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Summary
- Shaftesbury PLC had shown improvement in vacancy for the six weeks since the end of H1 FY21.
- The loss after tax had widened to negative £338.5 million during H1 FY21.
- SHB had collected just 43.5% of contracted rents for the six months to 31 March 2021.
Shaftesbury PLC (LON:SHB) is the financials stock listed on the London stock exchange. SHB’s shares have generated a return of 14.62% in the last 12 months. SHB is listed on the FTSE 250 index.
Company Overview
Shaftesbury PLC (LON:SHB) is the real estate investment trust that owns a 16-acre portfolio in London’s West End. Moreover, the portfolio is focused on food, beverage, retail, and leisure, and is currently comprised 607 restaurants, cafes, pubs, and shops. Furthermore, SHB owns around 600 buildings in Carnaby, Seven Dials, and Chinatown.
Interim Results (for the six months ended 31 March 2021, as of 25 May 2021)
Improvement in vacancy rates – SHB had shown slight improvements in EPRA (European Public Real Estate Association) vacancy as it stood at 11.9% of ERV (“Estimated Rental Value”) as of 31 March 2021. It had dropped to 11.3% in the next six weeks since the end of H1 FY21. Moreover, the available to let space had declined by 0.7% to 8.4% during the period and further decreased to 7.2% in the next six weeks since 31 March 2021.
Recovery in leasing activity – The Company had concluded 94 commercial and 144 residential leasing transactions across 211,000 sq. ft. with a rental value of £14.0 million during H1 FY21, while it had generated £15.0 million during H1 FY20. Moreover, the Company had collected 50% of contracted rents for the 12 months to 31 March 2021, while it had collected just 43.5% for the six months to 31 March 2021. The rental income was reduced by £11.5 million to £48.9 million during H1 FY21 due to the rental support permitted to occupiers and vacancy.
Reduction in the wholly-owned portfolio – The valuation of wholly-owned portfolio went down by 10.1% to £2.8 billion during the period due to a significant decline in the hospitality and retail portfolio. Furthermore, the valuation of the hospitality portfolio had decreased by around 11.0%, and the valuation of the retail portfolio had shown a decline of 18.2% during H1 FY21.
Significant widening of losses – SHB had reported a loss after tax of negative £338.5 million during H1 FY21 as compared to negative £287.6 million during H1 FY20. Moreover, the increase was due to the revaluation deficits in both the wholly-owned portfolio and the Longmartin joint venture. Nonetheless, SHB will pay an interim dividend of 2.4 pence per share on 02 July 2021.
One Year share price performance of Shaftesbury PLC
(Analysis done by Kalkine Group; Data Source: REFINTIV)
SHB shares were trading at GBX 588.30 and were down by close to 1.70% as of 25 May 2021 at 01:14 PM GMT. The 14-day RSI stood at ~34.09, while the 20-day simple moving average was around GBX 618.80. SHB’s 52-week Low and High were GBX 407.00 and GBX 691.53, respectively. Shaftesbury PLC had a market capitalization of around £2.30 billion.
Business Outlook
SHB had forecasted a sharp rebound in economic activity as the government roadmap regarding the relaxation of the Covid-19 restrictions had reached the final stage with the further reopening of the UK economy scheduled from 23 June 2021. Moreover, the Company had witnessed a recovery in vacancy rates since the reopening of the UK economy from 13 April 2021. In a nutshell, SHB remained well-positioned to return to long-term growth in the near future.
