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(Sharecast News) - Shaftesbury Capital said on Thursday that it had made a positive start to 2026, with strong leasing activity across its prime West End estate and high occupancy despite an uncertain geopolitical backdrop.
The FTSE 250 central London mixed-use REIT said 151 new leases and renewals had completed in the year to date, representing 13.7m of contracted rent in aggregate.
The transactions were 5% ahead of December 2025 estimated rental value and 18% above previous passing rents.
Only 2.5% of portfolio ERV was available to let, with a further 1.2% under offer, reflecting continued demand for space across Shaftesbury Capital's high-footfall destinations.
Chief executive Ian Hawksworth said the company's portfolio was continuing to perform well, supported by "competitive demand" for space and a strong leasing pipeline.
"Shaftesbury Capital has made a positive start to 2026, demonstrating the strength and resilience of our prime West End portfolio," he said.
"Despite an uncertain geopolitical backdrop, our portfolio continues to perform well, with 151 new leases and renewals completed year to date, 5 and 18 per cent ahead of market rents and previous passing rents respectively."
Hawksworth said high occupancy, the leasing pipeline and a "very strong balance sheet" left the group confident of achieving its medium-term targets.
Shaftesbury Capital said momentum continued at Covent Garden, where recent activity included the lease renewal for Tiffany & Co. on James Street, the introduction of Covent Garden Market Bar by Inception Group and fragrance brand INITIO Parfums Privs in the Market Building.
Burro, a new Italian dining concept, had also opened in Floral Court, while Seven Dials had added brands including Code8 Beauty, Percival, MONC and Islander.
The company said it was also progressing plans to evolve Carnaby Street, where seven new concepts had been introduced this year.
They included fashion brand Edikted, which opened its first store outside the US, a new boutique format and first West End store for Sephora due this summer, a debut UK location for Kooka, premium French outerwear brand K-Way and an upsized store for Subdued.
Vagabond Wines was meanwhile set to open a new Soho site on Ganton Street this summer, while Italian restaurant Padella recently opened on Kingly Street.
Chinatown was fully occupied, with additions including POP MART's largest London store on Charing Cross Road and Darjeeling Express upsizing into a larger restaurant on Rupert Street.
Shaftesbury Capital said 12.3m of ERV across 149,000 square feet was under refurbishment, representing 4.6% of portfolio ERV.
It had invested 16m year to date in capital expenditure and targeted acquisitions.
The company said it remained well positioned for growth and investment, with 0.7bn of undrawn bank facilities, loan-to-value of 17% and net debt of 0.8bn on a proportionally consolidated basis.
Its 275m exchangeable bond was repaid at maturity in March using existing cash resources.
At 1024 BST, shares in Shaftesbury Capital were up 0.7% at 129.4p.
Reporting by Josh White for Sharecast.com.
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