Shaftesbury (SHB) delivered a solid half-year performance, adding value and boosting rental income from its portfolio of offices, residential and restaurants situated in London's tourist heartland. Adjusted net asset value grew by 8.7 per cent to 775p a share, and this would have been 10p higher without the £28.1m cost of terminating legacy interest rates swaps.
Rental income grew by 7 per cent to £44.8m, and rent reversion - the difference between current rents and rental income if all properties were let at current market rates - grew to 29 per cent, equivalent to additional income of £27.8m.
The property portfolio was valued at £2.86bn, including a £183m valuation uplift. That equates to an ungeared capital value return of 8 per cent for the half year, and 24 per cent for the last 12 months - double the three-year average growth rate of 12 per cent.
Group finances have also been spruced up with a new £130m, 15-year loan at 3.2 per cent. That brought down the weighted average cost of debt from 5.11 per cent to 4.63 per cent, and increased the average maturity from 7.1 years to 8.7 years.
Analysts at Numis are forecasting adjusted net asset value of 777p by the September 2015 year-end.
| SHAFTESBURY (SHB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 864p | MARKET VALUE: | £2.4bn | |
| TOUCH: | 863.5-865.5p | 12-MONTH HIGH: | 907p | LOW: 633p |
| DIVIDEND YIELD: | 1.6% | TRADING PROPERTIES: | nil | |
| PREMIUM TO NAV: | 17% | NET DEBT: | 30% | |
| INVESTMENT PROPERTIES: | £2.8bn | |||
| Half-year to 31 Mar | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 572 | 118 | 46.3 | 6.5 |
| 2015 | 739 | 180 | 64.8 | 6.83 |
| % change | +29 | +52 | +40 | +5 |
Ex-div: 11 Jun Payment: 3 Jul | ||||
