Shaftesbury upbeat as West End prospers

Shaftesbury issued an upbeat management statement, saying the group had benefited from strong trading in the West End over Christmas and New Year.

Morningstar.co.uk Editors 12 February, 2010 | 9:53AM
Facebook Twitter LinkedIn

The group specialises in West End prime property, which has been the first area of the commercial property market to recover. It said that the West End had an unprecedented number of visitors, with attendances and takings at theatres, cinemas and museums at record levels. This has helped improve tenant demand, particularly for shops and restaurants and the group has continued to secure lettings at or above estimated values.

Vacant commercial space has fallen 21% in the period from the end of September. Shaftesbury has also seen an increase in demand for its office space and the rental value of vacant office space is now at an historic low.

The group issued a bullish outlook, saying that its portfolio should continue to prosper despite the economic uncertainty. It said that the economy of the West End should continue to flourish, bringing improved tenant demand.

In December the group surprised the market by announcing a 7% rise in the value of its overall portfolio, significantly ahead of the benchmark IPD index. It has proved more resilient than much of the real estate sector, but that is reflected in the shares, which tend to trade on a premium to net asset value. They are up 64% over the last 12 months and investors will want to see evidence of further revaluations in the property market to send them significantly higher. Today, the shares were up 1.6% to 385.7p.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

Morningstar.co.uk Editors  analyse and report on shares, funds, market developments and good investing practice for individual investors and their advisers in the UK.

© Copyright 2022 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures