Shaftesbury Capital AGM trading update: a strong start for West End property in 2026
Shaftesbury Capital has used its AGM trading update to say 2026 has started well. For retail investors, the headline is simple: demand for its West End space remains strong, occupancy is high, and new deals are being signed at rents above both market expectations and previous levels.
That matters because Shaftesbury Capital is a REIT – a real estate investment trust – focused on some of the busiest parts of central London, including Covent Garden, Carnaby, Soho and Chinatown. If those areas are attracting retailers, restaurants and leisure operators willing to pay more, that is usually a very healthy sign for future rental income.
Key numbers from the Shaftesbury Capital trading update
| Metric | Figure | Why it matters |
|---|---|---|
| Leasing transactions completed year to date | 151 | Shows strong activity across the portfolio |
| New contracted rent | £13.7 million | Fresh rental income being locked in |
| Against December 2025 ERV | 5% ahead | ERV means estimated rental value – a benchmark for expected rent |
| Against previous passing rents | 18% ahead | Passing rent means the rent tenants were already paying |
| ERV available to let | 2.5% | Very little vacant space across the estate |
| Additional ERV under offer | 1.2% | Space likely to be leased soon, if deals complete |
| ERV under refurbishment | £12.3 million | Future rental growth potential from improved space |
| Refurbishment area | 149,000 square feet | Meaningful asset management pipeline |
| Capital expenditure and targeted acquisitions year to date | £16 million | Management is still investing for growth |
| Undrawn bank facilities | £0.7 billion | Plenty of liquidity available if needed |
| Loan to value | 17% | A low debt level relative to property assets |
| Net debt | £0.8 billion | Debt remains manageable against the size of the portfolio |
Shaftesbury Capital leasing performance beats market rents in early 2026
The standout figure here is the £13.7 million of new contracted rent from 151 leasing transactions. Better still, those deals were struck 5% ahead of December 2025 ERV and 18% ahead of previous passing rents.
In plain English, Shaftesbury Capital is not just filling space – it is doing so at better rents than the assets were previously earning, and ahead of estimated market rental values. That is exactly what investors want to see from a landlord with premium assets.
The occupancy side looks strong too. Only 2.5% of ERV is available to let, with another 1.2% under offer. That suggests the portfolio is close to full, and there is still a live pipeline of potential deals behind the numbers already announced.
For a property company, high occupancy and rising rents are a powerful combination. It supports income growth now and can help with asset values over time, although this update does not disclose any fresh valuation figures.
Covent Garden, Carnaby Street and Chinatown show healthy tenant demand
The company has given a useful roll call of tenants and concepts coming into its West End estate. That is more than just marketing gloss. The type and quality of tenants signing up tell you a lot about how attractive these locations are.
Covent Garden leasing update points to premium positioning
Covent Garden continues to look like a real engine room. Recent transactions include a lease renewal for Tiffany & Co. on James Street, plus new names including Covent Garden Market Bar and INITIO Parfums Privés in the Market Building.
The company also highlighted Burro in Floral Court and a growing premium retail line-up in Seven Dials, including Code8 Beauty, Percival, MONC and Islander. The theme is pretty clear: management is attracting higher-end and distinctive brands, which fits the premium nature of the estate.
Carnaby Street evolution brings new concepts and first stores
Carnaby Street is being actively reshaped, with seven new concepts introduced this year. These include Edikted’s first store outside the US, Sephora’s new boutique format and first West End store this summer, a debut UK location for Kookaï, K-Way, and an upsized store for Subdued.
There is also more food and drink activity, with Vagabond Wines due to open on Ganton Street this summer and Padella already open on Kingly Street. That mix matters because a well-balanced estate of retail, leisure and hospitality can create stronger footfall throughout the day.
Chinatown is fully occupied – that is hard to argue with
Chinatown is fully occupied, which is one of the strongest statements in the whole update. New additions include POP MART’s largest London store on Charing Cross Road, while Darjeeling Express is upsizing into a larger restaurant on Rupert Street.
When tenants are expanding within an estate, that is often one of the clearest signs that the location is working for them commercially. It is not just new demand – it is existing demand deepening.
Balance sheet strength gives Shaftesbury Capital room to invest
The other big positive is the balance sheet. Shaftesbury Capital says it has £0.7 billion of undrawn bank facilities, loan to value of 17%, and net debt of £0.8 billion on a proportionally consolidated basis.
Loan to value is a simple but important metric in property. It measures debt against the value of the assets. At 17%, the group looks conservatively financed, which is useful in uncertain markets and gives management flexibility to keep investing.
That flexibility is already being used. The company has invested £16 million year to date in capital expenditure and targeted acquisitions, while £12.3 million of ERV across 149,000 square feet is under refurbishment, representing 4.6% of portfolio ERV.
There is another reassuring point here too: the £275 million exchangeable bond was repaid on maturity in March 2026 using existing cash resources. That removes a refinancing event and shows the business had enough cash on hand to deal with it.
What is positive, what is less positive, and what investors should watch next
The bullish case for Shaftesbury Capital shares
- Leasing momentum is strong, with 151 transactions completed.
- New rents are being signed above both ERV and previous passing rents.
- Vacancy is low, with just 2.5% of ERV available to let.
- Prime West End destinations appear to be attracting premium and growing brands.
- The balance sheet looks strong, with low loan to value and substantial undrawn facilities.
Put simply, this is the kind of update that supports the idea that prime London assets still have pricing power. In a shaky wider backdrop, that resilience stands out.
The caution points investors should not ignore
- The company itself mentions an uncertain geopolitical backdrop.
- This is a short trading update covering 1 January to 30 April 2026 only.
- The figures are unaudited.
- No updated property valuation, earnings, dividend or net asset value figures are disclosed here.
- Refurbishment and acquisition spending needs to translate into sustained returns over time.
So yes, the tone is upbeat, but this is not a full set of results. Investors still need future updates to confirm whether this leasing strength feeds through into higher earnings and asset values.
My view on the Shaftesbury Capital AGM update
I think this is a good update, and more importantly, a credible one. The company is not relying on vague language – it has backed up the positivity with hard leasing numbers, very low availability, and a balance sheet that looks in good shape.
The strongest signal for me is the combination of premium locations, high occupancy and rents signed ahead of expectations. That suggests Shaftesbury Capital still has genuine pricing power in the West End, which is a valuable thing to own.
The main thing missing is a fresh read on valuations and earnings impact. Until that arrives, this remains a strong trading statement rather than a full proof of accelerating financial performance. Even so, as AGM updates go, this one reads well.
For retail investors, the takeaway is straightforward: Shaftesbury Capital looks to have started 2026 with momentum, and its prime London estate still appears to be in demand.
