The Birmingham-based landlord said the increase was a one-off from divestments of its retirement homes
Midland Heart Capital has reported a turnover of £243m, up £11m compared to the previous year, in its latest financial statements.
Its accounts for the year to 31 March 2025 showed a surplus of £91.7m, up by more than £25m on its last year’s surplus, mainly due to the sale of 23 supported housing schemes.
In a note on accounts, chief executive Glen Harris, wrote: “We have spent the last few years simplifying our portfolio to better focus on our core purpose as a landlord of general needs homes.
”This has included a large transfer of our Retirement Living Plus schemes, to a specialist Retirement Living and Extra Care provider dedicated to providing services and accommodation for older people, and more bespoke development opportunities for colleagues.
”The resources from this sale will be helpful in achieving the aims of our next corporate plan to 2030.”
The majority of the turnover (£215m) came from social housing lettings, with £19m from shared ownership delivery, and £5m of strategic cost savings.
The £11.2m increase in turnover was in spite of reduction in the 35,000-home landlord’s number of properties over the year due to disposals. This reduction, however, was offset by a record number of new builds.
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The landlord invested £108m in new affordable homes, delivering 800 new affordable homes last year – its highest number to date in one single year.
It also spent £35m on improving existing homes, encompassing over 2,000 kitchen and bathroom upgrades, 670 window replacements, and 260 roof replacements.
Operating costs increased £9.2m (5.4%) to £178m, reflecting rises in maintenance costs, salaries and volume-related shared ownership sales costs.
Harris added: “Over the next five years, we plan to make a record £300 million investment in our existing homes, including a variety of retrofit measures to improve energy efficiency and minimise the risk of damp and mould. We will also be looking at some of our oldest properties, the majority pre-Second World War homes, to improve their security, accessibility, safety and overall aesthetic to ensure they are fit for modern living and as comfortable as possible for tenants.”
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