Shaftesbury has posted a 7.9% drop in the value of its West End portfolio in half-year results as the impact of the covid-19 lockdown bites.
The company’s portfolio was valued at £3.5bn at 31 March 2019. The fall in value of the portfolio resulted in a 10.6% drop in net asset value (NAV) to 878p per share.
The impact of the covid-19 pandemic on the company is reflected in its earnings. Underlying EPRA earnings was up 5.1% over the six months to £28.7m, however, after covid-19 provisions, this fell to £25.3m.
The group’s loan to value (LTV) increased to 26.7% (September 2019: 23.9%) due to the property valuation deficit. It said it has significant covenant headroom and had agreed interest coverage ratio (ICR) covenant waivers to deal with near-term period of lower rent collections.
Covid-19 update
The company said it was in discussions with 800 commercial tenants to agree tailored solutions on rents and service charges.
It said it aims to collect 50% of rents from April to September 2020 “over time” and would move permanently to monthly rents for all commercial tenants from October 2020.
SHB : Shaftesbury posts 7.9% drop in portfolio value