Shaftesbury Capital reports robust first-half leasing activity

Shaftesbury Capital reported a 1.6% increase in EPRA net tangible assets per share to 193.4p in its half-year report on Wednesday, up from 190.3p at the end of 2023.

The FTSE 250 company said its wholly-owned portfolio valuation remained stable at £4.8bn, marking a 1.4% like-for-like increase driven by estimated rental value (ERV) growth.

It reported robust leasing activity in the six months ended 30 June, with 217 transactions completed, representing £28.1m in contracted rent.

The transactions were 7% ahead of December ERV and 16% higher than previous passing rents, underscoring strong demand across Shaftesbury's West End properties.

ERV across the portfolio rose 3.2% to £241m, while annualised gross income increased 3.9% on a like-for-like basis to £196.5m.

The company maintained high occupancy rates, with only 2.7% of ERV available to let, reflecting strong footfall, customer sales growth, and increasing international tourism in its prime London locations.

Since its merger, Shaftesbury Capital said it had completed £216m in disposals at a premium to valuation, with £86m reinvested into acquisitions that enhance the quality of its portfolio.

The company said it remained well-positioned to capitalise on further market opportunities.

Underlying earnings per share rose slightly to 1.9p, compared to 1.8p in the second half of 2023, leading to an interim dividend of 1.7p per share.

The firm’s balance sheet remained strong, with £579m in liquidity, net debt of £1.5bn, and an EPRA loan-to-value ratio of 30%, down slightly from 31% in December.

“We are very pleased with performance across the business,” said chief executive officer Ian Hawksworth.

“Having set clear priorities, we are delivering on strategy.

“Conditions across the West End's occupational and investment markets continue to improve.”

Hawksworth said the firm’s strong leasing activity, at rents on average 7% ahead of December 2023 ERV, was 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.”

At 1002 BST, shares in Shaftesbury Capital were up 2.24% at 155.2p.

Reporting by Josh White for Sharecast.com.