Harworth Group (HWG) Trading update summary

Industrial & logistics portfolio performance

• Industrial & logistics (I & L) segment outperformed, with strong property returns and value uplifts on development-ready land, supporting future site launches.

• New lettings covered 267,000 sq ft, headline rents increased by £2.5m, and £58.2m in sales were crystallised.

• Investment portfolio quality improved to 75% Grade A by value, with vacancy reduced to 1%.

Residential land and capital recycling

• 1,837 residential plot sales completed, with 155 more imminent and 591 conditionally exchanged, aligning with business plan expectations.

• £52.0m in headline sales across 1,112 freehold plots, at a discount to book values due to market pressures.

• £343m of capital crystallised from residential land sales since 2020, with a 67% reduction in consented residential plots to improve capital efficiency.

Strategic outlook and pipeline

• Land bank and development pipeline offer flexibility in sales and development timing, with a focus on portfolio performance and capital recycling.

• Loan-to-value remains below 20%, supporting a strong balance sheet.

• Largest ever volume of development-ready I & L land, with 75% of 35.0m sq ft consented or in planning.

• Cumulative total accounting return of 43.7% to H1-2025, outperforming much of the sector.

• Timeline for achieving £1bn EPRA NDV extended to between end-2028 and end-2029 due to macroeconomic headwinds.