Shares in quoted property Shaftesbury jumped 6 per cent on the day of its final results, with the buoyant West End retail market supporting valuations and rental income.
The value of Shaftesbury's central London portfolio fell just 3.8 per cent in the period, substantially outperforming the industry benchmark IPD Index, which fell 25.3 per cent in the same period. The performance highlights the resilience of the West End market, with the weak pound attracting increased tourist traffic. Management reports that visitor numbers and spending are both rising, and that tenant demand for shops, restaurants and apartments remains healthy. And management is confident that their St Martin's Courtyard development in Covent garden will be fully leased upon opening next summer. By rental value, 65 per cent of the restaurant units and 50 per cent of the retail space is let or under offer.
However, the portfolio's estimated rental value fell 2.4 per cent in the period to £78.3m, though this was driven "almost entirely" by falling office rents (offices make up 21 per cent of passing rents). And, since the period-end, the 38 vacant units have been reduced to 21, following change of planning consents to more valuable residential use.
Broker KBC Peel Hunt expects adjusted net asset value (NAV) to rise to 398p in 2010.
| SHAFTESBURY (SHB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 391p | MARKET VALUE: | £887m | |
| TOUCH: | 392-392p | 12M HIGH | 427p | LOW: 184p |
| DIVIDEND YIELD: | 3.1% | TRADING STOCK: | nil | |
| PREMIUM TO NAV: | 24% | |||
| INVEST PROPERTIES: | £1.21bn | NET DEBT: | 59% | |
| Year to 30 Sep | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005* | 279 | 140 | 58.5 | 5.00 |
| 2006* | 356 | 188 | 81.1 | 5.65 |
| 2007* | 503 | 124 | 154 | 7.66 |
| 2008* | 370 | -221 | -97.4 | 11.0 |
| 2009 | 316 | -58.1 | -31.3 | 12.3 |
| % change | -15 | - | - | +11 |
Ex-div: 27 Jan Payment: 19 Feb *NAV and earnings adjusted to reflect 2009 rights issue | ||||
