Footfall and tenant demand keeps Shaftesbury strong

West End-focussed property investment company Shaftesbury posted a trading update for the period from 1 October to 10 February on Friday, reporting “good footfall and trading” over the festive period.

The FTSE 250 firm said continuing low vacancy reflected sustained tenant demand, and leasing activity was in line with the board’s expectations.

During the period, the board said it made “good progress” with its schemes, and announced acquisitions totalling £9.7m.

EPRA vacancy stood at £3.2m on 31 December, or 2.4% of total estimated recovery value - widening from 1.6% of ERV on 30 September.

Space held for, or under, refurbishment stood at £12.5m, or 9.7% of total ERV - down from 11% at the end of September.

“Although longer-term political uncertainties continue, in recent months confidence in the medium-term prospects for the UK economy has stabilised and domestic consumer spending has been resilient,” the board said in a statement.

It said the West End, with its advantage of world-class visitor attractions and an unrivalled choice of restaurants, cafés, bars and shops, continued to attract ever-growing numbers of international visitors who were currently benefitting from advantageous currency exchange rates.

“These factors have contributed to good footfall and increased trading volumes across our locations over the traditionally busy festive period, and into January.”

Shaftesbury said with its “exceptional” visitor economy and diverse employment base, the long-term outlook for footfall and spending in the West End remained positive, and underpinned continuing good demand for accommodation in the company’s “carefully curated, popular” locations.

“Throughout the period, vacancy rates in our portfolio have remained low, available space has attracted considerable interest and leasing activity has continued to meet our expectations.”