(Alliance News) - Shaftesbury PLC on Friday said it recorded improved rental levels and reduced net debt in its first quarter on a "strong rebound" in confidence and activity, despite a short-term disruptions through Covid-19 restrictions.
The London-based real estate investment trust recorded leasing transactions with a combined rental value of GBP10.6 million in its first quarter to December 31.
Furthermore, it concluded 60 commercial lettings and lease renewals with a rental value of GBP7.9 million. The rents were on average ahead of year-end valuation, it added.
Shaftesbury also completed 49 residential lettings amounting to GBP1.3 million. As at December 31 there were also no apartments available, showing that rental levels are improving.
The investment trust explained this with a strong rebound in "confidence and activity" that continued into the pre-Christmas trading period.
It still noted a short-term disruption to footfall due to restrictions following the Omicron variant and related staffing issues for its occupiers.
However, it said that these are now "abating" and that it experienced "robust" occupier demand for all uses and each location during the quarter.
The trust collected 88% of the rent due on December 31 as of February 2.
"10% remains outstanding and 2% has been waived, with our rental support now only being granted on an exceptional case-by-case basis," Shaftesbury said.
Additionally, 77% of rent due in January was collected on February 2, with rent collections rates expected to improve as footfall and trading bounce back.
Shaftesbury's European Public Real Estate Association vacancy rate at December 31 improved to 5.1% of its portfolio measured by estimated rental value from 6.0% at the end of September.
Shaftesbury completed five acquisitions for properties in Covent Garden, Chinatown and Fitzrovia for GBP18.5 million, excluding acquisition costs.
It also disposed of two non-core properties with gross proceeds of GBP11.4 million, 9.6% above book value at September 30, 2021.
As at December 31, Shaftesbury's net debt amounted to GBP740.9 million, down 1% from net debt of GBP748.5 million as at September 30.
Its available liquidity was GBP318.9 million, including GBP218.9 million of cash and an undrawn revolving credit facility of GBP100 million.
"I am pleased to report that the strong rebound in confidence and activity since last summer continued into the important pre-Christmas trading period," Chief Executive Brian Bickell commented.
"Whilst trading and footfall have been impacted by seven weeks of Omicron restrictions, strong trading prior to the restrictions and the continuation of government support measures have enabled our occupiers to weather this period of disruption."
Shares were up 0.1% at 614.18 pence each on Friday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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