A sharp devaluation in retail properties at Shaftesbury’s (SHB) Longmartin joint venture in Covent Garden weighed heavily on pre-tax profits in the commercial property group's end-September financial year. As a result, the joint venture's equivalent yield increased by 25 basis points to 3.89 per cent, while a valuation decline in larger shops caused a six basis point drop in the wholly owned portfolio to 3.47 per cent.
However, net rental income across the portfolio rose by 2.4 per cent on a like-for-like basis, as new lettings and renewals were completed at an average 3.2 per cent ahead of estimated rental values at September 2018. However, that was down from a rate of 5.1 per cent in 2018.
A precarious retail environment did not hold back development and refurbishment activity, which encompassed 241,600 square foot of space. Once completed, schemes already under way could add £15.5m in annual rental income.
Broker Panmure Gordon forecasts adjusted net asset value (NAV) of 1,013p at the September 2020 year-end, rising to 1,049p in FY2021.
| SHAFTESBURY (SHB) | ||||
| ORD PRICE: | 940p | MARKET VALUE: | £2.89bn | |
| TOUCH: | 939.5-941.5p | 12-MONTH HIGH: | 993p | LOW: 734p |
| DIVIDEND YIELD: | 1.9% | TRADING PROPERTIES: | nil | |
| DISCOUNT TO NAV: | 4% | NET DEBT: | 30% | |
| INVESTMENT PROPERTIES: | £3.89bn | |||
| Year to 30 Sep | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 836 | 467 | 168 | 13.75 |
| 2016 | 857 | 99 | 36 | 14.7 |
| 2017 | 949 | 302 | 108 | 16.0 |
| 2018 | 987 | 176 | 58 | 16.8 |
| 2019 | 978 | 26 | 8.5 | 17.7 |
| % change | -1 | -85 | -85 | +5 |
| Ex-div: | 16 Jan | |||
| Payment: | 14 Feb | |||
| *Includes investments in joint ventures | ||||
