Shaftesbury, which has a portfolio of more than 400 properties in London’s west end and Covent Garden, saw its portfolio value, estimated to be £1.2bn, drop some 15.6% over the course of the year. On a total return basis, a combination of the portfolio’s capital value and net property income, Shaftesbury has lost 12% over the year to 30 September.
Shaftesbury’s NAV per share has fallen to £4.71 compared to £6.41 in 2007, reflecting the difficult time property markets have had in recent months. Shares in the FTSE 250 firm fell only marginally in early morning trading, dropping 0.17% by 11:30am.
While the capital value falls have been steep, income achieved from the properties has helped to offset some of the losses. The property company said it has a recorded a pre-tax profit of £15.5m for the year, a rise of 20.2% over 2007. As such the group is recommending a final dividend of 6p, up from 2007’s 5.5p, bringing the total payout for 2008 to 11p.
John Manser, chairman, said: “The economy in the West End and our portfolio with its defensive qualities of prime locations and mixed uses have proved to be resilient. Our results show further growth in rental income and adjusted profits and over the year our reversionary income potential has increased significantly.”
Rental income, adjusted for lease incentives, increased by £3.3m compared with last year, offset by a £1.1m reduction in income from the group’s Longmartin Joint Venture, where major works are now under way.
Manser said in such economic turmoil Shaftesbury cannot expect to be untouched but he believes its portfolio of tightly defined central London villages is better placed than most to continue generating income. Demand for the retail and restaurant properties remains strong, he said.
With the falls in capital value across the property markets, Manser said now may be the opportune time to add to the group’s portfolio.
