St Modwen’s chief financial officer, Rob Hudson, is to take on the role of interim chief executive.
He will take up the role when current CEO, Mark Allan (pictured), departs on 30 April to take up the role of CEO at Landsec, replacing Rob Noel.
The firm said in its financial results this morning: “A search process is well under way, focusing on external candidates, and we will provide an update on this as and when appropriate.”
In its full-year results, the company reported that its portfolio value had increased by 4% to £1.48bn, as the business continued to shift focus towards the industrial/logistics, housebuilding and regeneration sectors.
The portfolio now comprises 44% industrial and logistics assets, up from 33% the previous year, as well as 25% regeneration assets and strategic assets, while St Modwen Homes’ work in progress and land comprises a further 26%. Non-core retail assets now make up only 2% of its portfolio, down from 16% two years ago, and other non-core commercial assets are 3%, down from 17%.
EPRA NAV per share increased 4.2% to 504.2 pence. Adjusted EPRA earnings were £38.7m for the year ended 30 November 2019, up 22% from £31.7m the previous year.
Annualised passing rent on the portfolio, which excludes contracted rent subject to rent-frees, stood at £38.4m at the end of 2019, compared with £39.49m at the end of 2018, with the reduction triggered by the loss of rental income as a result of disposals.
Overall vacancy increased to 20.8% during the year, up from 18.9% at the end of 2018.
Allan said: ““2019 has been a positive year for St Modwen. Following our major portfolio repositioning, our focus shifted to growth, building on the substantial opportunities in our existing portfolio. This resulted in another year of strong growth in housebuilding volumes and growing momentum in industrial and logistics development, where structural growth drivers remain positive. Underpinned by a solid balance sheet and continued capital recycling, we expect the delivery of our strategy to drive a meaningful improvement in return on capital and, with 22% growth in 2019, we are well on track to broadly double our adjusted EPRA EPS in the medium term.”
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