In a significant financial boost for the royal household and the Treasury, the Crown Estate—manager of a vast property and seabed portfolio tied to King Charles III—reported net revenue profits of £1.15 billion ($1.57 billion) for the fiscal year ending March 31, 2025. This figure is virtually unchanged from the prior year and underscores a flourishing tide in offshore wind farm leases.
According to the Crown Estate, nearly £1.07 billion of this revenue stemmed from fees linked to Round 4 leasing auctions for offshore wind development rights. However, the estate cautioned that this surge is likely temporary. Once the leased sites begin construction, annual proceeds are projected to fall sharply to just £25 million starting January 2026.
Despite this anticipated downturn, the offshore wind sector continues to be a major driver for the UK’s energy mix—turbines both onshore and at sea accounted for around 30% of Britain’s electricity supply last year . Moreover, the estate has awarded leases for floating wind farms to Equinor and Gwynt Glas in the Celtic Sea (Round 5), with revenue from this next round expected to materialize by the early to mid-2030s.
Dan Labbad, CEO of the Crown Estate, described the financial gains as a “short-term boost” tied to one particularly strong auction, and projected that 2024–25 marked the peak of this revenue cycle.
The Crown Estate holds an expansive portfolio spanning urban real estate in London, rural lands across England and Wales, and nearly the entire UK seabed. While leasing fees have propelled profit margins, the estate’s core property holdings—particularly in central London—also showed signs of recovery, with growing office demand lifting valuations.
Total asset valuation, however, experienced a marginal decline. This was largely due to decreases in seabed valuations following the receipt of fees tied to leasing.
All profits generated by the Crown Estate are surrendered to the British Treasury. A fixed proportion—currently 12%under the Sovereign Grant Act—is then allocated to the monarch’s official expenditure, including palace upkeep and royal household costs. In light of the record earnings, King Charles is set to receive the largest Sovereign Grant to date—£132 million for the 2025–26 financial year, up from approximately £86.3 million.
Chief Executive Labbad also reaffirmed the estate’s commitment to national objectives beyond profit. These include the expansion of offshore wind capacity, investment in urban regeneration, and the deployment of sustainable practices across its land portfolio.
Looking ahead, the estate is considering broadening its operational toolkit. Proposed legislative reforms could grant it borrowing powers—including capital investment capabilities—which would enhance flexibility in supporting renewable initiatives and strategic real estate projects
