British real estate investment trust Shaftesbury plc (LON: SHB) recorded consistent full-year progress across its performance fundamentals.
The company told shareholders on Wednesday that its food and beverage and retail occupiers reported strong foot traffic and sales growth. In terms of rental performance, the group recorded “solid” rental activity in addition to “strong demand” for regular space.
The company also commented on new business and acquisitions. Work has begun after planning consent was granted for 72 Broadwick Street to open Seven Dials Market at Thomas Neill’s Warehouse, a £34.9m acquisition since 1 April 2019 completed.
Shaftesbury comments
CEO Brian Bickel said:
“Our exceptional 15.2-acre portfolio, located in some of the West End’s busiest neighborhoods, continues to perform well. This, combined with our rental levels, is a huge advantage in the current market and we are receiving a lot of interest. Our long-established tenant selection strategy has kept us largely immune to high-profile retail and restaurant failures and restructurings. I didn’t.”
“We continue to convert portfolio reversibility into contracted income while delivering further long-term growth in rental value. Leasing activity has been strong for the period since April 1, 2019, with rents We continue to achieve above ERV and lease incentive levels remain low and in line with our long-term averages.
“Despite an uncertain political and macroeconomic background, London’s status as a world-class city continues to attract business and tourists from around the world, and the West End’s long-term appeal and future prospects remain strong. We are strengthening the
Memo for investors
The company’s share price fell 0.79% or 7.00 pence to 875.00 pence per share on 25/09/19 13:20 BST. Peel Hunt analysts have reiterated their ‘hold’ position on Shaftesbury shares. The group’s P/E ratio is 51.58 times and the dividend yield is 1.92%.
Elsewhere in real estate development and real estate brokerage news, you’ll find the latest updates on: Rightmove Plc (LON: RMV), Berkeley Group Holdings Ltd (LON: BKG), Redrow plc (LON: RDW), U+I Group PLC (LON: UAI), Hunters Property PLC (LON: HUNT), GCP Student Living plc (LON: DIGS) and Barratt Development Plc (LON: BDEV).
