The Crown Estate Reports Annual Profit of $1.57 Billion

LONDON, July 1 (Reuters) – The Crown Estate, responsible for managing King Charles’ public property, announced an annual net profit of 1.15 billion pounds ($1.57 billion) on Tuesday, matching the previous year’s figures. The offshore wind leases emerged as the primary revenue generator for the Crown Estate.

Comprising land tracts and a significant portion of Britain’s seabed, the Crown Estate operates as a commercial entity, with its profits determining the public funding allocated to the royal family by the UK Treasury.

For the fiscal year spanning April 1, 2024, to March 31, 2025, the Crown Estate reported a net revenue profit of 1.15 billion pounds, with the bulk of revenue, approximately 1.07 billion pounds, stemming from the offshore wind farm leasing tender Round 4.

However, the Crown Estate anticipates a decline in revenue from leasing activities starting January 2026 as more projects progress towards the development stage, with an estimated drop to 25 million pounds annually.

“The surge in profits attributed to offshore wind leasing fees from Round 4 was always expected to be short-term, and we anticipate this year to mark the peak for these returns,” stated Dan Labbad, CEO of the Crown Estate during a press briefing.

Wind power, including both onshore and offshore installations, claimed the top spot as Britain’s leading electricity source last year, contributing around 30% of the nation’s power supply. Nonetheless, rising offshore wind costs due to inflation and supply chain challenges have led to the cancellation of certain projects.

In a recent development, the Crown Estate awarded seabed leases to Equinor and Gwynt Glas for constructing floating wind farms in the Celtic Sea under the latest lease auction Round 5. Labbad projected substantial revenue contributions from this round in the early- to mid-2030s.

As part of the funding mechanism for the monarchy, the sovereign grant, covering royal household operating expenses and travel costs, currently stands at 12% of the Crown Estate’s profits. Government documents indicated a grant amount of 132 million pounds for the 2025-2026 period.

($1 = 0.7304 pounds)

(Reporting By Susanna Twidale; Editing by Rachna Uppal)

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