26th Nov 2019 09:21
(Alliance News) - Shaftesbury PLC said Tuesday its profit fell sharply in its recent financial year, due to a deficit on the revaluation of its investment properties, though revenue rose.
For the year ended September, the London West End-focused real estate investment trust reported pretax profit of GBP26.0 million, down 85% from GBP175.5 million the year before.
This was due to a deficit on the net revaluation on investment properties of GBP15.3 million, compared to a gain of GBP123.1 million.
However, net property income rose by 4.5% to GBP98.0 million from GBP93.8 million the prior year, resulting from a like-for-like increase of 4.8% in rental income, on revenue that grew by 3.9% to GBP126.9 million to GBP122.1 million.
Shaftesbury's EPRA net asset value as at September 30 was down by 0.9% to GBP9.82 per share, from GBP9.91 on the same date a year before. The trust's portfolio value however, increased by 1.3% to GBP4.00 billion from GBP3.95 billion.
Shaftesbury declared a final dividend of 9.0 pence per share, bringing the total payout to 17.7p, a 5.4% rise year-on-year to 16.8p.
Looking ahead, Shaftesbury said the mood of Brexit uncertainty, which has grown since the 2016 referendum, will take some time to improve, and current forecasts for the national economy do not show any sign of a return to confidence.
However, the trust remained positive on the long-term growth prospects for its markets of London and the West End, saying that they are much less affected by national concerns than other sectors.
"In a year dominated by domestic political uncertainties and a slowing national economy, the qualities of our portfolio, business model and proven strategy, together, have delivered a resilient performance," said Chief Executive Officer Brian Bickell.
"Our skill in curating distinctive, prosperous destinations, which combine authentic experiences and innovative choices, is complemented by our long experience in continually adapting our buildings to meet trends in demand, occupier requirements and stringent environmental standards," Bickell added.
Shares in Shaftesbury - which is headquartered in London - were down 4.7% at 906.00 pence on Tuesday.
By Dayo Laniyan; [email protected]
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