Uk’s Shaftesbury Posts Wider Half-year Loss as Pandemic Pummels Retail

Commercial property firms heavily exposed to non-essential retailers are among the worst hit in the UK real-estate sector, fighting steep valuation deficits and reduced footfall, as rental income dwindled due to strict COVID-19 restrictions.

The London-based real estate investment trust, which owns a 16-acre portfolio in the heart of the city’s West End, said loss after tax for the six months ended March 31 came in at 338.5 million pounds ($479.89 million), compared with a loss of 287.6 million pounds a year earlier.

The FTSE 250 company said its EPRA net tangible assets (NTA) – a per-share measure that reflects the value of its buildings – plunged 21.5% to 5.83 pounds, and valuation of its wholly-owned portfolio declined 10.1% to 2.8 billion pounds.

Last week, pubs and restaurants reopened their indoor areas, and cinemas and hotels returned to operation, after non-essential retail premises were thrown open mid-April – all as a part of the UK government’s phased-exit plan from restrictions.

“Since the start of the re-opening on April 12, we are seeing an encouraging increase in demand for space and lettings and a return of footfall and spending across our locations,” Chief Executive Officer Brian Bickell said.

Last week, commercial property firms Land Securities Group and Great Portland Estates reported hefty annual losses, mainly hurt by weak performance of their retail portfolio.

($1 = 0.7054 pounds)

(Reporting by Aby Jose Koilparambil in Bengaluru, Editing by Sherry Jacob-Phillips)