Shaftesbury Capital Posts Impressive Leasing Gains and Keeps Debt in Check

Shaftesbury Capital (LON:SHC) revealed robust leasing figures on Tuesday, highlighting strong demand across its Covent Garden and West End village estates. The recent rent reviews clocked in a solid 14% boost compared to earlier passing rents, underscoring the firm's ongoing ability to capitalize on prime London real estate.

Year to date, the company sealed 367 leasing deals, locking in fresh annual rent income of £30.2 million. This places new rent levels 9% above the December 2024 estimated rental value and a notable 14% above previous passing rents, signaling continued upward pressure on rent prices in the area.

Occupancy stats tell a similarly upbeat story. Shaftesbury's portfolio shows a working frictional vacancy rate held down to just 2.6% of ERV, with an additional 1.5% currently under offer, effectively rendering the estate almost fully occupied this busy season.

CEO Ian Hawksworth emphasized that the West End's estates remain lively hubs during a key retail trading period, with footfall and sales volumes both maintaining their upward trajectories. The company's ongoing strategy appears to be striking a chord with tenants, especially in sought-after locations.

Notably, the recent sale of a 25% stake in Covent Garden to NBIM served as a benchmark valuation point, involving a minority interest without handing over management control. Meanwhile, the firm is actively marketing its former SHB Villages assets, catching strong tenant interest particularly around Carnaby Street and Chinatown, areas buzzing with new retail, dining, and leisure activity.

On the financial front, Shaftesbury has added £80 million in acquisitions and topped up liquidity with a £300 million revolving credit facility, which helped the company repay a £200 million loan. This maneuver drives the loan-to-value ratio down to a conservative 17%, giving the firm significant balance sheet flexibility.

Meanwhile, £10.7 million in ERV is currently tied up in refurbishments, with 23% of that space already pre-let. These renovations could unlock further income potential once completed, supporting the company's rent growth trends.

All signs point to a clearly active and well-managed property portfolio that's steadily pushing rents upward and maintaining low vacancy despite a competitive environment. The low gearing gives Shaftesbury wiggle room that many landlords might envy in today's market.