Britain's Crown Estate, which oversees King Charles's public property, reported a record profit of £1.1 billion ($1.42 billion) for the fiscal year 2023/24, according to results released Wednesday. This marks a significant increase from £442.6 million in the previous year, driven primarily by income from offshore wind leases.
The Crown Estate, which manages extensive land and seabed assets, operates as an independent commercial entity, with its profits directed to the Treasury and used as a benchmark for public funding for the Royal Family.
The record profit was largely attributed to a lucrative offshore wind farm lease tender known as Round 4, held in 2021. Under this lease, companies have paid option fees across six winning projects, generating approximately £1 billion annually over a minimum of three years and up to ten years.
Dan Labbad, Chief Executive of the Crown Estate, noted that the high prices achieved in Round 4 may not be sustained in future licensing rounds. “Round 4 was in a very different economic moment to today… inflation is up, interest rates are up… and we have a responsibility to ensure we are supporting the market,” Labbad said during a briefing.
The new Labour government has proposed allowing the Crown Estate to borrow funds to invest, a move that Labbad believes would enhance flexibility in supporting renewable projects and investing in the London property portfolio.
The Sovereign Grant, which covers the costs of the royal households and travel expenses, will be set at 12% of Crown Estate profits for 2024-25, down from 25% in 2023-24 due to the substantial increase in offshore wind revenue. The total Sovereign Grant for 2024-25 will remain at £86.3 million for the third consecutive year, as announced by Britain's Treasury in July.
