Shaftesbury PLC Trading Update (7084P)

TIDMSHB

RNS Number : 7084P

Shaftesbury PLC

20 October 2021

Shaftesbury PLC

Trading update

Increase in portfolio valuation and further reduction in vacancy

Shaftesbury PLC, the Real Estate Investment Trust that owns a 16-acre portfolio in the heart of London's West End, today announces an update on portfolio valuation and vacancy ahead of releasing its preliminary results on 30 November 2021.

Brian Bickell, Chief Executive, commented:

"The rebound in footfall and trading across our locations reported in our August update has continued, boosted by the rapidly growing return of the local office-based workforce. Occupancy levels are benefitting from the robust recovery in occupier demand and leasing activity for both commercial and residential accommodation across our meticulously curated, popular West End locations.

The indicative wholly-owned portfolio valuation at 30 September 2021 shows a like-for-like increase of circa 5% since 31 March 2021, with rental values stabilising and investment sentiment improving as the revival of the West End gathers pace."

Increased valuation

The indicative external valuation of the wholly-owned portfolio at 30 September 2021 is GBP3.0 billion, an increase of GBP165 million in the six month period since 31 March 2021. On a like-for-like basis, this represents an increase of circa 5% over the second half of our financial year, which follows a 10.1% like-for-like decrease in the six months to 31 March 2021.

The increase in the valuation since 31 March 2021 reflects recently improved occupancy levels, stabilisation of ERVs and a reduction in the valuer's estimate of the potential short-term loss of income from occupier rental support. With sustained improvement in the occupational market, and a more-certain outlook, the portfolio's equivalent yield has tightened by around 20 basis points.

Further reduction in vacancy

Available-to-let vacancy at 30 September 2021

The recovery in occupier demand reported in our trading statement in August 2021 has continued, resulting in a further decrease in vacancy. At 30 September 2021, available-to-let vacancy was 2.9% of portfolio ERV, down from 4.6% at 31 July 2021 and 8.4% at 31 March 2021.

 
                    Hospitality 
                    and leisure   Retail(1)   Offices   Residential   Total   31.7.21   31.3.21 
----------------  -------------  ----------  --------  ------------  ------  --------  -------- 
 ERV (GBPm)                 0.6         2.0       1.3             -     3.9       6.2      11.1 
 % of portfolio 
  ERV                      0.4%        1.5%      1.0%             -    2.9%      4.6%      8.4% 
----------------  -------------  ----------  --------  ------------  ------  --------  -------- 
 31.7.21                   0.6%        1.5%      1.3%          1.2%    4.6% 
 31.3.21                   1.2%        1.8%      3.0%          2.4%    8.4% 
----------------  -------------  ----------  --------  ------------  ------  --------  -------- 
 

1. Includes 9 shops let on a temporary basis with an ERV of GBP1.0 million (0.8% of portfolio ERV)

We have seen a reduction in vacancy across all uses since pandemic restrictions began to be relaxed in April and our upper floors now only account for 33% of available-to-let vacancy (31.3.2021: 64%, 31.7.2021: 55%). At 30 September 2021 we had no available apartments (31.3.2021: 123; 31.7.2021: 65).

Space under offer at 30 September 2021

 
                    Hospitality 
                    and leisure   Retail   Offices   Residential   Total   31.7.21   30.3.21 
----------------  -------------  -------  --------  ------------  ------  --------  -------- 
 ERV (GBPm)                 1.3      1.8       0.6           0.2     3.9       6.5       4.7 
 % of portfolio 
  ERV                      1.0%     1.5%      0.4%          0.1%    3.0%      4.9%      3.5% 
----------------  -------------  -------  --------  ------------  ------  --------  -------- 
 31.7.21                   1.8%     1.4%      1.1%          0.6%    4.9% 
 30.3.21                   1.4%     1.1%      0.5%          0.5%    3.5% 
----------------  -------------  -------  --------  ------------  ------  --------  -------- 
 

At 30 September 2021, space under offer represented 3.0% of portfolio ERV, down from 4.9% at 31 July 2021. Of the total, to date, lettings totalling GBP0.9 million (0.7% of portfolio ERV) have now completed.

20 October 2021

This announcement includes unaudited financial information in relation to the year ended

30 September 2021 and contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 (as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018) and has been announced in accordance with the Company's obligations under Article 17 of that Regulation. This announcement has been authorised for release by the Board.

The person responsible for arranging the release of this announcement is Desna Martin, Company Secretary.

For further information:

 
 Shaftesbury PLC 020 7333 8118          RMS Partners 020 3735 6551 
  Brian Bickell, Chief Executive         Simon Courtenay 
  Chris Ward, Chief Financial Officer    [e-mail] 
 
                                          MHP Communications 020 3128 8193 
                                          Oliver Hughes/Rachel Farrington 
                                          [e-mail] 
 

Shaftesbury PLC LEI : 213800N7LHKFNTDKAT98

N otes for editors

Shaftesbury is a Real Estate Investment Trust which invests exclusively in the liveliest parts of London's West End. Focused on hospitality and retail, our portfolio is clustered mainly in Carnaby, Seven Dials and Chinatown, but also includes substantial ownerships in East and West Covent Garden, Soho and Fitzrovia.

Extending to 16 acres, the portfolio comprises 1.1 million sq. ft of restaurants, cafés, pubs and shops, 0.4 million sq. ft. of offices and 0.4m sq. ft. of apartments. All our properties are close to the main West End Underground stations, and within ten minutes' walk of the two West End transport hubs for the Elizabeth Line, at Tottenham Court Road and Bond Street.

In addition, we have a 50% interest in the Longmartin joint venture, which has a long leasehold interest, extending to 1.9 acres, in St Martin's Courtyard in Covent Garden.

Our purpose

Our purpose is to contribute to the success of London's West End by curating lively and thriving villages where people live, work and visit. Our proven management strategy is to create and foster distinctive, attractive and prosperous locations. We have an experienced management team focused on delivering our long-term strategic objectives, ultimately to deliver a positive, long-lasting contribution to the West End.

Our values

The core values that are fundamental to our behaviour, decision making and the delivery both of our purpose and strategic objectives are: being human in how we operate, original in how we nurture talent and think, community minded in our approach to the West End, being responsible and long term in our approach to everything.

Forward-looking statements

This document, the latest Annual Report and Shaftesbury's website may contain certain "forward-looking statements" with respect to Shaftesbury PLC (the Company) and the Group's financial condition, results of its operations and business, and certain plans, strategy, objectives, goals and expectations with respect to these items and the economies and markets in which the Group operates. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as "anticipates", "aims", "due", "could", "may", "should", "expects", "believes", "intends", "plans", "targets", "goal" or "estimates" or, in each case, their negative or other variations or comparable terminology.

Forward-looking statements are not guarantees of future performance. By their very nature forward-looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Many of these assumptions, risks and uncertainties relate to factors that are beyond the Group's ability to control or estimate precisely. There are a number of such factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

Any forward-looking statements made by, or on behalf of, Shaftesbury PLC speak only as of the date they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Except as required by its legal or statutory obligations, Shaftesbury PLC does not undertake to update forward-looking statements to reflect any changes in its expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

Information contained in this document relating to Shaftesbury PLC or its share price, or the yield on its shares, should not be relied upon as an indicator of future performance. Nothing contained in this document, the latest Annual Report or Shaftesbury's website should be construed as a profit forecast or an invitation to deal in the securities of the Company.

Ends

, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com. 

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTEADEEASDFFFA

(END) Dow Jones Newswires

October 20, 2021 09:56 ET (13:56 GMT)