Shaftesbury Capital PLC

For 2025, Shaftesbury Capital reported like-for-like valuation growth of 6.6% to GBP 5.4 billion, with ERV up 6.2% to GBP 270 million and total accounting return of 9.1% and total property return of 10.1%. Gross rents were up 5.9% like-for-like to GBP 195.6 million, underlying earnings increased 12% to GBP 81.9 million or 4.5p per share, and the full-year dividend was raised 14% to 4p per share. Net debt was cut to GBP 0.8 billion, loan-to-value was 17%, and NTA rose 7% over the year. Looking ahead, management said its targets are rental growth of 5% to 7%, total property return of 7% to 9%, and total accounting return of 8% to 10%; it also said cash rents should grow in line with ERV, finance costs should be broadly flat at current leverage, and cash costs should decline further over the next two years.

Ian Hawksworth struck a confident tone, saying the company delivered another year of growth in rents, values, income and dividends while strengthening financial flexibility. He emphasized the portfolio’s “impossible to replicate” West End locations, record international arrivals, strong footfall, and the benefits of the Elizabeth line and active leasing. He also highlighted the Norges Bank partnership on Covent Garden and said the group is well positioned to pursue opportunities with enhanced liquidity.

Situl Jobanputra focused on the mechanics of the year’s financial improvement: gross rents up 5.9% to GBP 195.6 million, administration costs at GBP 41 million, finance costs down almost 30% to GBP 41.4 million, and underlying earnings up 12% to GBP 81.9 million. He said net debt fell to GBP 0.8 billion on a group-share basis, LTV was 17%, and NTA increased 7% to 2.15p per share. He also noted a new GBP 300 million Covent Garden loan facility, GBP 450 million of other banking facilities extended to 2029 and 2030, GBP 275 million of exchangeable bonds due in March 2026, and GBP 300 million of SONIA exposure capped at 3%.

Analysts asked whether Carnaby’s strong ERV growth could continue and how the company views firepower and leverage in relation to the Norges partnership. Management said Carnaby should keep performing because the new brands are trading at significantly higher sales densities, supporting medium- to long-term rental growth, though growth is occurring across the whole portfolio. On leverage and acquisitions, management said the low LTV is deliberate to protect downside risk, but it leaves room to deploy capital accretively when attractive opportunities arise; they also said they are tracking a lot of real estate but focused on value creation within the existing 640 buildings unless larger opportunities emerge. On consensus earnings for 2026, management avoided direct guidance but pointed to 5% to 7% ERV growth, improving property-level net-to-gross, lower cash admin costs, and broadly flat finance costs at current leverage.