Shaftesbury reports that its EPRA NAV at the end of March 2016 was GBP8.93 per share, an increase of 24 pence (2.8%) over six months, after a reduction of 10 pence per share as a result of the increase in SDLT announced in the March 2016 Budget. EPRA earnings increased by 12.8% to GBP20.2 million (six months ended 31.3.2015: GBP17.9 million). EPRA earnings per share increased by 14.1% to 7.3p (six months ended 31.3.2015: 6.4p). They have declared an interim dividend per share of 7.15p (six months ended 31.3.2015: 6.825p), an increase of 4.8%.
During the six months ended 31 March 2016, we concluded lettings, lease renewals and rent reviews in the wholly-owned portfolio with a rental value of GBP13.6 million (31.3.2015: GBP11.2 million). Of this, commercial transactions totalled GBP10.8 million (31.3.2015: GBP8.9 million) and residential lettings and renewals amounted to GBP2.8 million (31.3.2015: GBP2.3 million). Rents for commercial uses were, on average, 6.5% above ERV at 30 September 2015 and 12.3% ahead of ERV twelve months ago.
Vacant space was a little higher at the end of March at 2.2% than at the end of September 2015 (1.6%). EPRA vacancy comprised four large shops (ERV: GBP1.0 million), eight small shops (ERV: GBP0.6 million), four restaurants, 6,900 sq. ft. of office space, and eight apartments. Over half of this space was under offer at 31 March 2016.
Within the retail portfolio, during the six months to 31 March 2016, Shaftesbury completed letting transactions with a combined rental value of GBP4.9 million, equivalent to 11% of retail ERV. This included fourteen new shop lettings, ten lease renewals and twelve rent reviews. For restaurants, cafes and leisure, during the period, they completed leasing transactions with a rental value of GBP4.5 million, equivalent to 11% of restaurants, cafés and leisure ERV. This included five lettings and renewals, and seventeen rent reviews. For offices the equivalent figures were lettings and lease renewals extending to 22,400 sq. ft., with a rental value of GBP1.4 million, equivalent to 6% of office ERV and for residential lettings and renewals totalling GBP2.8 million, equivalent to 19% of residential ERV.
In the refurbishment / development pot they have their Charing Cross Road/Chinatown scheme. Located next to Leicester Square Underground station, and within a short walk of the Tottenham Court Road Crossrail hub, it will bring major improvements to this important block on Chinatown’s eastern boundary. They are making substantial improvements to the configuration of the space to provide: 32,000 sq. ft. of large, double-height retail units along a 330-foot frontage on Charing Cross Road; 13,500 sq. ft. of restaurant space, fronting Newport Place and Newport Court; and a much-improved gateway into Chinatown. The scheme is now expected to cost GBP14.6 million and completion is anticipated by mid-2017.
In February 2016, they commenced the first phase of their reconfiguration of the Thomas Neal’s Warehouse to provide up to 22,000 sq. ft. of flagship retail space, further strengthening this popular and distinctive retail and leisure destination. The estimated total cost is GBP2.0 million, in addition to a loss of annual net income during the scheme of GBP0.8 million. Completion is anticipated in late 2016.
Other schemes underway at 31 March 2016 comprised the reconfiguration and improvement of 10,400 sq. ft. of retail, 7,500 sq. ft. of restaurants and cafés, 25,700 sq. ft. of office space, and 46 apartments either being created or upgraded. In May 2016, they commenced their major mixed-use project at 57 Broadwick Street, Carnaby. Situated within a few minutes’ walk of Tottenham Court Road’s new western ticket hall on Dean Street, our 30,000 sq. ft. scheme at this eastern gateway to Carnaby will provide: flagship retail space and a restaurant, together extending to 8,000 sq. ft., over the lower floors; 20,000 sq. ft. of refurbished and extended grade A office accommodation across the upper floors; and two apartments totalling 2,000 sq. ft.
During the six months to 31 March 2016, they acquired eight properties in Soho, Charlotte Street and Covent Garden. At a total cost of GBP43.2 million, these comprised five shops, four restaurants and cafés, 2,850 sq. ft. of office space and one apartment. On acquisition, they produced an average net initial yield of 2.1%. However, they offer the potential for good rental and capital growth through short and medium-term asset management initiatives.
SHB : Shaftesbury NAV edges higher