London's West End properties boost Shaftesbury Capital's valuation

Shaftesbury Capital, UK-based property developer, reported an increase in portfolio valuation for the year ending December 31, despite challenging macroeconomic conditions, as its London West End properties continued to perform well.

The company’s portfolio—spanning Covent Garden, Soho, Carnaby Street, and Chinatown—was independently valued at 4.5 billion pounds, reflecting a 4.5 percent like-for-like increase. Estimated rental value (ERV) grew 7.7 percent like-for-like to 250.6 million pounds, while gross income rose 8 percent to 202.8 million pounds.

Underlying earnings climbed 16.2 percent to 73 million pounds (92 million dollars), or 4 pence per share, driven by higher like-for-like net rental income.

Chief Executive Ian Hawksworth commented: “Our West End estates remain vibrant, with strong footfall and customer sales growth. Leasing demand remains high, with 473 transactions completed at 9 percent above December 2023 ERV and a strong leasing pipeline. Portfolio valuation rose 4.5 percent, driven by robust ERV growth.”

Following the positive performance, the board has proposed a final dividend of 1.8 pence per share, bringing the total dividend for the year to 3.5 pence per share, including the interim dividend of 1.7 pence.

“The momentum of 2024 has carried into the current year. With a strong balance sheet, we are well-positioned to capitalise on market opportunities and confident in delivering further growth as London’s leading mixed-use REIT," Hawksworth added.

Shaftesbury Capital remains optimistic about its prospects, targeting 5 to 7 percent rental growth. With stable yields, this is expected to drive total accounting returns of 8 to 10 percent over the medium term.