Howard de Walden Estates, a prominent London-based family property group, reported a significant increase in rental income and pre-tax profits for the year ending March 2026, driven largely by its expanding healthcare portfolio. The company manages approximately 800 primarily freehold properties encompassing 95 acres of land between Oxford Street and Regent’s Park.
Rental income rose by 9.3 percent to £179.4 million, up from £164.1 million in the previous year. The healthcare segment, which accounts for about 40 percent of the overall portfolio, saw the strongest growth, with rental income climbing 13.6 percent to £72.5 million. This growth reflects increased demand for clinical and health-related space amid a shift toward private and preventive care, advances in technology, and ongoing pressures on the National Health Service.
Howard de Walden’s preferred performance metric, revenue profit before tax—which excludes valuation changes and gains or losses on property disposals—increased by 27.5 percent to £96.5 million. The company plans to distribute £48.7 million in dividends to shareholders, marginally down from £50.3 million the previous year.
The estate has been under the stewardship of the Howard de Walden family since 1879 and is currently led by Peter Czernin, a film producer who serves as the 11th family head. Mark Kildea, the group’s chief executive, emphasized the ongoing development of Marylebone into an international healthcare hub alongside existing retail, office, residential, and dining venues.
In line with this strategy, the group has been acquiring and modernizing long-lease properties, including mid-20th century buildings at 64 and 37 Wimpole Street, recently vacated or occupied by dental industry bodies. The estate recently completed and leased 1 Harley Street to 10M Healthcare, which is developing a £100 million ambulatory surgery center scheduled to open in 2027. Meanwhile, Bupa finalized its purchase of King Edward VII’s Hospital in the district, a facility representing 11 percent of the UK’s independent healthcare market.
Other business segments also contributed to revenue growth. Retail rental income rose 3 percent to £23.9 million, supported by low vacancy rates and new tenants such as Danish bedding retailer Tekla, womenswear brand Soeur, and the South African-inspired Kudu restaurant. Office income increased 12.4 percent to £35.3 million, boosted by demand for flexible workspace solutions.
Kildea attributed the company’s resilience and performance to strong property management practices and the diversification of its asset base. He noted that tenant arrears have declined substantially, approaching pre-pandemic levels, underscoring steady financial recovery following the Covid-19 disruptions.