24th Mar 2020 14:10
(Alliance News) - Shaftesbury PLC on Tuesday said it expects earnings for financial 2020 to be "significantly" below expectations
Further, Shaftesbury said there will be no half-year dividend.
The real estate investment trust, which largely invests in pubs, bars and restaurants in London's West End theatre district, expects EPRA earnings for its financial year to the end of September to be lower than expectations amid uncertainty arising from the Covid-19 outbreak and restrictions on movement imposed by the UK government.
It also said that to preserve liquidity it will not declare an interim dividend, with the full-year dividend to be kept under review.
Other measures announced by the company include temporarily halting all non-essential expenditure, new schemes and acquisitions, and drawing down GBP150 million against its revolving credit facility.
FTSE 250-listed Shaftesbury said liquidity currently stands at around GBP254 million.
"We are committed to supporting our occupiers and residents through this period of unprecedented upheaval in normal patterns of life and business activity. The ability of our commercial tenants to resume trading when current restrictions begin to be relaxed is our priority, said Chief Executive Brian Bickell.
"The global appeal and resilience of the West End and our locations, together with our initiatives in recent years to ensure our finances are robust, underpin the intrinsic worth of our impossible-to-replicate portfolio and the long-term value of our business," he added.
The stock was trading 4.2% higher at 625.50 pence each on Tuesday afternoon in London.
By Ife Taiwo; [email protected]
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