West End Property Surge
Shaftesbury Capital Posts Strong H1 2026 Results Driven by West End Asset Performance
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Key Points
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For the half-year ended 30 June 2026, Shaftesbury Capital reported sales of £122.7 million and net income of £193.8 million, with basic and diluted EPS from continuing operations of £0.106.
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226 leasing transactions were completed, with contracted rent 18% above previous passing rents and 5% above December 2025 ERV, contributing to a 3.4% uplift in the portfolio valuation.
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H1 saw a total property return of 5.0% and a total accounting return of 4.9%, with EPRA NTA per share of 223p and ERV up 3.8% to £281 million.
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Capital expenditure in the period totalled £31.2 million, with acquisitions and disposal of non-core assets totalling £64.7 million.
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The Covent Garden partnership secured a new £300 million unsecured revolving credit facility with a five-year maturity and two one-year extension options.
Shaftesbury Capital posted a 32% jump in pretax profit to £228.1 million for the first half of 2026, driven by strong leasing activity and rising property values across its London West End portfolio, according to Market Screener. The real estate investment trust completed 226 leasing deals, with rents landing 18% above previous levels and 5% ahead of its own December 2025 estimates.
Underlying earnings rose 8% to £44.0 million, or 2.4 pence per share, Sharecast reported. The board lifted the interim dividend 16% to 2.2 pence per share, signalling confidence in the group's outlook.
Property Values Rise as West End Demand Stays Strong
The group's portfolio climbed 3.4% in value on a like-for-like basis to £5.6 billion. Estimated rental value, a key measure of what the portfolio could earn at full occupancy, rose 3.8% to £281 million, according to Market Screener. Total property return for the half came in at 5.0%.
Occupancy remained tight, with only 2.6% of estimated rental value available to let. Strong footfall and retail sales growth across Carnaby Street, Covent Garden, and Chinatown helped underpin demand. EPRA net tangible assets per share — a measure of the company's book value — stood at 223 pence.
226 Leasing Deals Beat Targets Across the Board
The 226 leasing transactions completed in H1 2026 were the engine of the results. Contracted rents on those deals came in 18% above previous passing rents — the rents tenants were already paying — and 5% above December 2025 estimated rental value targets. That outperformance directly drove the 3.4% portfolio valuation uplift, according to LSE.
Capital expenditure in the period totalled £31.2 million. The group also completed acquisitions and disposals of non-core assets worth £64.7 million in total. These moves reflect management's ongoing effort to sharpen the portfolio around its core West End locations.
New £300 Million Credit Line Boosts Covent Garden Partnership
The Covent Garden partnership secured a new £300 million unsecured revolving credit facility. The deal carries a five-year maturity with two one-year extension options built in, according to Market Screener. An unsecured facility means the loan is not tied to specific properties, giving the partnership more financial flexibility.
Group-level finances also look solid. EPRA loan-to-value — the ratio of debt to property value — sits at around 16%, a low level that leaves room to borrow more if needed. The group reported a net margin of 141.28% and a return on equity of 8.78%, according to Ticker Report.
Management Eyes Further Growth After Strong First Half
Shaftesbury Capital's profit attributable to owners rose to £193.8 million from £151.6 million a year earlier, Sharecast reported. Basic and diluted earnings per share from continuing operations hit £0.106, with total revenue reaching £122.7 million for the half.
Management said it remains confident in hitting medium-term targets and is actively looking at expansion opportunities. The West End's mix of tourism, retail, and food and beverage continues to attract strong tenant demand. With occupancy near full and rents rising, the group heads into the second half of 2026 in a strong position.
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