Shaftesbury Capital (SHC) H2 2024 earnings summary

Executive summary

• Delivered strong 2024 results with increases in rents, property values, income, and dividends, supported by robust leasing activity, high footfall, and a clear strategy.

• Achieved strong growth in earnings, dividends, portfolio valuation, and NTA year-over-year, with rental income and valuation growth driven by leasing momentum and customer sales.

• Completed 473 leasing transactions, 9% ahead of December 2023 ERV, and maintained high occupancy with only 2.6% of ERV available to let.

• Active capital rotation and disciplined financial management enhanced portfolio quality and liquidity.

• Well-positioned to capitalize on market opportunities with a strong balance sheet and significant liquidity.

Financial highlights

• Portfolio valuation increased 4.5% like-for-like to £5.0bn, driven by 7.7% ERV growth; EPRA NTA per share up 5.2% to 200.2p.

• Underlying earnings increased 16.2% to £73.0m (4.0p/share); gross profit £167.1m; proposed total dividend for 2024 of 3.5p/share, up 11%.

• Gross rents increased 5.7% like-for-like to £205m; annualised gross income up 8% like-for-like to £202.8m.

• EPRA cost ratio reduced to 37% from over 50% at merger; finance costs £57.2m on average net debt of £1.5bn.

• Net debt reduced to £1.4bn; EPRA loan-to-value at 27%; interest cover ratio 2.9x; weighted average cost of debt 3.7%.

Outlook and guidance

• Confident in delivering medium-term growth targets: 5–7% rental/ERV growth and 8–10% total accounting return per annum.

• 2025 has started well with strong activity, high footfall, and limited vacancy; positive market fundamentals support sustained income and value growth.

• Positioned to capitalize on market opportunities with significant liquidity and a strong balance sheet.