Shaftesbury Capital, the central London mixed-use real estate investment trust (Reit), has reported higher earnings at the half-way stage of its financial year, boosted by growth in rents and valuations.
The group reported an increase in EPRA earnings per share to 2.4p for the six months ended June from 1.9p previously. EPRA earnings is a measure of the underlying operating performance of an investment property company excluding fair value gains, investment property disposals.
The group, which is listed in London and Johannesburg, said gross profit rose to £89.2m from £80.7m a year ago.
Underlying earnings increased 16% to 2.2p per share and the interim dividend was increased to 1.9p per share from 1.7p.
“Our West End portfolio continues to be busy and vibrant with high footfall and seven days a week trading. Leasing demand is strong with 193 transactions completed 9% ahead of December 2024 ERV (estimated rental value). Valuations have increased by 3% driven by ERV growth and stable yields,” said CEO Ian Hawksworth.
During the period, Shaftesbury concluded 193 leasing transactions, representing £19.2m of contracted rent.
Occupancy was high, with 2.4% of ERV available to let. It reported positive trends in footfall and customer sales in aggregate across its prime West End portfolio.
Portfolio valuation increased 3.1% to £5.2bn driven by a 2.9% like-for-like increase in ERV to £261m. It also reported a 3.3% increase in EPRA net tangible assets to 206.8p per share.
During the period, the group spent £71m on capital expenditure and acquisitions that present rental growth opportunities. In April it concluded a £2.7bn long-term partnership with Norges Bank Investment Management in respect of the Covent Garden estate.
Shaftesbury’s property portfolio under management, valued at £5.2bn, extends to about 250,000m2 of lettable space across London’s West End. Its properties include a diverse mix of shops, restaurants, cafés, bars, residential apartments and offices, and include the high footfall of Covent Garden, Carnaby, Soho and Chinatown.
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