Shaftesbury Capital PLC on Thursday reported a strong start to the year, highlighting robust leasing activity, rental growth and a significantly strengthened balance sheet following the completion of its £2.7 billion partnership with Norges Bank Investment Management.
The real estate investment trust investing in the London West End said it has signed 128 leasing deals year to date, representing £11.3 million in contracted rent, 8% ahead of December 2024 estimated rental value and 9% above previous passing rents. As a result, the annualised rent roll has increased 3% to £210 million.
Vacancy levels improved, with only 1.7% of estimated rental value available to let, down from 2.6% at December 31. The EPRA vacancy rate fell to 3.1% from 3.9%.
Chief Executive Ian Hawksworth said the company continues to benefit from ‘strong demand across our West End portfolio,’ with leasing activity and footfall supported by marketing initiatives and international appeal.
The completion of the long-term strategic partnership with NBIM for a 25% stake in the Covent Garden estate brought in £570 million in cash proceeds. Shaftesbury said this has significantly enhanced its financial flexibility, enabling targeted reinvestment, debt repayment and future expansion opportunities.
The company repaid £67.5 million of its Canada Life loan facility in March. As a result, the pro forma EPRA loan-to-value ratio fell sharply to 17% from 27% at December 2024, and net debt halved to £700 million. Cash and undrawn facilities rose to over £1.1 billion.
So far this year, Shaftesbury has invested £34 million in new acquisitions across Covent Garden and Soho, while disposing of three assets, including the last of its Fitzrovia holdings, for £12.3 million.
Shares in Shaftesbury Capital were up 0.3% at 144.18 pence on Thursday morning in London. In Johannesburg, shares were up 0.8% at R 34.77 in the afternoon.
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