(Alliance News) - Shaftesbury PLC on Monday said it has seen improved operating environment over the past four months as occupier demand increased.
The London-focused real estate investment trust reported continuing recovery in occupier demand across all uses of its properties since April 1. Available-to-let vacancy at July 31 was down to 4.6% from 8.4% on March 31. A further decrease to 4.1% by August 13 was recorded, reflecting continuing leasing momentum, the company said.
Shaftesbury noted that hospitality and leisure demand improved over the period from April 1 to August 20, reflecting confidence in the long-term prospects for its West End locations. So far, weekly West End footfall has recovered to between 50% and 60% of pre-pandemic levels.
"I'm pleased to report positive momentum in recent months, with footfall and trading recovering, an improving operating environment and significantly reduced vacancy across our villages," said Chief Executive Brian Bickell.
"The momentum of the last four months is providing a sound platform for the continuing revival of the West End in the important months ahead, leading up to Christmas and into the New Year, and the prospects for a return to pre-pandemic patterns of life and activity," added Bickell.
Less positively, Shaftesbury's rent collection rates continued to show the impact of the pandemic on central London retailers. The landlord said it has collected 55% of contracted rent for July, which represented 62% of rent billed after accounting for waivers granted. Shaftesbury said it collected 51% of contract rent for the second quarter of 2021, up from just 40% for the first.
The company said it had GBP330.7 million in available liquidity as of June 30. It noted that the waiver of a GBP134.8 million term loan interest cover covenant was extended to January of next year from this past July.
Going forward, Shaftesbury said it will be continuing proactive asset management to improve its buildings to adapt to changing occupier requirements, enhance environmental performance and augment long-term income prospects.
Shares in the FTSE 250 listing were trading 0.2% higher in London on Monday at 623.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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