Canary Wharf 2003 annual results and highlights in brief (UK)

Rental income up to £ 182.6m (2002: £ 149.1m) and operating profit before exceptional items up to £ 165.2m (2002: £ 130.2m). However Canary Wharf sustained a loss before tax of £ 13.2m contrary to a profit of £ 203.1m in 2002, resulting in a loss per share of 1.6p (2002: profit 30.0p).


  • The group’s investment portfolio totalling 8.4 million sq ft (subject to options) was 89.4% let
  • £415.4 million surplus on revaluation of five investment properties completed in the year
  • £263.6 million decrease on revaluation of investment properties held throughout the year or 8.1% (£87.5 million or 2.7% since 31 December 2002)
  • Market Value of property portfolio £5,811.5 million against £5,584.7 million at 30 June 2002, a reduction of £553.8 million or 8.7% excluding additions in the year.* £126.2 million reduction since 31 December 2002 or 2.1% excluding additions
  • Five buildings under construction totalling 3.1 million sq ft of which 99% is covered by agreements for lease subject to the tenants’ ability to sub-let back to the group up to 0.67 million sq ft of which 0.15 million sq ft is for a minimum period of 5 years and a further 0.15 million sq ft is for a maximum period of 10 years in respect of occupational leases which are for terms of 25 to 30 years
  • During the year 25.2 million shares bought back at a cost of £108.1 million
  • £372.8 million special dividend paid bringing the total under the return of capital programme to date to £887 million
  • Adjusted net asset value per share (based on Market Value) £3.44 against £3.70 at
    31 December 2002**

Chairman Sir Martin Jacomb: 'As shareholders will be aware, the weakness in the share price of Canary Wharf Group plc a few months ago prompted approaches from parties interested in acquiring the company. At that stage an Independent Committee of the Board was formed to evaluate these potential offers. I agreed to be Chairman of the committee, which includes all my non-executive colleagues on the board. During the summer the potential offerors have undertaken extensive due diligence. We are now actively involved in the process of reviewing indicative proposals which we have received in order to determine if any of these can be developed into an offer suitable for recommendation to shareholders.
The company’s management have supported the committee through the provision of
information as and when required by us, and I am grateful to them for this. Meanwhile, in spite of the considerable distractions whilst the company has been in an offer period, the management have continued to focus their efforts on maximising the value of the ongoing business.'

* Refer to ‘Operating and Financial Review

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