Shaftesbury Capital upbeat on thriving West End

(Sharecast News) - Shaftesbury Capital posted a jump in its portfolio valuation on Thursday, despite the weaker macroeconomic backdrop, as its properties in London's West End continued to perform well. The valuation of Shaftesbury's portfolio - which spans Covent Garden, Soho, Carnaby Street and Chinatown - increased by 4.5% on a like-by-like basis in 2024, to £5bn. Estimated rental value (ERV) growth of 7.7% helped offset an outward yield movement of 13 basis points.

Underlying earnings increased by 16.2% to 4p per share, while annualised gross income rose 8% to £202.8m.

Ian Hawksworth, chief executive, said: "Our West End estates continue to be busy and vibrant with high footfall and customer sales growth.

"There continues to be strong leasing demand with 473 transactions completed 9% ahead of December 2023 ERV, with an excellent leasing pipeline."

Looking ahead, the real estate investment trust said the West End was continuing to "perform" despite the "well-documented macroeconomic uncertainty".

It continued: "Footfall is high, with continued customer sales growth, limited vacancy and strong leasing pipeline.

"The quality of our portfolio, our active approach and the positive market fundamentals of the West End give us confidence in our target to 5% to 7% rental growth, which will table yields, would deliver total accounting returns of 8% to 10% over the medium term."

As at 1000 GMT, shares in the FTSE 250 company were down 2% at 122.7p.