King Charles to receive £132M next year; here's why
What's the story
King Charles is set to receive an official annual income of £132 million in 2025-26. This comes after the Crown Estate, which manages his public property, reported a profit of £1.15 billion ($1.57 billion) for the year ending March 31, 2025. The profits were mainly driven by offshore wind leases, with £1.07 billion coming from this sector alone.
Profit surge
The monarchy receives 12% of Crown Estate's profits
Profits at the Crown Estate were £1.1 billion in the fiscal year ending March 31, but more than double their level two years ago at £442.6 million. The monarchy receives 12% of these profits to fund its work, including the ongoing £369 million renovation of Buckingham Palace. This percentage was reduced from 25% in 2023 to account for the increased profits from offshore wind projects.
Estate valuation
Total worth of the Crown Estate
Overall, the Crown Estate, which includes a portfolio of London residences and rural real estate, is currently worth £15 billion, down from £15.5 billion the previous year. Its marine business was valued at £3.4 billion after a £1 billion drop in value this year. The London property assets were valued at £7.1 billion, with much of the portfolio concentrated around Regent Street and St. James's, compared to £6.9 billion for the previous year.
Future plans
Crown Estate's ongoing projects
The Crown Estate is also redeveloping around 93,000 square meters of commercial space in London as part of a £490 million project. It has entered into a joint venture with construction company Lendlease to potentially build up to 26,000 homes and create 100,000 jobs. The estate estimates it can build up to 56,000 new homes across its portfolio.
Renewable energy
Revenue from leasing rounds expected to drop
The offshore wind power sector has been a major contributor to the Crown Estate's profits. The royal estate, as the legal owner of the seabed surrounding England, Wales, and Northern Ireland, is in charge of auctioning offshore wind rights. It has benefited from the industry's rapid growth by demanding high option fees from renewable energy companies in order to secure seabed regions for wind farm construction.
Option
Leasing rounds is expected to drop to £25 million
However, revenue from leasing rounds is expected to drop to £25 million annually from January 2026 as more projects move into development stages. Dan Labbad, CEO of the Crown Estate, said they "always knew the boost to our profits due to offshore wind leasing option fees from Round four was short term, and we expect this year to be the high point for these returns."