Shaftesbury Capital (LON:SHC) Posts Earnings Results

Shaftesbury Capital (LON:SHC) released its quarterly earnings data on Wednesday. The company reported GBX 2.40 EPS for the quarter, Digital Look Earnings reports. Shaftesbury Capital had a return on equity of 8.78% and a net margin of 141.28%.

Here are the key takeaways from Shaftesbury Capital’s conference call:

• Strong first-half performance: Like-for-like property value rose 3.4% to £5.6 billion, EPRA NTA increased 3.9% to £2.23 per share, and underlying earnings grew 8% to £44 million. The interim dividend increased 16% to 2.2 pence per share.
• Leasing momentum remained robust, with 226 transactions completed at rents 5% above ERV and 18% above previous passing rents. Portfolio vacancy was just 2.6% at mid-year, with management citing strong demand, limited supply, and continued support for its 5%-7% rental-growth targets.
• The balance sheet provides substantial capacity for investment, with net debt below £800 million, loan-to-value of 16%, and more than £800 million of liquidity expected after repaying maturing private placement notes. The company invested £31 million in acquisitions and capital expenditure while disposing of the non-core Lillie Square asset.
• Management highlighted significant embedded income growth, including contracted rent, refurbishment projects, and under-rented space, with most contracted and refurbishment income expected to contribute over the next 12 months. However, capturing the broader 28% income reversion will depend on the pace of the leasing cycle.
• Expected credit loss provisions increased modestly after a small number of tenant failures, including an office tenant in Carnaby, while refinancing the £163 million private placement note is expected to increase the weighted average cost of debt. Management characterized both issues as manageable and not indicative of a broader deterioration.

Shaftesbury Capital Trading Down 1.4%

Shares of LON:SHC traded down GBX 2.10 during trading on Wednesday, reaching GBX 143.90. 7,750,233 shares of the stock were exchanged, compared to its average volume of 18,320,023. Shaftesbury Capital has a 12 month low of GBX 124.10 and a 12 month high of GBX 162.90. The firm has a market cap of £2.62 billion, a PE ratio of 7.78 and a beta of 0.96. The stock has a 50-day moving average price of GBX 137.21 and a 200-day moving average price of GBX 138.37.

Insider Buying and Selling at Shaftesbury Capital

In other news, insider Jonathan Nicholls bought 100,000 shares of the stock in a transaction dated Thursday, May 14th. The shares were bought at an average price of GBX 129 per share, for a total transaction of £129,000. Company insiders own 0.65% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the stock. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a GBX 185 price target on shares of Shaftesbury Capital in a research report on Friday, May 15th. Berenberg Bank restated a “hold” rating and set a GBX 151 price objective on shares of Shaftesbury Capital in a research note on Wednesday. Royal Bank Of Canada cut their target price on shares of Shaftesbury Capital from GBX 210 to GBX 200 and set a “buy” rating for the company in a research note on Monday, June 15th. Finally, Jefferies Financial Group reaffirmed a “buy” rating and issued a GBX 176 price objective on shares of Shaftesbury Capital in a research report on Friday, May 15th. Four investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of GBX 180.40.

Shaftesbury Capital Company Profile

Shaftesbury Capital PLC (“Shaftesbury Capital”) is the leading central London mixed-use REIT and is a constituent of the FTSE-250 Index. Our property portfolio under management, valued at £5.4 billion, extends to 2.8 million square feet of lettable space across the most vibrant areas of London’s West End. With a diverse mix of shops, restaurants, cafés, bars, residential apartments and offices, our destinations include the high footfall, thriving neighbourhoods of Covent Garden, Carnaby, Soho and Chinatown.