Shaftesbury Capital reports solid first-half results

(Sharecast News) - Shaftesbury Capital reported a solid set of interim results for the first half of 2025 on Tuesday, demonstrating continued growth across rents, earnings, valuations, and dividends.

The FTSE 250 company's West End portfolio remained active and vibrant, the board said, with high footfall and seven-day-a-week trading, driving leasing demand and strong financial performance.

It said it completed 193 leasing transactions in the half-year, representing £19.2m in contracted rent, which was 9% ahead of the December estimated rental value (ERV) and 16.3% above previous passing rents.

Occupancy rates remain high, with just 2.4% of ERV available to let.

Footfall and customer sales across Shaftesbury's prime West End portfolio showed positive trends.

Shaftesbury's portfolio valuation increased 3.1% to £5.2bn, driven by a 2.9% like-for-like increase in ERV, which now stands at £261m.

The equivalent yield remained stable at 4.46%, while the company's EPRA net tangible assets grew by 3.3% to 206.8p per share.

Underlying earnings per share increased 16% to 2.2p, while the interim dividend was raised by 11.8% to 1.9p per share.

Capital expenditure and acquisitions continued to be a focus, with £71m invested in the portfolio.

That included a £2.7bn long-term partnership with Norges Bank Investment Management (NBIM) in April, focused on the Covent Garden estate.

The company's access to significant liquidity and a low leverage ratio left it well-positioned for future growth and market opportunities.

Key financial highlights included a gross profit of £89.2m, up from £80.7m in the first six months of 2024, and a strong profit for the period of £173m, more than doubling the £86.1m reported last year.

Basic earnings per share increased to 8.3p, up from 4.7p in the prior year.

The total shareholder return reached 26.1%, compared to just 2.0% in the first half of 2024, reflecting robust performance and positive market conditions.

"We are delighted to deliver continued strong performance, with growth in rents, earnings, dividends, valuation, and EPRA NTA," said Ian Hawksworth, chief executive.

"Our West End portfolio continues to be busy and vibrant with high footfall and strong leasing demand.

"We enter the second half of the year with positive momentum, supported by a strong balance sheet and access to liquidity, positioning us well to take advantage of market opportunities."

Looking ahead, Shaftesbury said it was confident in its ability to continue delivering growth, supported by its strong portfolio, market position, and strategic investments.

The company's outlook for the full year remained positive, with a solid foundation for continued success in the second half of 2025.

At 0936 BST, shares in Shaftesbury Capital were up 2.5% at 159.7p.

Reporting by Josh White for Sharecast.com.