Shaftesbury Capital PLC, a leading real estate investment trust (REIT) operating primarily in London’s West End, has unveiled its audited preliminary results for the year ending December 31, 2023, showcasing a remarkable financial turnaround and robust operational momentum.
Financial Resurgence
Shaftesbury Capital PLC reported stellar financial results, marking a significant rebound from previous years. Total equity surged to £3,480.2 million, representing a substantial increase from £1,561.6 million in December 2022. The company recorded a total accounting return of 5.8%, a stark improvement from the negative 13.6% reported in the previous year. Moreover, gross profit soared to £141.9 million, reflecting a substantial rise from £57.3 million in the prior period. Notably, the company achieved a profit of £750.4 million for the year, a stark contrast to the £211.8 million loss recorded in 2022.
Operational Highlights
The company’s operational performance was equally impressive, characterized by robust leasing activity and income growth. In 2023, Shaftesbury Capital completed 526 leasing transactions, securing £37.0 million in rent. Annualized gross income surged by 10.4% to £192.8 million, demonstrating sustained momentum in the company’s leasing activities. Despite a marginal decline in portfolio valuation by 0.8% to £4.8 billion, the company’s balance sheet remained robust, boasting liquidity of £486 million and an EPRA Loan-To-Value ratio of 31%.
Medium-Term Outlook
Shaftesbury Capital PLC remains optimistic about its medium-term prospects, aiming for sustained rental growth of 5-7% per annum. With stable capital rates, the company anticipates achieving average total property returns of 7-9% and total accounting returns of 8-10%. Despite prevailing geopolitical and macroeconomic uncertainties, the company’s strong performance and promising leasing pipeline instill confidence in its future growth trajectory.
Dividend Announcement
In a bid to reward its shareholders, Shaftesbury Capital PLC has proposed a final cash dividend of 1.65 pence per ordinary share, payable on May 31, 2024. Shareholders are encouraged to take note of the relevant dates for dividend payments and potential tax implications.
Sustainable Initiatives
In line with its commitment to sustainability, Shaftesbury Capital PLC has announced its 2030 Net Zero Carbon Pathway, underscoring its dedication to reducing environmental impact. The company’s sustainable refurbishment activities have resulted in an impressive 80% EPC rating of A-C across its portfolio.
Conclusion
Shaftesbury Capital PLC’s audited preliminary results for 2023 signify a remarkable turnaround and robust operational performance. With strong financial indicators, promising leasing activity, and a commitment to sustainability, the company is well-positioned for sustained growth in the coming years.
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