West End landlord Shaftesbury’s portfolio valuation has been written down by 7.9% in the six months ending 31 March, resulting in a £287.6m loss.
The landlord’s portfolio has shrunk to £3.5bn. It said it will permanently move to monthly-in-advance rents for all commercial tenants, which will take effect in October this year.
Shaftesbury said it aimed to collect around 50% of rent due from April to September “over time”.
EPRA NAV per share fell by 10.6% to £8.78 during the six months, owing to the revaluation deficit.
Its £287.6m loss compares with profit of £38.7m made during the same period in the previous year.
The trading update comes a week after rival landlord Capital & Counties bought a £436m stake in Shaftesbury.
Notably, the landlord’s valuers at Cushman & Wakefield “reiterated to the board that some prospective purchasers may recognise the rare and compelling opportunity to acquire, in a single transaction, substantial parts of the portfolio, or the portfolio in its entirety”.
The agent said such parties “may consider a combination of some, or all, parts of the portfolio to have a greater value than currently reflected in the valuation”.
Brian Bickell, chief executive, said: “Although our business performed well during the first four months of the period, the growing impact of the measures to address the pandemic are having a material impact on normal patterns of life and commerce, both for our occupiers and on the near-term prospects for our business and financial performance.”
However, he added that both London and the West End have a “long history of structural resilience”.
“Their unique features come from a culture of constant evolution across a broad-based economy, attracting talent, creativity, innovation and investment from across the world and reinforcing their enduring appeal to businesses, visitors and as great places to live,” he said.
“In the post-pandemic recovery, these fundamental advantages will underpin their return to prosperity and growth.”
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