John Lewis: Losses triple at retail giant’s property start-up
Losses tripled at the property start-up owned by retail giant John Lewis during its latest financial year despite its income shooting up, it has been revealed.
BTR (Operating) Limited has posted a pre-tax loss of £406,000 for the 12 months to 25 January, 2025, new accounts filed with Companies House show.
The latest figure comes after the business, which handles the partnership’s build-to-rent operations, also posted a pre-tax loss of £102,000 for the prior year.
The new results also show that the firm’s operating income jumped from £32,000 to £260,000 in the 12 months.
BTR (Operating) was set up in September 2022 and is the operating company for John Lewis’ build to rent property projects.
The business begun running its first site in November 2023 and two further projects became operational in February 2024 and October 2024 respectively.
The income the company receives is through the management fees for its three sites while its expenses mainly relate to the recharge of partner costs for a team set p to support the operation of more sites in the future.
A spokesman said: “Our home rental site management business was established in late 2023 and is already delivering strong results in line with expectations.
“The accounts show our planned investment to scale the business from one pilot site to one managing over 800 homes today, with the capability to support future growth.”
John Lewis gets green light after appeal
The results come after John Lewis received planning permission in May to redevelop a Waitrose in London’s West Ealing after a successful appeal by the retail giant.
The application, which had been in the planning system for nearly two years, is part of John Lewis’ long-term strategy to diversify its income streams via build-to-rent.
The partnership will now create 428 build-to-rent homes, including 83 affordable rented properties, as well as an updated Waitrose store and car park.
John Lewis also has plans to transform one of its disused warehouses in Reading into an £80m residential complex with over 200 houses, as well as proposals for 350 homes in Bromley.
All the developments are build-to-rent – purpose built, institutionally owned and professionally managed residential blocks of flats.
Earlier this year, CityAM reported that the John Lewis Partnership had scrapped its staff bonus for the third year in a row despite a near-tripling in profit.
The partnership’s pre-tax profit increased from £42m to £126m over the 52 weeks to 25 January.
Overall sales rose three per cent year on year, up from £12.4bn to £12.8bn, while the its operating profit margin improved 0.9 percentage points to two per cent.