Valuations dip at regeneration specialist

Lynda Shillaw

Property group Harworth has emphasised its long-term strengths after valuations dipped on the back of the economy’s shaky foundations.

Harworth anticipates that Net Asset Value, as measured by EPRA NDV, will be “towards the lower end” of the current market consensus of 190p-205p per share.

Lynda Shillaw, chief executive of Harworth, said: “Despite resilient demand and our management actions to drive value across the portfolio, a combination of rising interest rates, inflation and wider market and political headwinds have weighed heavily on investor sentiment in the second half.

“This has translated into a reversal of our first half valuation gains and a marginal net decline in valuations and therefore in EPRA NDV over the year.”

Harworth specialises in regeneration projects, typically taking former industrial sites and urban edge extensions and creating sustainable places where people want to live and work.

It said demand has “remained resilient throughout 2022”, as shown by occupier take-up in its investment portfolio and the completion of housebuilder land sales on attractive terms.

“Harworth is a long-term through-the-cycle business, which means that we look through near-term market conditions,” said Shillaw.

“We control our landbank, where and when we invest, and have a highly experienced management team who are focused on execution. We are confident that our strategy is the right one to deliver long-term value to stakeholders while making progress on our Net Zero Carbon commitments, and our strong financial position, differentiated products, and the scale and mix of our portfolio, position us well to realise the full potential of our sites.”

Harworth Group will publish its full-year results on March 14.

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