hedge relationships recognised at fair value.

21 Capital and Other Commitments

capital commitments were as follows:

There were no outstanding commitments for capital expenditure in the company at either year end.

The Group had the following future minimum operating lease receivables under non-cancellable operating leases in respect of investment properties at the year end:

22 Related Party Relationships and Transactions

The Earl Cadogan DL, Chairman and director of Cadogan Group Limited, rents residential property owned by the Group. The rent paid by The Earl Cadogan in the year totalled £339,076. At 31 December 2024 the outstanding balance owed to the Group was nil (2023 – nil). The annual rental charge is at market rate

23 Ultimate Ownership

The ultimate holding company is Cadogan Settled Estates Holdings Limited, which is registered in England and Wales and which is ultimately controlled by The Eighth Earl Cadogan’s 6 December 1961 Settlement. The consolidated financial statements of Cadogan Settled Estates Holdings Limited may be obtained from The Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ.

Five Year Summary

Key financial ratios

The audit of the years 2020 – 2021 was undertaken by the previous auditor, Ernst & Young LLP.

GRI Standard Disclosure References

103-1

103-3

103-1