HdWE Annual Report 2025

2025

Annual Report

Howard de Walden Estates Holdings Limited

Howard de Walden Estates Holdings

The Howard de Walden Estate

23 Queen Anne Street London

Contact us:

+44 (0)20 7580 3163 enquiries@hdwe.co.uk hdwe.co.uk

Company registered number 06439246 For

from

1-7 Harley Street, 13 Wigmore Place, 20 Thayer Street and 55-57 Marylebone High Street.

1-39

40-50

Clockwise

top left:

Chairman’s statement

Introduction

The National and Geopolitical background in 2025 was difficult. Trump tariffs have destabilised the world economy and, in the UK, the new Government has struggled to address public expenditure and a sluggish economy. Higher taxes in the autumn seem inevitable.

In the year ended 31 March 2025, we recorded our highest rental income, we rebranded the Harley Street Health District, and launched Hale House as London’s work, event and networking place for health innovation. The increase in rental income did not translate to revenue profit due to cost increases, mainly outside our control. The cost of

“We are now looking to build on our unique position as an experienced property investor in healthcare.”

Sir William Proby Bt CBE DL Chairman

modernising our portfolio and advancing the opportunity in healthcare largely offset growth in profit. In the medium term, this will abate as void stock is let, and property costs normalise. Although the yields used to value our properties remained largely unchanged, the growth in rental income halted the decline in property values that we have experienced since 2022 and there was a small appreciation this year.

Sustainability

100% compliance with energy performance certification is our main sustainability objective. During the year, we undertook detailed energy and carbon assessments across 14 buildings and are now implementing the recommendations and evaluating how to scale this investment across our entire portfolio. Innovative technology driven by artificial intelligence is to be used to streamline future assessments and will help us drive carbon reduction and improve energy performance. Ultimately this advances decarbonisation, but also results in more efficient buildings for our customers.

We also launched our Sustainable Procurement Policy and earlier this year we held our first supplier engagement event, setting out the need for our supply chain partners to help us achieve our net zero target. With almost two thirds of our carbon footprint coming from the goods and services we purchase, the

need to get them on board is urgent. We have also made good progress against our sustainability strategy, deCarbon. After launching deCarbon towards the end of 2023, we have seen significant improvements in energy efficiency and emissions reductions across our head office, travel activities and managed properties. For the first time we are reporting full coverage across Scope 1, 2 and 3 emissions categories.

Community

In the year, Howard de Walden made charitable and community contributions of £928,000, including £100,000 to University College London Hospital to support art and environmental enhancements at its new Breast Care Centre. We encourage our colleagues to volunteer with Westminster community and charitable groups and this year’s volunteer hours totalled 724.

Supporting our local community is a key priority for us every year and there were multiple highlights this year. The Marylebone Summer Festival saw 25,000 people come together for an exciting day of activities, raising a total of £40,000 for Young Westminster Foundation. Our annual Marylebone Christmas Lights event transformed Marylebone High Street into a stunning festive spectacle, featuring late-night shopping, food and gift stalls, children’s rides, and live music performances. Thanks to the support of the local community and visitors, the event

£40,000

raised a total of £25,000 for Great Ormond Street Hospital Charity.

Board changes

There was one change to the Board during the year: The Lady Howard de Walden resigned in July 2024 upon her passing. With Lord Kakkar as Chair, a new Board sub-committee for healthcare was formed to deal with the strategic challenge of repositioning Harley Street for the future and seizing opportunities in HealthTech.

Conclusion

A decision in 2021 to provide meaningful long-term support to our shops and hospitality outlets now means that our high street is as vibrant as it has

£25,000

ever been and significant investment to reposition tired office buildings to shorter, flexible workspaces has helped drive this year’s spike in occupational demand.

We are looking to build on our unique position as an experienced property investor in healthcare by enabling the growth of health technology, which will drive earnings and deliver capital appreciation. Harley Street has been the Home of Health since 1860, and we aim for it to be the Home of HealthTech from 2025.

I would like to thank all our employees across the Howard de Walden business for their hard work and dedication

over the last 12 months. I would also like to thank our non-executives for their invaluable contributions. Despite the external challenges, I believe we are well positioned to grow across all parts of our business and execute our strategy in the coming years.

Sir William Proby Bt CBE DL Chairman

Marylebone Christmas Lights.

Marylebone Summer Festival.

Money raised at the Marylebone Christmas Lights for Great Ormond Street Hospital Charity.

Money raised at the Marylebone Summer Festival for Young Westminster Foundation.

Operational and performance highlights

“Rental

Mark Kildea Chief Executive

See pages 8 to 9

Our year in review

We have continued to deliver against our strategic objectives. Occupier demand and new lettings have been positive, while we continue to invest heavily in the estate to deliver future income growth.

Operational highlights

126 Harley Street.

Performance highlights

“The ERV of our current development pipeline at year end was over £10 million and will be a key element of income growth in the future.”

Andrew Griffith Chief Financial Officer

See pages 24 to 25

* R evenue profit before tax is the Group’s preferred measure of profitability.

Calculation on page 25

Shareholders’ funds

£2,889.0m

Our business

Our purpose

To create the setting for Marylebone to flourish.

Our values Collaboration Cultivating great relationships with customers, colleagues, community and other stakeholders.

Responsiveness Approachable and partnering with our stakeholders.

Innovation We offer buildings and spaces that provide modern-day amenities, designed and suited to our customers’ lives and livelihoods.

Excellence We want Marylebone to continue to be known as a fantastic place to live, visit and do business.

Inclusiveness We recognise that diverse and inclusive businesses grow prosperity.

Howard de Walden Estates Holdings Limited (‘the Company’) and its wholly owned entities (‘Howard de Walden’, ‘the Group’) manage a portfolio of over 800 property interests, the majority of which are freehold-owned, in a 95 acre area of Marylebone, central London.

The Group is beneficially owned by members of the Howard de Walden family (‘the Family’) and the estate has been under the Family’s control since 1879. Howard de Walden aligns shareholder prosperity with the wellbeing of the community, the environment and its other key stakeholders.

Our mission

To enhance the community through our stewardship, service and unique offering.

When you are here, we want you to feel part of something exceptional.

Our strategic objectives

G row rental income and efficiently manage expenditure. Provide property and services that customers want.

Avoid property obsolescence and plan for net zero carbon emissions by 2040.

Diversify our property income, where possible.

Make organisational and operational improvements to deliver higher performance.

Our culture and behaviours

We take a long-term approach in everything we do.

We are respectful to each other, the community and our valued stakeholders.

We support and empower each other and continue to learn while connecting people and places.

We take pride in everything we do.

Chief Executive’s statement

The positive results for the year are a direct reflection of the investment and hard work that the team has undertaken over several years to deliver our strategy. My outlook 12 months ago predicted that we had reached the bottom of the latest cycle in property valuation, and that we were entering a more stable economic environment. These predictions were confirmed, with inflation coming down towards the Bank of England’s 2% target, although slower than predicted, which has meant that the pace of last year’s forecasted interest rate cuts did not materialise.

The plateauing of long-term interest rates has meant investment yields applied to value our portfolio have remained stable. However, values did rise by 2.5% due to positive rental growth across principal sectors. Demand for space continues to be high, and this is assisted by our brand recognition, with Marylebone Village providing a heightened community feel across our retail, office and residential sectors. The year also saw the rebranding of the Harley Street Health District, which we are hugely excited by as it reflects a transformation in healthcare, embracing the adoption of technology and the surge in preventative care.

Our balance sheet remains strong, underpinned by long-dated borrowings at low fixed rates, which not only supported us during downturns, but

“The positive results for the year are a direct reflection of the investment and hard work undertaken to deliver our strategy.”

Mark Kildea Chief Executive

allows us to take a long-term strategic approach while being positioned for any opportunities that emerge.

Operational and financial performance

Rental income increased by close to 8%, meaning turnover reached £165.0 million. As we continued to invest to improve our buildings, property costs increased as we had expected, resulting in operating profits before capital items increasing to £99.9 million. This was driven by occupancy levels remaining high across all four sectors, with healthcare, retail and residential for the third year in a row remaining at close to 100% and residential demand at times outstripping supply.

Healthcare Conference.

The rebrand of the Harley Street Health District was boosted by the launch of Hale House. Launched in partnership with Spacemade, Hale House initially comprises two buildings, totalling 29,000 sq ft, as a leading London location for HealthTech start- ups, investors and digital health support services. We have already committed and spent more than £24.7 million in developing two initial buildings, including substantial reconfiguration of each, transforming the spaces to appeal to occupiers in the HealthTech industry.

Our clinical healthcare space has also seen strong enquiries from several new and established

operators for space in proximity to Harley Street.

2024 saw the launch of our flexible office offering, Elmtree, in response to shifting working patterns and growing customer demand. Managed in partnership with Spacemade, our flexible workspace operating partner, Elmtree has already expanded into its second site at 32 Welbeck Street, building on the success of the first Elmtree location at 34/36 Queen Anne Street.

Our Retail portfolio continued to flourish with several exciting new signings, as well as customers upsizing over the course of the year to further boost the strong retail mix within Marylebone Village.

Our residential team also completed multiple high quality building refurbishment projects. Residential lettings were boosted by the ongoing shortage of the best stock and our in - house team once again completed over 75% of new lettings during the year. Our Residential portfolio is the foundation of our Marylebone Village brand, and we continuously look to deliver a product and service that meets our diverse customer needs.

Our strategy

The successful launch of Hale House, our product for HealthTech, demonstrates our strategy and ambitions for the Harley Street

Health District. The growth of this emerging sector will assist in diversifying our portfolio while complementing our healthcare offering to make it a more attractive location for existing and new clinics. Underpinning the success of this initiative will be our long -term healthcare strategy to deliver a balanced whole-health district. This means that we will explore opportunities to provide space across all areas of the continuum including complex surgery, rehabilitation, outpatient, wellbeing and preventative healthcare. We expect technology to highly impact the provision of healthcare in the future and be integral to the success of a whole - health district. Demand requirements for our medical buildings will continue to evolve, impacted by social trends, the widespread shortage of clinical staff, regulation and pressure on public health finances.

Our strategy for Marylebone Village remains for this to be the destination of choice for residents, shoppers, diners, visitors and workers in London. We will continue to invest in our portfolio and products (across retail, office and residential) while aiming to always deliver an exceptional service and experience.

Outlook

Our focus is always on managing the portfolio with a long-term outlook. While interest rates and inflation

appear to be more stable than previous years, the international dimension continues to be more volatile. We have benefitted from having a clear strategy established in 2022 which we continue to evolve as market conditions and forecasts allow. This puts the company in a strong position to be able to deliver competitive returns while also delivering our sustainability ambitions through to 2040.

Approval

The Strategic report, covering pages 6 to 39, was approved by the Board of Directors on 13 August 2025 and signed on its behalf by:

Kildea Chief Executive

Mark

Flat 1, 126 Harley Street.

Retail, Platform, Marylebone Lane.

Office, 7-10 Chandos Street. Over

During the year, we completed an extensive refurbishment of 76-78 Portland Place. Our aim was to repurpose the building as a state - of-the-art space to be the central location of our newly devised HealthTech hub. It is a highly dynamic space, designed to cultivate innovation, encourage collaboration, and drive solutions to improve healthcare. Supported by an additional building on Portland Place, Hale House will accommodate HealthTech companies, investors and venture capital firms. 76-78 Portland Place officially opened at the start of May 2025 with UCLPartners, the largest UK health innovation partnership, as the anchor tenant.

Launched in partnership with Spacemade, one of the UK’s fastest- growing flexible workspace operators, Hale House is equipped with private offices, coworking space, meeting rooms and dedicated events space. Members will also benefit from the latest media production facilities,

an onsite café, wellness room, yoga studio and roof terrace.

In line with Howard de Walden’s commitment to excellence in design, social impact and sustainability, Hale House has been designed to achieve BREEAM Excellent, NABERS 4.5, and Fitwel certifications.

The Hale House project underscores Howard de Walden’s continued commitment to strategic investment in world class healthcare and innovation. This initiative coincides with the launch of the Harley Street Health District – recently re-branded from the Harley Street Medical Area. This repositioning signifies an evolution in Howard de Walden’s healthcare strategy – reflecting the transition from traditional reactive healthcare to emerging models of patientcare which are proactive and tech-enabled.

“We will continue to invest in the Harley Street Health District, to make sure it remains a global leader in healthcare and innovation.”

Mark Kildea Chief Executive

Launch event, Hale House, 76 -78 Portland Place.

Hale House

Harley Street: Frontier innovation

In 1756, construction began of a road linking Paddington to Islington. Known as New Road, this was London’s first bypass. Just over 100 years later, the street was divided into three sections, renamed Marylebone Road, Euston Road and Pentonville Road. Shortly afterwards, the world’s first-ever underground railway opened directly underneath, connecting Paddington and Farringdon.

Marylebone Road, the northern boundary of our estate, is steeped in the history of London transportation. But a more important association today comes from the connection it provides between London’s leading locations for technology, research,

healthcare and education. These include, among others, the Kings Cross Knowledge Quarter, The Francis Crick Institute, University College London, University College Hospital, Harley Street Health District, St Mary’s Hospital and Imperial College’s Paddington Life Sciences.

With Oxford Street and the Elizabeth Line marking our southern border, Harley Street Health District could not be better placed. Its location at the centre of this magnet for intellectual capital in health and technology is essential to the appeal of our recently launched Hale House development. Based on Portland Place, its aim is to link the best innovators in HealthTech with our unrivalled network of healthcare providers, including leaders in both the public and independent sectors. These vital links are set to accelerate the adoption of technology in healthcare. That is why the Harley Street Health District is recognised in the Mayor of London’s Growth Plan as a frontier location for health innovation.

Hale House, 76 -78 Portland Place.

An integrated healthcare ecosystem that spans prevention, treatment and long-term care.

Hale House has been designed to achieve NABERS 4.5

Property portfolio overview

Market overview

Investment volumes over the last 12 months were subdued amidst ongoing macro-economic challenges, most notably the UK’s general election, a delayed release of the new Labour government’s budget and latterly, the impact of Trump’s unpredictable tariff policy. These constrained the West End’s cumulative annual transactional volumes to under the five and 10-year averages. At the start of 2025, there was an anticipation that growing liquidity and investor demand from 2024 would drive higher activity and pricing. However, rises in both long-term gilts and money market rates served as a reminder that macro - economic and political uncertainty continue to impact market sentiment and property fundamentals. Development is highly sensitive to costs and planning hurdles but was buoyed by rental growth, particularly in the office letting market.

Central London leasing activity improved throughout 2024, and despite geo-political turbulence at the start of 2025, Q1 levels appear to have remained robust in comparison to the previous five years. A restricted 2024 development pipeline, coupled with continued demand for best-in - class buildings, has seen prime rents across the West End continue to climb. This is

“The Group remains focused on investing in and unlocking value add opportunities across the portfolio.”

Julian Best Executive Property Director

expected to continue throughout 2025 despite a better year for development completions, of which a good proportion are pre-let.

Valuation

At 31 March 2025, the Group’s investment properties were valued at £4,273.3 million, an increase of 2.5% and 1.1% on a like-for-like basis. The two most valuable sectors remain Healthcare at £1,582.1 million and Residential at £1,187.0 million.

Portfolio performance

Overall year-on-year rental growth of 7.8% to £164.1 million is underpinned by increases across all four main sectors. Despite near full occupancy across Healthcare, Residential and Retail, lease activity alongside completed developments and a managed churn of occupiers has seen the rental trend continue to move upwards. The largest single movement has been seen within the Office portfolio. Our focus is to invest in office products that correspond to the breadth of occupier demand and the evolving working environment. We forecast growth in this sector this coming year as buildings continue to be let, as well as the continued success of the Elmtree and Hale House flexible co-working brands (further detail in the Office sector review).

Overall portfolio rent collection for the year was 95% (2024: 96%).

Acquisitions, developments and disposals

The Group remains focused on investing in and unlocking value add opportunities across the portfolio, while increasing diversification across the core sectors. Several opportunities to acquire long leases and reposition assets are underway where limited competition enables us to unlock value unavailable to other acquirers.

A more detailed overview of our four biggest sectors can be found on pages 16 to

The completion of the acquisition of 55 - 57 Marylebone High Street, previously The Conran Shop, at the beginning of the financial year is one such example, with new opportunities always considered in the context of current demand. While minimal capital was deployed in acquisitions, investment into the

portfolio continued through the development programme, with substantive progress on the flagship 1 Harley Street and Hale House products at 76-78 Portland Place and 42 Portland Place.

We continue to dispose of deemed ‘non-core’ buildings. These are

assets that are on the periphery of the estate and/or offer limited asset management opportunities. During the year we realised £27.1 million from all disposals, with £6.0 million relating to enfranchisement disposals.

Julian Best Executive Property Director

Healthcare

Percentage of rental income (%)

£63.8m

Rental income

2024: £60.9m

4.8%

Change in rental income 2024: 2.0%

£1,582.1m

Valuation

2024: £1,528.0m

1.6%

Change in like-for-like valuation

2024: 11.2%

Healthcare income totalled £63.8 million, an increase of £2.9 million (+4.8%) against the previous year. The Healthcare portfolio value is £1,582.1 million, an increase of £54.1 million (+3.5%) compared to the prior year (+1.6% on a like -for-like basis). Of the total portfolio, Healthcare represents 38.9% of income and 37.0% of the total property values.

Our Healthcare portfolio remains the largest sector in both income and value terms, underpinned by our Harley Street Health District (HSHD) brand. Income continued to grow during the year and is expected to increase as our development pipeline delivers new product onto the market. Importantly, the valuation uplift was driven by the positive rental growth from occupier demand and not yield compression. High occupancy levels underscore HSHD’s ongoing dominance in the independent healthcare market, representing 40% of London and 10% of the UK. This is driven by the increasing presence of NHS private patient units (PPUs), which contribute capital funding to NHS Trusts for investment and research.The Healthcare portfolio was 98.8% let at year end (excluding buildings under refurbishment).

With the ever-evolving way in which healthcare is delivered, we have responded by creating a Board

sub-committee entirely focused on the health sector and what we refer to as ‘whole-health’. This term encapsulates a patient’s entire journey from primary health screening and secondary care to diagnostics, preventative healthcare and wellbeing. An initial requirement of the committee was to refresh the strategy and approach to healthcare to ensure that we continue to refurbish and redevelop our portfolio with buildings to meet current and future healthcare operator demands. Our ambition is to continue to attract the best- in - class global practitioners to the district, alongside innovators, researchers, clinical trials and key healthcare enablers.

76 New Cavendish Street.

98.8% occupancy as at 31 March 2025

Key lettings during the year included 76 New Cavendish Street let to Cedars - Sinai, a leading US healthcare provider based in Los Angeles. In addition, space was let to NIH Clinics (social healthcare), Allergy Centre of Excellence (a specialist paediatric allergy clinic) and Professor Paulo Stanga (highly respected eye surgeon and leading researcher into macular degeneration). We continue to attract practitioners across all patient pathways with a concentration on mental health and wellbeing. We are also engaged with highly regarded operators for a pre - let of 1 Harley Street and an oncology specialist for 141-143 Harley Street.

The development pipeline at year end has an estimated rental value (ERV) of £4.0 million. The largest asset currently being developed is the flagship building of 1 Harley Street which is c.25,000 sq ft of premium healthcare space, due to complete in February 2026.

60 Harley Street.

8 Upper Wimpole Street.

48 Welbeck Street.

11 Devonshire Place. The Howard

31 Queen Anne Street.

Residential

Percentage of rental income (%)

£38.6m

Rental income

2024: £35.1m

10.0%

Change in rental income 2024: 8.7%

£1,187.0m

Valuation

2024: £1,179.6 m

0.2%

Change in like-for-like valuation 2024:  4.6%

Residential income totalled £38.6 million, an increase of £3.5 million (+10.0%) against the previous year. The Residential portfolio value is £1,187.0 million, an increase of £7.4 million (+0.6%) compared to the prior year (+0.2% on a like -for-like basis). Of the total portfolio, Residential represents 23.5% of income and 27.8% of the total property values.

Our Residential portfolio, consisting of close to 850 homes, is a key component of our Marylebone Village brand and provides positive diversification against our commercial assets. Our strategy continues to be focused on delivering a wide range of high-quality residential homes in Central London, at varying price points, allowing us to attract and retain a diverse population who bring vibrancy to Marylebone Village.

The residential property management team continue to focus on delivering excellent and proactive customer service, demonstratable in our strong Google reviews.

Residential occupiers require a different range of services and we believe our dedicated team achieve those objectives, resulting in higher retention and relocation rates. The average time to let our properties moves between five and nine days.

11 Weymouth Street.

Demand for our residential product remained high throughout the year, with occupancy levels being consistently near 100%. At year end, occupancy levels in the portfolio were over 98%. Rent collection rates for the year were also high, with over 98% collected.

We continue to invest in our portfolio through our rolling refurbishment and refresh programme, ensuring that the quality of our portfolio remains at the expected levels, while providing us the opportunity to upgrade services and finishes to meet the necessary sustainability and legislative requirements.

Refurbishment projects finished during the year include the completion of 65 Harley Street which has been let under a single lease to serviced apartment provider Living Rooms. The team at Living Rooms manage the 10 apartments directly with customers on short-term lets, helping provide a different type of product in Marylebone. Refurbishment projects were also undertaken at 11 Weymouth Street (4 apartments), 56 - 60 Wigmore Street (8 apartments), 92 New Cavendish Street (7 homes), 13 Wigmore Place (1 mews house) and 36-37 Welbeck Street (9 homes).

During the year we sold £9.4 million of residential assets. These were

deemed ‘non-core’ assets, where we had lost control already of the wider block they were situated within.

Enfranchisement receipts during the year totalled £6.0 million. The Leasehold and Freehold Reform Act 2024 received royal assent on 24 May 2024, and all areas are expected to come into force during 2025. We adjusted our valuation assumptions in the prior year to reflect the uncertainty that the Act brought, specifically around marriage value for the long-leasehold portion of the Residential portfolio. We continue to monitor the reforms.

36-37 Welbeck Street.

13 Wigmore Place.

56 - 60 Wigmore Street.

Rent collection rate of over 98%

92 New Cavendish Street.

Office

Percentage of rental income (%)

£31.4m

Rental income

£27.0 m

 16.3% Change

£786.2m

Valuation

 0.5%

Change

20 Thayer Street.

Office income totalled £31.4 million, an increase of £4.4 million (+16.3%) against the previous year. The Office portfolio value is £786.2 million, an increase of £13.0 million (+1.7%) compared to the prior year (-0.5% on a like-for-like basis). Of the total portfolio, Office represents 19.1% of income and 18.4% of the total property values.

Our Office portfolio is an integral part of our Marylebone Village brand, alongside Retail and Residential. The uniqueness of the village is that it brings people together in a community to work, live, eat and shop, with the office occupiers playing a significant role in the success of the area.

The office occupancy levels continued to grow year on year after the decline driven by the pandemic. While at year end the occupancy level was 85.6%, this was up from last year’s position of 81.4%. The strategic ambition to diversify our office products from traditional long leases to more flexible lease length with additional services has driven this increase in occupancy and contributed to rental growth. Vacant properties, traditionally for single occupiers, have been repurposed into a variety of accommodation styles reflecting core occupier demands creating high quality, versatile space but avoiding expensive over-customisation which has a limited lifecycle. This has meant

52 new leases signed in the year

that the investment is yielding the targeted returns and occupancy.

The Elmtree brand was launched in the previous financial year, with two initial buildings put into the portfolio. These are now operating at mature occupancy levels proving the concept and demand for such products in Marylebone. The intention is to grow the portfolio at the right pace to meet occupier demand, while working closely with our operator Spacemade to ensure that the product continues to satisfy occupier requirements.

The success of the Elmtree co -working space, alongside our refreshed healthcare strategy, identified

another opportunity to diversify our targeted office product in the form of Hale House. Its launch specifically targets SME occupiers operating in the innovation and research fields of HealthTech. Hale House consists of two buildings centred around 76 -78 Portland Place, providing both co-working and self-contained offices in a collaborative environment that offers tailored facilities for innovators and entrepreneurial companies. Its unique location within the Harley Street Health District provides emerging HealthTech companies with opportunities to collaborate with our healthcare operators on early-stage research and product development. Hale House is also operated day to

day by Spacemade who understand our requirements for the short and long term.

We also continue to invest in traditional, grade A offices. The successful completion and letting of The Pulman at 20 Thayer Street is an example of this alongside the lettings at 68 -74 Wigmore Street.

Hale House, 76-78 Portland Place.

13-14 Welbeck Street.

Percentage of rental income (%)

£23.2m

Rental income

2024: £21.5m

2024: £553.2m  7.9%

Change in rental income

£597.0m

Valuation

 5.4%

Change in like-for-like valuation

The Retail sector incorporates our retail, hospitality and leisure businesses. Retail income totalled £23.2 million, an increase of £1.7 million (+7.9%) against the previous year. The Retail portfolio value is £597.0 million, an increase of £43.8 million (+7.9%) compared to the prior year (+5.4% on a like-for-like basis). Of the total portfolio, Retail represents 14.1% of income and 14.0% of the total property values.

The Retail portfolio is an integral part of Marylebone Village and attracts residents, office occupiers and, importantly, shoppers from nearby suburbs. The capital growth has been driven from continued rental increases across the portfolio,

underpinned by strong occupier demand and trading levels. This has resulted in occupancy levels remaining high all year round. At year end, the portfolio was 96.2% let, with the remaining space all under offer to prospective tenants.

This demand ensures that we can maintain a well-balanced array of retail and leisure that helps create the uniqueness of Marylebone Village, attracting customers seven days a week. Some of the key lettings during the year included:

4-5 Marylebone High Street – the old NatWest bank has been converted into the very successful womenswear brand ME+EM, a

Vince, 87 Marylebone High Street.

24 new leases agreed during the year.

significant upsize from their adjacent unit and currently their largest store

26 Marylebone High Street

– occupied now by Soma Brands, who specialise in women’s underwear

72-75 Marylebone High Street

– let to Gail’s who are currently fitting out the store to open in the summer of 2025

87 Marylebone High Street

– let to Californian men’s and women’s fashion brand Vince

49 Marylebone Lane

– the newly created unit has been taken by Platform who promote and collaborate with new and upcoming fashion, lifestyle and art designers

55 Marylebone Lane

– let to the well- known hairdresser

Larry King

24 Thayer Street

– now occupied by the all-day dining experience from Farmer J 1 Hinde Street

– this former office building has been converted to provide a corner retail unit which is now occupied by Sealskinz, who manufacture endurance accessories, as their first UK store

At the beginning of the financial year, we purchased the long leasehold interest of 55-57 Marylebone High Street, previously the Conran Shop. This property provides over 21,000 sq ft

of space, which has been refurbished during the year and is expected to be let shortly to a single occupier as a concept store and head office.

As in prior years, the core focus for our retail offer is to ensure that there is a vibrant and exciting mix of occupiers, distinct from the mainstream high street.

55-57 Marylebone High Street.

Platform, 49 Marylebone Lane.

Larry King, 55 Marylebone Lane.

Farmer J, 24 Thayer Street.

Financial performance

Overview

Turnover for the year increased £11.2 million from £153.8 million to £165.0 million. This was driven by strong underlying growth in rents from our Office and Residential portfolios, with lettings activity and renewals buoyant. Office income has benefitted from our flexible workspace offering, Elmtree, reversing the adverse variance seen in the prior year following the repositioning of certain assets into our flexible working portfolio. Residential lettings continued to benefit from strong demand resulting in many deals going to best and final bids. Healthcare properties were largely fully occupied with growth coming through renewals and rent reviews. Retail portfolio, like prior years, continues to have strong occupier demand. The ERV of our current development pipeline at year end was over £10 million per annum, with a combination of assets across all sectors, and will be a key element of income growth in the future.

Overall rent collection was 95% for amounts billed during the year. We continue to manage the collection of arrears on a case -by- case basis which, when excluding some recurring balances, has seen collection rates towards the end of the year return to pre-pandemic levels. Some individual tenants continue to experience trading difficulties. The accounts include a provision

“This year we were able to grow income, but this has been offset by cost increases due to portfolio investments.”

Andrew Griffith Chief Financial Officer

against outstanding debts where there is a risk of non-recovery.

Our key financial metric is revenue profit before tax, as it excludes the variable impact of gains and losses on disposals and the annual revaluation of assets and liabilities. This year’s revenue profit before tax increased slightly to £75.7 million, an increase of 1.5% on the level achieved last year (2024: £74.6 million). The headline profit before tax of £172.0 million factors in revaluation gains of £87.0 million for the year. In 2024 a headline loss before tax of £254.2 million was recorded incorporating £331.8 million of revaluation losses. The reconciliation

from headline loss to revenue profit before tax is set out on page 25.

The way we grow revenue profit before tax is through increasing rental income and reducing or managing operating and borrowing costs. This year we were able to grow income, but this has been offset by cost increases. Property cost increases of £9.1 million have come from several factors, but mainly increased expenditure in refurbishing and developing our properties to a high standard, as the repair element is expensed through the profit and loss account. In addition, we increased our bad debt provision as noted previously. General day-to - day property costs increased as we started to see the impact of costs associated with providing flexible office space, coupled with inflationary increases across all areas of operating costs. Administrative costs have increased by £0.9 million for the year from £25.1 million to £26.0 million, largely due to inflationary pressures and increased investment in our IT environment.

Net finance costs decreased from £24.4 million to £24.3 million. The average amount borrowed was £649.2 million, a decrease of £12.1 million from the previous year (2024: £661.3 million). The average rate paid on borrowing remained at 4.0% (2024: 4.0%).

£426.2 m

increase in headline profit before tax.

Year-end borrowings dropped from £658.3 million to £638.3 million (at forward contracted rates – see pages 73 to 75) where one tranche of the 2014 private placement matured. We completed a new private placement for £100.0 million in July 2025 at a blended rate of 5.63% to replace a tranche of debt maturing from the 2010 private placement and provide additional capacity for investment opportunities.

Cash and cash equivalents at 31 March 2025 were £27.8 million (2024: £54.3 million) with the majority invested in a high interest-bearing bank account. The level of cash held at the bank, alongside a revolving

credit facility of £150.0 million, in place until December 2026, provides the Group with significant financial headroom to take advantage of any opportunities or withstand any downturns in the market. At the year end, for both the current and previous year, the facility was undrawn.

At 31 March 2025, the Group’s average debt maturity was 12.4 years (2024: 13.0 years). The level of net borrowing to net assets (the gearing ratio) decreased from 21.5% to 21.1%. The Group’s low level of borrowing is comfortably supported by interest cover of 4.1 times (2024: 4.1 times).

Distributions

Distributions of £50.3 million (2024: £77.4 million) were paid during the year to shareholders. Comprised of dividends totalling £50.3 million (2024: £44.1 million), which included dividends of £4.0 million on ‘A’ shares (2024: £nil) and a bonus share issue and redemption of £nil (2024: £33.3 million).

Five-year financial performance

The comparative figures below relate to the year ending 31 March 2021 where results were affected by the impacts of the COVID-19 pandemic and changes to the corporation tax rate. The Group’s rental income has increased by 24.5% from £131.8 million to £164.1 million. In the same period, revenue profit before tax has increased by 19.0% from £63.6 million to £75.7 million. The value of the Group’s investment properties has decreased by 6.0%, from £4,546.2 million to £4,273.3 million, a decrease of £272.9 million. In the same period, shareholders’ funds decreased by 11.8% from £3,276.9 million to £2,889.0 million.

Andrew Griffith Chief Financial Officer

Principal risks and uncertainties

“The Group is committed to strengthening its ability to create value through strategic and operational evolution.”

Andrew Griffith Chief Financial Officer

Overview

The Group is a long-term investor focused on high quality real estate assets in Marylebone and seeks to enhance its reputation and grow rental income and profitability. The successful delivery of strategic objectives is underpinned by values which prioritise excellence, responsiveness, innovation, collaboration and inclusiveness, and identification and response to internal and external opportunities and risks. The Group remains strong and resilient despite the ongoing challenging risk environment with interest rates and inflation pressuring costs, and geopolitical volatility and climate risks all adding pressure to investment decisions, growth and returns. The Group is

responding with strategic initiatives including adapting its portfolio strategy and investing in technology upgrades. The geographic concentration of the estate, exposure to property market cyclicality and operation of heritage buildings are accepted risks which are offset by maintaining a diverse portfolio and carrying low financial risk.

Risk management framework and process

The diagrams below provide an overview of our governance and process structures for risk management. The Group continues to evolve its risk management framework to ensure comprehensive identification of opportunities and risks, and to support visibility and responsibility for

risk management in alignment with its values-driven culture.

Risk assessment and reporting are managed in a three lines of defence model and designed to provide the Board with a Group-wide perspective of the key risks.

Risks identified by or reported to senior leadership are assessed and have responses agreed. These risks are consolidated to the Group Risk Register which is reviewed twice yearly by the Risk Committee. The committee meets separately to discuss horizon uncertainties. Where appropriate, the key risks, controls and improvements are subject to monitoring and assurance.

Principal risks

The risk landscape is constantly changing, and the financial performance, operations and sustainability of the Group can be impacted by various factors. Based on our monitoring and assessment of risk in the context of the strategic plan and operating environment, the most significant risks to our strategy, financial position and future performance are summarised in the following commentary.

1. Strategic execution and resilience

Description

Execution of the strategic plan, development programme, and satisfaction of stakeholder requirements could be impacted by structural market shifts, property cycles, the economic and political landscape, over-exposure to sectors or key customers, evolving customer requirements, ineffective capital allocation decisions, changing demographics affecting target sectors, increased competition, technological advancements, increasing legal and regulatory requirements, or the competency and efficiency of internal resources and structures.

2. Macro environment

Description

Tensions and conflicts, civil unrest, terrorism, health crises, political uncertainty and other macro events could lead to high inflation and interest rates, health and safety concerns, unfavourable policy and legislation, and impact to market cycles.

Risk movement: Increasing Decreasing No change New

1. Strategic execution and resilience

2. Macro environment

3. Climate change and decarbonisation

4. Technology and cyber security

5. Change management

Outlook and impact

External and internal changes are driving this risk upwards in the short term. The regulatory horizon including leasehold reform and building safety impact investment decisions, income and costs. Political and economic uncertainties remain, particularly relating to tariffs imposed by the US and ongoing conflicts. Interest rates have rebased at higher levels which could impact the acquisitions and disposals strategy, and financial strength of key customers or suppliers resulting in default or failure. Delivery of sufficient and appropriate products to the market is key to preserving financial strength, income and growth and avoiding property obsolescence, in line with ESG requirements.

Outlook and impact

There continues to be elevated economic and political uncertainty which is amplified by ongoing conflicts and global trade arrangements and challenges to UK growth forecasts. Interest rates and inflation remain high which may affect investment decisions, supply chains, the attractiveness of London, valuations, covenant requirements, and the cost of financing for Howard de Walden and its customers which can lead to tenant default or failure, increased covenant risk, reduced demand for properties, and impact to current and planned developments.

3. Climate change and decarbonisation

Description

Climate change poses both physical and transitional risks to assets and operations. There is a risk of failure to meet decarbonisation and resilience targets, and regulatory and customer requirements in a cost effective and collaborative manner due to increasing extreme weather events or regulatory requirements, availability of products and materials, failure to engage with stakeholders, embrace technology and data or plan for skills requirements.

Outlook and impact

As a heritage estate operator, the transition to a low carbon and climate resilient business requires significant investment and is subject to pressure from new regulations, technologies and skills requirements. This risk remains a strategic priority in the long term as failure to respond could impact compliance, insurance availability or cost, funding availability or cost, valuations, operational costs, and our ability to let assets. These could lead to reputational damage, litigation, fines, loss of customers due to not meeting their requirements and/or costs associated with occupying our buildings, significant carbon cost, and potentially damage from extreme weather.

6. Optimisation of people resources

7. Business interruption

8. Optimisation of customer experience

9. Regulations and compliance

Key controls

Regular review of strategic plans and initiatives

Simplified sector strategies to allow adaption to customer demand

Regular review of financial forecasts

Monitor portfolio balance and key customers

Monitor key suppliers’ performance and financial health

Investment committee approval for acquisition and disposal decisions

Board oversight and challenge to strategic plans

Sufficient financial headroom maintained

Periodic review of people strategy to ensure appropriate mix of structure, resources, skills, and behaviours

Key controls

Diversified portfolio of high-quality assets

Interest rate protection and sufficient financial headroom

Limited external borrowing to minimise exposure to counterparty failure and interest and currency rate changes

Maintain diversified tenant and supplier mix and close engagement with both Monitoring of external environment for emerging risks

Monitoring economic and policy updates for response requirements and opportunities

Key controls

Science-based targets commitment to reduce energy usage and carbon monitored by Sustainability Committee and Taskforce

Climate considerations integrated into investment and development decisions and monitored by the Investment Committee

Climate and transition risk assessments undertaken and incorporated in asset planning

Progression of green building certifications

Supplier and customer engagement

Policies implemented e.g. sustainable development framework, gas avoidance, supplier charter aligned to sustainability goals

Bonus scheme aligned to sustainability targets

4. Technology and cyber security

Description Infrastructure failure and/or the unavailability of systems, services or data could be caused by incidents such as fire or flooding, or events such as cyber- attacks or misuse. There may also be shortfalls in product or service delivery caused by a failure to adopt and benefit from the advancement of technology in line with competition and advancements, and additional data protection and ethical impacts from choosing to adopt new technologies.

5. Change management

Description

Failure to deliver the benefits of business projects and change programmes could occur due to a failure to govern, identify objectives, skill and funding requirements, recognise resource requirements, and monitor delivery.

Outlook and impact

There continues to be rapid advancement and increased use and dependence on technology (including artificial intelligence), which can drive efficiencies, data improvements, cost reductions, decarbonisation progress, and ESG considerations. Investment in new systems and technologies to gain efficiencies and operational advantages increases third party and data risks and temporarily increases the risk of direct or indirect operational disruption (e.g. loss of access or integrity of systems or data and/or diminished service provision to customers), data breach, fines, reputational damage, increased costs and resource requirements. These can ultimately result in a failure to attract and retain customers and market share.

Outlook and impact

The Group evolves its strategy and business models and structure in response to the changing external environment and invests in technology and training to enhance the adaptability of its workforce. Ongoing initiatives in these areas result in this risk remaining high and separated from strategic execution and resilience. Failure to manage change programmes effectively could result in increased costs, loss of income, reduced productivity, loss of key staff and project stakeholder engagement, and failure to meet growth and efficiency objectives.

6. Optimisation of people resources

Description

The achievement of strategic objectives could be impacted by unacceptable staff turnover levels, ineffective employee onboarding, training and engagement, lack of relevant skills or structure, loss of key staff or leadership, prolonged recruitment periods.

Outlook and impact

Staff turnover levels have stabilised, however leadership requirements, role profiles, skills requirements, employee expectations and workloads continue to evolve due to the changing operating environment and strategic initiatives. Skill and resource gaps, recruitment challenges, deterioration in wellbeing, reduced productivity, or increased absence could contribute to a failure to achieve an appropriate culture and meet objectives and KPIs.

Key controls

Cyber security accreditation and measures to prevent and detect issues and incidents, including multi-factor authentication and training, Cyber Essentials Plus, regular testing, detection software and regular patching

Digital strategy and taskforce

Incident response plans including disaster recovery plan, full replicated backups in discrete data centres

IT supplier due diligence

Cloud hosted Cyber insurance Regular review of policies

Key controls

Business projects and change programmes overseen by Executive Directors Strategic planning days for senior leadership team

Leadership development training Investment in employee engagement and wellbeing

Business cases signed off by Executive Committee

Key controls

Active Diversity, Equity, Inclusion and Belonging Committee

Succession planning, training needs and development plans linked to objectives

Leadership and management training

Benchmarked remuneration packages and policy benefits

Clear articulation of values and behaviours with recognition scheme

Employee engagement surveys

Regular and periodic wellbeing activities and initiatives

Periodic review of people strategy to ensure appropriate mix of structure, resources, skills, and behaviours

7. Business interruption

Description

The ability to carry on business as usual and remain a resilient organisation could be disrupted by major external or internal events such as sudden market shifts, natural disasters, extreme weather, health crises, major cyber events, utility failures, major supply chain disruption, civil unrest, crime or terrorist activity in central London.

Risk movement: Increasing Decreasing No change New

Outlook and impact

1. Strategic execution and resilience

2. Macro environment

3. Climate change and decarbonisation

4. Technology and cyber security

5. Change management

Most events are beyond our control but could cause severe and complex impacts. Instances of extreme weather are increasing including heat, storms and flooding, and there is continued political and economic uncertainty. Events can cause disruption to our operations, customers and suppliers and can affect the condition of our portfolio, our ability to let properties or retain customers, and ultimately, our financial performance.

8.

Optimisation of customer experience

Description

Structural shifts in markets in which the Group operates, changes to regulations and technology, customer demands, increasing competition, and operational disruption from any source, could affect the Groups ability to deliver products and services required to attract and retain customers.

Outlook and impact

Shifts in the retail, office and healthcare sectors have changed the space, amenity and leasing requirements of target customers. The growth of sustainability and technology requirements can also affect customer needs and internal skills requirements. Internal initiatives could cause disruption to objectives and KPI achievement in the short term. Failure to respond to these changes could lead to difficulties letting assets, loss of customers to competitors and assets could become stranded which affects valuations and income.

9. Regulations and compliance

Description

Breaches of regulations, laws or other liabilities could occur due to failed or missing controls, inadequate monitoring or understanding of changes to the legal and regulatory environment, or if there is an inappropriate level of resource and/or skill and/or culture required to implement the required changes.

Outlook and impact

The legal and regulatory environment continues to evolve with further material updates anticipated in key areas including leasehold reform, building safety and climate-related issues, which are likely to impact income and costs. The regulatory impact from new legislation and from global volatility is being monitored closely. Breaches of regulations can result in incidents or accidents, fines, prosecution and reputational damage and impact our ability to operate in certain sectors.

Key controls

6. Optimisation of people resources

7. Business interruption

8. Optimisation of customer experience

9. Regulations and compliance

Full insurance cover

Review and testing of crisis management plan and business impact analysis

Climate impact analysis

Market analysis

Disaster recovery plan, Cyber Essentials

Plus accreditation, active network monitoring and testing, staff awareness and training programme

Regular strategy and forecasting reviews

Diversified and monitored key supply chain

Key controls

Monitoring market trends and updating sector, development and design strategies

Diversification across and within sectors

Customer and community engagement strategy

Digital strategy development and implementation

Regular engagement including customer surveys and forums

Customer relationship management system

Complaint handling procedure

Periodic review of People strategy

Third party specialists engaged where required, i.e. Spacemade

Key controls

Regular training for staff on key regulatory areas

External advisors provide updates and briefings

Governance delivered through Executive Committee oversight of regulatory environment, processes and training updates and compliance projects

External financial audit

Engagement with relevant associations and bodies

Assurance activities for key areas

Sustainability

“Our deCarbon strategy focuses on high-impact areas where we can drive the most meaningful change.”

Simon Tranter Head of Sustainability

deCarbon

We continue to see a reduction in our carbon emissions, including natural gas and refrigerant use (Scope 1) within landlord areas, purchased goods and services and business travel (Scope 3). This was possible through improvements in the energy efficiency and optimisation of buildings, removing gas, and improving the measurement of embodied carbon. Electricity consumption increased due to void properties (Scope 2). However, we completed the transition to 100% REGO-backed electricity and RGGO-backed gas across all supplies. Comprehensive results and methodology for our Scope 1, 2, and 3 emissions are provided on page 33.

Emissions from our occupied properties and the carbon linked to our development activities – such as embodied carbon – remain our largest sources of emissions. They also present the greatest opportunity to drive meaningful progress toward our net zero carbon objective: to avoid property obsolescence and plan for net zero carbon emissions by 2040.

Our deCarbon strategy focuses on high-impact areas where we can drive the most meaningful change.

A key milestone reached in the year was the launch of our Sustainable Procurement Policy in January 2025.

Managing our buildings efficiently Objectives:

Our buildings will be free from fossil fuels and will maximise renewable energy technology We will reduce the environmental footprint associated with our property management operations Our managed buildings will perform in line with recognised energy performance standards

Achieving a reduction in emissions across our estate requires a clear understanding of how to decarbonise our managed buildings while improving energy performance.

We completed net zero carbon assessments for 14 properties enrolled in the City of Westminster’s Sustainable City Charter. These evaluated each building’s fabric, heating and cooling systems, lighting, building management systems, and overall operational efficiency. Each asset received a detailed report benchmarking its current performance and outlining recommendations to align it with net zero carbon standards.

Key measures identified include optimisations, system upgrades, heat decarbonisation, fabric improvements, occupier initiatives and on-site renewable generation.

We engaged with 92 businesses to share our goals and invite collaboration. These initial conversations were followed by engagement sessions, to discuss our vision and plan for each building.

Over the next year, we will begin implementing the first phase of improvement works – primarily optimisation measures to build momentum ahead of more complex upgrades. The timing of interventions will be informed by asset-specific strategies. We will develop a net zero roadmap for the remainder of our managed portfolio, exploring how to scale recommendations across different building types.

We also advanced our efforts to decarbonise landlord-controlled heating systems by preparing to replace fossil fuel-based infrastructure with net zero carbon -ready alternatives. Over summer 2025, we will conduct feasibility surveys for 20 additional managed buildings to identify viable low-carbon solutions.

Upgrading our metering and monitoring systems is a vital enabler for decarbonisation. We began a programme to replace existing landlord meters with SMART/AMR meters, covering both permanent supplies and units reverting to landlord responsibility.

To support this, we developed standardised sub-metering guidance for both existing managed properties and newly refurbished sites. This guidance aligns with industry best practices, will help us monitor consumption more effectively and enable us to work collaboratively with occupiers to agree on targeted changes. We are now moving into the implementation phase, including procuring an energy dashboard.

Recognising the need for fast, accurate, and scalable solutions, we partnered with MapMortar Ltd to pilot its AI - driven digital twin technology. This approach was tested on 13 commercial buildings, using machine learning to simulate energy performance and identify bespoke decarbonisation opportunities. The pilot highlighted how AI can accelerate audit processes, streamline planning, and improve commercial decision-making. We plan to explore expanding this pilot across more of our managed portfolio.

Delivering low carbon refurbishments and redevelopments

Objectives:

Our refurbishment and redevelopment projects will achieve net zero carbon in operation

All of our projects will align with the core principles of our sustainable development framework Our refurbishment and redevelopment projects will achieve net zero embodied carbon

Embodied carbon from our development activities remains one of the largest contributors to our overall emissions, 47% of our total carbon footprint.

Along with reducing operational energy consumption, enhancing how we measure and analyse embodied carbon continues to be a key priority.

In 2024, we signed an agreement with Qualisflow Limited to adopt their digital platform, QFlow. The platform enables accurate tracking of material deliveries and waste generation across construction projects. This year, 26 development projects have utilised the technology and the data captured will help our embodied carbon measurement processes. Six of these assessments were completed and they are helping to improve our reporting of Scope 3 emissions, which is currently

estimated using spend-based data. The insights will help to set accurate benchmarks and inform project targets.

We published an Embodied Carbon scope of work, outlining the requirements for retrofit projects including guidance on material selection, modelling and reporting. The Scope of Work is aligned with UK Net Zero Carbon Buildings Standard (Pilot). We plan to publish a Scope of Work for setting Energy Use Intensity (EUI) targets next year.

Our flagship development at 76 -78 Portland Place was selected for pilot testing of the UK Net Zero Carbon Buildings Standard. Participating allows us to contribute to shaping the standard and inform a review of our internal practices.

Case study:

The 76-78 Portland Place project emitted only 269kgCO 2 e/m² compared to the typical 600kgCO 2 e/m² for a new build. This represents savings of 331kgCO 2 e/m².

The scheme incorporated advanced energy-saving measures that enable Energy Use Intensity (EUI) of 96kWhe/m² (GIA), a significant improvement over the building’s previous baseline of 190kWhe/m² (GIA). This exceeds current best practice standards outlined in the UK Net Zero Carbon Building Standard, and reduces operational energy carbon emissions by 69%, positioning 76-78 Portland Place as a leader in low-carbon design. By integrating cutting-edge technologies, we are on track to secure a 4.5-star NABERS Rating in 12 months, demonstrating our commitment to operational excellence and environmental stewardship.

Training and educating our colleagues

Objectives:

Our people will be committed and understand the role they play in everything they do

Our people will recognise the benefits of being active leaders in sustainable development across our Estate Our people will develop the skills and competencies needed to innovate

The scale and speed of change required within our business means that collective action is essential.

We want every colleague to understand the importance of driving sustainability improvements across our estate.

Head office based colleagues are incentivised to improve the seven sustainability KPIs introduced in 2023 with 10% of the discretionary annual bonus scheme dependent on performance against these measures.

We developed a training needs analysis (TNA) outlining the expected levels of sustainability knowledge and practical application across all roles within the business. The TNA provides a structured framework of learning resources and identifies learning requirements for each role.

Alongside the UK Green Building Council, we launched a suite of e-learning modules such as climate resilience, sustainability in the built environment, and biodiversity. These are now integrated into our induction programme for all new joiners, offering an overview of our deCarbon strategy, and the processes we apply across the business.

Our annual performance review process requires colleagues in operational roles to set sustainability objectives.

Working with our customers and suppliers Objectives:

Our supply chain partners will demonstrate their commitment to carbon reduction

We will adopt responsible business practices throughout our value chain Our customers will value our expertise and work with us to reduce their carbon emissions

We launched our Sustainable Procurement Policy (SPP), which outlines our mandatory and preferential requirements for all suppliers providing goods and services across the estate.

The policy addresses a range of environmental and social priorities, including energy and carbon, resource efficiency (waste and materials), transport and logistics, air quality, biodiversity, social value, and climate resilience.

Our focus has been on embedding the SPP throughout the procurement lifecycle. We now engage directly with all suppliers which includes verifying compliance and reviewing their environmental policies, carbon targets, and willingness to provide emissions data.

A key priority for the year ahead is improving the accuracy of our Scope 3 emissions reporting by collecting carbon data directly from suppliers.

We are also continuing to integrate sustainability into the leasing process. All new commercial leases and short-term residential leases now include green clauses aligned with the Better Buildings Partnership’s Green Lease Toolkit. These clauses promote shared accountability for energy efficiency, data sharing, and improved environmental performance.

For existing leases without green clauses, we plan to proactively request data sharing consent from occupiers. This will enable more accurate Scope 3 reporting and inform targeted engagement, especially in high energy- use buildings or those with strong collaboration potential. This work builds on our recent partnership with Verco Advisory Services Ltd, through which we procured occupier energy data (gas and electricity) to help identify energy intensive assets.

In 2021, we conducted an environmental risk assessment to evaluate the estate’s exposure to future climate-related impacts. This year we completed a Financial Value at Risk Assessment and a Transition Risk Assessment, aligned with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD). While we are not currently required to disclose climate related financial risks, we recognise the importance of doing so and are actively considering TCFD -aligned reporting as part of our broader climate resilience strategy.

Case study:

In March, we hosted our first Supply Chain Sustainability Breakfast, bringing together over 50 key suppliers to introduce the SPP, explain our decarbonisation strategy, and outline the expectations for supplier collaboration. We are now assessing their alignment with the policy, which includes reviewing copies of their environmental policies and seeking data sharing agreements to help improve the accuracy of our Scope 3 emissions.

Our reporting period covers April through to March. Scope 1 is defined as direct emissions that include any gas data for landlord-controlled parts (including company vehicles) and fugitive emissions from air conditioning are included where it is our responsibility within the managed portfolio. Scope 2 is defined as indirect energy emissions which include purchased electricity within landlord-controlled areas such as lobbies, staircases or vacant units. The boundary of reporting excludes tenant consumption in our properties, as the leasing arrangements put responsibility for energy payment on the tenants. Therefore, these emissions fall within Scope 3 (leased assets) but exclude long lease assets (>99 -year leases). Electricity used in refurbishment projects has been included where available or material. We quantify the carbon intensity of the portfolio based on its size (m 2) rather than rental income which has little bearing on the efficiency of our buildings. Our emissions intensity for 2023-24 was 0.035 tCO 2 e/m 2 (Scope 1 & 2 location based). We have expanded our Scope 3 reporting and data quality. Scope 3 categories 3, 5, 6, 7 and 13 are based on consumption information with the remaining Category 1 based on blend of estimated consumption through financial spend and embodied carbon calculations for our refurbishment activity. In addition, we report Scope 3 emissions from sources not owned or controlled by Howard de Walden, including customer and supply chain emissions. We report Scope 3 emissions from the following sources:

Tenant energy consumption in our properties where the leasing arrangements put responsibility on energy operation and direct payment for supply on the tenants (excluding long-leasehold properties >99-year).

Embodied emissions from the materials we use in our refurbishment projects

Purchased goods and services from our suppliers

Fuel and energy related activities (FERA) associated with Scope 1 & 2 activity

Business travel and employee commuting

Waste treatment and disposal, where waste collection is our responsibility within the managed portfolio

Streamlined Energy and Carbon Reporting (SECR)

Our SECR disclosure presents our carbon footprint across Scopes 1, 2 and 3, together with an appropriate intensity metric and our total energy use. Measured Scope 1 and 2 emissions (market-based) totalled 493 tonnes of CO 2 equivalent (tCO 2 e), a decrease on last year primarily due to the procurement of Renewable Energy Guaranteed Origins (REGO) certificates for our non -renewable supply from the secondary market. We have also procured Renewable Gas Guarantees of Origin for 100% of our landlord gas supplies (all contracted and non - contracted supplies).

Scope 1 emissions have seen a reduction through our phasing out of natural gas programme from our landlord common areas and reduction in refrigerant fuel use.

Our Scope 2 emissions have increased year on year primarily due to an increase in VOID units and associated consumption.

Scope 3 emissions have marginally dropped year on year as we reduce estimated consumption and move towards actual consumption data for our downstream leased assets and purchased goods and services.

Our energy consumption has increased this year as shown in the table above. This is largely due to increased consumption at void properties compared with previous years.

Energy efficiency improvements

Energy efficiency improvements for the period are documented on pages 30 to 32.

Methodology

The GHG emissions data is prepared by following the ‘Greenhouse Gas (GHG) Protocol: A Corporate Accounting and Reporting Standard’ published by the World Resources Institute (WRI). We use the GHG Protocol operational control approach as this reflects where Howard de Walden has the ability to influence GHG emissions. The energy and carbon statements disclosed in this report have been calculated in accordance with the following standards: WRI/WBCSD (2004). Greenhouse Gas Protocol: Corporate Accounting and Reporting Standard – Revised Edition WRI/WBCSD (2015). Greenhouse Gas Protocol: Scope 2 Guidance for market- based reporting Department for Environment, Food & Rural Affairs and Department for Business, Energy & Industrial Strategy (2019): Environmental reporting guidelines: Including Streamlined Energy and Carbon Reporting requirements

We have applied the appropriate greenhouse gas conversion factors from UK Department for Business, Energy Security & Net Zero (DESNZ) 2024 in addition to UK Standard Industrial Classifications (SIC) GHG intensities for 2022 (most recent published data) for our purchased goods and services.

Our people

“The people strategy focuses on ensuring we have the right people with the right skills in the right roles.”

Suzanne Tomlinson Chief People Officer

This year we embarked on a period of transformation, with a people strategy to support the delivery of a higher level of individual and company performance.

The people strategy, which sets out people objectives for the next five to 10 years, focuses on ensuring we have the right people with the right skills in the right roles. It also identifies the Howard de Walden employee value proposition (EVP) to attract, engage, grow and retain a high-performing and diverse workforce, committed to the business vision.

Our compensation and benefits package, wellbeing offering and welcoming and collaborative culture are already well established elements of our EVP and our biannual employee satisfaction survey consistently supports this. However, while having made great strides in creating opportunities for fulfilling careers, we aim to develop this further.

This year, the Group’s voluntary employee turnover rate increased to 11.4% (2024: 5.6%). We attribute this increase to the retirement of a number of long-serving employees, as well as some who have decided to move outside of the property industry to pursue different interests or reflect a change in personal circumstances.

Developing our talent

A number of initiatives to develop our talent were implemented in 2024. Five working groups were formed to focus on five key areas integral to the future direction of the business. Members of these groups, which were drawn from a cross-section of the business at all levels, gained exposure to areas outside of their normal day-to - day responsibilities and had the opportunity to contribute, learn and broaden their skillset.

Recognising the benefits of mentoring as a tool for development and progression, an internal mentoring pilot scheme was launched in early 2025. Six mentoring partnerships were formed, with members of our leadership team taking on the role of mentor, supporting mentees with 10 years or less industry experience across technical and operational roles. The intention is for the scheme to run annually and to cultivate a supportive and nurturing environment for learning, development and career advancement in a relatively flat structure.

Our effort in creating career development opportunities continued from 2023 with a further nine internal promotions during the financial year and three internal secondments.

In recognition that greater leadership and management capability is needed, towards the end of the year,

a tender process commenced to appoint a provider to design and deliver a leadership and management development programme. Significant investment is being made into this programme and we look forward to it commencing next year.

Diversity, equity, inclusion & belonging (DEI&B)

The Diversity, Equity, Inclusion & Belonging (DEI&B) Committee achieved its year two aims, one of which was to gather quality data on the diversity of our workforce. With a 78% response rate, we now have a greater understanding of our staff characteristics which can be used to inform areas to improve and to benchmark.

Our gender pay gap

Headline figures comparing the basic hourly pay of all employees inclusive of cash payments and allowances

A minus indicates the gap is in favour of females. *Percentage change figures are absolute change in percentage points.

Pay quartiles

The proportion of male and female employees by quartile pay bands Quartile trends year on year Male Female

Upper quartile

Upper middle

Lower middle

Lower quartile

Gender pay gap

For the sixth year we have voluntarily commissioned an external consultant to calculate our gender pay gap. In common with our real estate peers, we report a significant gender pay gap and are focused on steps to reduce this.

The Group continues to employ more women than men. However, applying the pay gap calculations, as with previous years, men were paid more on average than women. It remains the case that men represent the largest proportion of the upper quartiles and women the lower quartiles. For office-based staff, the percentage of women in the upper quartile increased by 5% (2024: 3%), and the percentage

in the lower quartile decreased by 5% following a 6% increase in 2024. These are both small but positive steps. The percentage of women in the lower middle quartile increased by 5% (2024: 14% decrease), which can be attributed to the decrease in the lower quartile. The percentage in the upper middle quartile decreased by 1% and so is relatively static after a 10% increase in 2024.

The Group median gender pay gap for hourly pay reduced again with the mean slightly increasing. As with previous years, the three highest paid individuals are the Executive Directors, all of whom are men, which has a noticeable impact on

the result. Additionally, the gender pay gap is distorted by the inclusion of all estate-based staff whose salaries are reimbursed by occupants of service charged buildings. For office-based staff only, the gender pay gap decreased on a median basis to 28.4% (2024: 29.4%) and increased on a mean basis to 42.5% (2024: 42.2%)

While the bonus gender pay gap is affected by part-time employees, as the calculation does not allow for prorating, the mean bonus gender pay gap has decreased for the second year. However, the median has increased by 1.5% but is still significantly lower than in 2023.

While there are again some positive changes in our gender pay gap, these remain small. The need for further commitment to addressing this gap is acknowledged. Female representation in the upper quartile has steadily increased since 2023 and has decreased in the lower quartile in the same period which explains why the pay gap has generally been reducing since 2021. But increasing the representation of women in the upper quartile and decreasing in the lower quartile at greater pace is crucial for narrowing the gender pay gap.

Opportunities for women will be greater as we move into 2025 and beyond with a restructured senior leadership team meaning eight women (12 men) are now present in this forum, a significant shift from the Executive Committee. Five of the nine promotions in the year were women, and three women moved into the upper quartile positions. Additionally, four of the six mentoring partnerships have female mentees and three have female mentors. We hope this will encourage ambition among our younger talent and enable them to see a path forward.

In the coming years succession planning and defining career paths for high - potential employees will contribute to making a longer-term impact on the gender pay gap.

Our community “Beyond our financial support, we encourage our colleagues to give back to their communities by volunteering.”

Andrea Merrington Director of Planning & Engagement

Customers

We recognise the importance of our customers as the source of our income, and the role they play in creating our vibrant Marylebone community. We work hard to attract, retain and support customers and consider them a key part of our stakeholder network.

We continue to support and invest in our customers and the area through engagement, marketing and communications. Building strong relationships with both our residential and commercial occupiers and understanding the needs and challenges they face is key to shaping our marketing and communication strategy. We work hard to nurture these relationships through regular face -to -face meetings, networking forums and community events.

Connecting each of our customer sectors is hugely important, ensuring customers that live and work in Marylebone are aware of and benefiting from the area’s diverse mix of retail, restaurants and wellness facilities. To achieve this goal, local initiatives include our two periodicals, the Marylebone Journal, promoting retail, restaurants and lifestyle, and Prognosis, which promotes healthcare and innovation within the Harley Street Health District, along with our Marylebone Village Privilege Card, which now offers over 8,000 local residents and businesses discounts

and promotions across the village. All play a part in achieving this goal.

Partnerships and events

Partnerships and community events remain a cornerstone of our community strategy. This year saw a new addition, London Restaurant Festival in partnership with Amex and The Portman Estate. The partnership showcased the rich and diverse food and beverage offering across Marylebone, drawing a new audience to explore the area.

We proudly celebrated the 20th anniversary of Marylebone Summer Festival, with a vibrant all day street event. Local retailers,

restaurants and community groups came together for a packed programme of live music, family-friendly activities and alfresco dining, while raising funds for local charity Young Westminster Foundation.

Our much-loved Marylebone Christmas Lights celebration launched the Christmas season in support of our local charity partner Great Ormond Street Hospital Charity.

To mark International Women’s Day, we hosted a panel event spotlighting the inspiring women behind the Marylebone Village brands. The panel was chaired by local resident and BBC radio broadcaster Jo Good.

International Women’s Day.

Healthcare conference.

This year also saw the successful return of our biennial Healthcare Conference, bringing together industry leaders in healthcare, policy and investment, our Harley Street Health District providers and HealthTech innovators, to discuss how innovation and technological advancements are revolutionising patient care.

Health and safety

Ensuring the health and safety of our employees, customers and buildings is essential to our business. We aim to maintain a safe working environment through effective risk management, led by a team of qualified professionals who specialise in compliance within the built environment.

Our strategic health and safety plan prioritises building compliance, fire safety, the Building Safety Act, contractor management, procurement, risk management, and internal competency development. Regular audits and inspections of our buildings, including construction projects, are conducted with our contractors. We analyse the results thoroughly and implement recommendations promptly to minimise risks.

Our health and safety team collaborates with property managers, department heads and contractors to prioritise control measures in daily operations. The Health and Safety Committee, comprising senior representatives and overseen by the Chief Financial Officer, regularly reviews this collaboration. This structure drives continuous improvement and supports unbiased decision-making.

Our straightforward health and safety approach focuses on planning, controlling, and monitoring activities to prevent harm or disruption to anyone associated with us.

Suppliers and contractors

Our Supplier Code of Conduct launched during the year, to build upon the standard terms and conditions and other contract documentation already in place for supplier engagements. In addition, we launched our Sustainable

Procurement Policy at a breakfast event to which we invited our key suppliers. We have also been engaging with our supply chain and gathering data to understand how far along our suppliers are on their net zero journeys and how we can work together to deliver our deCarbon strategy.

We have been reviewing our supply chain, carrying out due diligence to ensure suppliers are compliant with our policies and expectations. We have also been working with our supply chain to understand how we can work together more effectively and have received helpful feedback. This has resulted in a project to move to a new SSIP accreditation platform to improve compliance and our supplier relationships, which will be completed in the summer of 2025.

The Modern Slavery Act 2015 seeks to encourage a robust and diligent approach by commercial organisations in tackling modern slavery, which includes slavery, servitude, forced or compulsory labour, and human trafficking. The Group does not tolerate any form of modern slavery, within its own business or within its supply chain. We comply with all mandatory requirements of employment legislation and best practice. All workers engaged have chosen their employment freely and are treated with dignity and respect. In accordance with section 54 of the Act, the Group publishes an annual statement detailing the steps taken to prevent slavery and human trafficking from taking place in any part of its business or supply chain. The statement is available to be viewed on the Howard de Walden Estate website (www.hdwe.co.uk). Safety statistics

We remain committed to ensuring that our refurbishment and redevelopment programme creates minimal disruption and we look to appoint contractors who share this aspiration. The Considerate Constructors Scheme (CCS) is used to assess the impact of large-scale projects. A CCS assessor scores construction projects across three categories: community, environment and workforce. Due to the heritage constraints of the buildings in our portfolio and the estate’s location in a conservation area in the heart of London, it is very difficult to obtain the highest scores for many of our

projects. This year, the Group scored an average of 39 (out of 45) across all our projects, which CCS consider as an excellent result. This includes a maximum score for our developments at 20 Thayer Street, 11 Weymouth Street and 1-7 Harley Street .

Modern Slavery Act

Community investment

The Group’s community investment is guided by the principle that our income is generated in Marylebone, and therefore support should be focused predominantly in the local area. Recognising that there are areas in need just outside the 95 acres of our estate, we broaden our reach to support neighbouring communities in the City of Westminster.

Our community investment encompasses our charitable giving and support of local institutions and initiatives and is aligned with our equity, diversity and inclusion aims. It is also recognised as a contributing factor to enhancing employee engagement. Our Community Investment Committee oversaw contributions of £928,000 (2024: £877,000) to many deserving local charities and community institutions.

Over the past year, we continued to support and work with charitable partners that are tackling the issues impacting some of the most vulnerable people in our community. Some of our key partnerships this year focused on tackling food insecurity with The Felix Project and the Mayor’s Fund, homelessness with St Mungo’s and The Marylebone Project, and isolated older people with Age UK Westminster and the West End Community Trust.

Helping young people reach their full potential and supporting employability programmes is another area of our focus. Through our partnership with the Young Westminster Foundation, we are committed to supporting young people in Westminster and breaking down barriers to the property industry. In addition to contributing to their grant-giving programme, this year we hosted a workshop at our offices aimed at encouraging young people to explore careers in property.

We know creating opportunities is important, so our colleagues took part in various employability programmes with our local secondary schools and the University of Westminster. We also fund scholarships and run an internship programme which offers students on

property-related degree courses the experience, support and connections needed to help with their careers.

As a corporate member of Real Estate Balance, an association formed to address the diversity imbalance in the property industry, a case study showcasing our community investment and engagement was published. This focused on the programmes we run with young people in partnership with schools and the university in the City of Westminster to encourage interest in the property industry. This work is now being recognised, with the company being shortlisted for the CIPD People Management Awards

Staff volunteering throughout the year and participating in the LandAid Sleepout challenge.

“From our earliest days, Howard de Walden has supported our work and made a conscious decision to be actively involved in changing the lives of young people in Westminster.”

Helen Mann CEO Young Westminster Foundation

We are proud to support a range of local health and wellbeing initiatives, from advancing medical care to funding programmes that offer mental health support in our community. This includes a £100,000 donation to University College London Hospital’s new Breast Care Centre to enhance patient and staff experience, and funding for therapeutic programmes through West Central London Mind. We also contributed to Great Ormond Street Hospital Charity through money raised at the Marylebone Christmas Lights event and supported an art therapy programme at St Mary’s Children’s Hospital.

2025 for Best CSR/ESG Initiative.

“Our Making Sense group is a service that we feel particularly proud of, in that it provides a vital space where people with complex mental health needs can find support, help and hope. It’s important that we employ specialist therapists to work with this vulnerable group of people, so the funding provided enables us to continue offering this resource on a weekly basis, which is a lifeline to those who use it.”

Suzanne Hyde Director of Clinical Services St Marylebone HCC

Beyond our financial support, we encourage our colleagues to give back to their communities by volunteering. This year, colleagues dedicated an impressive 724 hours to volunteering (2024: 457 hours) directly with our charitable partners and at local schools, making a meaningful impact where it matters most. We also supported them with their own fundraising, which included skydiving, charity runs and other fitness challenges.

As part of our ambition to expand our reach and create a greater impact in our community, we worked with some of our contractors and suppliers on several community initiatives.

“It was wonderful to meet you a few months ago and share firsthand what a difference the Estate’s support could make in the new centre. Now, thanks to you, our breast care patients will be met with a welcoming and comfortable environment designed to aid their treatment and recovery. We are thrilled to be working with you on a project that will have such a positive impact on the wellbeing of our patients that simply wouldn’t have been possible without charitable support. Thank you so much.”

David Probert CEO

University College London Hospital

This collaboration included decorating and upgrading a women’s shelter, fitting a new kitchen for a charity that works with young families and creating a calming sensory space for pupils at a local primary school. These efforts demonstrate the power of shared values and collective action across our wider network.

Key worker housing

Our support also extends to offering discounted housing to key medical workers at local hospitals. Central London residential properties are expensive, and we are conscious that some key healthcare staff who work in the area are unable to afford to live here. To achieve this, we have been running our own defined housing programme since late 2019 to enable key workers from local hospitals to make Marylebone their home as well as their place of work. The scheme provides a mix of flats rented out at subsidised rates to successful applicants. Having run the scheme successfully for five years, we are now in the process of considering an improved offering. This means we have had fewer units let to key workers this year where tenancies have been allowed to naturally expire. Units let during the year were at an average discount to market rent of 54% (2024: 54%) which equates to £119,000 (2024: £191,000) of rent foregone in the financial year.

Staff charity sky dive for St John’s Hospice.

Officers and professional advisers

Secretary Leonie Brock

Registered office

23 Queen Anne Street

London W1G 9DL

Company registered number 06439246

Bankers

Lloyds Banking Group plc

33 Old Broad Street

London

EC2N 1HZ

Lloyds Bank plc

33 Old Broad Street

London

EC2N 1HZ

National Westminster Bank plc

250 Bishopsgate

London

EC2M 4AA

Royal Bank of Scotland plc

36 St Andrew Square

Edinburgh EH2 2YB

Auditor

S&W Partners Audit Limited

45 Gresham Street

London

EC2V 7BG

Solicitors

Charles Russell Speechlys

5 Fleet Place

London

EC4M 7RD

Non-Executive Directors

Sir William Proby Bt CBE DL

The Hon Mrs Buchan

The Hon Mrs White

The Hon Mrs Acloque

Marc Gilbard

Rt Hon Professor Lord Kakkar KBE PC

Liz Peace CBE

Toby Shannon

Karl Sternberg

Executive Directors

Mark Kildea

Julian Best

Andrew Griffith

32 Welbeck Street.

Howard de Walden Estates Holdings Limited is privately owned, with the majority shareholder being the Lord Howard de Walden and Seaford’s Marriage Settlement Children’s Trust, which holds the shares for the benefit of current and future members of the Howard de Walden family. There are other family trusts and individual family shareholdings which hold the remaining shares.

Howard de Walden Estates Holdings Limited is the holding company of Howard de Walden Estates Limited which, together with its wholly owned entities, form ‘the Group’, which owns all the property assets. Howard de Walden Estates Holdings Limited has no equity or debt securities listed on the London Stock Exchange and although it is exempt from compliance with the UK Corporate Governance Code, the Group’s approach is to apply best corporate governance practice appropriate to a large private company. This creates a high level of accountability, probity and clarity on decision making.

The composition of the Group Board of Directors (‘the Board’) is designed to ensure the effective management of the Group and to provide leadership, strategy and control. At the year end, including the Chairman there are six Non - Executive Directors with CEO or equivalent experience on the Board and three family shareholders, plus the three Executive Directors.

The roles of the Chairman and the Chief Executive are clearly defined. The Chairman is primarily responsible for overseeing the workings of the Board and its committees. The Board has ultimate responsibility for the Group’s strategy and policies, which are developed by the Chief Executive. The Chief Executive is responsible for the implementation of the policies and strategies set by the Board and management of the business. There was one change to the Board during the year: The Lady Howard de Walden resigned in July 2024 upon her passing.

The Audit Committee reports to the Board and oversees financial reporting and the statutory audit as well as monitoring internal controls, including risk management. The members of the Audit Committee are Toby Shannon, Marc Gilbard and Karl Sternberg with the attendance of the Chairman, Executive Directors and Director of Finance when required.

It is the nature of the property business that some investments are large and complex, therefore the Group

operates an Investment Committee, which reports to the Board. The Investment Committee meetings allow members adequate time and preparation to explore, understand, challenge and approve any investment that exceeds the authority level delegated by the Board to the Executive Directors. This committee, chaired by Marc Gilbard, also comprises Sir William Proby, Toby Shannon, Karl Sternberg and the Executive Directors. Non-Executive Directors are also invited to informal update meetings and site visits, which provide an opportunity to meet senior management.

The Remuneration and Nominations Committee makes recommendations to the Board on the Executive Directors’ remuneration, based upon independent external professional advice. The members of the Remuneration and Nominations Committee are Sir William Proby, Liz Peace and Rt Hon Professor Lord Kakkar.

The need to achieve environmental compliance across many heritage buildings is a strategic objective. The Sustainability Committee leads on the oversight and implementation of actions alongside the investment required to achieve compliance. The Sustainability Committee is chaired by Liz Peace, with Sir William Proby, Rt Hon Professor Lord Kakkar (to March 2025), Karl Sternberg (from March 2025), Mark Kildea, Simon Tranter and Hayley Fadoju (Sustainability Manager) as fellow members.

The Risk Committee complements our Audit Committee, bringing the Group into line with governance standards in place for listed entities by assisting the Board with its responsibilities for the oversight of risk. The Risk Committee is chaired by Andrew Griffith, with the other Executive Directors and assurance, risk and compliance team as fellow members. The committee operates as a third line of defence in our risk management framework and meets at least three times per year to consider any changes to the risk environment and any priority or escalated matters.

During the year, the Board established a new Healthcare Committee to agree and oversee a revised Health Strategy. The Healthcare Committee is chaired by Rt Hon Professor Lord Kakkar, with Sir William Proby, Marc Gilbard, Andrew Griffith, Julian Best, Andrea Merrington, Jenny Shand (external consultant), and Annette Shiel (Head of Marketing & Communications) as fellow members.

Our experienced management team is integral to the continued success of the Group as it brings specialist skills to manage our diversified portfolio on an asset-by-asset basis. Senior management are typically department heads and interact daily with and report to the Executive Directors. During the year, an Executive Committee (‘ExCo’) was in place to streamline communication between the senior management team and the Board with a focus on the key property, financial, project and community matters affecting

The Board

the business. Post year end, the existing format of ExCo was superseded by a new senior leadership team (SLT). The newly formed SLT will focus on three critical areas of our business: strategy, asset management and operations. The overarching aim of the SLT is to deliver on our strategic objectives in an efficient and effective manner.

The Board delegates certain matters to its six principal committees, senior leadership team and supporting committees.

Audit

Committee Reports to the Board and oversees financial reporting and the statutory audit as well as monitoring internal controls including risk management.

Investment Committee Reviews large and complex investment proposals, and approves any investment that exceeds the authority level delegated by the Board to the Executive Directors.

Remuneration

and Nominations Committee Makes recommendations to the Board on the Executive Directors’ remuneration, based upon independent external professional advice.

Sustainability

Committee Implements actions to improve our sustainability credentials and has oversight of projects against our strategic objectives.

Risk Committee

Complements our existing risk management framework and considers any changes to the risk environment and any priority or escalated matters.

Healthcare Committee Oversees and monitors performance in achieving objectives set out in the healthcare strategy.

Senior Leadership Team

A newly created team, replacing the previous Executive Committee, aims to deliver on our strategic objectives utilising key employees across the business.

Supporting Committees

A number of supporting committees provide oversight on key business activities and risks such as health and safety, community investment and diversity, equity, inclusion & belonging.

Section

172 statement

This is the section 172 statement for the Group, covering the Howard de Walden Estates Holdings Limited and its wholly owned entities, for the year ended 31 March 2025, which should be read in conjunction with the Strategic report as a whole.

The requirement

Section 172 of the Companies Act 2006 (‘section 172’) requires a Director of a company to act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard, amongst other matters, to: the likely consequences of any decision in the long-term; the interests of the company’s employees; the need to foster the company’s business relationships with suppliers, customers and others; the impact of the company’s operations on the community and the environment; the desirability of the company maintaining a reputation for high standards of business conduct; and the need to act fairly with members of the company.

The Directors give careful consideration to the factors set out above in discharging their duties under section 172 for the Group.

The Board

The Board, comprised of the three Executive Directors, six Non-Executive Directors and three family shareholders, convened for five meetings in the year. While the primary activity of the Board is to oversee the operations of a property investment and management business capable of distributing a proportion of its profit to shareholders, the Board recognises that long-term success is dependent on maintaining relationships with all its key stakeholders and considering the external impact of the Group’s activities. The Group engages with a wide range of stakeholders to inform its decision making, including customers, suppliers, neighbouring communities, employees and shareholders, as well as considering its impact on the environment. As long-term stewards of buildings in Marylebone, the Board actively considers the views of all stakeholders and strives to find a balance between them, as it looks to continue to deliver outstanding places to visit, live and work.

The Board met throughout the year to discuss matters of strategic importance and to obtain an understanding of the performance and position of the Group. Decisions made

by the Board consider the Group’s performance and the impact on stakeholders, with the Group’s reputation of paramount importance. The three Executive Directors are part of the Executive Committee (comprising the most senior non - Board employees in the Group) and attend management meetings throughout the year to obtain a full understanding of issues affecting the Group and to improve decisions made at Board level.

Stakeholders

The following are considered the key stakeholders of the Group:

Customers Our occupiers are the centre of the community. Through careful selection, they bring vibrancy to the area and help to make Marylebone a desirable location to visit, live and work.

Employees The Group cannot satisfy its other key stakeholders without our employees. They are key to the long-term success of the Group.

Shareholders As a family-owned group, our family members’ interests are always considered when making key strategic decisions. A Shareholder Committee provides a platform for the shareholders to provide input on long-term strategic decisions.

Communities The Group is embedded within the local community. As responsible stewards, we need to play our part in supporting the community through events, direct charitable giving and our schemes which impact upon the local environment.

Suppliers We seek to work with suppliers and contractors who share our standards. When working on the estate, suppliers are an extension of Howard de Walden, so it is essential they maintain the Group’s reputation as considerate stewards.

Debt providers We maintain a close working relationship with our debt providers who play an important role in the long-term financing of the Group.

Local authorities We work closely with the City of Westminster to ensure we maintain and enhance our buildings and spaces.

Pages 30 to 39 provide details of the key activities and initiatives we have carried out in the year, including engagement with our key stakeholders. The table opposite contains an overview of the key decisions taken by the Board during the year.

Key decisions taken during the year

Board decision

Approved the establishment of the Healthcare Committee.

Considerations

Following insights into our existing Healthcare portfolio, a new healthcare strategy was developed. The Board felt a designated committee to deliver on the strategy was critical.

A dedicated committee for our largest sector by value and income ensures we are reviewing and developing our key assets.

Membership to include Executive Directors, Non-Executive Directors and heads of departments to ensure we have hands- on monitoring from an operational perspective as well as considering the bigger picture and strategic matters.

Outcome

The Board approved the formation of a Healthcare Committee.

In May 2025, the committee approved the adoption of the newly devised healthcare strategy. Objectives set in the strategy provide the Group with metrics to report against annually.

Longer term, the expected outcome is for the committee to oversee the development of the Harley Street Health District to have the best healthcare institutions providing whole-health care.

Approved the establishment of a sub-committee to approve the refinancing strategy.

Need to replace existing private placements maturing in the next year.

New financing provides additional cash flow to enable targeted acquisitions.

New financing provides funds for continued sustainability improvement works.

In June 2025, the sub-committee agreed on a new £100m private placement at a blended rate of 5.63%, which completed in July 2025.

Approved £100k donation to University College London Hospitals NHS Foundation Trust to improve the interior of the new Breast Care Centre.

The Board understands the importance of the new state - of-the -art centre and the benefit it will have to countless people in years to come. The money will be used to enhance the environment with a focus on wellbeing which ties in with our whole - health concept.

The donation enabled the creation of a welcoming and comfortable environment for patients, designed to aid their treatment and recovery.

Directors’ report

The Directors present their report and the financial statements for the year ended 31 March 2025.

Directors’ responsibilities statement

The Directors are responsible for preparing the Strategic report, the Directors’ report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare accounts for each financial year. Under that law, the Directors have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’. Under company law the Directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the Group and of the profit or loss of the Group for the financial year.

In preparing these accounts, the Directors are required to:

— select suitable accounting policies and then apply them consistently;

— make judgments and accounting 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 accounts; and

— prepare the accounts on the going concern basis unless it is inappropriate to presume that the Company and Group will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and 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 Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.

Disclosure of information to the auditor

In the case of each person who was a Director at the time this report was approved:

— so far as that Director was aware there was no relevant audit information of which the Company and Group’s auditor was unaware; and

— that Director had taken all steps that the Director ought to have taken as a Director to make himself or herself aware of any relevant audit information and to establish that the Company and Group’s auditor was aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

Auditor

A resolution to reappoint the auditor, S&W Partners Audit Limited (previously CLA Evelyn Partners Limited), will be proposed at the next AGM.

Company’s registered number

The Company’s registered number is 06439246.

Dividends

During the year, the Group paid dividends of £46,337,000 (2024: £44,130,000) to ordinary shareholders and £4,000,000 (2024: £nil) to ‘A’ shareholders.

Risk management

A summary of the principal risks and uncertainties is included in the Strategic report on pages 26 to 29.

Going concern

The Directors have considered the appropriateness of applying the going concern basis for preparing the financial statements. More detail can be found in note 2.2 to the accounts.

Section 172

In compliance with section 172 requirements, a statement can be found on pages 44 and 45 of the Strategic report which includes details of the Directors’ regard for employee engagement and business relationships.

The Board members who served during the year and up to the date of this report are listed below:

Sir William Proby Bt CBE DL

Toby Shannon Deputy Chairman Non-Executive

Mark Kildea

Julian Best

Andrew Griffith

The Lady Howard de Walden (resigned 13 July 2024)

The Hon Mrs Buchan

The Hon Mrs White

Chief Executive Executive

Executive Property Director Executive

Chief Financial Officer Executive

The Hon Mrs Acloque Family Shareholder Non-Executive

Marc Gilbard Non-Executive

Rt Hon Professor Lord Kakkar KG KBE Non-Executive

Liz Peace CBE Non-Executive

Karl Sternberg Non-Executive

Streamlined energy and carbon reporting

In compliance with streamlined energy and carbon reporting, the Directors present the Group’s emissions and energy usage on page 33 of the Strategic report, as the matter is of strategic importance. Our annual emissions equate to 0.04 tCO 2 e/m2 (Scope 1 & 2 location based).

The Group quantifies and reports its organisational greenhouse gas (GHG) emissions in alignment with the World Resources Institute’s Greenhouse Gas Protocol Corporate Accounting and Reporting Standard and the corresponding guidance. We currently include six of the 13 Scope 3 categories. We consolidate our organisational boundary according to the operational control approach. The GHG sources that constituted our operational boundary for the year are:

— Scope 1: Natural gas, transportation fuels

— Scope 2: Electricity

— Scope 3: Business travel mileage, water, purchased electricity and gas sub-metered to occupiers, and fuel and energy related activities

We have used accurate consumption data to calculate emissions for most utility supplies. In some cases, where there is limited information, values have been estimated using either extrapolation of available data or data from the previous year as a proxy, to ensure complete coverage for the reporting year. We aim to continually improve the coverage, quality and scope of our data.

The reporting guidelines require that we quantify and report Scope 2 emissions according to two different methodologies:

(i) the location-based method, using average grid emissions factors for the country in which the reported operations take place; and

(ii) the market-based method, which uses the actual emissions factors of the energy procured and therefore, takes renewable energy sources into account. During the year over 99% of the energy we procured was from certified renewables.

This report was approved by the Board of Directors on 13 August 2025 and signed on its behalf by:

Mark Kildea Chief Executive Director

Sir William Proby Bt CBE DL Chairman Director

Independent auditor’s report to the Members of Howard de Walden Estates Holdings Limited

Opinion

We have audited the financial statements of Howard de Walden Estates Holdings (‘the Company’) and its subsidiaries (‘the Group’) for the year ended 31 March 2025 which comprise the Group Statement of Comprehensive Income, the Group and the Company Statements of Financial Position, the Group and the Company Statements of Changes in Equity, the Group Statement of Cash Flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements: give a true and fair view of the state of the Group’s and of the Company’s affairs as at 31 March 2025 and of the Group’s profit for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006.

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 are independent of the Group and the 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 Group and the Company’s ability to continue as a going concern for a period of at least twelve 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.

Other information

The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. The Directors are responsible for the other information contained within the Annual Report. 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.

Opinions on other matters prescribed by the Companies Act 2006

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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Company and their 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 Company, or returns adequate for our audit have not been received from branches not visited by us; or the 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 Directors’ responsibilities statement set out on page 46, 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 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 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.

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:

We obtained a general understanding of the Group and the Company’s legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations, the entity’s policies and procedures regarding compliance, and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the Group and the Company’s industry and regulations.

We understand that the Group and the Company comply with the framework through:

Operating an experienced in-house legal team who update internal procedures, manuals and controls as legal and regulatory requirements change; Close oversight by the Directors and key management, meaning that any litigation or claims would come to their attention directly; and Outsourcing tax compliance to external experts.

In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the Group and the Company’s ability to conduct its business and/or where there is a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the Group and the Company:

the financial reporting framework United Kingdom Accounting Standards including FRS102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’; the Companies Act 2006; and UK taxation law.

We performed the following specific procedures to gain evidence about compliance with the significant laws and regulations identified above:

Discussion with management as well as those charged with governance, over their consideration of known or suspected instances of non-compliance with laws and regulation and fraud;

Reviewed legal expenses to identify any known or suspected instances of non-compliance;

Reviewed Board meeting minutes to identify any known or suspected instances of non-compliance; and

We obtained written management representations that they have disclosed to us all known or suspected instances of non-compliance with laws and regulations and accounted for and disclosed all known actual or possible litigation and claims in the financial statements.

The Senior Statutory Auditor led a discussion with senior members of the engagement team regarding the susceptibility of the Group and the Company’s financial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were: Manipulation of the financial statements via the posting of fraudulent journal entries;

Incorrect recognition of revenue notably around the year end; and

Management bias in areas of estimation uncertainty for the valuation of the investment properties.

The procedures we carried out to gain evidence in the above areas included:

Testing of a sample of manual journal entries, selected through applying specific risk assessments based on the Group’s processes and controls surrounding manual journal entries;

Testing a sample of revenue transactions to underlying documentation; and

Testing the validity of the data used in the investment property valuations, due to the risk of manipulation of inputs in valuation calculations and bias towards the refurbishment capital/revenue estimate. To address this, we obtained and documented an understanding of relevant controls relating to investment property valuations and major refurbishments. We tested the existence and valuation of a sample of investment properties by agreeing to underlying lease agreements, as well as recalculating and comparing to the yield inputs as confirmed by the Group’s third-party valuer and investigating any departures. We reviewed a sample of refurbishment

projects undertaken in the period to understand the nature of the works and tested the capital/revenue specifications to ensure they were reasonable.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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 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 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 Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Nicholas Jacques Senior Statutory Auditor, for and on behalf of S&W Partners Audit Limited Statutory Auditor Chartered Accountants

45 Gresham Street London EC2V 7BG

13 August 2025

Group Statement of Comprehensive Income for the year ended 31 March 2025

Group Statement of Financial Position

The accounts were approved and authorised for issue by the Board of Directors on 13 August 2025 and were signed on its behalf by:

Mark Kildea Andrew Griffith Director Director

The notes on pages 58 to 82 form part of these financial statements.

Group Statement of Changes in Equity for the year ended 31 March 2025

Group Statement of Cash Flows

for the year ended 31 March 2025

Company Statement of Financial Position

No profit and loss account is presented for Howard de Walden Estates Holdings Limited as permitted by section 408 of the Companies Act 2006.

The profit after tax for the financial year of the Company amounted to £50,237,000 (2024: £7,646,000).

The accounts were approved and authorised for issue by the Board of Directors on 13 August 2025 and were signed on its behalf by:

Mark Kildea

Andrew Griffith Director Director

The notes on pages 58 to 82 form part of these financial statements.

Company

Statement of

Changes in Equity

for the year ended 31 March 2025

Notes to the Accounts for the year ended 31 March 2025

1. General information

Howard de Walden Estates Holdings Limited (‘the Company’) is a private limited company, limited by shares, incorporated in England and Wales. The registered office is 23 Queen Anne Street, London, W1G 9DL. Its registered number is 06439246.

The principal activity of the Group is long-term property investment.

2. Accounting policies

2.1 Basis of preparation of financial statements

These financial statements have been prepared in accordance with applicable United Kingdom (‘UK’) Accounting Standards, including Financial Reporting Standard 102 – ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (‘FRS 102’) and with the Companies Act 2006.

The financial statements have been prepared under the historical cost convention as modified by the revaluation of investment properties and the modification to a fair value basis for certain financial instruments as specified in the relevant accounting policies. The financial statements are prepared in sterling which is the functional currency of the Group and rounded to the nearest £000.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Group. Control is achieved where the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

The Group financial statements consolidate the financial statements of Howard de Walden Estates Holdings Limited and all its subsidiary undertakings drawn up to 31 March each year.

Exemptions under the reduced disclosure framework

The Company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the reduced disclosure exemptions available to it in respect of these financial statements. Exemptions have been taken in relation to financial instruments and the presentation of a Statement of Cash Flows, as equivalent disclosures have been shown in the consolidated financial statements.

Notes to the Accounts for the year ended 31 March 2025

2. Accounting policies (continued)

The following principal accounting policies have been applied:

2.2 Going concern

The Group has net current liabilities of £39,149,000 at the year end as a result of one tranche of debt maturing in July 2025 (Note 18). The Group agreed on a new private placement for £100,000,000 in July 2025 (page 74) to fully refinance this current liability and provide additional capacity for investment opportunities. Given the ongoing economic uncertainty, the Group’s financial forecasts were subject to some sensitivity analysis. All scenarios considered provided no concerns with regards to the Group’s ability to continue as a going concern. The Group’s financial forecasts continue to factor in the adverse economic conditions and rising costs.

The forecasts demonstrate that the Group will have sufficient liquidity to fund its operations as well as appropriate headroom to comply with debt covenants.

Based on these considerations, the Directors are satisfied that the Group remains a going concern and therefore, the Group continues to adopt the going concern basis in preparing its financial statements.

2.3

Turnover and income recognition

Turnover represents the amounts receivable for rental income, goods and services, net of VAT.

Rental income is recognised on the basis of the amount receivable for the year. Where there is a rent free period and the amount is considered to be recoverable, the income is recognised evenly over the period of the lease term. The lease term is the non-cancellable period of the lease together with any further term for which the customer has the option to continue the lease, where, at the inception of the lease, the directors are reasonably certain that the customer will exercise that option. In the prior year, the income was recognised evenly to the first break clause. Amounts received from customers to terminate leases or to compensate for dilapidations are recognised in the Statement of Comprehensive Income when the right to receive them arises. Rents charged in advance are shown as deferred income in the Statement of Financial Position.

2.4 Investment properties

Investment properties are initially measured at cost, including any transaction costs. Investment properties are subsequently measured and included in the financial statements at fair value at each year end. For the purposes of these financial statements, in order to avoid double counting, the fair value reported is reduced by the carrying amount of any debtor balances resulting from the spreading of lease incentives. Any surplus or deficit on revaluation is recognised initially in the Statement of Comprehensive Income. All revaluation movements are transferred to a non-distributable reserve called the Revaluation reserve unless a deficit below original cost, or its reversal, on an individual property is expected to be permanent in which case it remains in the Profit and loss account reserve as an impairment. Deferred tax is provided on these gains or losses at the substantively enacted rate of UK corporation tax.

2.5

Profit on sale of investment properties

Profits or losses on the sale of investment properties are calculated by reference to the fair value at the end of the previous year, adjusted for any subsequent capital expenditure. Current year profits or losses are presented in the Statement of Comprehensive Income and realised profits or losses are subsequently transferred into the Other reserves.

2.6

Tangible fixed assets

Land and buildings held and used in the Group’s own activities for administrative purposes are stated in the Statement of Financial Position at cost.

Depreciation is provided on tangible fixed assets to write off the cost less estimated residual value of each asset over its expected useful economic life.

Freehold land and buildings are not depreciated, as the Group is satisfied that the residual value of these assets exceeds their carrying value.

Depreciation is provided on assets at the following rates:

Plant and machinery — 10% of cost

Fixtures and fittings — 15% of cost

Motor vehicles — 25% of written down value

Office equipment — 25% of cost

2.7

Investment in subsidiaries

Investments in subsidiaries are accounted for at cost less provision for impairment in the individual financial statements. Amounts included as loans are recorded at transaction price and are receivable in more than one year.

Notes to the Accounts for the year ended 31 March 2025

2. Accounting policies (continued)

2.8 Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.9 Creditors

Short-term creditors are measured at transaction price. Other financial liabilities, including loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.10 Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, net of bank overdrafts.

2.11 Deposits received from customers

Where deposits have been received from customers and placed in designated bank accounts, such amounts are not included in the Statement of Financial Position as assets of the Group nor as liabilities to customers. Amounts held at 31 March 2025 were £29,964,000 (2024: £24,045,000).

2.12 Operating leases: the Group as lessor

Income in respect of operating leases is recognised within turnover in the Statement of Comprehensive Income on a straight-line basis over the lease term, in accordance with the policy for income recognition.

2.13 Operating leases: the Group as lessee

Operating lease costs are recognised as an operating expense in the Statement of Comprehensive Income on a straight-line basis over the lease term.

2.14 Loan notes

Interest bearing bank loans and loan notes are initially recorded at transaction price representing amounts drawn, net of any issue costs or arrangement fees. All borrowings are subsequently measured at amortised cost using the effective interest rate method.

2.15 Arrangement fees

Costs incurred in the raising of loan finance are recorded as a deduction from the loan and subsequently amortised over the term of the loan using the effective interest rate method.

2.16 Financial instruments

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment. Discounting is omitted where the effect of discounting is immaterial.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. The Group uses financial derivatives, principally interest rate swaps and cross currency interest rate swaps, to manage its exposure to interest rate and foreign exchange risk and does not use them for trading. 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 at each year end.

Amounts paid under interest rate swaps, both on obligations as they fall due and on early settlement, are recognised in the Statement of Comprehensive Income as interest payable and similar charges. Fair value movements on revaluation of derivative financial instruments are shown in the Statement of Comprehensive Income. The Group does not apply hedge accounting to its interest rate and cross currency interest rate swaps. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Modifications to financial instruments which meet both of the following conditions are not considered a normal modification, rather the effective interest rate is amended with no gain or loss on modification:

The change is necessary as a direct consequence of interest rate benchmark reform; and

The new basis for determining the contractual cashflows is economically equivalent to the previous basis.

The Group and the Company have applied the practical expedient in accordance with paragraph 11.20c of FRS 102.

Notes to the Accounts for the year ended 31 March 2025

2. Accounting policies (continued)

2.17 Foreign currencies

Transactions in currencies other than the functional currency of the Group are initially translated at the spot rate of exchange on the date of the transaction and recorded in the Group’s functional currency.

Monetary items denominated in foreign currencies at the reporting date are retranslated at the rate prevailing at the end of the reporting period. Non-monetary items that are measured at historic cost in a foreign currency are not retranslated.

All exchange differences are recognised within the Statement of Comprehensive Income.

2.18 Current and deferred taxation

Tax on profit/(loss) represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from the result as reported in the Statement of Comprehensive Income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group’s liability for tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured on an undiscounted basis at tax rates which are expected to apply in the period in which the liability is settled or the asset is realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax for the year are recognised in the Statement of Comprehensive Income, except when they relate to items which are recognised in Other comprehensive income or directly in equity, in which case the current and deferred tax is also recognised in Other comprehensive income or directly in equity, respectively.

2.19 Pensions

The Group runs a defined benefit scheme and a defined contribution scheme (‘Group Personal Pension Plan’) for its employees. Contributions payable to the Group Personal Pension Plan are charged to the Statement of Comprehensive Income as incurred. Pension costs relating to the defined benefit scheme are accounted for in accordance with FRS 102 section 28.

The defined benefit scheme’s assets are measured at fair value, its obligations are calculated at discounted present value, and subject to meeting the conditions of FRS 102 section 28, any net surplus or deficit is recognised in the Statement of Financial Position. Operating and financing costs are charged to the Statement of Comprehensive Income, with service costs spread systematically over employees’ working lives, and financing costs expensed in the period in which they arise.

Re-measurements, comprising actuarial gains and losses and the return on the defined benefit scheme assets (excluding amounts included in net interest), are recognised in Other comprehensive income in the period in which they occur.

Professional actuaries are used in relation to the defined benefit scheme and the assumptions made are outlined in note 22.

2.20 Dividends

Final equity dividends are recognised when they are approved. Interim equity dividends are recognised when they are approved and paid.

2.21

Related party transactions

For the Company, advantage has been taken of the exemption provided by paragraph 33.1A of FRS 102 of not disclosing transactions with entities that are wholly owned members of the Group.

Notes to the Accounts for the year ended 31 March 2025

3. Significant accounting judgements and estimates

In applying the Group’s accounting policies, the Directors are required to make judgements, estimates and assumptions concerning the future. Judgements, estimates and underlying assumptions are based on historical experience and other factors available when the financial statements are prepared. They are reviewed on an ongoing basis and revised when necessary. Revisions to accounting estimates are recognised in the period in which they occur, as well as future periods if the revision affects both current and future periods.

In preparing the Group and Company financial statements, the judgements that may have a significant effect are those involving estimations which are explained below.

The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities include:

Investment property valuations

Valuation of investment property is a central component of the business. The Group carries its investment properties at fair value. In estimating the fair value, valuations are jointly overseen by the Group Executive Property Director and the Group Head of Investment, on the basis of market value in accordance with the Appraisal and Valuation Manual of the Royal Institution of Chartered Surveyors. The underlying rent, yield and capital value assumptions used in the valuation are independently reviewed by a third party, CBRE Limited. Estimated future refurbishment and void costs are also factored into the valuations. More information regarding the valuation techniques and inputs used in determining the fair value of the property portfolio is disclosed in note 12.

5.

6.

7. Profit/(loss) before tax

Notes to the Accounts for the year ended 31 March 2025

8. Directors and employees

Staff costs, including Directors’ remuneration, were as follows:

The average monthly number of persons employed by the Group, including Directors, during the year was 167 (2024: 171). All were employed within the property investment business, with 138 (2024: 138) operating from head office and 29 (2024: 33) located in buildings across the estate. Where applicable, costs for those working in buildings across the estate are recharged to tenants either directly or via service charges.

The Group operates a defined contribution scheme (‘Group Personal Pension Plan’) for the benefit of the employees and Directors. The assets of the scheme are administered by an adviser.

Directors’ remuneration

Remuneration in respect of Directors was as follows:

The Directors are considered to be key management personnel. The above aggregate emoluments represent employee benefits payable to key management personnel. Included within aggregate emoluments is £489,000 (2024: £395,000) in respect of long-term incentive schemes. The above aggregate emoluments also include those in respect of the highest paid Director for the year ended 31 March 2025 of £1,087,000 (2024: £1,102,000) and a pension allowance of £91,000 (2024: £88,000).

At 31 March 2025 there were three (2024: three) Directors accruing benefits under the Group Personal Pension Plan.

The Company, Howard de Walden Estates Holdings Limited, did not employ any members of staff during the year (2024: nil). All Directors are remunerated through a subsidiary company, Howard de Walden Estates Limited.

Notes to the Accounts for the year ended 31 March 2025

9. Tax

Factors affecting tax for the year

The tax for the year is lower (2024: lower) than the standard rate of corporation tax in the UK of 25% (2024: 25%). The differences are explained below:

Profit/(loss) multiplied by the

Notes to the Accounts for the year ended 31 March 2025

10. Deferred taxation

Factors that may affect future tax charges

The UK corporation tax rate was 25% for the year ended 31 March 2025 and the prior year. There are no known factors which may affect future tax charges.

Notes to the Accounts for the year ended 31 March 2025

11. Dividends

Ordinary shares

£8.70 per share paid on 8 April 2024

(2024: £8.29 per share paid on 6 April 2023)

£4.35 per share paid on 24 September 2024

(2024: £4.14 per share paid on 22 September 2023)

£4.35 per share paid on 6 December 2024 (2024: £4.14 per share paid on 8 December 2023)

‘A’ shares

£7.51 per share paid on 24 September 2024 (2024: £nil paid in the year)

After the year end, dividends of £24,327,000 on ordinary shares (2024: £23,169,000) were approved and paid on 7 April 2025. Those dividends are not included in these accounts.

Notes to the Accounts for the year ended 31 March 2025

12. Investment properties (Group)

The historical cost of investment properties for the Group at 31 March 2025 was £1,247,177,000 (2024: £1,211,330,000).

The valuation of investment properties at 31 March 2025 and 31 March 2024 was jointly overseen by the Executive Property Director and the Head of Investment. The valuations have been prepared on the basis of market value in accordance with the RICS Valuation – Global Standards (‘Red Book Global Standards’). The underlying rent, yield and capital value assumptions used in the valuation were independently reviewed by CBRE Limited and were considered to be appropriate. The key assumptions used to determine the fair value of investment property at 31 March 2025 are shown in the table below.

(1)Valuation method: income and capitalisation.

(2)Investment value.

*Short-term Residential valued by discounting net annual rental income at a rate of 7%.

Investment property rental income earned during the year was £164,094,000 (2024: £152,244,000) (note 4).

The Group had contracted future minimum lease receivables as set out in note 25.

Notes to the Accounts for the year ended 31 March 2025

13. Tangible fixed assets (Group)

The Group’s office building included within land and buildings is held at cost as detailed above. Depreciation is not charged as detailed in note 2.6. The Directors consider the fair value of our office building to be £27,164,000 (2024: £27,164,000) as determined using the same assumptions and basis as detailed in note 12. No provision has been made for the tax which would arise should the Group dispose of its office building at the fair value listed above. Tax would be payable on disposal to the extent that rollover relief would not be available. The potential tax liability which would arise on the sale of the Group’s office building, at the latest substantively enacted rate of corporation tax, is approximately £4,470,000 (2024: £4,469,000).

Notes to the Accounts for the year ended 31 March 2025

14. Investments (Company)

Interests in subsidiaries

The Company holds 100% of the shares and voting rights of Howard de Walden Estates Limited, which directly and indirectly holds all of the other interests in the subsidiary companies. At the year end, the Company had interests in the following subsidiaries which are all registered in England and Wales:

*1Company is exempt from the requirements of the Companies Act 2006 relating to the audit of the individual accounts by virtue of section 479A.

*2Company is exempt from the requirements of the Companies Act 2006 relating to the audit of the individual accounts by virtue of section 480.

*3Proportion of voting rights held only.

The registered office for each subsidiary is 23 Queen Anne Street, London, W1G 9DL.

Loans to subsidiary undertakings

Loans to subsidiary undertakings bear interest quarterly at SONIA plus a margin of 1.6193%. The loan is unsecured and repayable 1 year and 1 day following notice from the Company that repayment is required.

to the Accounts for the year ended 31 March 2025

15. Debtors (Group)

16.

17.

Notes to the Accounts for the year ended 31 March 2025

18. Analysis of borrowings (Group)

Unsecured loan notes (A):

Issued 9 October

Issued 9

Issued 9 January 2019

Issued 15 October 2020

Notes to the Accounts for the year ended 31 March 2025

18. Analysis of borrowings (Group) (continued)

(A) Unsecured loan notes

On 25 August 2010, the Group issued unsecured loan notes in a private placement. The Group has entered into derivative contracts in respect of the fixed rate US dollar loan notes totalling $111 million (£75 million equivalent), swapping the payments on the loan notes into sterling floating rates at a blended margin of 1.28% over LIBOR (1.56% over SONIA following the Interest Rate Benchmark Reform). Following the maturity of one tranche in a prior year, derivative contracts are in place to fix the remaining amount of borrowings in US dollars at £58.1 million. At the year end, the total amount of borrowings repayable is fixed at £83.1 million.

On 16 September 2011, the Group issued unsecured loan notes in a private placement. The Group has entered into derivative contracts in respect of the fixed rate loan notes swapping the payments on the loan notes into sterling floating rates at a blended margin of 1.15% over LIBOR (1.41% over SONIA following the Interest Rate Benchmark Reform). At the year end, the derivative contracts in place fix the amount of borrowings repayable on the final remaining tranche at £45.2 million.

On 9 October 2014, the Group issued a total of £100 million fixed rate unsecured loan notes in a private placement with an average rate payable of 3.63%. During the year, the £20 million tranche of the unsecured loan notes matured and was repaid.

On 14 September 2016, the Group issued £100 million of unsecured loan notes in a private placement with £40 million at a fixed rate of 2.54% and £60 million at a fixed rate of 2.74%.

On 9 January 2019, the Group agreed a total of £280 million of unsecured loan notes at different fixed rates of interest in a private placement with two tranches of deferred funding. £160 million was drawn on 9 January 2019 with £40 million at 3.01%, £30 million at 3.11%, £45 million at 3.20% and £45 million at 3.29%. A further £60 million was drawn on 14 November 2019 with £35 million at 3.11%, £10 million at 3.21% and £15 million at 3.30%. The final £60 million was drawn on 9 September 2021 with £30 million at 3.61% and £30 million at 3.57%.

On 15 October 2020, the Group agreed £50 million of unsecured loan notes in a private placement comprised of two tranches of deferred funding. Both tranches attract fixed rates of interest, £15 million at 2.51% and £35 million at 2.56%. The £15 million tranche was drawn on 11 July 2022 and the £35 million tranche was drawn on 11 September 2023.

Post year end, in July 2025, the Group agreed £100 million of unsecured loan notes in a private placement with £50 million at a fixed rate of 5.43% and £50 million at a fixed rate of 5.83%, maturing in 7 and 12 years, respectively.

Unsecured loan notes denominated in US Dollars are retranslated at the rate prevailing at the reporting date. Arrangement fees are capitalised and once the loan notes are drawn, amortised up to the expiration of the loan notes. Arrangement fees relating to undrawn loan notes are included in debtors due within one year at the year end.

Notes to the Accounts for the year ended 31 March 2025

18. Analysis of borrowings (Group) (continued)

The Group’s borrowings are made up of:

(B) Bank loans and overdrafts

The Group aims to have a minimum of 75% of current net debt subject to fixed interest rate protection. The fixed rate protection is achieved via the use of interest rate swaps which attract varied levels of interest and fixed rate unsecured loan notes.

On 2 July 2021, the Group entered into an amendment and restatement agreement to vary the terms of the existing revolving credit facility of £150 million. The Group took up the option to extend the facility to December 2026 on existing terms. The margin payable remains dependent on the level of utilisation with non-utilisation fees of 35% of the prevailing margin. The minimum margin payable on this facility is 1.20% and the highest margin payable is 1.55%. At the year end for both the current and previous year, the facility was undrawn.

Notes to the Accounts for the year ended 31 March 2025

19. Called up share capital (Group and Company)

Allotted, called up and fully paid

2,661,780 ordinary shares of £1 each

532,356 ‘A’ shares of 1p each

The holders of ‘A’ shares were entitled to receive dividends exclusively from enfranchisement profits up to £8,000,000 per 4 year profit period with a final 2 year profit period ended 31 March 2024 where the holders could receive up to £4,000,000. Enfranchisement profits are profits realised on the disposal of property by the Group pursuant to the provisions for residential leasehold enfranchisement under the leasehold reform legislation. The ‘A’ shareholders had no right to receive notice of or to attend and vote at general meetings of the Company in their capacity as holders of ‘A’ shares. During the year, on 24 September 2024 the Company redeemed 100% of the ‘A’ shares at par. On redemption, a share buyback reserve of £5,000 was created which is included within Other reserves.

20. Reserves (Group and Company)

Merger reserve

The consolidated financial statements are prepared under the principles of merger accounting. This reserve is used to record the difference between the costs of the investment in the subsidiary companies and the nominal value of the share capital acquired that arose upon the group reconstruction.

Revaluation reserve

This non-distributable reserve is used to record:

Cumulative fair value gains and losses on investment properties.

Cumulative deferred tax on fair value gains and losses on investment properties.

Other reserves

This reserve is used to record cumulative realised profit and losses on property sales including enfranchisement property sales. It is also used to record both capital redemption reserve and share buyback reserve balances. At the year end, the value of the capital redemption reserve aggregated to £33,330,000 (2024: £33,325,000).

Profit

and loss account

The Profit and loss account is used to record the cumulative retained profit and losses recognised in the Statement of Comprehensive Income less dividends and items transferred to the above reserves.

Notes to the Accounts for the year ended 31 March 2025

21. Notes to the Statement of Cash Flows (Group) (A) Reconciliation of loss to net cash inflow generated from operating activities

(B) Cash and cash equivalents

(C) Analysis of change in net debt

Notes to the Accounts for the year ended 31 March 2025

22. Pensions (Group)

Defined benefit pension scheme

The Group operates a defined benefit scheme in the UK. The major assumptions used by the actuary as at 31 March 2025 are shown on the following pages.

During the year, the Group paid contributions at the rate of 73.2% of pensionable earnings. Next year, the Group will continue to pay contributions at the rate of 73.2% of pensionable earnings with no annual deficit reduction contributions.

Amounts recognised in the Statement of Financial Position

Defined benefit pension liability – –

Reconciliation of opening and closing balances of the fair value of scheme assets

The actual return on the scheme assets over the year ending 31 March 2025 was £(2,132,000) (2024: £(775,000)).

Reconciliation of opening and closing balances of the present value of the scheme liabilities

*Fair value of scheme assets stated net of cumulative irrecoverable surplus of £(4,893,000) (2024: £(4,316,000))

the Accounts for the year ended 31 March 2025

22. Pensions (Group) (continued)

None of the fair values of the assets shown above include any of the Group’s own financial instruments or any property occupied by, or other assets used by, the Group.

Notes to the Accounts for the year ended 31 March 2025

22. Pensions (Group) (continued)

Group Personal Pension Plan

The Group makes contributions to a Group Personal Pension Plan. Contributions for the financial year were £983,000 (2024: £923,000).

Notes to the Accounts for the year ended 31 March 2025

23. Financial instruments (Group)

The carrying value of the Group’s financial assets and liabilities are summarised by category below:

The Group gains and losses in respect of financial instruments are summarised below:

24. Derivative financial instruments (Group)

In assessing fair value, the Directors use their judgement to select suitable valuation techniques and make assumptions which are mainly based on market conditions existing at the year end date. The fair value of interest rate swaps and cross currency interest rate swaps is determined by using an independent pricing service which discounts estimated future cash flows based on the terms and maturity of each contract and uses market interest rates for similar instruments at the measurement date. These values are tested for reasonableness against counter party quotes.

Notes to the Accounts for the year ended 31 March 2025

25. Lease commitments (Group)

The Group had annual commitments due under non-cancellable operating leases in respect of investment properties for each of the following periods:

The Group had future minimum operating lease receivables due under non-cancellable operating leases in respect of investment properties for each of the following periods:

1,974,283 1,949,377

The Group had annual commitments due under non-cancellable operating leases in respect of other assets for each of the following periods:

26. Control and related party transactions

The principal family trust which controls the Group is the Lord Howard de Walden and Seaford’s Marriage Settlement Children’s Trust (‘the Trust’). The Trust received dividends on ordinary shares of £27,524,000 (2024: £26,214,000) and dividends on ‘A’ shares of £2,359,000 (2024: £nil) during the year.

During the year, £198,000 (2024: £215,000) was paid by the Group in respect of costs incurred by the Howard de Walden Estates Limited Retirement Benefit Scheme.

Five year summary

Based on the financial statements for the years ended 31 March

Group Statement of Comprehensive Income

Group Statement of Financial Position

* Excludes profits and losses from sale of investment properties, one off termination costs in respect of derivative financial instruments and gains or losses on investment properties, derivative financial instruments and foreign exchange.

Definitions

Annual General Meeting (AGM)

Gathering of the Directors and shareholders once a year to discuss the previous year’s activities and accounts.

Building Research Establishment

Environmental Assessment Method (BREEAM)

Science-based suite of validation and certification systems for the sustainable built environment.

Conservation area

An area of special architectural interest. Planning permission is required to carry out external alterations to buildings in a conservation area whether or not they are listed.

Considerate Constructors Scheme (CCS)

A non-profit-making, independent organisation founded in 1997 by the construction industry to improve its image. Construction sites, companies and suppliers voluntarily register with the Scheme and agree to abide by the Code of Considerate Practice, designed to encourage best practice beyond statutory requirements.

Derivative financial instrument

Includes currency and interest rate swaps, used to exchange US dollar debt to sterling.

Estimated rental value (ERV)

The open market rent which, on the valuation date, could be expected to be obtained on a new letting or rent review of a property.

Gearing

Net debt as a percentage of Shareholders’ funds.

Harley Street Health District (HSHD)

A concentrated area of medical excellence in Marylebone. Home to hundreds of independent practitioners, small clinics and full scale hospitals, covering an unrivalled array of medical specialties and related professions.

Health and Safety Executive (HSE)

The body responsible for the encouragement, regulation and enforcement of workplace health, safety and welfare, and for research into occupational risks in the UK.

Institution of Occupational Safety and Health (IOSH)

Chartered body for health and safety professionals.

Interest cover

Operating profit before capital items divided by net finance costs.

Interest rate swap

A financial instrument where two parties agree to exchange an interest rate obligation for a pre - determined period of time. These are used to convert floating rate debt to fixed rates.

Investment property

A property that is held for the purposes of earning rental income or for capital appreciation or both.

Key performance indicators (KPIs)

Measures used by the Group to ensure that our business model is effective and our strategic objectives are met.

Last year

The financial year ended 31 March 2024.

Leasehold Reform Legislation

Legislation derived from the Leasehold Reform Act, including subsequent amendments and additions, which allows for the lessee of a residential property to extend the lease or acquire the freehold under certain provisions.

National Australian Built Environment Rating System (NABERS)

An assessment method which provides simple, reliable and comparable sustainability measurement across building sectors.

Net debt

Total borrowings at forward contracted rates minus cash held.

Net finance costs

Interest payable excluding the finance charge relating to pensions, less interest receivable excluding the finance income relating to pensions.

Passing rent

The annual rental income receivable as at the year end date. Excludes rental income where a rent free period is in operation.

Private placement

Borrowings sourced from financial institutions other than banks, where loan notes are issued to investors.

Redevelopment

Substantial works undertaken which fundamentally alter the structure of properties, or parts thereof, to prevent them from becoming obsolete.

Refurbishment

Works undertaken to repair and maintain properties, or parts thereof, without significant structural changes, to prevent them from becoming obsolete.

Rent roll

The annual contracted rental income at a particular point in time.

Revenue profit before tax

A measure of the recurring profit performance. Excludes profits and losses from the sales of investment properties, one off termination costs in respect of derivative financial instruments, gains or losses on revaluation of investment properties, gains or losses on derivative financial instruments and gains or losses on foreign exchange.

Scope 1, 2 and 3 emissions

Scope 1 refers to direct emissions from sources owned or controlled by the Group. Scope 2 refers to indirect emissions from purchased electricity. Scope 3 refers to all other indirect, upstream and downstream value chain emission sources not owned or controlled by the Group.

Scope 1 & 2 (location-based)

A location-based method reflects the average emissions intensity of grids on which energy consumption occurs, using mostly grid-average emission factor data.

Scope 1 & 2 (market-based)

A market-based method reflects emissions from electricity that the Group have purposefully chosen.

Shareholders’ funds

The value of shareholders’ investment in the Group.

Shareholder value

A measure of the Group’s ability to generate net asset increases for shareholders. It is represented by the increase in shareholders’ funds, plus dividends paid during the year, expressed as a percentage of opening shareholders’ funds.

Sterling Overnight Index Average (SONIA)

The average of the interest rates that banks pay to borrow sterling overnight from other financial institutions and other institutional lenders.

This year

The financial year ended 31 March 2025.

UK Corporate Governance Code

The UK Corporate Governance Code is sponsored by the Financial Reporting Council (FRC). The FRC monitors the implementation of standards and promotes best practice by companies, by issuing guidance, such as the Code. The Code covers such issues as Board composition and effectiveness, the role of Board committees, risk management, remuneration and relations with shareholders.

WELL Building Standard (WELL)

A roadmap for creating and certifying spaces that advance human health and well-being.

Yield

The anticipated income return from an investment property.

Marylebone Summer Festival 2024.

Howard de Walden Estates Holdings Limited

The Howard de Walden Estate

23 Queen Anne Street

Contact us: +44 (0)20 7580 3163 enquiries@hdwe.co.uk hdwe.co.uk

Company registered number 06439246