West End landlord Shaftesbury swings to £700m loss
Shaftesbury owns large swathes of the West End, including Carnaby Street
West End landlord Shaftesbury swung to a loss of almost £700m this year as the value of its retail and hospitality properties plummeted due to the coronavirus pandemic.
The figures
Shaftesbury this morning reported a loss after tax of £699.5m, compared to profit of £26m in the previous year, due to revaluation deficits.
Net property income was down 24.2 per cent to £74.3m, due to the consequences of the pandemic including a 3.5 per cent drop in like-for-like rental income and charges for credit losses and impairments of £21.9m.
West End landlord Shaftesbury plunges to £699m loss as virus hits valuations
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15 December 2020 | 07:09am
StockMarketWire.com - London West End real estate investor Shaftesbury swung to a full-year loss after the pandemic hit rental income and prompted a steep downward revaluation of its property portfolio.
Net losses for the year through September amounted to £699.5 million, compared to a profit of £26.0 million year-on-year.
Net property income dropped 24% to £74.3 million owing to a 3.5% like-for-like decrease in rental income and charges for expected credit losses and impairments of £21.9 million.
Shaftesbury did not declare any dividends for the year, in line with previous guidance.
Looking forward, the company said it expected Covid-19 control measures to likely be in place for much of 2021, though with the impact reducing as conditions improved.
Last modified on Tue 15 Dec 2020 17.11 EST
Shaftesbury, one of the biggest landlords in central London, has slumped to a £700m loss after slashing the value of its portfolio, as the West End braces for tougher Covid-19 restrictions.
The company, which owns parts of Chinatown, Soho and Covent Garden, has been hit by the sharp fall in the number of tourists and office workers coming into the capital. It said vacancies at its shops, restaurants and offices had nearly tripled to 10.2% in the year to 30 September. As tenants struggled to pay their rent, Shaftesburyâs net income fell by 24% to £74.3 . It collected only 53% of the rent due in the second half of the year.
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