Shaftesbury Capital (LON:SHC) Posts Earnings Results

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

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 Stock Performance

Shares of SHC traded down GBX 2 during mid-day trading on Wednesday, reaching GBX 144. The company had a trading volume of 5,320,812 shares, compared to its average volume of 18,303,268. The firm has a 50-day moving average price of GBX 137.21 and a 200 day moving average price of GBX 138.37. The company has a market capitalization of £2.63 billion, a price-to-earnings ratio of 7.78 and a beta of 0.96. Shaftesbury Capital has a 52 week low of GBX 124.10 and a 52 week high of GBX 162.90.

Wall Street Analysts Forecast Growth

SHC has been the topic of a number of recent research reports. Berenberg Bank reiterated a “hold” rating and set a GBX 151 price target on shares of Shaftesbury Capital in a research report on Wednesday. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a GBX 185 price target on shares of Shaftesbury Capital in a research note on Friday, May 15th. Royal Bank Of Canada lowered their target price on 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 restated a “buy” rating and set a GBX 176 price target on shares of Shaftesbury Capital in a research report on Friday, May 15th. Four equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of GBX 180.40.

Insider Buying and Selling at Shaftesbury Capital

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

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.