Shaftesbury Capital, the central London mixed-use real estate investment trust (Reit), has reported higher profit for the first half of the year, as conditions across the West End’s occupational and investment markets continue to improve.
The group reported gross profit of £80.7m for the six months ended June from £58.3m a year ago.
Headline earnings share (HEPS) rose to 2.8 pence from 0.8p before. Its European Public Real Estate Association net tangible asset (EPRA NTA) of 193.4p per share was up 1.6%, the group said in a statement on Wednesday.
An interim cash dividend of 1.7p per share was declared.
The group’s wholly owned portfolio valuation increased 1.4% on a like-for-like basis at £4.8bn.
“We are very pleased with performance across the business. Having set clear priorities, we are delivering on strategy. Conditions across the West End’s occupational and investment markets continue to improve,” CEO Ian Hawksworth said.
“Our strong leasing activity at rents on average 7% ahead of December 2023 ERV (estimated rental value) is delivering rental growth and increased valuations. With a strong balance sheet, we are well-positioned to generate rental growth and take advantage of market opportunities.”
The LSE- and JSE-listed company is the leading central London mixed-use Reit and is a constituent of the FTSE 250 index. Its property portfolio extends to about 250,000m2 of lettable space across the most vibrant areas of London’s West End. With a diverse mix of shops, restaurants, cafes, bars, residential apartments and offices, its destinations include the high footfall, thriving neighbourhoods of Covent Garden, Carnaby, Soho and Chinatown.
The group reported high levels of footfall, customer sales growth and increasing levels of international tourism across its West End estates.
The group has completed £216m of disposals since the all-share merger of Capital & Counties Properties and Shaftesbury to create Shaftesbury Capital in March 2023, with £86m reinvested in acquisitions to improve the quality of its portfolio.
With access to £579m of liquidity, the group says it is well positioned to take advantage of further market opportunities.
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