| Tue 26 Nov 2024, 9:00 | | SHAFTESBURY CAPITAL PLC - Trading update |
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Trading update
SHAFTESBURY CAPITAL PLC
(Incorporated and registered in the United Kingdom
with Registration Number 07145051 and
registered in South Africa as an external company
with Registration Number 2010/003387/10)
JSE code: SHC ISIN: GB00B62G9D36
LEI: 549300TTXXZ1SHUI0D54
(the "Company" or "Shaftesbury Capital")
TRADING UPDATE
Shaftesbury Capital (the "Company") today publishes a trading update for the period 1 July to 11 November 2024.
Ian Hawksworth, Chief Executive, commented:
"Our West End estates are busy and vibrant coming into the Christmas trading period with high footfall and good
customer sales growth. We are encouraged by the strong leasing demand across all uses, with 192 transactions
completed in the period, at rents on average 9 per cent ahead of June ERV and an excellent leasing pipeline.
We have completed £240 million of asset sales over the last 18 months and will continue to recycle capital into target
acquisitions. We are well-positioned to deliver attractive long-term returns as the leading central London mixed-use
REIT."
Highlights
- £15.9 million of new leases and renewals in H2 to date, 9 per cent ahead of June 2024 ERV and 7 per cent ahead of
previous passing rent
- Low vacancy with 2.1 per cent of ERV available to let (June 2024: 2.7 per cent)
- Several new brands introduced including Longines, Alta, Autry, Farm Rio, Aspinal, Barbour and Salomon
- £240 million of asset disposals completed over the last 18 months, of which £152 million completed in 2024
- In addition, sale of 50 per cent interest in Longmartin to our joint venture partner for net cash consideration of
£94 million
- EPRA LTV of 29 per cent (June 2024: 30 per cent) and access to over £550 million of liquidity (June 2024: £579
million)
Strong occupational market
The core West End occupational market continues to be strong, with excellent levels of leasing activity, low vacancy
and continued customer sales growth. Available to let space has reduced to 2.1 per cent of ERV, which when
combined with 0.6 per cent under offer results in total EPRA vacancy of 2.7 per cent (June 2024: 4.5 per cent).
Leasing activity from 1 July 2024 to 11 November 2024
New
Number of contracted % above % above
Use transactions rent June 24 previous
(£m) ERV passing
Retail 21 3.9 10 8
Hospitality & leisure 13 2.8 22 9
Offices 22 4.0 5 8
Residential 136 5.2 5 6
Total 192 15.9 9 7
New
Number of contracted % above % above
Destination transactions rent June 24 previous
(£m) ERV passing
Covent Garden 89 6.1 10 6
Carnaby | Soho 69 7.7 7 8
Chinatown 34 2.1 13 10
Total 192 15.9 9 7
Refer to appendix for leasing activity from 1 January to 11 November 2024.
Retail and hospitality leasing demand has been strong across our vibrant destinations with 48 new openings since
July. The expanded Covent Garden portfolio is attracting demand across a wide range of rental tones. Outdoor brand
Peak Performance opened its debut UK store on Long Acre, while Swiss watchmaker Longines will open on James
Street, Covent Garden and English heritage brand Aspinal has taken space in the Market Building. There is good
momentum across Seven Dials with eight new brands introduced since July, including recent signings such as
sustainable menswear brand NN.07, boutique retailer Saint + Sofia and apparel concept Gandy's International.
Customer expansion continues, with an increasing number of retailers, most recently Strathberry, taking office
accommodation as well as additional retail space in our locations.
There has been good progress on evolving the offer on and around Carnaby Street through our targeted leasing
activity, with 17 signings over recent months including Brazilian fashion brand Farm Rio and lifestyle brand Barbour.
Foubert's Place welcomed a new flagship store from contemporary jeweller Astrid & Miyu, sports brand Salomon
has opened on Broadwick Street while Australian beauty brand Grown Alchemist has selected Soho for its first UK
store.
There is particularly positive performance from our Soho hospitality portfolio. Kingly Court continues to attract
interest from multiple hospitality operators. Mediterranean concept Alta has signed following the redevelopment of
units across two floors, creating a larger destination dining opportunity. Cheesecake specialist La Maritxu signed on
Kingly Street, while the opening of Donutelier has introduced al fresco food on Carnaby Street at the gateway to
Kingly Court. Eastern Mediterranean concept Delamina opened in Covent Garden while Suzhou Noodle and Noodle
& Beer will open new restaurants in Chinatown.
Positive leasing momentum for prime office space continues, specifically for high quality, well fitted product.
Signings include recent CAT A refurbishments at 22 Ganton Street and The Hide, at rents in excess of £100 per
square foot with Covent Garden and Soho attracting occupiers from across the West End. The residential portfolio
continues to let well, delivering rental growth and limited vacancy, with 9 units available.
Covent Garden and Carnaby Street hosted successful Christmas lights switch-on events in early November, marking
the start of a programme of festive events and shopping evenings. Covent Garden has brand activations across the
Piazza with Jo Malone London and Sipsmith while charity partner Save the Children has taken a pop-up store on
Henrietta Street. A new Christmas light installation 'Into The Light' was launched at Carnaby Street together with an
extensive Christmas campaign including weekly festive shopping nights and a charity partnership with Global's Make
Some Noise.
More active investment market; well-positioned to act on opportunities
The investment market has been more active for smaller lot sizes in core West End, with transactions demonstrating
demand for high quality, prime central London real estate. Since merger, proceeds of £240 million have been
realised from asset sales, £152 million of which completed this year to date including the majority of Fitzrovia. As
previously announced, £86 million has been reinvested in targeted acquisitions to date, which represent asset
management opportunities on core streets with excellent rental growth prospects. Disposal proceeds will be used
for general corporate purposes, investment in our portfolio and to take advantage of opportunities as they arise. The
pipeline of asset acquisitions is encouraging, with a number of buildings currently under review.
In addition, in October 2024 the Company completed the sale of its 50 per cent interest in the Longmartin
investment to its joint venture partner. Completion of the merger between Capital & Counties Properties PLC and
Shaftesbury PLC triggered the right for the partner to require the Company to offer to sell its shares in the
Longmartin investment. The partner elected to acquire the Company's shares for net cash consideration of £94
million, which compares with a net value in the December 2023 balance sheet of £95 million.
Robust financial position
The Group continues to maintain a robust financial position. £57.5 million of private placement debt was repaid on
maturity in August and a further £37.5 million will be repaid on maturity in December. Taking account of disposals
and debt repayments, the Group's pro forma EPRA loan-to-value ratio (based on June valuations) is 29 per cent, net
debt is £1.4 billion, and cash and undrawn facilities amount to over £550 million (June 2024: £579 million).
This announcement includes unaudited financial information in relation to the period from 1 January 2024 to
11 November 2024.
Appendix
The tables below set out a summary of leasing transactions from 1 January 2024 to 11 November 2024:
New
Number of contracted % above % above
Use transactions rent Dec 23 previous
(£m) ERV passing
Retail 61 13.2 8 15
Hospitality & leisure 33 6.8 13 17
Offices 61 14.5 10 13
Residential 254 9.5 4 7
Total 409 44.0 8 13
New
Number of contracted % above % above
Destination transactions rent Dec 23 previous
(£m) ERV passing
Covent Garden 192 21.3 6 14
Carnaby | Soho 149 19.0 11 11
Chinatown 64 3.5 12 13
Fitzrovia 4 0.2 7 4
Total 409 44.0 8 13
In addition, 62 commercial rent reviews have been concluded, totalling £16.4 million, 7 per cent ahead of previous
passing rents.
Tables below represent % of ERV under offer, available-to-let and under refurbishment at 11 November 2024.
Under offer
% of portfolio Area
Use ERV ERV (£m) ('000 sq. ft.)
Retail 0.1 0.3 4.0
Hospitality & leisure 0.5 1.1 13.1
Offices - - -
Residential - 0.1 1.8
Total 0.6 1.5 18.9
Available-to-let space
% of portfolio Area
Use ERV ERV (£m) ('000 sq. ft.)
Retail1(1) 0.4 0.9 10.9
Hospitality & leisure 0.4 0.9 35.0
Offices 1.1 2.5 31.4
Residential 0.2 0.4 5.2
Total 2.1 4.7 82.5
1. Includes 15 units let on a temporary basis (ERV: £1.5 million) (June 2024: £1.3 million).
Under refurbishment
% of portfolio Area
Use ERV ERV (£m) ('000 sq. ft.)
Retail 1.2 2.8 25.3
Hospitality & leisure 1.6 3.8 46.4
Offices 3.4 8.0 91.5
Residential 0.4 0.8 15.9
Total 6.6 15.4 179.1
£7.6 million or 3.2 per cent of ERV under refurbishment has been pre-let.
Enquiries:
Shaftesbury Capital +44 (0)20 3214 9150
PLC
Ian Hawksworth Chief Executive
Situl Jobanputra Chief Financial Officer
Sarah Corbett Director of Commercial Finance and Investor
Relations
Media enquiries:
UK: Hudson Sandler Michael Sandler +44 (0)20 7796 4133
UK: RMS Partners Simon Courtenay +44 (0)20 3735 6551
SA: Instinctif Louise Fortuin +27 (0)11 447 3030
About Shaftesbury Capital
Shaftesbury Capital PLC ("Shaftesbury Capital") is the leading central London mixed-use REIT and is a constituent of
the FTSE-250 Index. Our property portfolio, valued at £4.8 billion, extends to 2.7 million square feet of lettable space
across the most vibrant areas of London's West End. With a diverse mix of shops, restaurants, cafés, bars, residential
and offices, our destinations include the high footfall, thriving neighbourhoods of Covent Garden, Carnaby, Soho and
Chinatown. Our properties are close to the main West End Underground stations and transport hubs for the
Elizabeth Line. Shaftesbury Capital shares are listed on the London Stock Exchange ("LSE") (primary) and the
Johannesburg Stock Exchange ("JSE") (secondary) and the A2X (secondary).
Our purpose
Investing to create thriving destinations in London's West End where people enjoy visiting, working, and living.
Our values
We have a set of values that are fundamental to our behaviour, decision making and the delivery both of our
purpose and strategy: Act with integrity; Take a creative approach; Listen and collaborate; Take a responsible, long-
term view; and Make a difference.
Forward-looking statements
This press release includes statements that are forward-looking in nature. Forward-looking statements involve
known and unknown risks, uncertainties and other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Any information contained in this press release on the
price at which shares or other securities in the Company have been bought or sold in the past, or on the yield on
such shares or other securities, should not be relied upon as a guide to future performance.
26 November 2024
Sponsor
Java Capital
Date: 26-11-2024 09:00:00
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