Shaftesbury books ‘robust’ leasing activity and acquisitions

British real estate investment trust Shaftesbury plc (LON: SHB) posted consistent full-year progress across its performance fundamentals.

The Company told shareholders on Wednesday that its food and drink and retail occupiers reported good footfall and sales growth. Regarding its leasing performance, the Group booked ‘robust’ leasing activity alongside ‘good demand’ for its regular space

It went on to say that on its new operations and acquisitions; that work had commenced after planning consent was secured on its 72 Broadwick Street scheme, it opened the Seven Dials Market at its Thomas Neal’s Warehouse and completed £34.9 million of acquisitions since 1 April 2019.

Shaftesbury comments

Brian Bickell, Chief Executive, stated,

“Our exceptional 15.2 acre portfolio, located in some of the busiest parts of the West End, continues to perform well. The small to medium-sized space we mostly provide, combined with our modest rental levels, are a considerable advantage in the current market, attracting good levels of interest. Our long-established tenant selection strategy has ensured that we have been largely unaffected by high-profile retail and restaurant failures and restructurings.”

“We continue to convert our portfolio’s reversionary potential into contracted income, whilst delivering further long-term growth in rental values. During the period since 1 April 2019, leasing activity has been robust, rents continue to be achieved at or above ERV and lease incentive levels have remained stable. Vacancy remains low and consistent with our long-term average; much of our available space is under offer.”

“Despite the uncertain political and macroeconomic backdrop, London’s global city status continues to draw businesses and visitors from across the World, reinforcing the West End’s long-term appeal and prospects.

Investor notes

The Company’s shares dipped 0.79% or 7.00p to 875.00p per share 25/09/19 13:20 BST. Analysts from Peel Hunt reiterated their ‘Hold’ stance on Shaftesbury stock. The Group’s p/e ratio is 51.58, their dividend yield is 1.92%.

Elsewhere in property development and estate agency news, there have been updates from; Rightmove Plc (LON: RMV), Berkeley Group Holdings Ltd (LON: BKG), Redrow plc (LON: RDW), U+I Group PLC (LON: UAI), Hunters Property PLC (LON: HUNT), GCP Student Living plc (LON: DIGS) and Barratt Development Plc (LON: BDEV).

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Jamie Gordon
Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.