West End retail and leisure specialist Shaftesbury has reported a 14 per cent rise in its underlying net asset value (NAV) at its half year to 383p, reporting "healthy demand" from central London tenants, and spending £33m on new property acquisitions.
Underlying profits were flat in the period, but like-for-like rental income from its West End "villages" of Covent Garden, Carnaby Street and Chinatown rose by 6 per cent to £32.4m. Valuers calculate that there is £16m of future rental uplift to come through on the portfolio, and a third of this figure relates to space under construction - of which half has been pre-let. Chief executive Jonathan Lane hopes the bulk could be contracted by the start of the next financial year. Moreover, the Longmartin joint venture in Covent Garden's St Martin's Courtyard is now 60 per cent leased ahead of completion, with major deals to restaurants including Jamie Oliver's Jamie's Italian concept.
The property portfolio rose in value by 9 per cent, underperforming the industry benchmark IPD Index which rose 11.6 per cent. But Shaftesbury didn't fall far, so won't bounce far. "We are not a recovery stock," says Mr Lane.
Broker KBC Peel Hunt forecasts adjusted NAV of 421p in 2010.
| SHAFTESBURY (SHB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 362p | MARKET VALUE: | £822m | |
| TOUCH: | 362-363p | 12M HIGH: | 427p | LOW: 284p |
| DIVIDEND YIELD: | 2.7% | TRADING STOCK: | nil | |
| DISCOUNT TO NAV: | 1% | |||
| INVEST PROPERTIES: | £1.35bn | NET DEBT: | 61% | |
| Half year to 31 Mar | Net asset value (p)* | Pre-tax profit (£m) | Earnings per share (p)* | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 274 | -160 | -92.0 | 7.50 |
| 2010 | 365 | 123 | 54.1 | 5.00 |
| % change | +33 | - | - | -33 |
Ex-div:09 Jun Payment:02 Jul *reflects rights issue | ||||
Click for a guide to the terms used in IC results tables.
