Harworth Group (HWG) Trading Update summary

Trading and financial highlights

• Moderate EPRA NDV growth driven by planning progress, disposals above book value, and positive revaluations; EPRA NDV at 31 December 2024 expected to align with market consensus of £693 million.

• Exchanged contracts for a £107 million serviced land sale to Microsoft at Skelton Grange, achieving an IRR over 40% and a significant premium to the previous book value.

• 86% of budgeted sales for the year completed, exchanged, or in heads of terms, generally at or above 2023 book values.

• Net debt at 30 June 2024 was £80.5 million, with a pro-forma LTV of 10.8% and available liquidity of £154.2 million.

• No major refinancing required until 2027, supporting a robust balance sheet.

Strategic and operational progress

• Planning permission achieved for 1.8 million sq. ft. and 500 plots, with further permissions and allocations post period end.

• The development pipeline can deliver 38.8 million sq. ft. of Industrial & Logistics space and 26,639 residential plots.

• Consented Industrial & Logistics Major Developments portfolio increased to 5.9 million sq. ft., with 0.6 million sq. ft. in development or starting soon.

• 84% of Grade A space due to complete in the next 12 months will be retained, expected to generate £1.7 million in annualised rental income.

• EPRA vacancy rate reduced to 6.3%, with 97% of H1 2024 rent collected.

Investment portfolio and land sales

• Investment Portfolio totals 2.5 million sq. ft., 37% of which is Grade A; targeting £0.9 billion by end of 2029.

• 100% of recently completed Grade A space is let, exchanged, or in heads of terms, at or above estimated rental values.

• Completed sales of 357 serviced residential plots for £23.9 million, with further 132 plots sold post period end for £8.5 million.

• Strong planning progress on build-to-rent portfolio, with 83% consented and 88% of consented plots sold or in legals.