Shaftesbury plc Company Profile and Market Insights

Shaftesbury plc is a leading property development and investment company, with a significant presence in the UK's West End. It was founded in 1986 by Brian Bickell.

The company's portfolio is primarily focused on the Carnaby and Covent Garden areas, where it owns and manages a diverse range of properties, including historic buildings, retail units, and residential spaces.

Shaftesbury plc has a reputation for preserving and enhancing the unique character of these iconic London districts. Its commitment to sustainability and community engagement is evident in its efforts to reduce carbon emissions and support local businesses.

Shaftesbury's portfolio covers nearly 15 acres in London's West End, with over 600 buildings located near major visitor attractions.

These buildings are mainly clustered in areas like Carnaby Street, Seven Dials, and Chinatown, as well as Covent Garden, Soho, and Charlotte Street.

The company also has a 50% interest in a further 1.9 acres in Covent Garden, held in its Longmartin joint venture.

Shaftesbury's operations are centered in London's West End, where they have a portfolio of nearly 15 acres. This extensive area comprises nearly 600 buildings.

The company's properties are mainly clustered in Carnaby Street, Seven Dials, and Chinatown. They also have significant holdings in east and west Covent Garden, Soho, and Charlotte Street.

A notable aspect of Shaftesbury's operations is their 50% interest in an additional 1.9 acres in Covent Garden, held through their Longmartin joint venture. This partnership has allowed them to expand their presence in the area.

In late 2017, Shaftesbury increased their investment in the Seven Dials area. This move reflects their commitment to growing their operations in this vibrant and popular part of London.

As of 30 September 2022, the company's property interests were independently-valued at £3.1 billion.

The Capital & Counties merger scheme is a significant development in the world of property investment. It involves the merger of Shaftesbury PLC and Capital & Counties Properties PLC to create a London-focused property investor.

The scheme was implemented after the two companies agreed to an all-share merger in June last year. The combined company will be called Shaftesbury Capital PLC.

The merger will create a company with a combined portfolio value of £5.0 billion, and will be one of the largest property investors in London's West End. The combined company will have an exceptional portfolio, located in popular and busy parts of London's vibrant West End.

Shaftesbury shareholders will receive 3.356 CapCo shares for each Shaftesbury share held, valuing Shaftesbury at about £1.96 billion. The deal is expected to be earnings accretive for CapCo shareholders immediately, while for Shaftesbury shareholders, the merger is expected to be modestly earnings dilutive in the first two years after completion.

The last day of dealings in Shaftesbury shares will be Friday, and trading in Shaftesbury shares on the Main Market of the London Stock Exchange will be suspended before markets open on Monday. Existing shareholders in Shaftesbury will own 53% of the combined group, while Capco shareholders will own the rest.

Shaftesbury plc's dividend of 2.81% is not well covered by earnings or free cash flows, making it a potential concern for investors.

The company's shares are also highly illiquid, which can make it difficult to buy or sell them quickly.

A large one-off item is impacting Shaftesbury's financial results, which could affect the company's future earnings.

Here are the key performance metrics for Shaftesbury's shares over the past few years:

When evaluating a company's financial health, it's essential to consider the risks involved. A dividend of 2.81% that's not well covered by earnings or free cash flows is a major red flag.

Highly illiquid shares can make it difficult to buy or sell them, potentially leading to significant losses. This can be especially problematic for investors who need to liquidate their assets quickly.

Large one-off items can significantly impact a company's financial results, making it challenging to get an accurate picture of its overall performance.

The price history of Shaftesbury Capital is a mixed bag. The current share price is UK£1.91, which is the same as the 52-week high.

The 52-week low is significantly lower at UK£1.59. A beta of 1.14 indicates that the stock is more volatile than the market average.

The stock has seen some positive movement in the past year, with a 1-year change of 18.32%. However, the 3-year change is a -13.22% decline.

Here's a summary of the changes in the stock price over different time periods:

The stock has not seen any change in the past month, indicating that the price has been stable recently.

The London property market is a vibrant and bustling hub, with many iconic destinations like Covent Garden, Carnaby Street, and Soho drawing in tourists and locals alike.

A recent merger between Shaftesbury Plc and Capital & Counties Properties Plc has created a £5 billion powerhouse in the West End of London.

The combined group, Shaftesbury Capital Plc, will have an exceptional portfolio of 2.9 million square feet of lettable space in high-profile destinations.

London landlords, including those involved in the merger, are still recovering from the pandemic's impact on non-essential retailers and hospitality firms.

Shaftesbury shareholders will own 53% of the combined group, while Capco shareholders will own the rest.

The merger is expected to be earnings accretive immediately for Capco shareholders, but modestly earnings dilutive for Shaftesbury shareholders in the first two years.

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