Crown Estate has recorded over £442m in net revenue profit due in large part to offshore wind seabed licensing income.
The amount for 2022/2023 is a £130m increase on the previous year’s.
This rise primarily reflects option fee income from the signing of Agreements for Lease for six offshore wind farms through the Round 4 leasing programme.
One-year total return across the entire business is 6.2%, outperforming the annual MSCI bespoke total return benchmark of -1.6%.
Crown Estate also outperformed its MSCI commercial property bespoke benchmark by 1.4 percentage points.
The value of the entire portfolio increased by 1.3% to £15.8bn, driven primarily by a rise in the valuation of the Marine portfolio.
Crown Estate chief executive Dan Labbad said: “Amid a further year of uncertainty and volatility, we have seen variations in performance across our business.
“However, our record return to the Treasury and our positive relative performance is testament to the resilience and strength of our diverse portfolio.
“Over the last 10 years, we have contributed £3.2bn for the benefit of the nation’s finances through the active management of a portfolio that has doubled in value to nearly £16bn.”
He added: “Our enhanced revenue from the Round 4 offshore wind leasing programme reflects the immense amount of ground-breaking work we have undertaken over the past two decades, working in partnership across many sectors, to create a world-leading offshore wind market.
“We are now focussed on how we continue to maintain the UK’s position as a global leader, including supporting other technologies, the supply chain, skills and jobs, all of which are vital to a net zero and energy secure future.”
The Crown Estate’s strategic focus is in areas where there are long-term structural challenges facing the nation and where it is well-placed to play a role.
As the Crown Estate cannot borrow funds, its ability to invest is derived from actively trading its assets to recycle capital into the business and revenue retention (known as the statutory transfer) for reinvestment.
In agreement with Treasury, the Crown Estate’s statutory transfer for the year end 31 March 2023 has increased to £200.5m, enhancing its overall investment capability to deliver long-term value in line with its areas of strategic focus.
This will further enable the Crown Estate to increase the net revenue profit it returns to Treasury and deliver continued broader value through the impact of its activities.