SHB.L Share News (SHB)

Real estate investment trust Shaftesbury on Thursday reported continued strong demand and asset management activity across its portfolio since the start of April, saying it was "well placed" to benefit from the growth seen in the UK capital. The FTSE 250-listed group said that the number of visitors and growing demand for property had helped drive "very strong" occupier demand across its residential and commercial spaces and kept vacancy levels low. "London and the West End's success and dynamism underpin the prosperity and prospects for our unique portfolio," the group said. "Against the background of sustained demand for all our uses, we continue to identify and implement asset management initiatives and schemes which we are confident will deliver further income and capital value growth for our shareholders."In the year-to-date it has completed lettings, lease renewals and rent reviews with a total rental value of £19.1m.Commercial lettings and renewals have achieved rents 4.9% above valuers' estimated rental values (ERV) at September 30th. Commercial rent reviews have increased rents by 27.2%. Shaftesbury acquired properties worth a total of £107.7m during the period, all of which have reflected its focus on acquiring building that have the potential for sustained outperformance in income and capital value growth. It said its mixed-use scheme in Carnaby, which has an ERV of £2m, is progressing well and is expected to be completed in phases from early 2015. The ERV of other schemes in progress at June 30th 2014 was £2.6m, equivalent to 2.2% of total ERV. The ERV of available to let space was £3.2m (31.3.2014: £2.7m), of which £0.8m was under offer. The remaining ready to let vacancy increased from 1.1% to 2.1% over the quarter, partly due to the completion, in June, of two reconfigured restaurants in Chinatown.Debt levels at June 30th totalled £612.5m. Oriel Securities said: "Today's statement shows that Shaftesbury continues to benefit from strong occupier demand in its central London assets, with lettings 4.9% above ERV, and we believe investor demand remains as strong as ever. We retain our 'add' rating." Shares had fallen 0.44% to 682p by 10:14.NR