The Crown Estate, the UK property company that generates income for King Charles III, reported operating profits of 1.2 billion pounds ($1.6 billion) for the year through March, down from 1.4 billion pounds a year earlier, as a temporary boost from offshore wind farm licensing fees faded, Bloomberg reported Thursday.

The decline reflects the drop-off in option fees from Round 4 offshore wind leases, which bidders stop paying once construction begins. Excluding the Round 4 impact, profits rose 5% to 370 million pounds, the report said.

The lower earnings are expected to persist, reducing the Crown Estate's contributions to both the UK Treasury and the Sovereign Grant, Bloomberg reported.

The Royal Trustees set the grant at 99.9 million pounds for 2027-2028, down from 138 million pounds this year, the report said.