Chairman’s Statement

vibrant and compelling neighbourhood. In the spirit of a long-term, family business, our investment in Chelsea carried on throughout the pandemic despite the uncertainty we faced and the adverse impact on profits and property values at the time.

In 2022, total income increased to £186.5m (compared to £168.9m in 2021) exceeding the previous highest income recorded in 2019, which was £171.0m. The value of the property portfolio increased to £5.1 billion (2021: £4.8 billion), representing healthy growth even though this remains below the valuation in 2018 at £6.2 billion.

It gives me great pleasure to present a year in which Cadogan has performed so strongly. During 2022 total income has grown to the highest level in our history.

Looking back, I was delighted that my family’s business was able to significantly support our occupiers when they needed it most, together with charities serving the local community and the NHS, through the £20m Business Community Fund established at the very outset of the pandemic. This was coupled to extensive marketing activity to encourage footfall, supporting occupiers’ quick return to financial health. By the end of 2022, it was encouraging to learn that overall, our retail occupiers were reporting higher turnover and profitability than in 2019.

The ability of retailers to trade profitably has resulted in healthy demand for shops in Chelsea. This has been mirrored by a buoyant occupational market for office and leisure space together with a strong market for homes in Chelsea. The result has been good income growth and low vacancy levels across the portfolio.

Chelsea is a highly desirable place to live, work and visit. The success of Cadogan reflects this exceptional location in a residential area just outside the centre of London –one of the world’s truly international cities – together with our continuing investment in placemaking, the fabric of our buildings and careful curation to provide a

We made good progress during the year with our commitment to achieve Net Zero carbon emissions by 2030 and our other sustainability goals. The retrofit programme needed to ensure all our properties become compliant with Minimum Energy Efficiency Standards (“MEES”) is well underway.

Through a combination of my family’s charity, which is a shareholder of the business and chaired by my father, Earl Cadogan; the charitable donations made by the Cadogan business itself; and our "Chelsea 2030" strategy, Cadogan has continually supported and invested in charities, communities and a sustainable environment locally and far beyond. This approach is consistent with our values over a very long time and personally, I believe that it is vital in the twenty-first century that we are very clear on our broader purpose beyond the important job of delivering returns to our shareholders.

The placemaking investment of £46m into a transformation of Sloane Street’s public realm commenced during the year, in close partnership with the Royal Borough of Kensington and Chelsea.

The project, which is a very good example of our long-term commitment to Chelsea, encompasses the entire length of Sloane Street from Knightsbridge in the north to Sloane Square in the south, and involves extensive greening including over 100 new trees, new high-quality paving and street furniture and widening of pavements to improve the pedestrian experience. The aim of this significant investment is to enhance Chelsea for residents and visitors alike and to cement Sloane Street’s reputation as one of the best luxury shopping destinations in the world.

Despite the poor macroeconomic environment, the continuing war in Ukraine, high inflation and interest rates and, more recently, several banking failures, I am confident that the investment we are making in the Estate will protect and enhance Chelsea for the long-term.

Our people are critical to our success, working in close partnership with our myriad of loyal suppliers and contractors, many of whom have worked with Cadogan for decades. Working physically together in Chelsea is a key factor in understanding the area, forging close relationships, creating a strong culture and encouraging personal development. Since our team returned to the office virtually full time, I have seen strong evidence of the positive impact this has had on our performance.

I would like to thank all of our staff and external partners for their loyalty and efforts in helping to deliver an exceptionally strong performance in 2022. I was delighted to welcome Alison Nimmo to my board to provide further breadth to an impressive team. I would also like to personally thank all my fellow board members for their continued support, guidance and wise counsel.

Viscount Chelsea Dl

4 May 2023

Above Summer in Sloane Square