The Crown Estate, the property management firm owned by the monarchy, has reported over £1bn in profit for the third consecutive year, driven largely by offshore windfarm deals. The estate posted £1.2bn in profit for the last financial year, almost triple the amount from three years ago.
Two-thirds of the profit came from the offshore wind industry, with developers paying £875m in option fees to secure seabed leases. This marks the third year of windfall gains after the estate introduced an auction for windfarm developers in 2022.
Income from wind fell by £198m from the previous year as two windfarms began construction, allowing developers to pay a lower rate. Once they generate electricity, developers will pay the estate 2% of revenue from energy bills.
The estate returned £487m to the Treasury, of which £132.1m went to the King for official duties, up from £86.3m the year before. Chief executive Dan Labbad's pay rose to almost £2.33m, a 20% increase.
Labbad said profits may normalise as more windfarms move to construction. He also noted that even a government led by Reform UK, which opposes renewable subsidies, would not halt growth, as the estate could adapt with direct supply deals.
