Shaftesbury Sees Confident Outlook on West End
Shaftesbury, one of the largest real estate firms in the United Kingdom, has raised their dividend and is continuing to be confident about their outlook, even though their adjusted net asset value dropped 25% during the downturn. They own around 1,000 properties in the West End business and retail district of London, and said on Wednesday the tenant demand for their restaurants, apartments, and shops is still strong.
John Manser, the Chairman of Shaftesbury, said that the economy of the West End, along with their portfolio, has been resilient. By September 30th, the company’s net asset value dropped to 482 pence a share, according to the group. They declared an 11 pence a share full-year dividend, which is 44% higher than last year. Also, Shaftesbury’s profits before tax increased to £15.3 million by 20%.
The Chairman said that rental income was still growing amid the ongoing United Kingdom gloom, and he anticipates that the portfolio of the company will grow with acquisitions while property valuations drop because of the financial crisis. He said that this represents an opportunity for them to use their deep knowledge of the market to add property to their portfolio. Manser added that even though it isn’t possible to know how long the downturn of the economy will last, Shaftesbury is remaining confident that they will emerge from the gloom strongly when it’s finally over.
Shaftesbury owns properties mainly around Covent Garden, China Town, and Carnaby Street. Carnaby turned out to be their estate’s worst performer, dropping by 17%, whereas Chinatown proved to be the most resilient, falling only by 11%.
Get more information at: www.shaftesbury.org
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