Quintain Estates and Development : 2014/2015 Full Year Results

Microsoft Word - 2015 FY press release.docx

22 May 2015
Quintain Estates & Development PLC ("Quintain" / "Company" / "Group")

Quintain Estates & Development PLC Full Year Results

Quintain, the London development and investment specialist, announces its results for year ended 31
March 2015.
Maxwell James, Chief Executive of Quintain, said: "We are pleased to report results showing that our Wembley Park development has come of age. Our actions to invest in placemaking at Wembley Park have helped to create an increasingly attractive residential location, benefiting from five acres of green space, a vibrant entertainment quarter and new high quality apartments which are in short supply in London. Together with continued strong market conditions, this has led to higher average selling prices for residential apartments and continued strong demand from purchasers.
"Our decision in 2012 to focus the business on the Capital and build a better balance between development and investment activities across the Group has started to be reflected in the improved financial performance we are reporting today.
"Looking forward, we remain confident about the outlook for Quintain, supported by London's continued strength as a global city, the low interest rate environment, sustained demand for new homes and Wembley Park's emergence as an increasingly vibrant destination to live, work and visit."

Good Full Year Results

 Net asset value up 7% to £639.4m

 NAV per share 122p (2014: 115p)

 Adjusted profit before tax (the measure of underlying earnings): £6.2m (2014: £4.2m)

 Profit after tax: £37.9m (2014: £52.9m)

Residential sales: Strong buyer demand

 90% of Emerald Gardens sold at 20 May 2015 at an average of £599 per square foot

 70 apartments within Alto sold since year end at an average of £656 per square foot

 Four year pipeline defined for completion of 1,200 homes

Acceleration of residential development to create better risk‐adjusted returns more quickly

 £32.2m of capital recycled through first residential JV with Keystone during the year

 Second JV announced in April 2015, recycling further £27.0m into residential development

 Terms of these JVs have seeded new Professional Market Rental (PMR) portfolio

43‐45 Portman Square, London, W1H 6LY | T: [phone] | F: [phone] | www.quintain.co.uk | @QuintainPlc

Quintain Estates and Development plc | Registered office: 43‐45 Portman Square, London, W1H 6LY. Registered in England and Wales. Registered number 2694983.

Residential Investment: New portfolio

 New Professional Market Rental business seeded with 261 homes

 Homes opening during 2016 and 2017

 Initial target to grow to 500 homes at Wembley Park within five years

New masterplan being progressed for 43 acres at Wembley Park

 Aspiration to increase quantity of residential development, create a substantial new public park, create an appropriate setting for the world‐famous Stadium and a design that supports accelerated delivery of development

Commercial Investment: Substantial income growth from £366.0m portfolio

 Maturing Wembley Park investment assets delivering £9.3m net rental income (2014: £4.3m)

 Selectively expanded London Portfolio delivering £4.1m net rental income (2014: £0.1m)

Continued financial rigour positioning the Company for growth

 Substantial capacity to invest, with low gearing of 32% despite accelerating development

 Re‐financed debt facilities, with average maturity extended to 4.2 years

 Sustainable balance between investment and development that will support Quintain through future real estate cycles

ENDS ‐ ‐

Enquiries Quintain Cressida Curtis Harriet Pask

Tel: [phone]
[e-mail]

RLM Finsbury Jenny Davey Charlotte Whitley

Tel: [phone]
[e-mail]

Forward looking statements

This announcement is for information purposes only and contains certain forward-looking statements which, by their nature, involve risk and uncertainty because they relate to or depend upon future events and circumstances.

There are a number of factors which could cause actual results and developments to differ materially from those expressed or implied by these forward looking statements, including a number of factors outside Quintain's control. All forward-looking statements are based upon information known to Quintain on the date of this announcement and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Quintain gives no undertaking to update forward-looking statements whether as a result of new information, future events or otherwise. Information contained in this announcement relating to the Company should not be relied upon as an indicator of future performance.