SENS-AI
SHC Results Bullish

SHAFTESBURY CAPITAL PLC - Audited preliminary results for the year ended 31 December 2025

Shaftesbury Capital PLC
Full analysis

What this filing means

Shaftesbury Capital reported strong operational growth and a significantly deleveraged balance sheet, though JSE-specific earnings metrics and tax complexities for SA investors remain headwinds.

Shaftesbury Capital had a good year, making more money from rent and seeing its property values rise. They also paid off a lot of debt by bringing in a big partner for their Covent Garden properties. While they are paying a higher dividend, South African investors need to be aware that UK taxes might take a bigger bite out of those payments.

Bull case

  • Underlying earnings per share improved by 12% to 4.5 pence, supporting a 14% increase in the annual dividend to 4.0 pence.
  • Portfolio valuation grew 6.6% like-for-like to £5.4 billion, driven by 434 leasing transactions executed 10.3% above previous rental values.
  • Balance sheet strength improved significantly with EPRA LTV falling from 27.4% to 16.8% and net debt reducing to £813.3 million.
  • The completion of the Covent Garden partnership with Norges Bank Investment Management (NBIM) validates asset quality and provides a long-term capital partner.

Bear case

  • JSE Headline Earnings Per Share (HEPS) slightly decreased from 3.4p to 3.3p, divergent from the underlying earnings growth narrative.
  • Rental value growth momentum showed signs of cooling, with like-for-like ERV growth decelerating from 7.7% in 2024 to 6.2% in 2025.
  • The Group's share of the property portfolio value decreased to £4,700.7 million following the 25% stake divestment in the Covent Garden estate to NBIM.
  • Complex tax structures for SA investors, involving a 20% UK withholding tax on Property Income Distributions (PID), create a high friction for net dividend yields.
View original SENS announcement

AI-generated summary by SENS-AI, based on the original JSE SENS filing.

SENS-AI conclusion

Shaftesbury Capital's FY25 results demonstrate high-quality operational execution in London's West End, characterized by double-digit underlying earnings growth and a massive reduction in LTV to 16.8%. While the partnership with NBIM reduces the Group's absolute ownership of Covent Garden, it crystallizes value and provides significant financial optionality. The slight decline in JSE HEPS and the deceleration in ERV growth are minor concerns compared to the overall balance sheet de-risking and robust leasing spreads. Investor Takeaway: With the portfolio trading at a discount to NAV and leverage at conservative levels, the fundamental story remains intact, though SA investors must account for the 20% UK withholding tax on dividends.

Operational turnaround is visible. Maintain core holdings but monitor ERV growth trends for signs of further deceleration in the London retail market.

Evidence from the filing

  • Underlying earnings improved 12 per cent to 4.5 pence per share and dividends increased by 14 per cent to 4.0 pence per share

    “Underlying earnings improved 12 per cent to 4.5 pence per share and dividends increased by 14 per cent to 4.0 pence per share”

  • Portfolio valuation increased by 6.6 per cent like-for-like to £5.4 billion

    “Portfolio valuation increased by 6.6 per cent like-for-like to £5.4 billion, supported by a 6.2 per cent like-for-like increase in ERV to £270 million”

  • EPRA LTV improved from 27.4% to 16.8%

    “EPRA LTV 16.8% 27.4%”

  • Completion of partnership with NBIM

    “Completion of long-term partnership with Norges Bank Investment Management ("NBIM") in respect of the Covent Garden estate”

  • JSE headline earnings per share decreased

    “JSE headline earnings per share 3.3p (31 December 2025) vs 3.4p (31 December 2024)”

  • Like-for-like ERV growth decelerated

    “Like-for-like ERV growth +6.2% (31 December 2025) vs +7.7% (31 December 2024)”

  • Market value of property portfolio (Group share) decreased

    “Market value of property portfolio (Group share) £4,700.7m (31 December 2025) vs £4,973.5m (31 December 2024)”

  • UK withholding tax on PID dividends

    “The proposed 2025 final cash dividend will be paid wholly as a PID and a 20 per cent UK withholding tax is applicable to a PID.”
Category
Results
Published
Feb 25, 2026

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