(Alliance News) - Shaftesbury PLC on Tuesday reported a sharp reduction in loss and improved trading in the second half of its financial year, as the entertainment-district property investor continues to recover from the pandemic.
The London West End-focused real estate investment trust recorded a narrowed pretax loss of GBP194.9 million in the financial year that ended September 30 from GBP699.5 million the year before.
Shaftesbury attributed this to a much lower net revaluation deficit on investment properties, reduced to GBP196.9 million from GBP698.5 million.
The London-based company's full-year revenue declined 9.5% to GBP112.7 million from GBP124.5 million.
Shaftesbury's wholly owned portfolio ended with a value of GBP3.0 billion, down 5.4% from a year before on a like-for-like basis. The valuation followed the path of the Covid-19 pandemic. A 10% fall in portfolio value in the first half was followed by 5.2% increase in the second.
Shaftesbury said the improved trading in the second half was thanks to the success of the vaccine programme in the UK and a resulting recovery in footfall and occupier confidence.
"Rental values have now largely stabilised and both rent collection and investment sentiment continue to recover," Shaftesbury said.
The company resumed its final dividend at 4.0 pence per share, giving a 6.4p total annual payout.
Looking ahead, the property owner struck a confident note.
"Although there is still further to travel before certainty and confidence fully return, 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," Chief Executive Brian Bickell said.
Shares in Shaftesbury were down 3.8% at 616.00 pence each on Tuesday morning in London. The wider FTSE 250 index was down 1.2%.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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