Shaftesbury Capital (SHC) H1 2024 earnings summary

Executive summary

• Strong operating and financial performance in H1 2024, with robust leasing momentum, rental growth, and portfolio valuation gains supported by high footfall and improving West End market conditions.

• 217 leasing transactions completed, rents on average 7% above Dec 2023 ERV, and 16% above previous passing rents.

• Portfolio comprises £4.8bn in assets, 2.7m sq ft, and 2,000 units in iconic London locations.

• Well-positioned for medium and long-term growth, targeting 5–7% rental growth and 8–10% total accounting return over the medium term.

• Positive trends in footfall, customer sales, and active capital rotation enhance portfolio quality.

Financial highlights

• Portfolio valuation up 1.4% like-for-like to £4.8bn; ERV up 3.2% like-for-like to £241m.

• Annualised gross income up 3.9% like-for-like to £196.5m; gross rents for H1 were £98.8m; underlying net rental income £80.7m.

• EPRA NTA per share increased 1.6% to 193.4p; total accounting return 2.5% for the period.

• Underlying earnings per share 1.9p; interim dividend declared at 1.7p per share, up from 1.5p last year.

• Net debt stable at £1.5bn; cash and undrawn committed facilities of £578.8m at 30 June 2024.

Outlook and guidance

• Confident in delivering medium-term growth targets: 5–7% rental growth and 8–10% total accounting return per annum, assuming stable cap rates.

• Further income growth expected from leasing activity and operational efficiencies; EPRA cost ratio targeted to reduce towards 30%.

• Strong leasing pipeline and high levels of activity support future growth.