Owning 14 acres in the heart of London's West End proved to be a prolific money-spinner once again for Shaftesbury (SHB), with adjusted net asset value at the end of September up by an astonishing 22 per cent on a year earlier. As the statutory figures below demonstrate, the group's property portfolio has come close to doubling in value in the last three years.
Shaftesbury remains committed to enhancing rental income by refurbishing existing properties, covering retail outlets, restaurants, pubs, office and residential. Concentrated around Carnaby Street, Chinatown, Soho and Covent Garden, steady demand for space has kept the vacancy rate at a nominal 1.3 per cent. This has underpinned rental growth, with like-for-like rental income up 9.1 per cent. However, there remains considerable value locked up. If all current rents were marked to market, rental income would be higher by nearly a quarter, or a £25m uplift.
Three important schemes are due to start in 2016, including 45,500 sq ft of retail and restaurant space fronting Charing Cross Road, while a planning application has been submitted for the refurbishment of 33,000 sq ft in Broadwick Street. There are also plans to create 21,000 sq ft of retail space at the Thomas Neal's warehouse in Seven Dials.
Analysts at Peel Hunt are forecasting adjusted net asset value at the September 2016 year end of 921p a share (from 869p in 2015).
| SHAFTESBURY (SHB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 911.5p | MARKET VALUE: | £2.54bn | |
| TOUCH: | 910.5-912p | 12-MONTH HIGH: | 976p | LOW: 738p |
| DIVIDEND YIELD: | 1.5% | TRADING PROPERTIES: | nil | |
| PREMIUM TO NAV: | 9% | |||
| INVESTMENT PROPERTIES: | £3.04bn* | NET DEBT: | 27% | |
| Year to 30 Sep | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 421 | 116 | 47 | 11.3 |
| 2012 | 445 | 95 | 37 | 12 |
| 2013 | 527 | 242 | 95 | 12.5 |
| 2014 | 681 | 440 | 165 | 13.1 |
| 2015 | 836 | 467 | 168 | 13.75 |
| % change | +23 | +6 | +2 | +5 |
Ex-div: 21 Jan Payment: 12 Feb *Including joint ventures | ||||
