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Shaftesbury Capital reported a 9% increase in first-half earnings after higher rents and continued leasing activity lifted the value of its West End property portfolio in London, despite what the company described as broader market uncertainty.The London-focused real estate investment trust (Reit), which has a secondary listing on the JSE, said earnings rose to 2.4p a share in the six months to end-June from 2.2p a year earlier.It also raised its interim dividend by 16% as its £5.6bn property portfolio increased in value during the period.“Retail properties were the strongest performer, with values rising 5.4%, while office properties posted modest growth and residential values edged lower,” the group said.The stronger performance of the group’s retail properties comes as the UK and Europe experience a broader retail revival, driven by rising footfall and successful omnichannel strategies, particularly among younger consumers.The group completed 226 leasing transactions worth £23.2m in annual contracted rent. New leases and renewals were signed at rents 18.4% above previous passing rents, supporting the increase in portfolio values.Shareholder profit increased to £193.8m, while net tangible assets rose 3.9%.Vacancy levels remained low, with only 2.6% of the portfolio’s estimated rental value available at end-June as leasing demand continued across the group’s holdings in Covent Garden, Carnaby, Soho and Chinatown.CEO Ian Hawksworth said leasing activity continues to support rental growth and property values.“Despite broader market uncertainty, our prime West End portfolio continues to deliver high footfall and high occupancy, while our strong balance sheet leaves us well positioned to pursue expansion opportunities,” he said.The group continued to reshape its portfolio, investing in acquisitions and asset upgrades and selling its interest in the noncore Lillie Square development for £64.7m, broadly in line with its valuation.The balance sheet also strengthened, with net debt declining during the six months and its loan-to-value ratio improving to 16.1% at end-December. The group also secured a £300m revolving credit facility for its Covent Garden partnership, giving it additional financial flexibility.The group said high occupancy levels, a healthy pipeline of leasing deals and limited available space across its portfolio continue to support its outlook despite broader market uncertainty.Business Day
