Shaftesbury resilient to Brexit slowdown – Shaftesbury PLC owns a 15-acre portfolio in the heart of London’s West End. It says “The West End’s global appeal and resilient, broad-based economy provide considerable insulation from headwinds affecting the national economy and consumer confidence“.
For the year ended 30 September 2018, it reports:
- EPRA NAV of GBP9.91 (2017: GBP9.52), 4.1% increase, driven by portfolio valuation growth of 3.8%
- EPRA earnings of GBP51.7m, an increase of 14.4%
- Profit after tax of GBP175.5m (2017: GBP301.6m)
- A revaluation surplus, this year, of GBP123.1m (2017: GBP230.6m)
- Robust trading, footfall and occupier demand across its locations. Continuing rental growth and low vacancy
- 84.4% of income from its three larger schemes now contracted or under offer. Uncontracted income now just 1.3% of portfolio ERV
- Ongoing management activity, strong growth in contracted income and reduced finance costs delivering increased EPRA earnings
- Total dividend increased by 5.0% to 16.8p (2017: 16.0p). Total distribution for the year: GBP51.6m (2017: GBP47.1m), +9.6%
- Portfolio investment of GBP193.1m, acquisitions of GBP167.8m and capital expenditure of GBP25.3m, on schemes across 177,200 sq. ft.
- ERV of space held for, or under refurbishment at 30 September 2018: GBP10.9m
Brian Bickell, its chief executive, commented: “It has been another year of good progress with growth in income, earnings and the value of our portfolio. Our results continue to demonstrate the appeal and qualities of our carefully-curated and iconic destinations, underwritten by the global attraction and exceptional features of London and the West End. Footfall and spending in our locations continues to be largely unaffected by the widely-reported headwinds affecting the national economy and consumer confidence.
General demand continues to be firm, buoyed by the trading conditions our tenants are reporting. Importantly, our ownership clusters enable us to curate distinctive locations and we continue to focus on growing their appeal by offering an ever-evolving experience with a variety of affordable, contemporary retail, restaurant and leisure choices. This approach supports the prosperity of our tenants and sustains demand for the competitively-priced commercial and residential accommodation we offer.
Our experienced, enthusiastic team, which brings flair and innovation to the management of our portfolio, coupled with secure finances and underpinned by the dynamism of, and prospects for, London and the West End, will continue to be the foundations of the long-term success of this exceptional business.”
SHB : Shaftesbury resilient to Brexit slowdown