Steady and secure at Shaftesbury

Shaftesbury owns a 14.9-acre portfolio of shops, restaurants and apartments centred mainly on London's Carnaby St, Seven Dials and Chinatown, as well as Covent Garden, and, with a very large footfall comprising tourists and workers within the West End, occupier demand remained strong. Commercial lettings, lease renewals and rent reviews were secured at an average 4.2 per cent premium to estimated rental value (ERV) set in September 2017 and 7.6 per cent above ERV at March 2017.

Larger development schemes have taken a little longer to fill, although 62 per cent by rental value of the three larger schemes are now let or under offer. Redevelopment and refurbishment schemes covered 153,000 square feet (sq ft), or 8.4 per cent of the portfolio’s floor space, and there is reversionary potential – that is if all rents were marked to market – of £29.2m, or nearly a quarter above the current annualised income. Vacant space held for or under refurbishment totalled 93,000 sq ft, and during the first six months schemes with an estimated rental value of £5m were completed.

Analysts at Peel Hunt are forecasting adjusted NAV at the September year-end of 974p, from 952p a year earlier.