West End real estate owner Shaftesbury said occupancy and footfall continued to rebound from the Covid pandemic, but warned that its portfolio valuation fell in the second half due to the worsening economic outlook.
The company, which operates properties in London’s famous shopping and theatre district, valued its portfolio at £3.2bn in the six months to September – a fall of 3.6%.
Available-to-let vacancy fell to 2.4%, from 2.6% in March. Shaftesbury said it had seen strong domestic footfall and a rebound in international visitors in its first summer without coronavirus-related restrictions.
“Valuers have reported an outward shift in commercial valuation yields, due to the impact on investment market sentiment of globally-rising finance rates and the deterioration in the macroeconomic outlook,” the company said in a trading update.
“This has been partially offset by the continuing strong operational performance of our portfolio which reflects its exceptional qualities, appeal and long-term resilience.”
Reporting by Frank Prenesti for Sharecast.com
