Crown Estate profits have more than doubled to a record £1.1 billion, primarily driven by the benefit of an increasing number of offshore wind deals.
Profits increased by £658.1 million in the 23/24 financial year, up from a £442.6 million rise in the previous twelve months.
This growth is largely attributed to an uptick in fees charged to offshore wind developers.
The Crown Estate, valued at £15.5 billion and a key part of the Royal Family’s finances, owns property across the country and a stretch of seabed surrounding England, Wales, and Northern Ireland.
Chief Executive Dan Labbad noted that the bumper income from recent wind deals would likely continue for one more year before "normalising."
The boost in profits is due to option fees paid by developers to secure offshore wind farm sites, which are expected to transition into steadier revenues as more wind farms become operational.
The offshore wind sector has been a notable success for the UK, generating 17% of the country’s electricity in 2023.
With 15GW of operational offshore wind capacity, the UK is the largest market outside of China.
The government aims to increase offshore wind capacity to 55GW by 2030 to meet its goal of net zero carbon emissions from electricity supplies.
Meanwhile, as the Crown Estate's commercial property holdings recover following the pandemic, new legislation, confirmed in the King’s Speech, will allow the estate to borrow for the first time, targeting a conservative debt level of 10-20% of assets.
Profits from the Crown Estate support the sovereign grant, a payment to the monarch for official duties, and despite the percentage paid decreasing, King Charles is set to receive more in the coming years.
This year, the monarch will receive a £45 million pay rise, marking more than a 50% increase to his official annual income.