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Highlights:
- The number of empty shops across the UK is falling, but it is yet to reach the pre-pandemic levels.
- The latest numbers show that the overall vacancy rate slipped to 13.9% in the July-September quarter.
Amid the falling consumer confidence in the UK due to the high inflation and the cost-of-living crisis, the number of empty shops in the country is yet to reach the pre-pandemic levels. It remains higher than the levels seen before the COVID-19 pandemic, even though it has continued to fall.
According to the latest numbers from the British Retail Consortium (BRC) and Local Data Company (LDC), the vacancy rate slipped to 13.9% in the July-September quarter. This is a 0.1 percentage point improvement over the previous quarter and 0.6 percentage points better than last year's third quarter.
In terms of location, shopping centre vacancies dropped from 18.9% in Q2 to 18.8% in Q3. High street vacancies fell from 14% to 13.9%. On the other hand, retail park outlets saw 9.7% vacancies.
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Region-wise, London, South East, and the East of England saw the lowest vacancy rates, while the North East, Wales, and West Midlands had the highest rates.
As per BRC chief executive Helen Dickinson, higher prices and the extra £800 million business rates bill to be imposed from April 2023 will force retailers to consider investing in new stores or closing existing ones.
Kalkine Media® explores some REIT stocks on the LSE in the wake of the above data.
Shaftesbury (LON: SHB)
The Real Estate Investment Trust focuses exclusively on the heart of London's West End. It is a constituent of the FTSE 250 index. The company has a negative EPS of -2.28, while the market cap is £1,440.04 million. As of 9:15 am GMT+1 on Friday, the stock was trading at GBX 366.20, down 2.30%.
Capital & Counties Properties (CAPC)
The London-headquartered REIT is engaged in property investment, management, and development. It belongs to the FTSE 250index and enjoys a market cap of £911.71 million. Its share value has depreciated by more than 36% in the past 12 months, while the year-to-date or YTD return is -37.11%. CAPC shares were trading at GBX 105.90, down 1.12% as of 9:21 am GMT+1 on Friday.
BMO Commercial Property Trust Ltd (LON: BCPT)
BMO Commercial Property Trust Ltd belongs to the mid-cap-focused FTSE 250 index, with a market capitalisation of £621.57 million as of 28 October. The stock price has slipped by more than 14% in the past one year, and the year-to-date return also stands in the negative territory at -16.02%. BCPT shares were trading 0.68% lower at GBX 88.00 as of 9:06 am GMT+1 on Friday.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
