Shaftesbury Capital: HY26 Preview (29 July) - Waitlisted Tenants

Research evidence excerpt

Shaftesbury Capital: HY26 Preview (29 July) - Waitlisted Tenants

UK | REITs

Shaftesbury Capital EquityJulyResearch9, 2026

ESTIMATE CHANGEHY26 Preview (29 July) - Waitlisted Tenants

The £5.4bn W End villages are almost full with just 2.5% of ERV left to let, and RATING BUY

leasing 18% > prior rents with incoming retailers wait-listed. The financing PRICE 138.50p^

metrics are strengthened by the sale of the Lillie Sq JV (a portfolio outlier). PRICE TARGET | % TO PT 176.00p | +27%

The acquisition facility was fully repaid, removing refi risk, with activity 52W HIGH-LOW 163p - 124p

focused on piecemeal ownership consolidation, organic rental growth, with FLOAT (%) | ADV MM (USD) 104.1% | 6.09

low risk/lite touch refurbishment. We maintain a Buy rec and 176p PT. MARKET CAP £2.6B | $3.4B

TICKER SHC LN

The Lillie Sq 50% JV (Ex 2) was sold to London Sq, with SHC's FY25 LTV 17%, ND/EBITDA 6.6x. ^Prior trading day's closing price unless otherwise noted.

The value of SHC's stake in the Lillie Sq JV was £62.3m, down 4.6% YoY at the FY25 results.

SHC's £275m exchangeable bond was also repaid, removing refinancing risk. Development is

low at c. 149k sq ft of refurbishments with the investment market active, but without material FY (Dec) CHANGE TO JEFe JEF vs CONS

acquisitions. 94% of the portfolio is EPC A-C rated. 2026 2027 2026 2027

EPS -4% -4% -4% -4%

To April 2026, SHC added £13.7m of rent, 5% > Dec-25 ERV and 18% > prior rents, the acid

DPS -2% -2% -2% NM

test of successful tenant selection. Recent lettings have seen the incoming retailers double

the prior sales densities, which is proof of the adjacency concept as rationale for the Capco/

2026 (p) 1Half 2Half FY

SHB merger. Covent Garden (CG) has delivered strong rental growth (mid-high-single-digit %)

DPS -- -- 4.30