Shaftesbury Capital raised its interim dividend by 16% following robust leasing activity during the first half of 2026, the company reported. Management completed 226 leasing transactions in the period, generating £23.2m of contracted rent.
Those lettings came in 5% ahead of the company's December 2025 estimated rental value (ERV) and 18% above previous passing rents. Vacancy across the estate remained low at 2.6% of ERV available to let.
Key balance sheet and performance metrics improved in the period. EPRA net tangible assets (NTA) rose 3.9% to 223p per share, producing a 4.9% total accounting return. The portfolio increased 3.4% on a like-for-like basis to a valuation of £5.6bn after the company moved to a single valuer during the half.
Operational earnings also strengthened. Underlying earnings per share climbed 8% to 2.4p, and the interim dividend was increased to 2.2p per share. Market consensus for the full-year 2026 dividend stands at 4.4p.
Rental value growth was broadly distributed across the estate, with Covent Garden and Carnaby both recording 3.9% gains and Chinatown up 3.4%. Carnaby registered a 1.1% like-for-like decline in income in the period, attributable to an office move-out.
The company invested £31.2m in capital expenditure and acquisitions during the half, and disposed of its interest in Lillie Square for £64.7m, a sum described as broadly in line with valuation.
On financing, Shaftesbury secured a new £300m unsecured revolving credit facility. Net debt to EBITDA was reported at 6.4 times, while loan-to-value stood at 16%.
The group received £2m of management fees from Norges for a portion of the Covent Garden portfolio, with management indicating those fees are expected to grow as income and value increase.
Commenting on the company's position, CEO Ian Hawksworth said: "We are well positioned to pursue expansion opportunities and capitalise on market opportunities as they arise."
Implications and context
The combined improvements in letting outcomes, asset values and earnings supported the decision to lift the interim dividend. The new revolving credit facility provides additional liquidity and flexibility for future capital allocation, while the disposal of Lillie Square and the ongoing investments demonstrate active portfolio management.
Summary points
- Shaftesbury completed 226 leasing transactions in H1 2026, securing £23.2m of rent.
- EPRA NTA rose 3.9% to 223p and underlying EPS increased 8% to 2.4p; interim dividend increased to 2.2p.
- Company secured a £300m unsecured revolving credit facility; net debt to EBITDA 6.4x and loan-to-value 16%.
What this affects
The results and actions have direct implications for commercial real estate owners and investors, retail landlords and credit markets providing corporate lending to property companies. Retail and leisure locations within the portfolio are a particular focus given the rental growth reported across Covent Garden, Carnaby and Chinatown.