Shaftesbury Capital PLC

Reported 2025 performance included gross rents up 5.9% like-for-like to GBP 195.6 million, underlying earnings up 12% to GBP 81.9 million (4.5p per share), and a total dividend of 4p per share, up 14% year on year. Property values rose 6.6% to GBP 5.4 billion, ERV increased 6.2% to GBP 270 million, and total accounting return / total property return were 9.1% and 10.1%, respectively. Net debt fell to GBP 0.8 billion on a group-share basis, LTV was 17%, and finance costs were reduced by almost 30% to GBP 41.4 million. Looking ahead, management reiterated targets for rental growth of 5% to 7%, total property return of 7% to 9%, and total accounting return of 8% to 10%. They also said finance costs should be broadly flat at the current leverage level, gross costs should keep coming down over the next 2 years, and cash rents should grow in line with ERV growth.

Ian Hawksworth’s message was that the portfolio is trading exceptionally well and still has room to re-rate. He emphasized the strength of West End footfall, customer sales, leasing demand, and the long-term appeal of the group’s Covent Garden, Carnaby Soho and Chinatown estates. His tone was confident and upbeat, stressing that the business has “optionality,” low vacancy, and the ability to deploy capital quickly when opportunities arise.

Situl Jobanputra focused on the improved financial flexibility and the mechanics supporting future earnings. He highlighted gross rents of GBP 195.6 million, underlying earnings of GBP 81.9 million, finance costs of GBP 41.4 million after a near-30% reduction, and net debt down to GBP 0.8 billion with LTV at 17%. He also noted admin costs of GBP 41 million, a share option charge that was nearly GBP 5 million higher than last year, and said the company is targeting lower absolute cash costs over the next 2 years and broadly flat finance costs, while refinancing or repaying GBP 400 million of maturing debt and managing the GBP 275 million exchangeable bond maturity in March 2026.

Analysts asked whether Carnaby Street’s strong ERV growth could continue and how much leverage/firepower the company wants to run with. Management said Carnaby should keep performing because new brands are trading at significantly higher sales densities and Zone A rents still have room to catch up, while leverage is being kept conservative by design to protect downside and preserve capacity for accretive deployment. Another question focused on acquisition opportunities and office/F&B/retail demand; management said adjacent West End assets rarely trade, but they are tracking many assets, want to expand ownership over time, and see very strong demand across office, retail and F&B with very limited availability.