Shaftesbury plays down yield prospects

Shaftesbury has played down the prospects for yield improvement despite confidence in its portfolio. John Manser, chairman, acknowledged at the company’s full-year results that the property market generally had continued to recover over the year.

But he expected any further general yield improvement would be modest despite: “good investment demand for secure, well-located properties”. Shaftesbury reported a full-year pre-tax profit of £171.9m compared with a loss last time of £58.1m.

Adjusted diluted net asset value per share grew from £3.35 to £4.14 and the company secured £65.3m of additions to its portfolio during the year.

Manser said the portfolio was prospering, “delivering a growing rental income and long term out-performance in capital value growth”. He reported substantial progress with the company’s St Martin’s Courtyard project. Some 81 percent by rental value of the scheme’s commercial space had been contracted or was under offer at the end of September. Manser expected the project to “make an important contribution” to the companies income from 2011 onwards.