Shaftesbury Capital reports higher rental income, earnings

(Sharecast News) - Shaftesbury Capital reported higher rental income, earnings and net tangible assets for 2025 on Wednesday, supported by continued strength across its West End estates and a 6.6% uplift in portfolio valuations. For the year ended 31 December, EPRA net tangible assets rose 7.2% to 214.7p per share, delivering a total accounting return of 9.1%.

Total equity attributable to owners of the parent increased to £3.95bn from £3.67bn a year earlier, while IFRS total equity per share rose to 214.6p from 200.4p.

The FTSE 250 company said the market value of the property portfolio under management increased to £5.41bn from £4.97bn, with a like-for-like valuation uplift of 6.6%.

Estimated rental value grew 6.2% on a like-for-like basis to £270m.

On a group share basis, reflecting 75% ownership of Covent Garden following the long-term partnership with Norges Bank Investment Management, the portfolio was valued at £4.7bn.

Underlying earnings per share improved 12% to 4.5p, while dividends per share rose 14% to 4p.

Profit attributable to owners of the parent increased to £340.2m from £252.1m.

Total property return was 10.1% and total shareholder return 18.6%, compared with a negative 6.9% in 2024.

"We are pleased to report another excellent year, delivering growth in rental income, earnings, dividends, property valuation and net tangible assets per share," said Ian Hawksworth, chief executive.

He added that the group's West End estates continued to perform strongly, with "vibrant destinations supported by high occupancy, footfall and customer sales".

During the year, the company completed 434 leasing transactions, representing £39m of contracted rent, at 10.3% ahead of December 2024 ERV and 13.9% above previous passing rents.

Only 2.6% of ERV was available to let at the year end, with management reporting a positive start to 2026 supported by strong footfall and customer sales.

"Leasing demand remains strong, with 434 transactions completed during the year at 10% ahead of December 2024 ERV," Hawksworth said.

"Portfolio valuations increased by 6.6 per cent and we enter 2026 with a strong leasing pipeline across our destinations."

The group invested £113.3m in capital expenditure and acquisitions during the year, targeting asset management and rental growth opportunities.

It also completed a long-term partnership with Norges Bank Investment Management in respect of the Covent Garden estate, a transaction Hawksworth said "further underlines the quality and long-term appeal of our portfolio".

Net debt reduced to £813.3m from £1.41 billion, with EPRA loan-to-value falling to 16.8% from 27.4% and net debt to EBITDA declining to 6.6 times from 10.9 times, reflecting the enhanced liquidity and lower leverage following the Covent Garden transaction.

Hawksworth said the company was "well-positioned for growth, expansion and investment with a strong balance sheet, access to significant liquidity and low leverage," adding that the group was "well-positioned to pursue accretive opportunities and grow assets under management" as it entered 2026.

At 0945 GMT, shares in Shaftesbury Capital were up 3.4% at 152.2p.

Reporting by Josh White for Sharecast.com.