Shaftesbury Capital reports strong leasing momentum

Shaftesbury Capital highlighted strong leasing momentum and a robust financial position in a trading update on Tuesday.

The FTSE 250 company said leasing activity had driven £15.9m in new leases and renewals between 1 July and 11 November, achieving rents 9% above June estimated rental value (ERV) and 7% higher than previous passing rents.

Vacancy levels fell to 2.1% of ERV, down from 2.7% in June, with an additional 0.6% of ERV under offer.

Retail and hospitality demand remained resilient across Shaftesbury’s key West End locations, the board reported, with 48 new openings since July, including brands such as Longines, Aspinal, Barbour, and Salomon.

Covent Garden, Carnaby Street and Soho reportedly saw robust tenant interest, with brands like Peak Performance, Astrid & Miyu, and Farm Rio expanding their presence.

Shaftesbury said its hospitality portfolio was also performing particularly well, with Kingly Court continuing to attract new operators.

Recent openings included Alta, Donutelier, and Delamina, with upcoming additions such as Suzhou Noodle and Noodle & Beer in Chinatown.

The company also reported strong demand for prime office space, with recent leases in Soho and Covent Garden achieving rents exceeding £100 per square foot.

Residential assets were performing steadily, with low vacancy and continued rental growth.

Shaftesbury noted that it had completed £240m in asset disposals over the last 18 months, including £152m in 2024.

A notable transaction was the sale of its 50% interest in the Longmartin joint venture for £94m, broadly in line with its December 2023 valuation.

Proceeds were reinvested into acquisitions and asset management opportunities in prime West End locations, with a pipeline of potential purchases under review.

The company said it maintained a strong financial position, with an EPRA loan-to-value ratio of 29% as of June and access to over £550m in liquidity.

Debt repayments totaling £95m were scheduled for completion by the end of the year, further strengthening its balance sheet.

“Our West End estates are busy and vibrant coming into the Christmas trading period with high footfall and good customer sales growth,” said chief executive officer Ian Hawksworth.

“We are encouraged by the strong leasing demand across all uses, with 192 transactions completed in the period, at rents on average 9 per cent ahead of June ERV and an excellent leasing pipeline.”

Hawksworth added that the company had completed £240m of asset sales over the last 18 months, adding that it would continue to recycle capital into target acquisitions.

“We are well-positioned to deliver attractive long-term returns as the leading central London mixed-use REIT.”

At 0957 GMT, shares in Shaftesbury Capital were flat at 134.7p.

Reporting by Josh White for Sharecast.com.