Shaftesbury profits lower on asset revaluations; EPRA earnings up

West-end property owner Shaftesbury on Tuesday reported a fall in full year pre-tax profits due to an asset revaluation deficit, although underlying earnings were higher on increased rental income.

Pre-tax profit slumped dropped to £26m from £175.5m a year earlier, the company said. EPRA earnings were up 5.6% to £54.6m, while net property income rose 4.5% to £98.0m.

Shaftesbury declared a final dividend of 9p a share, up 5.9% for an annual payout of 17.7p, up 5.4%.

Net property income rose 4.5% to £98m, while revenue was up 3.9% to £126.9m.

EPRA net asset value fell 0.9% to £9.82 per share. The company's portfolio value increased 1.3% to £4bn.

Chief executive Brian Bickell said Brexit uncertainties and the political impasse in parliament were “weighing on UK business and consumer confidence, resulting in low levels of growth and investment nationally”.

“At the same time, trends in consumer spending patterns and structural changes in traditional, national retailing, resulting from developments in technology and logistics, continue to have a significant impact on retailers' space requirements and their appetite to take on new commitments,” he said.

Bickell said the mood of uncertainty “may yet take some time to improve”, adding that current forecasts for the national economy “do not show any sign of return to confidence and optimism amongst businesses and consumers”.

“The structural changes facing national retail are unlikely to abate, tempering retailer demand for space other than in the busiest locations.”