Shaftesbury upbeat as West End prospers
Shaftesbury issued an upbeat management statement, saying the group had benefited from strong trading in the West End over Christmas and New Year.
Vacant commercial space has fallen 21% in the period from the end of September. Shaftesbury has also seen an increase in demand for its office space and the rental value of vacant office space is now at an historic low.
The group issued a bullish outlook, saying that its portfolio should continue to prosper despite the economic uncertainty. It said that the economy of the West End should continue to flourish, bringing improved tenant demand.
In December the group surprised the market by announcing a 7% rise in the value of its overall portfolio, significantly ahead of the benchmark IPD index. It has proved more resilient than much of the real estate sector, but that is reflected in the shares, which tend to trade on a premium to net asset value. They are up 64% over the last 12 months and investors will want to see evidence of further revaluations in the property market to send them significantly higher. Today, the shares were up 1.6% to 385.7p.