REG - Shaftesbury Capital - AGM Trading Update

Shaftesbury CapitalAnnouncement

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RNS Number : 7597J  Shaftesbury Capital PLC  22 May 2025

PRESS RELEASE

22 May 2025

AGM Trading update

Shaftesbury Capital PLC ("Shaftesbury Capital") publishes a trading update
ahead of the Company's Annual General Meeting to be held at 11:30am (BST)
today.

 

Ian Hawksworth, Chief Executive of Shaftesbury Capital, commented:

"There continues to be strong demand across our West End portfolio with
positive trends in footfall and sales, high occupancy and leasing activity
overall 8 per cent ahead of December 2024 ERV. Customers recognise the
exceptional features of London's West End with broad appeal to domestic and
international businesses and visitors.

 

The establishment of our long-term Covent Garden partnership with NBIM
enhances growth and expansion opportunities across our portfolio whilst
strengthening our financial position and providing significant optionality to
the Group. We have a strong balance sheet and, despite current macroeconomic
uncertainties, we are well-positioned to capitalise on further market
opportunities in London's West End, delivering long-term sustained income and
value growth for our shareholders."

 

Highlights

·  Strong occupational demand; 128 leasing transactions, representing £11.3
million of new contracted rent, 8 per cent ahead of December 2024 ERV and 9
per cent ahead of previous passing rents

·  Annualised rent roll increased 3 per cent since year end (like-for-like)
to £210 million (Dec 24: £202.8 million)

·  High occupancy with only 1.7 per cent of ERV available to let (Dec 2024:
2.6 per cent)

·  Several new openings across the portfolio including Nespresso, Dolce
& Gabbana, Autry and Farm Rio

·  Completion of £2.7 billion long-term partnership with NBIM in respect of
the Covent Garden estate; c.£570m cash proceeds providing financial
flexibility for enhanced investment and expansion opportunities

·  £34 million of acquisitions across the portfolio year to date presenting
excellent asset management and rental growth opportunities

·  Strong balance sheet with low leverage and access to significant
liquidity

Strong leasing momentum

Our West End portfolio continues to demonstrate its attractiveness to a wide
range of occupiers, with strong levels of leasing activity and high occupancy.
We have completed 128 leasing transactions, representing £11.3 million of new
contracted rent 8 per cent ahead of December 2024 ERV and 9 per cent ahead of
previous passing rents. Positive trading conditions ensure we have kept
vacancy low with only 1.7 per cent of ERV available to let which when combined
with 1.4 per cent under offer results in an EPRA vacancy of 3.1 per cent (Dec
2024: 3.9 per cent).

 

There is strong momentum across the Covent Garden portfolio with a number of
successful openings including Nespresso, Charlotte Tilbury, Alo and Dolce
& Gabbana, alongside lettings to Swatch on James Street, Sunspel on Floral
Street, Thule on Neal Street and social gaming experience Spyscape which will
open its debut UK location on Wellington Street. Recent signings on Carnaby
Street include digitally native brand TALA which is set to open its first
store, joining Farm Rio, Missoma and Korean beauty store Pure Seoul. There
have been a number of openings across Soho including Autry, De La Vali and
Reign Wear. Demand for our restaurants remains buoyant, with the introduction
of Athea on Maiden Lane, Café Kitsuné on Monmouth Street and Kricket in
Seven Dials. Recent openings in Soho include smash burger concept Heard,
restaurant and wine bar Marjorie's and Breadstall Pizza, while Alta is
currently fitting out its restaurant in Kingly Court and Sushi Joy has opened
in Chinatown.

 

Our extensive marketing programme focusing on the consumer calendar continues
to support the footfall and sales growth in our destinations. During the
period, we hosted successful Chinese New Year festivities and events around
the Easter trading period as well as several brand partnerships including
Chanel on Covent Garden's Piazza.

 

We continue to see strong leasing demand for our prime West End office space,
with occupiers attracted to high quality, well-fitted space supported by
estate amenity. Refurbishment of 23,000 square feet at The Floral completed
and is fully occupied, with new signings on King Street and Ganton Street
commanding rents of over £110 per square foot. The residential portfolio
continues to let well, with limited vacancy, and only a handful of units
available out of 653 in total.

Active asset management and refurbishment initiatives continue to unlock
income and value. The ERV of space under refurbishment amounts to £12.5
million across 161,000 square feet, representing 5.0 per cent of portfolio ERV
(Dec 2024: 5.4 per cent). Approximately 35 per cent is pre let representing
£4.3 million of rental income.

 

Well-positioned to act on growth and expansion opportunities

On 1 April 2025, Shaftesbury Capital completed a long-term partnership with
NBIM, the Norwegian sovereign wealth fund, in respect of its Covent Garden
estate. NBIM has acquired a 25 per cent non-controlling interest in the Covent
Garden estate in line with its independent property valuation as at 31
December 2024, with gross cash proceeds of approximately £570 million
received.

 

As a result, Shaftesbury Capital has significant optionality, enhancing growth
and expansion opportunities across our portfolio. There are a range of options
to deploy the proceeds including acquisitions, asset management and
repositioning opportunities and repayment of outstanding debt. This year to
date, £34 million has been invested in targeted acquisitions in Covent Garden
and Soho (before costs), presenting asset management opportunities with
excellent rental growth prospects and the pipeline of acquisitions is
encouraging, with a number of buildings currently under review. Three
properties, including the last remaining Fitzrovia assets, have been disposed
of during the period for gross proceeds of £12.3 million in line with the 31
December 2024 valuation.

 

We have access to significant liquidity to take advantage of market
opportunities. Taking account of proceeds and debt repayment (£67.5 million
of the Canada Life loan facility repaid in March 2025), the Group's pro forma
EPRA loan-to-value ratio (based on December valuations) is 17 per cent (Dec
24: 27 per cent) and net debt is £0.7 billion (Dec 24: £1.4 billion) on a
proportionally consolidated basis. Cash and undrawn facilities amount to over
£1.1 billion (Dec 2024: £560 million).

 

This announcement includes unaudited financial information in relation to the
period from 1 January 2025 to 2

May 2025.

 

 

Enquiries:

 

 Shaftesbury Capital PLC                                                         +44 (0)20 3214 9150
 Ian Hawksworth           Chief Executive
 Situl Jobanputra         Chief Financial Officer
 Sarah Corbett            Director of Commercial Finance and Investor Relations

Media enquiries:

 UK: Hudson Sandler  Michael Sandler   +44 (0)20 7796 4133

 UK: RMS Partners    Simon Courtenay   +44 (0)20 3735 6551
 SA: Instinctif      Louise Fortuin    +27 (0)11 447 3030

 

About Shaftesbury Capital

Shaftesbury Capital PLC ("Shaftesbury Capital") is the leading central London
mixed-use REIT and is a constituent of the FTSE-250 Index. Our property
portfolio under management, valued at £5 billion, extends to 2.7 million
square feet of lettable space across the most vibrant areas of London's West
End. With a diverse mix of shops, restaurants, cafés, bars, residential and
offices, our destinations include the high footfall, thriving neighbourhoods
of Covent Garden, Carnaby, Soho and Chinatown. Our properties are close to the
main West End Underground stations and transport hubs for the Elizabeth Line.
Shaftesbury Capital shares are listed on the London Stock Exchange ("LSE")
(primary) and the Johannesburg Stock Exchange ("JSE") (secondary) and the A2X
(secondary).

Our purpose

Investing to create thriving destinations in London's West End where people
enjoy visiting, working, and living.

Our values

We have a set of values that are fundamental to our behaviour, decision making
and the delivery both of our purpose and strategy: Act with integrity; Take a
creative approach; Listen and collaborate; Take a responsible, long-term view;
and Make a difference.

Forward-looking statements

This press release includes statements that are forward-looking in nature.
Forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements
of the Company to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements. Any
information contained in this press release on the price at which shares or
other securities in the Company have been bought or sold in the past, or on
the yield on such shares or other securities, should not be relied upon as a
guide to future performance.

 

 

 

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