Shaftesbury recorded a loss of £700 million after the group was hit by coronavirus restrictions.
The group owns parts of Chinatown, Soho and Covent Garden, and has dramatically reduced footprints as tourists and office workers were not in the centre.
Later this year, Shaftesbury raised only 53% of the rent, resulting in an annual post-tax loss of £699.5 million. This is compared to the previous year’s profit of £26 million.
“We’ve rarely seen the world disrupt the normal patterns of life throughout history. Brian Bickel, CEO of Shaftesbury, said:
“The broad distribution of effective vaccines over the next year will gradually return to confidence and activity throughout the West End, bringing a recovery in domestic scaffolding and spending to our villages.
“At this point, we cannot predict which point conditions will improve, but we may be increasing social distancing and other restrictions will risk further lockdowns, following spring, and possibly early summer. It continues until, putting an additional financial burden on us. Many of our occupyers.”
Shaftesbury’s net worth has dropped by 18%, with wholly owned EPRA vacancy at 10.2% as of September. Shaftesbury has not declared its dividend for that year.
Russ Mold, investment director at AJ Bell, commented: “Unlike the rest of the real estate market, it is dependent on London tourism, so it is difficult to see a quick recovery in Shaftesbury’s valuation and rental income.
“Even in the most optimistic ‘reopening’ scenario, massive international travel could be one of the last things to revive. The global rollout of vaccines is patchy and various countries could face very different experiences in the pandemic next year. ”
Shaftesbury’s shares are trading -4.83% at 522.50 (1133GMT).
