One of the UK’s largest build-to-rent developers and owners saw its operating profit climb even as the value of its portfolio dropped.

In accounts for 2023, Quintain reported that its operating profit had almost doubled, rising from £21M to £39M as new homes opened and leased up at its huge Wembley Park development. The company’s occupancy level fell from 98% to 92%, reflecting all of the new homes opened.

Yet the overall value of its portfolio dropped from £3.05B at the end of 2022 to £2.15B at the end of 2023.

The company added units with a value of £152M, but it sold buildings valued at £178M. A further £278M were categorised as held for sale in the accounts and not counted as part of the portfolio. The value of its portfolio was also written down by a further £589M, which Quintain attributed to market sentiment and yields for investment assets moving up.

The yield at which its assets are valued rose from 3.25% to 4%.

Quintain said that 2023 saw 1,923 move-ins, an 11% increase on the previous year and a company record. The company’s average lease length was 15.9 months, up from 15 months a year earlier.

Quintain had built about 5,000 homes at Wembley Park as of August this year and had about 2,500 left to build. That month, it received a preferred equity injection of £755M to finish building out those homes. Of that, £418M came from funds managed by Ares Management, and £337M came from parent company and fellow private equity firm Lone Star.

Wembley Park also includes the London Designer Outlet retail scheme.