The value of Shaftesbury’s West End real estate portfolio dropped by more than 10% between October and April, as the UK’s second and third Covid-19 lockdowns added to what its chief executive called “unprecedented disruption”.
The REIT’s wholly owned portfolio was valued at £2.8bn at the end of March, according to its half-year results published today (25 May), a valuation deficit of £331.1m or roughly 10%. The falls included an 18% drop in retail properties and an 11% fall in leisure. The largest decline was seen in Shaftesbury’s Carnaby assets, the value of which dropped by almost 12% to £1.1bn.
The company posted a half-year loss of £338m following an annual loss of £699.5m. Net property income dropped by 42.6% from a year ago to £26.5m, which the company pinned on occupier support, reduced rent collections and increased vacancy.
Nonetheless, chief executive Brian Bickell said that a revival in the West End’s economy “is now under way” after restrictions imposed during the third lockdown have lifted.
“Since the start of reopening on 12 April, we are seeing an encouraging increase in demand for space and lettings and a return of footfall and spending across our locations,” he added. “We expect occupier demand to improve further as businesses seek to locate in our lively, holistically-curated villages… Growing footfall, prosperity and occupier demand will improve our cash income and earnings and stabilise investment yields.”
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