Shaftesbury has hailed a “remarkable bounce back”, despite falling revenue and continuing losses.
The owner of a 16-acre slice of London’s West End said the year to the end of September had been hampered by pandemic restrictions, which were only fully eased in July.
Losses after tax stood at £194.9m, which was a marked improvement on 2020’s loss of £699.5m. The improvement was primarily due to a lower revaluation deficit in the current year. After the value of its leisure portfolio slumped by 11% in the first half, it rose by 5.6% in the second. Retail fell by 18.2%, before rising by 6% in H2.
EPRA earnings were £13.3m, down 54.8% on 2020’s £29.4m.
In total, net property income was down 12.9% to £64.7m.
Despite that, leasing transactions with a rental value of £33.9m were completed during the year, up from £23.6m in 2020, with around 60% concluded in the second half. Rent collection also rose from 52% in the first nine months of the year to 75% in the final quarter.
Shaftesbury plans to reinstate its 4p dividend for the year end.
The REIT bought five buildings for £21.1m in Covent Garden and Soho and continued with its disposal of non-core assets, with one sold in April for £5.3m, and contracts signed for another of £7m, 13.8% above valuation.
It said further disposals are “being considered from limited pool of non-core assets”.
Shaftesbury has a healthy warchest for more acquisitions, with resources of £311.3m against capital commitments of £18.8m.
Chief executive Brian Bickell said: “Although there is still further to travel before certainty and confidence fully returns, we believe that the combination of our exceptional and adaptable portfolio, and our culture, people and relationships will deliver a sustained return to growth and prosperity, and ensure we live up to the expectations of our shareholders and other stakeholders, for many years to come.”
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