LONDON (Alliance News) - London West End-focused property developer Shaftesbury PLC on Tuesday reported a drop in profit for its recently ended financial year, due to lower valuation gains and the cancellation of interest rate swaps.
The FTSE 250-listed real estate investment trust posted a pretax profit of GBP175.5 million for the year to the end of September, down 42% from GBP301.6 million the year before.
The substantial profit fall was due to valuation gains and disposal profits from investment properties shrinking to GBP127.7 million from GBP231.7 million the year before, as well as the cancelling of interest rate swaps, which contributed a gain of GBP22.0 million in the prior year.
Net property income rose by 6.2% to GBP93.8 million from GBP88.3 million the prior year, due to an increase in rents receivable, reflecting income from acquisitions and like-for-like growth of 6.4%.
Shaftesbury's total portfolio value as at September 30 stood at GBP3.95 billion, representing a like-for-like increase of 3.8% and resulting in an EPRA net asset value of 991.00 pence per share, up 4.1% year-on-year from 952.00p.
The group declared a total dividend of 16.8 pence per share, up 5.0% from 16.0p the year before.
"It has been another year of good progress with growth in income, earnings and the value of our portfolio. Our results continue to demonstrate the appeal and qualities of our carefully-curated and iconic destinations, underwritten by the global attraction and exceptional features of London and the West End," said Chief Executive Brain Bickell.
"Footfall and spending in our locations continues to be largely unaffected by the widely-reported headwinds affecting the national economy and consumer confidence. General demand continues to be firm, buoyed by the trading conditions our tenants are reporting," Bickell added.
Shares in Shaftesbury were up 0.1% at 921.00 pence on Tuesday.
