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.
|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%|
|Year to 30 Sep||Net asset value (p)||Pre-tax profit (£m)||Earnings per share (p)||Dividend per share (p)|
|*Includes investments in joint ventures|