Shaftesbury : SHB – interim results

Shaftesbury has released its interim results for the six months ended 31 March 2014. Over this time its EPRA NAV rose by 5.1% to 596p. The interim dividend has been increased by 4% to 6.5p. Altogether the total return on net assets was 6.2%. The capital return on the portfolio was 5.4% – in line with the return on the IPD index but the total return on the portfolio lagged the index – Shaftesbury says this is a reflection of resurgent property values outside London which they have no exposure to.

The vacancy rate in the portfolio at the half year was 1.1%. Rents are rising and the portfolio is expanding – they spent £104m over the period including the acquisition of Jaeger House in the Carnaby street area (pictured) and a block called Newport Sandringham located at the junction of Charing Cross Road and Newport Place.

Shaftesbury also reorganised its debt during the period, terminating its interest rate swaps at a cost of 10p per share, extending the maturity of its debt (from an average 5.8 years to 7.6 years) and arranging for an increase in its borrowing facilities – it had £159m of unutilised facilities at the end of March (allowing for deals announced since then).