Shaftesbury swings to profit amid West End footfall recovery

West End landlord Shaftesbury said on Tuesday that it swung back to a profit in the six months to the end of March thanks to a "strong" recovery in footfall and spending.

The group made a profit after tax of £247.6m compared to a loss of £338.5m in the same period a year earlier. It pointed to £323.9m of revaluation gains, versus £342.6m revaluation deficits the year before, and improved net property income.

Net property income rose 55.1% to £41.1m thanks to improved occupancy, the removal of occupier rental support and a "significant" reduction in charges for impairments and expected credit losses as trading conditions improve, Shaftesbury said.

Meanwhile, EPRA earnings rose to £15.6m from £2.1m, with EPRA earnings per share of 4.1p versus 0.6p a year earlier.

Chief executive Brian Bickell said: "The continuing strong rebound in the West End economy since the lifting of pandemic restrictions last summer has continued throughout the period. The patient, long-term stewardship of our high profile, centrally-located ownerships, and the actions we took to support our occupiers and stakeholders through the long period of pandemic challenges, have underpinned the welcome recovery we are now seeing in key operating metrics, EPRA earnings and net tangible assets.

"Although Covid concerns are receding, new challenges are now coming to the fore, both in the UK and in many other economies, exacerbated by macroeconomic and political issues. Whilst London and the West End cannot be completely sheltered from these headwinds, their global status, appeal and broad-based, dynamic economies should provide a considerable degree of protection, which few other locations can match."

Shaftesbury also said on Tuesday that discussions with Capital & Counties about a possible £3.5bn merger are ongoing and the full terms have not been finalised. The companies confirmed the merger talks two weeks ago.