Ian Hawksworth
Shaftesbury Capital
CEO
In a comprehensive overview of its 2024 financial performance, Shaftesbury Capital has reported impressive growth in rental income, valuation, and customer engagement despite challenging macroeconomic conditions. The company’s West End portfolio, renowned for its prime location and vibrant cultural appeal, continues to draw substantial interest from local and international investors.
In a statement, Ian Hawksworth, CEO of Shaftesbury Capital, expressed his optimism about the company’s strategic direction and long-term prospects. “Our focused strategy has led to excellent operational performance throughout 2024. The West End remains an attractive destination for visitors and investors, with international arrivals surpassing pre-pandemic levels. We are thrilled to report that footfall has been consistently high, a testament to the enduring appeal of our assets,” Hawksworth said.
Performance metrics highlight robust growth
Shaftesbury Capital’s portfolio valuation witnessed a 4.5% increase this year, contributing to a 10-pence rise in EPRA NTA per share, bringing it to 200-pence per share. The company noted a 5.7% like-for-like rental growth, with underlying earnings increasing by 16.2% over the year. This highlights the effective implementation of cost discipline measures and strategic leasing decisions.
“Even amid a challenging macro-economic backdrop, our underlying earnings have shown significant growth,” Hawksworth stated. “Leasing activities across our portfolio have been robust, with 473 transactions completed this year. This demonstrates our ability to offer attractive leasing opportunities, underscored by our vibrant West End locations.”
Strategic Investments and Asset Management Drive Operational Success
Since the merger, Shaftesbury Capital has realized proceeds of more than £246.6 million from property disposals and has reinvested £86 million in targeted acquisitions on pivotal streets. The company’s investment strategy remains discerning, focusing on expanding its footprint selectively while reinforcing its existing portfolio’s value.
“Our investment activity has concentrated on core locations such as Covent Garden, Carnaby/Soho, and Chinatown,” noted Hawksworth. “These areas are culturally significant and offer superior growth prospects. We are well-positioned with significant liquidity, ready to capitalize on market opportunities.”
Sustainability and community engagement: A strategic priority
As a forward-thinking entity, Shaftesbury Capital remains committed to reducing its environmental footprint and engaging positively with its stakeholders. The company aims to lead in sustainable heritage buildings, a goal encapsulated in its Environment, Sustainability, and Community strategy.
“We are dedicated to meeting our carbon reduction targets by 2030 and have adjusted our Net Zero Carbon target to align with the Science Based Targets initiative,” Hawksworth highlighted. “Through our proactive refurbishment programs, we enhance energy efficiency across our portfolio, ensuring our buildings remain desirable and sustainable.”
The firm’s community engagement strategy supports various charities and foundations, focusing on educational and employment opportunities, among other initiatives. This aligns with their vision of being inclusive and beneficial to local communities in Westminster and Camden.
Looking ahead: Continued optimism for the West End
Despite macroeconomic uncertainties, Shaftesbury Capital remains optimistic about the future. The company targets rental growth of 5 to 7%, with an expected total accounting return of 8 to 10% per annum in the medium term.
“Our confidence in the West End’s potential remains unwavering,” Hawksworth concluded. “Continued demand and limited vacancy highlight the strength of our portfolio. With a strong balance sheet and agile operational strategies, we are poised to deliver sustainable, long-term value for our shareholders and communities alike.”
This focus on active asset management, innovative customer engagement, and strategic investment promises ongoing success for Shaftesbury Capital, ensuring it remains a pivotal player in the UK’s real estate sector.