Shaftesbury's recovery 'on track' despite Omicron disruption

Real estate investment trust Shaftesbury said on Friday that its recovery was "on-track", despite a short period of disruption caused by Omicron restrictions, as visitors and office workers were returned to London's West End and both its near and longer-term outlook remained "positive".

Shaftesbury stated that although trading and footfall were impacted by efforts to stem the flow of the Covid-19 Omicron variant in the four months ended 3 February, strong trading seen in the lead up to the restrictions had enabled its tenants to weather the "period of disruption".

Rent collection continued to improve, with the group collecting 88% of contracted rents due for the three months ended 31 December, while 10% remained outstanding and 2% was waived. In January, collection rates reflected the short-term trading and cash flow reduction suffered by some occupiers due to Omicron-related issues, with 77% being collected so far.

Shaftesbury also highlighted that £10.6m in leasing transactions were completed in the quarter, while rent reviews added a further £1.3m in rental value and 60 commercial lettings and lease renewals added an additional £7.9m in rental value.

Chief executive Brian Bickell said: "Robust occupier interest across all our uses and in each of our locations has continued throughout the period, our vacancy levels are trending lower towards pre-pandemic levels and rent collection rates continue to improve.

"The unrivalled attractions and lasting appeal of the West End to both local and domestic audiences, together with our curated, differentiated and affordable locations, will underpin both our continuing post-lockdown revival and our long-term resilience and prospects in the months and years ahead."