LONDON (Alliance News) - Shaftesbury PLC Thursday joined a long line of UK commercial property companies reporting higher income, earnings and asset values, as it too was buoyed by the boom in property markets that's pushing up prime valuations and rental yields.
The real estate investment trust specialising in the supply-constrained West End of London said net property income rose to GBP38.7 million in the six months to end-March, up from GBP36.4 million a year earlier, while EPRA earnings rose to GBP17.9 million from GBP16.1 million and earnings per share under the same basis rose to 6.4p from 6.3p.
Its EPRA net asset value rose 8.7% over the six months to GBP7.75 a share, including a 10 pence reduction for the cost of terminating swaps. Its net asset value return for the six months was 9.6%.
The improvements were driven by an 8.0% like-for-like capital value return, while total portfolio estimated rental value rose to GBP123.6 million from GBP118.6 million. It said equivalent yield compression in its wholly-owned portfolio was 16 basis points to 3.84% and was 24 basis points to 3.86% in its Longmartin joint venture.
Its combined portfolio is now valued at GBP2.86 billion.
"Across our unique portfolio, located in the heart of the West End, the buoyant local economy is reflected in continuing strong demand for space in our carefully-curated locations, high occupancy levels and sustained growth in current and prospective rental income," Chief Executive Brian Bickell said.
"We continue to identify schemes and opportunities throughout our ownerships to improve the configuration, and income and capital value potential, of the space we offer. In particular, we are making good progress with our major schemes in Chinatown and Carnaby, which, are not only valuable in themselves but will bring, as with many of our other initiatives, long-term compound benefits to our nearby holdings," he added.
The company's major scheme fronting Foubert's Place and Kingly Street, Carnaby, has recently been completed. All the 24,500 square foot of commercial space is let or under offer and marketing of the twelve apartments has started, it said.
Plans for a 32,900 square foot mixed-use scheme at 57-59 Broadwick Street, Carnaby, are progressing and a planning application is expected to be submitted shortly, it said.
Shaftesbury has already submitted a planning application for the reconfiguration of its holding fronting Charing Cross Road, Newport Court and Newport Place, at the eastern boundary of Chinatown. The proposed scheme would provide 32,000 square foot of retail space and 13,500 square foot of restaurant space.
The trust made GBP25.8 million of acquisitions in the six moths in Carnaby, Covent Garden, Soho and Charlotte Street.
Shaftesbury shares were flat at 879.50 pence early Thursday.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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