Register Log-in Investor Type

News

Shaftesbury reveals full scale of COVID impact

Shaftesbury optimistic for London recovery

Shaftesbury, the REIT that owns a 16-acre property portfolio in the heart of London’s West End, has collected just 41% of rent in the six months to 30 September 2020.

The group, which owns properties in Carnaby Street, Soho, Chinatown and Covent Garden, also said vacancy across its portfolio had jumped from 4.8% at the end of March 2020 to 9.7% at the end of August – the majority of which came in its residential portfolio.

Due to the low rent collection figures and the uncertain near-term outlook, the board has decided not to declare a final dividend in respect of the year ending 30 September 2020. It said it intends to “resume dividend payments as soon as it considers prudent”.

Of the 59% of rent due but not collected in the six month period, 10% is expected to be subject to deferred collection arrangements, 23% is being waived and 26% remains outstanding.

This table summarises the collection of rents from 25 March to 11 September 2020.

F&B and leisure

£m

Retail

£m

Offices

£m

Residential

£m

Total

£m

Contracted rent due for the six months to 28.9.2020

22.7

18.0

9.5

7.1

57.3

100%

Collected by 11.9.2020

4.4

7.1

6.5

5.5

23.5

41%

Amounts expected to be subject to deferred collection arrangements

4.7

1.0

0.1

5.8

10%

Contracted rents waived

8.6

3.8

0.4

0.1

12.9

23%

Rent outstanding at 11.9.2020

5.0

6.1

2.5

1.5

15.1

26%

Shaftesbury said daily visits to the West End, which are currently approaching 50% of normal pre-pandemic volumes on the busiest days, are concentrated in the lunchtime to early evening period. It was too early to assess the impact of recently announced restrictions on footfall.

 

Financial position

Shaftesbury has agreed interest cover waivers with its banks and term loan providers, covering periods from nine to 12 months from April 2020. It said it was in discussions about extending the duration of the waivers. It said that it continues to comply with the interest cover covenants in its two public bonds.

Brian Bickell, chief executive, said:

“The course of the pandemic in the short and medium term will continue to dictate the extent of restrictions imposed by the UK and other governments to contain the spread of the Covid-19 virus, with implications for the global economy and the pace of recovery. As an international destination, local trading conditions in the West End will inevitably be affected by these macro uncertainties.

Longer term, the exceptional qualities and features of London and the West End provide firm foundations for recovery as pandemic disruption recedes. Their long history of embracing change, dynamism, creativity and their enduring global appeal will be their most important strengths in a post-pandemic world of new priorities, expectations and patterns of activity.

“Against this backdrop, and with the benefit of our experienced, entrepreneurial and innovative management team, we remain confident in the long-term prospects for our exceptional portfolio and business.”  

SHB : Shaftesbury reveals full scale of COVID impact

Leave a Reply

Your email address will not be published. Required fields are marked *

Please review our cookie, privacy & data protection and terms and conditions policies and, if you accept, please select your place of residence and whether you are a private or professional investor.

You live in…

You are a…