Shaftesbury’s last set of results before its merger with Capco has shown a powerful return to profit and rising income.
The West End landlord made £119.1m profit after tax for the year to the end of September, up £314m on its £194.9m loss last year.
The shift was largely due to a revaluation gain of £99.5m, while 2021 was beset by a £196.9m revaluation deficit, as the NAV rose from £2.37bn to £2.46bn. First-half gains of 7.5% were partly reversed by the second-half fall of 3.6% as valuation yields increased.
Income increased by 28%, from £64.7m to £82.8m. EPRA earnings per share were up 42.9% to 5p. Total portfolio ERV grew by 9% to £145.8m.
Chief executive Brian Bickell said: “The year has seen a rapid rebound in the West End economy as Covid-related disruption receded and patterns of everyday activity returned to pre-pandemic normality. The sustained recovery in footfall and trading since the early months of 2022 has been matched by the strength of occupier demand in our carefully curated and popular locations.”
He added that long-term prospects for the West End “remain bright”, even though the market “cannot be immune” from macro-economic issues.
Shaftesbury secured 59 new hospitality and retail lettings during the year, with total lettings of £40.9m completed.
The merger with Capco, announced on 16 June, has yet to be signed off by the Competition and Mergers Authority. It is now expected to become effective in the first quarter of 2023.
To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews
