Published
Dec 15, 2020
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Landlord Shaftesbury takes a hit as retail woes continue

Published
Dec 15, 2020

West End and Covent Garden landlord Shaftesbury reported a full-year loss on Tuesday as the Covid crisis dented both its rental income and the value of its portfolio.


Carnaby Street - Image: Public domain


In the year to September, its net loss was £699.5 million, a giant plunge after it had reported a profit of £26 million a year earlier.

Net income from property fell 24% to £74.3 million as like-for-like rental income fell 3.5% and it booked one-off charges for expected credit losses and impairments of £21.9 million.

It could be bad news for the new year financial year too as it expects Covid control measure to be in place for a big chunk of the period.

But the company has enough cash to see it through after a £300 million fundraise in October.

There are fears in some quarters that the after-effects of the pandemic could also dent London landlords beyond 2021 as property values stay depressed and the large number of distressed retailers means CVAs and administration filings will still be a major feature of the retail landscape.

However, the firm said it’s “confident the West End and Shaftesbury's portfolio will return to long-term prosperity and growth as the current global and local pandemic disruption recedes.”

For now though, the company remains under heavy pressure as it’s continuing to provide operational and tailored financial support for occupiers in the form of rent waivers, drawing on rental deposits, payment plans and lease restructuring.

It has collected only 53% of contracted rent for the six months to 30 September with 34% deferred or waived and 13% outstanding. It also moved permanently to monthly rents in advance for most commercial tenants from October 2020. 

It added that it has "icreased collaboration with neighbouring estates and stakeholders on operational matters and marketing to encourage visitors to return to the West End when safe to do so”.

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