Shaftesbury Capital reports strong profit growth

Investing.com - Shaftesbury Capital announced on Wednesday that for the fiscal year ending December 31, 2025, its basic earnings per share increased by 12% to 4.5 pence, surpassing the previous year’s 4.0 pence.

The London West End property owner also declared a 14% dividend increase to 4.0 pence per share, reflecting strong operational performance across its retail, dining, and office property portfolio.

The company’s real estate investment portfolio valuation grew by 6.6% on a like-for-like basis to £5.4 billion, driven by an estimated rental value increase of 6.2% to £270 million.

Revenue rose by 5.3% on a like-for-like basis to £215 million, supported by 434 leasing transactions with a total contracted rent of £39 million, which is 10.3% higher than the estimated rental value at the end of 2024 and 13.9% above previous actual rents.

The investment portfolio maintained a high occupancy rate, with only 2.6% of the estimated rental value being vacant.

CEO Ian Hawksworth stated, “We are pleased to report another excellent year, with growth in rental income, profit, dividends, property valuation, and net tangible assets per share. Our West End properties continue to perform well, supported by vibrant destinations with high occupancy, foot traffic, and customer sales.”

The company’s EPRA net tangible assets per share increased by 7.2% to 214.7 pence, with a total return on equity of 9.1%. The portfolio’s equivalent yield slightly compressed by 2 basis points to 4.43%.

Management expenses on a cash basis (excluding share-based payments) decreased by 8% year-over-year, reflecting ongoing improvements in cost efficiency.

In April 2025, Shaftesbury Capital completed a long-term partnership with Norges Bank Investment Management, selling a 25% non-controlling stake in its Covent Garden property for £574 million.

The transaction strengthened the balance sheet, with the EPRA loan-to-value ratio decreasing from 27.4% to 16.8%, and net debt falling from £1.4 billion to £813 million.

During this fiscal year, the company invested £113.3 million into its portfolio, including £33.1 million in capital expenditure and £80.2 million in acquisitions. Retail properties accounted for 36% of the portfolio, performing particularly well with a valuation increase of 10.4% and an estimated rental value growth of 8.1%.

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