Shaftesbury continued on form this week, delivering another strong set of interim results.
In the half year to the 31 March, the group posted a 1.5% rise in net asset value to 470p a share, driven by a 1.4% uplift in the value of its portfolio to £1.74bn.
Shaftesbury’s three principal villages – Carnaby, Covent Garden and Chinatown – all produced comparable valuation performances of 1.4% to 1.7%.
The group said growth in income continues to be the principal driver of the increase in the value of its portfolio as like-for-like rents rose by 3.5%.
The company has significant investment firepower, with £158m of unused debt facilities, and is expected to continue to invest selectively in Soho, including Berwick Street, where it bought £27m of assets during the period.
Analysts at Investec said: “As Shaftesbury builds critical mass in this area, it can repeat what it has done in other West End ‘villages’ and grow rents substantially. This is not an income stock; shareholders must wait for the capital gain resulting from rising rents to trickle down to property valuation, and this is a process at which management are the proven leaders.”
The group also announced that chairman John Manser intends to retire at the conclusion of the 2013 annual general meeting expected to be held on 8 February 2013.
He will be replaced by former chief executive and current deputy chairman Jonathan Lane, who will succeed him as non-executive chairman.
