London's residential property market might be cooling, but the commercial sector is showing no signs of slowing down with landlord Shaftesbury reporting strong growth for the full year.
Shaftesbury's net asset value per share rose 21.9 per cent to £8.69 in the year to September 30, up from £7.13 a year earlier.
Earnings at the FTSE 250-listed landlord, which owns hundreds of properties around Carnaby Street, Covent Garden, Chinatown, and Soho, rose 10.7 per cent to £36.1m, largely driven by like-for-like growth in rental income of 5.5 per cent.
The company also raised its final dividend by 4.9 per cent to 6.925p.
Why it's interesting
Shaftesbury's long-term strategy focuses on retail, restaurants and leisure investment in London's West End, and so far this is good news for investors, with prices in London's commercial property market are soaring.
Earlier this year, commercial property and office rents reached all-time highs across the West End, as well as in midtown and the City.
But there is still growth potential, with the area poised to benefit from £2.45bn boost by 2020 thanks to Crossrail, as thousands more visitors are predicted to pour into central London according to research by the the New West End Company.
What Shaftesbury said
"London's global status continues to attract domestic and international businesses and visitors in unrivalled numbers," Jonathan Lane, chairman at Shaftesbury, said.
"The city is currently experiencing a period of exceptional investment and growth. With forecasts pointing to a rapidly increasing population, more people and businesses are being drawn to its dynamic economy, wide variety of attractions and diverse, cosmopolitan atmosphere."
"The completion of Crossrail in 2018, with its two West End transport hubs at Tottenham Court Road and Bond Street, will bring much-needed additional transport capacity to the London network."
Shaftesbury's focus on the West End property market continues to pay off.