Shaftesbury Capital Plc · LSE:SHC
Shaftesbury Capital — FY2024 Earnings Presentation
49 slides from Shaftesbury Capital's earnings presentation, Feb 27, 2025
Slide 1: 2024 Annual Results
2024 Annual Results 27 February 2025 A year of growth
Slide 2: Clear strategy delivering strong results
Clear Strong Delivering Confidence strategy financial rental in our delivering performance income and West End strong and position valuation portfolio results growth
Slide 3: Clear strategy delivering strong results
Clear strategy delivering strong results
Slide 4: Strong performance across the business
Strong performance across the business Growth in earnings, dividends, valuation and NTA • Delivering rental income and valuation growth • Excellent leasing momentum and pipeline • Continued customer sales growth • Converting reversion into contracted income • Active capital rotation, enhancing portf
Slide 5: Clear strategy delivering strong results
Clear strategy delivering strong results Portfolio valuation EPRA NTA per share +4.5% (L-f-L) +5.2% Annualised gross ERV income +8.0% (L-f-L) +7.7% (L-f-L) Underlying earnings Dividend per share per share +16.2% +11.1% 5 2024 Annual Results
Slide 6: Strong financial performance and position
Strong financial performance and position
Slide 7: Growth in underlying earnings and dividends
Growth in underlying earnings and dividends 2024 2023 Underlying income statement £m £m1 Rental income 205.0 179.9 Like-for-like vs pro forma FY 20234: Property costs (37.9) (32.9) • Rental income of +5.7%2 • Property cost savings of 3% Net rental income 167.1 147.0 • Administration cost savings of
Slide 8: Driving rental value and income growth
Driving rental value and income growth +7.7% vs Dec 23 £m 10.1 13.5 250.6 24% 9.3 Income +8.0% vs Dec 23 14.9 Net under reversion rented 202.8 Under EPRA vacancy refurbishment Of which £3.0m Realised on Contracted is under offer, completion and resulting in letting of schemes Realised on available t
Slide 9: Valuation growth resulting in increased NTA per share
Valuation growth resulting in increased NTA per share 2024 2023 Change Change EPRA Balance Sheet £m £m £m % Property portfolio1 4,929 4,760 169 +4.5%3 Investment in joint venture and associate - 83 (83) Net debt (1,405) (1,499) 94 Other 150 136 14 Net assets 3,674 3,480 194 EPRA net tangible assets
Slide 10: Portfolio valuation growth driven by improved ERV
Portfolio valuation growth driven by Main areas of wholly-owned valuation movements improved ERV £m 314 5 4,974 Valuation +4.5% L-f-L to £5.0bn (140) • +7.7% L-f-L ERV growth to £251m 4,795 • +13bps L-f-L movement to 4.45% equivalent yield (H1 2024 +9bps; H2 2024 +4bps ) • 4.6% equivalent yield for
Slide 11: Strong balance sheet and debt metrics
Strong balance sheet and debt metrics Access to substantial liquidity • Well-positioned to act on market opportunities • Modest capital commitments of £24m £1.4bn £560m Diversified debt profile • Weighted average maturity of drawn debt of 4.6 Net debt Liquidity years 3.7% 10.9x Access to a broad ran
Slide 12: Diversified debt profile and sources of funding
Diversified debt profile and sources of funding Active year: Debt maturity profile • Completion of new 5-year £m unsecured £75m term loan • Repayment of £95m maturing private placement debt in H2 2024 • Refinancing of the £300 million RCF extending the maturity to September 2028 150 275 • Early exer
Slide 13: Access to significant liquidity
Access to significant liquidity Access to total liquidity £m £560m Includes £95m repayment of private placement debt and repayment of RCF 98.0 67.5 450.0 (61.1) +£136m disposals1 +£94m Longmartin disposal -£132m capex and 185.7 acquisitions (180.3) 109.8 2 Opening Underlying Dividend Capex, acquisit
Slide 14: Delivering rental income and valuation growth
Delivering rental income and valuation growth
Slide 15: Iconic destinations in the heart of London's West End
Iconic destinations in the heart of London’s West End 2.7m sq. ft. c.1,900 c.635 £5.0bn Lettable space1 Lettable units1 Buildings Portfolio value Valuation: +3.7% ERV: +9.1% Valuation: +6.4% ERV: +7.1% Valuation: +3.7% ERV: +4.1% % of portfolio value Covent Garden 53% Carnaby | Soho 32% Chinatown 15
Slide 16: Diverse mixed-use portfolio
Diverse mixed-use portfolio 13% 36% Residential Retail 656 415 Apartments Shops £5.0bn Portfolio valuation +4.5% L-f-L 18% 33% Office F&B 404 394 Office suites Units Percentage of portfolio valuation as at 31 December 2024 16 2024 Annual Results
Slide 17: Strong leasing activity
Strong leasing activity Leasing ahead of ERV and previous passing rents 473 New lettings/ renewals 71 Rent reviews High occupancy £48.7m £18.1m 2.6% +9.1% vs Dec-23 ERV +8.3% vs previous rent ERV available to let +14.4% vs previous rent 17 2024 Annual Results
Slide 18: Strong retail demand
Strong retail demand Retail leasing activity driving 11% ERV growth • Continued customer sales growth 30 retailers upsized or relocated across the portfolio • Increased scale and depth providing opportunity for growth 69 new lettings and renewals: Charlotte Tilbury, Covent Garden Farm Rio, Carnaby S
Slide 19: Significant opportunity to grow rents
Significant opportunity to grow rents Retail ITZA rental tones by street ITZA SHC rental growth £psf outperforming prime West 1,500 End average Dec-23 • Average SHC Zone A rent Dec-24 £530psf • Remains significantly below 1,000 West End average Zone A £1,330psf • Broad range of price points 500 Good
Slide 20: Food & beverage operators attracted to our prime locations
Food & beverage operators +7.2% 33% attracted to our prime locations ERV L-f-L of portfolio growth value £85.0m Continued demand across range of price points 394 £91 • Premium, differentiated concepts Units ERV per sq ft 1.0m sq ft • Accessible, casual dining 24 new openings across the portfolio EL&
Slide 21: High quality office accommodation in vibrant locations
High quality office accommodation in +6.1% 18% £79 404 vibrant locations ERV L-f-L of portfolio ERV Units growth value per sq ft 0.6m sq ft £50.5m High demand for West End prime offices • High amenity value and excellent environmental Selection of 2024 refurbishments credentials • £120 psf rents ach
Slide 22: Residential portfolio, full occupancy
Residential portfolio, full occupancy +1.4% 13% £60 656 ERV L-f-L growth of portfolio ERV Units value per sq ft 0.4m sq ft £24.9m Robust demand across our West End portfolio • Characterful, period buildings with modern specification • Interest from a broad range of customers 298 new lettings and ren
Slide 23: Investing in our portfolio
Investing in our portfolio Refurbishment of The Hide, Kingly Street Investment opportunities across the portfolio • Refurbishments which enhance our assets (£43m capex incurred this year) • 161k sq ft (5.4% of ERV) under refurbishment (47% is pre let) Enhancing the quality of our portfolio £247m £86
Slide 24: Creating sustainable and vibrant places
Creating sustainable and vibrant places Where people enjoy visiting, working and living Commitment to become Net Zero Carbon • Significant reductions by 2030 • Reset our target to 2040 to align with SBTi • Achieved SBTi validation in January 2025 Our aim is to be a leader in sustainable heritage bui
Slide 25: Confidence in our West End portfolio
Confidence in our West End portfolio
Slide 26: Focused on delivering sustained growth and total returns
Focused on delivering sustained growth and total returns Confidence in our West End portfolio • Long-term growth prospects and global appeal Significant growth potential across our portfolio • Strong leasing pipeline and excellent levels of activity Well-positioned to take advantage of market opport
Slide 27: SHAFTESBU Nes =
SHAFTESBU Nes = CAPITAL = Ss ae =
Slide 28: Appendices
Appendices
Slide 29: Delivering on our medium-term priorities
Delivering on our medium-term priorities 1. Deliver growth in rents, earnings and dividends 2. Realise long-term potential of our assets 3. Accelerate cost savings and operating efficiencies 4. Accretive investment into our portfolio 5. Active asset rotation through capital recycling 6. Maintain a s
Slide 30: London's West End: Unrivalled appeal and features
London’s West End Unrivalled appeal and features Global destination • Long-term resilience and global appeal • Wide variety of retail, food and beverage experiences • Unrivalled concentration of entertainment and cultural attractions • Seven days-a-week trading environment High footfall, vibrant loc
Slide 31: Our purpose-led strategy
Our purpose-led strategy Our purpose is investing to create thriving destinations in London’s West End where people enjoy visiting, working and living Our strategy is to deliver long-term income and value Benefitting all growth from our stakeholders and unique portfolio of contributing to the proper
Slide 32: Mixed-use portfolio
Mixed-use portfolio Well-balanced, diverse income streams Valuation Annualised gross income ERV Equivalent yield 11% 10% 13% 36% 36% 36% Dec 2024 17% 20% 18% £5.0bn £202.8m £250.6m 4.45% 33% 36% 34% L-f-L growth +4.5% +8.0% +7.7% +13bps FY FY Valuation growth FY Annualised Gross FY ERV growth FY EY
Slide 33: Significant opportunity to grow rents
Significant opportunity to grow rents Retail ITZA rental tones by street Average ZA SHC rents Average SHC Zone A retail significantly below prime West Broad range of price points rents £530psf End average £1,330psf £300 £270 £200 £220 £280 Covent Garden £400 £1,200 £525 £460 £330 £750 £450 Carnaby |
Slide 34: Portfolio summary by use
Portfolio summary by use Retail Food & Offices Commercial Residential Total beverage 36% 33% 18% 87% 13% 100%1 Valuation (£m)2 1,784.2 1,664.8 877.9 4,326.9 644.7 4,971.6 Annualised gross income (£m) 73.2 73.0 33.6 179.8 23.0 202.8 ERV (£m) 90.2 85.0 50.5 225.7 24.9 250.6 ERV psf (£) 126 91 79 98 60
Slide 35: Portfolio summary by destination
Portfolio summary by destination Covent Garden Carnaby | Soho Chinatown Fitzrovia Total 53% 32% 15% 0% 100%1 Valuation (£m)2 2,652.7 1,597.1 716.3 5.5 4,971.6 Annualised gross income (£m) 104.3 66.2 32.0 0.3 202.8 ERV (£m) 134.0 81.9 34.4 0.3 250.6 ERV psf (£) 96 92 81 58 92 Net initial yield 3.6% 3
Slide 36: Portfolio leasing summary by use
Portfolio leasing summary by use Retail Food & Offices Residential Total beverage 36% 33% 18% 13% 100%1 2024 transactions 69 39 67 298 473 New contracted rent (£m) 14.5 8.2 14.8 11.2 48.7 % above Dec 23 ERV 9.3% 14.8% 9.8% 4.2% 9.1% % above previous passing rent 20.2% 19.3% 13.2% 7.1% 14.4% H2 2024
Slide 37: Portfolio leasing summary by destination
Portfolio leasing summary by destination Covent Carnaby | Chinatown Fitzrovia Total Garden Soho 53% 32% 15% 0% 100%1 2024 transactions 219 163 87 4 473 New contracted rent (£m) 23.5 19.7 5.3 0.2 48.7 % above Dec 23 ERV 6.4% 11.4% 13.2% 7.4% 9.1% % above previous passing rent 16.3% 11.2% 15.8% 4.4% 1
Slide 38: Available to let, under offer, under refurbishment
Available to let Food & Retail beverage Offices Residential Total1 ERV (£m) 0.8 1.5 3.3 0.7 6.3 % of portfolio (Dec-24) 0.3% 0.6% 1.4% 0.3% 2.6% % of portfolio (Dec-23) 0.6% 0.6% 0.8% 0.1% 2.1% Area (‘000 sq ft) 8 37 39 13 97 1. Includes 12 units let on a temporary basis (ERV £1.5m) (2023: 5 units a
Slide 39: Historical reversionary potential and ERV growth
Historical reversionary potential and ERV growth ERV is +3% ahead of 2019 levels in nominal terms, adjusted for acquisitions and £m disposals 258 252 251 239 237 225 227 221 205 208 203 193 185 187 181 178 175 165 165 156 153 145 143 131 129 122 121 115 108 94 2010 2011 2012 2013 2014 2015 2016 2017
Slide 40: EPRA NTA per share movement
EPRA NTA per share movement 210.0 Pence 4.0p 205.0 10.6p (3.3p) (0.3p) 200.2p 200.0 (1.1p) 195.0 190.3p 190.0 185.0 180.0 December 2023 Gain/(loss) on Underlying Dividends paid FV of debt Other December 2024 revaluation earnings and sale 40 2024 Annual Results
Slide 41: Underlying income statement
Underlying income statement H1 2024 H2 2024 2024 Underlying income statement £m £m £m Rental income 98.8 106.2 205.0 Property costs (18.1) (19.8) (37.9) Net rental income 80.7 86.4 167.1 Administration costs (20.1) (19.3) (39.4) Net finance costs (27.9) (29.3) (57.2) Share of associate profit 1.7 1.
Slide 42: Strong covenant position
Strong covenant position 2024 2023 Loan-to-value £m £m Debt at nominal value 1,514.8 1,684.8 Less: cash1 (109.8) (185.7) Net debt 1,405.0 1,499.1 Total property portfolio at market value 4,973.5 4,795.3 Loan-to-value 28.2% 31.3% EPRA net debt2 1,385.9 1,552.5 EPRA property portfolio2 5,062.8 5,019.3
Slide 43: Debt covenants summary
Debt covenants summary Nominal Average Maturity Test ICR LTV Value interest rate Frequency Covenant Covenant £450m 4.7% 2030: £130m Half yearly 1.35x 65% Aviva term loan 2033: £200m 2035: £120m Canada Life term loan £135m 4.5% 2029 Quarterly 1.4x 60% Exchangeable bond1 £275m 2.0% 2026 - - - £380m 2.
Slide 44: Lillie Square
Lillie Square We own a 50% interest in Lillie Square; all figures represent our 50% share Leasing activity • Over 60 units leased on short-term basis representing £1.9m annual contracted income Valuation • +0.3% increase (like-for-like) to £65.3m (2023: £65.3m) Funding • Cash position £4.9m (2023: £
Slide 45: Our sustainability strategy
Our sustainability strategy Our strategy aims to sustainably add value to our buildings and tackle climate change whilst supporting local communities and our people Our Buildings Our Places Our People Be a leader in the sustainable Behave as a good neighbour and support Support our people by promoti
Slide 46: A sustainable and responsible business
A sustainable and responsible business Benchmarks EPRA sustainability Standing Investments Carbon Disclosure reporting awards Assessment 66/100 Project Gold with 1 Green Star B ISS ESG Corporate Rating MSCI ESG Ratings 2nd Decile BBB Memberships 46 2024 Annual Results
Slide 47: Principal risks
Principal risks • Impact of uncertain interest rate environment and lack of availability or increased cost of debt or equity funding • Inflationary pressures on operating costs, including energy and the cost-of-living • Adverse impact on business and consumer confidence, increased material costs, pr
Slide 48: Important notices
Important notices This presentation contains “forward-looking statements” regarding the belief or current expectations of Shaftesbury Capital PLC, its Directors and other members of its senior management about Shaftesbury Capital PLC’s businesses, financial performance and results of operations. The
Slide 49: Shaftesbury Capital PLC
Shaftesbury Capital PLC Regal House, 14 James Street London, WC2E 8BU T 020 3214 9150 shaftesburycapital.com