Shaftesbury Capital (SHC) H2 2025 earnings summary

Executive summary

• Delivered strong operating and financial performance in 2025, with growth in rents, values, income, and dividends, supported by positive trends in footfall, sales, and leasing momentum.

• Portfolio comprises unique, heritage properties in London's West End, benefiting from record international arrivals, high occupancy, and resilient, growing long-term cash flows.

• Formed a long-term partnership on Covent Garden with the Norwegian Sovereign Wealth Fund (NBIM), resulting in a 25% sale and generating £574m in cash proceeds, enhancing financial flexibility.

• Clear strategy focused on long-term income and value growth, disciplined financial management, and sustainability.

Financial highlights

• Rental income grew 6% year-over-year; underlying earnings up 12.2% to £81.9 million; dividend per share increased 14.3%.

• Gross rents up 5.9% like-for-like to £195.6 million; lettings and renewals 10% ahead of ERV and 14% above previous passing rents.

• Portfolio valuation increased 6.6% like-for-like to £5.4 billion; ERV up 6.2% to £270 million; EPRA NTA per share rose 7.2%.

• Net debt reduced by £0.6 billion to £813 million; access to £1 billion liquidity; finance costs reduced by almost 30% to £41.4 million.

• Cost ratio improved to 33.1% (excluding share-based payments).

Outlook and guidance

• Confident in outlook with targets for 5%-7% annual rental growth, 7%-9% total property return, and 8%-10% total accounting return over 3-5 years from 2023.

• Focus remains on sustained long-term growth in rental income, value, earnings, and dividends, with capital deployed accretively and balance sheet strength maintained.

• ERV growth target set at 5%-7%; finance costs expected to remain broadly flat despite refinancing activity.