Shaftesbury Capital (LON:SHC) Issues Earnings Results

Shaftesbury Capital (LON:SHC) announced its quarterly earnings data on Wednesday. The company reported GBX 2.40 earnings per share 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 Stock Down 0.2%

Shares of SHC stock opened at GBX 145.70 on Friday. The stock has a market cap of £2.66 billion, a P/E ratio of 7.88 and a beta of 0.96. Shaftesbury Capital has a fifty-two week low of GBX 124.10 and a fifty-two week high of GBX 162.90. The business has a fifty day simple moving average of GBX 137.71 and a 200-day simple moving average of GBX 138.36.

Insider Activity

In other Shaftesbury Capital news, insider Rachel Kentleton acquired 17,785 shares of the stock in a transaction that occurred on Wednesday, July 29th. The shares were purchased at an average cost of GBX 144 per share, with a total value of £25,610.40. Also, insider Jonathan Nicholls bought 100,000 shares of the company’s stock in a transaction on Thursday, May 14th. The shares were acquired at an average price of GBX 129 per share, with a total value of £129,000. 0.65% of the stock is owned by insiders.

Analysts Set New Price Targets

SHC has been the subject of several recent analyst reports. Jefferies Financial Group raised their price objective on shares of Shaftesbury Capital from GBX 176 to GBX 182 and gave the company a “buy” rating in a research note on Thursday. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a GBX 185 target price on shares of Shaftesbury Capital in a research report on Thursday. Berenberg Bank reaffirmed a “hold” rating and issued a GBX 151 target price on shares of Shaftesbury Capital in a report on Wednesday. Finally, Royal Bank Of Canada reduced their price target on shares of Shaftesbury Capital from GBX 210 to GBX 200 and set a “buy” rating for the company in a research report on Monday, June 15th. Four investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, Shaftesbury Capital has a consensus rating of “Moderate Buy” and a consensus target price of GBX 181.60.

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.