West End landlord Shaftesbury swings to £700m loss just as London heads into Tier Three
Landlord Shaftesbury has posted a mammoth loss just as London heads into the tightest Tier Three restrictions.
Shares in the company, whose properties span the capital’s West End and various locations in Covent Garden, fell 2.6 per cent, or 14.5p, to 534.5p after it swung to a £700million pre-tax loss for the year, down from a £26million profit last year.
The value of its commercial properties, used by luxury shops and trendy bars and restaurants, has fallen sharply as custom disappeared during the pandemic.
In total, £698.5million was wiped off the value of Shaftesbury’s estate, taking its value down 18.3 per cent to £3.1billion by September.
Rental income slumped by 24.2 per cent to £74.3million. The second lockdown in to return for six months and the rapid move to online shopping has hit income.
Shaftesbury collected only 53 per cent of the rent owed for the November snuffed out the fragile recovery of August and September, with fewer international tourists visiting.
Commuters are not expected six months to September 30. The collapse has also led to record vacancies as landlords struggle to fill premises when businesses go bust.
The update comes as London moves into Tier Three today, requiring restaurants, pubs and other leisure and hospitality venues to shut their doors to customers.