Canary Wharf’s Songbird sees 1.6% rise in NAV

Canary Wharf Group’s parent Songbird Estates has recorded a 1.6% rise in net asset value to 190p a share.

As of 31 December adjusted net assets stood at £1.5bn, up 1.6% on the previous year, and net of a reduction of £32.8m or 2.1% since 30 June 2011.

Underlying pre-tax profit dropped to £4.6m from £28.8m in 2010.

The firm said Canary Wharf Group performed well in 2011, including its agreement with European Medicines Agency for a 25-year lease of 250,000 sq ft at 25, Churchill Place at £46.50 per sq ft.

Canary Wharf retail saw valuations increase by 8.1% and revenue was up 2.2%.

The group added that it is in a secure financial position giving it flexibility for 2012, and highlighted a five-year facility secured against 50, Bank Street with £92.3m drawn down in June 2011, and a £190m construction loan facility secured against 25 Churchill Place.

At 31 December, Songbird had unsecured cash deposits of £864.8m, of which £853.5m was attributable to Canary Wharf Group. The weighted average cost of Canary Wharf Group’s debt was 6.2% and the weighted average maturity was 13.9 years. This compares with the weighted average unexpired lease term of 14.9 years assuming exercise of all break options.

Meanwhile its development pipeline remains on track and on budget, including the Shell Centre, its 50:50 joint venture with Qatari Diar.

David Pritchard, group chairman, said: “With the benefit of an enviable development pipeline and proven development and construction skills, the group can adapt to fluctuating market conditions and tenant demand and will be able to take advantage of the improved market climate once the economic cycle turns.”