Shaftesbury swings to FY profit, returns to pre-Covid occupancy

West End landlord Shaftesbury said on Tuesday that it swung to a full-year profit as it returned to pre-pandemic occupancy.

In the year to 30 September, the company swung to a profit after tax of £119.1m from a loss of £194.9m the year earlier. However, this was below consensus expectations of £348.5m.

Shaftesbury said the result was mainly due to a £99.5m revaluation gain - versus a £196.9m revaluation deficit in 2021 - and improved net property income, partly offset by one-off costs associated with the proposed merger with Capco.

The company hailed a sustained recovery in confidence and activity, with footfall, spend and occupancy recovering to pre-pandemic levels and rental values returning to growth.

Despite wider UK trends, Shaftesbury said consumer spending in the West End remains good. Since the spring, its hospitality, retail and leisure occupiers have reported trading revenues, on average, at or above 2019 levels, with monthly sales now 6% ahead of pre-pandemic levels.

Chief executive Brian Bickell said: "The year has seen a rapid rebound in the West End economy as Covid-related disruption receded and patterns of everyday activity returned to pre-pandemic normality. The sustained recovery in footfall and trading since the early months of 2022 has been matched by the strength of occupier demand in our carefully curated and popular locations.

"Although London and the West End cannot be immune from the unprecedented range of challenges which are now dominating the national outlook, their long-term prospects remain bright, thanks to their enduring appeal to global, domestic and local visitors, businesses and investors, their dynamic economies and ability to attract talent and creativity from across the world."