Shaftesbury Capital (SHC) AI Stock Analysis

• Market Cap: £2.44B
• Dividend Yield: 2.68%
• Average Volume (3M): 4.30M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.37
• Revenue Growth: 12.79%
• EPS Growth: -74.41%
• Country: UK
• Employees: 98
• Sector: Real Estate
• Sector Strength: 70
• Industry: REIT - Retail
• EPS (TTM): 0.13
• Shares Outstanding: 1,953,178,100
• 10 Day Avg. Volume: 5,213,087
• 30 Day Avg. Volume: 4,304,188
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 10.63
• Price to Cash Flow (P/CF): 36.00
• P/FCF Ratio: 25.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 151.75p
• Price Target Upside: 21.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Shaftesbury Capital benefits from strong financial metrics, positive technical indicators, and strategic corporate actions, such as the partnership with Norges Bank. These factors, combined with its attractive valuation, position the stock favorably for growth.

Positive Factors

Leasing Transactions

Strong operational results with the group signing 473 leasing transactions, 9% above estimated rental values.

Pricing Power

Shaftesbury reported strong pricing power and sees upside potential in absolute terms.

Negative Factors

Consumer Weakness

Some medium-term headwinds, such as a weaker consumer, could hold back the shares compared to peers.

Market Sentiment

The UK REIT sector remains out of favour, with share prices of many of the long-standing REITs determined by future interest rate expectations rather than property fundamentals.

Shaftesbury Capital Business Overview & Revenue Model

Company Description

Shaftesbury Capital (SHC) is a prominent real estate investment company primarily focused on owning, managing, and developing prime commercial properties in key urban areas. The company specializes in retail, hospitality, office, and residential properties, with a particular emphasis on creating vibrant, mixed-use environments that enhance urban living and working experiences. SHC's portfolio is strategically located in some of the most sought-after city locations, aiming to deliver long-term value for its investors and stakeholders.

How the Company Makes Money

Shaftesbury Capital generates revenue primarily through the rental income from its extensive portfolio of commercial properties. The company leases retail, office, and residential spaces to a diverse range of tenants, including retailers, corporate clients, and individuals. Additionally, SHC benefits from property appreciation and value-added activities such as redevelopment and asset enhancement initiatives. By actively managing its properties and optimizing tenant mix, the company aims to maximize occupancy rates and rental yields. Strategic partnerships with local businesses and municipalities further enhance property values and desirability, contributing to SHC's financial performance.

Shaftesbury Capital Financial Statement Overview

Summary

Shaftesbury Capital shows strong revenue growth and profitability metrics, with a solid balance sheet and improved cash flow. However, operational performance is somewhat volatile, and cash generation could better align with net income.

Income Statement

Shaftesbury Capital has shown strong revenue growth with a significant increase from the previous year, indicating a positive trajectory. The gross profit margin is healthy at approximately 73.6%, and the net profit margin for the latest year is notable at 111.0%, reflecting profitability. However, the EBIT margin shows fluctuations, and the EBITDA margin is exceptionally high, possibly due to non-recurring items, suggesting some operational volatility.

Balance Sheet

The company's balance sheet is solid, with a debt-to-equity ratio of 0.40, indicating a reasonable level of leverage. The equity ratio is strong at 70.2%, reflecting financial stability. Return on Equity (ROE) stands at 6.9%, which is moderate but shows the company is generating returns on its investments in equity.

Cash Flow

Shaftesbury Capital's cash flow position shows improvement, with a significant turnaround to positive free cash flow. The operating cash flow to net income ratio is less than optimal, suggesting room for improvement in cash generation relative to accounting profits. The free cash flow to net income ratio indicates that while the company is generating free cash flow, it is not fully aligned with net income levels.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
284.80M	227.10M	198.00M	87.60M	75.30M	72.90M
	Gross Profit
210.75M	167.10M	144.80M	70.90M	42.80M	13.40M
	EBIT
177.05M	312.00M	35.30M	6.10M	8.50M	11.80M
	EBITDA
188.70M	324.70M	818.60M	-178.40M	73.40M	-679.10M
	Net Income Common Stockholders
13.05M	252.10M	750.40M	-177.10M	59.10M	26.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
365.10M	109.80M	208.50M	129.90M	331.10M	365.10M
	Total Assets
2.91B	5.23B	5.22B	2.35B	2.80B	2.91B
	Total Debt
1.08B	1.47B	1.63B	744.40M	941.00M	1.08B
	Net Debt
715.50M	1.36B	1.45B	728.90M	609.90M	715.50M
	Total Liabilities
1.15B	1.56B	1.74B	789.60M	1.01B	1.15B
	Stockholders Equity
1.76B	3.67B	3.48B	1.56B	1.79B	1.76B
Cash Flow		Free Cash Flow
73.80M	49.40M	-17.00M	-4.10M	-8.80M	-78.70M
	Operating Cash Flow
51.00M	51.70M	-13.60M	7.00M	-900.00K	-54.80M
	Investing Cash Flow
148.95M	103.20M	155.80M	7.10M	101.00M	-250.50M
	Financing Cash Flow
-187.80M	-231.10M	-71.90M	-215.30M	-147.60M	517.30M

Shaftesbury Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 125.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SHC, the sentiment is Positive. The current price of 125.3 is above the 20-day moving average (MA) of 120.08, above the 50-day MA of 121.87, and below the 200-day MA of 135.06, indicating a neutral trend. The MACD of 1.19 indicates Negative momentum. The RSI at 59.26 is Neutral, neither overbought nor oversold. The STOCH value of 35.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SHC.

Shaftesbury Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHC	76 Outperform	£2.44B	9.02	7.05%	2.68%	12.79%	-74.41%
SGRO	71 Outperform	£9.34B	15.45	5.18%	4.08%	-9.88%	―
BLND	65 Neutral	£3.69B	20.29	3.17%	6.17%	-30.83%	―
Sector *	61 Neutral	$4.72B	17.64	-3.07%	10.89%	5.99%	-21.86%
LAND	54 Neutral	£4.08B	38.68	1.61%	7.27%	-1.73%	―
HMSO	50 Neutral	£1.23B	―	-2.09%	6.22%	6.08%	―

Shaftesbury Capital Corporate Events

Shaftesbury Capital Director Increases Shareholding

Shaftesbury Capital PLC announced that Sian Westerman, a Non-executive Director, has purchased 15,000 ordinary shares in the company, representing 0.0008% of the issued share capital. This transaction, conducted on the London Stock Exchange, aligns with the UK Market Abuse Regulation requirements, indicating a potential increase in confidence or commitment from the director towards the company’s future prospects.

Shaftesbury Capital Forms Strategic Partnership with Norges Bank

Shaftesbury Capital PLC has finalized a strategic partnership with Norges Bank Investment Management, the Norwegian sovereign wealth fund, involving a 25% non-controlling interest acquisition in the Covent Garden estate. Shaftesbury Capital retains 75% ownership and management control, strengthening its position in the central London property market and potentially enhancing value for stakeholders through this collaboration.

Shaftesbury Capital Director Increases Shareholding

Shaftesbury Capital PLC announced that Madeleine Cosgrave, a Non-executive Director, purchased 40,000 ordinary shares, representing 0.002% of the company’s issued share capital. This transaction, conducted on the London Stock Exchange, aligns with the UK Market Abuse Regulation, ensuring compliance with notification obligations, and reflects a potential vote of confidence in the company’s future prospects.

Shaftesbury Capital’s Richard Akers to Lead Ibstock plc

Shaftesbury Capital PLC has announced that Richard Akers, their Senior Independent Director, will take on a new role as Non-executive Director and Chair Designate at Ibstock plc. This appointment, effective from May 5, 2025, signifies a strategic leadership transition for Ibstock, with Akers assuming the Chair position after the annual general meeting on May 15, 2025.

Shaftesbury Capital Forms Strategic Partnership with Norges Bank

Shaftesbury Capital PLC has announced a strategic partnership with Norges Bank Investment Management, selling a 25% non-controlling interest in the Covent Garden estate for approximately £570 million. This transaction, valuing the estate at £2.7 billion, is expected to enhance Shaftesbury Capital’s financial flexibility, allowing for debt reduction and investment opportunities, while maintaining management control over the estate. The partnership is anticipated to be earnings-enhancing and positions the company for growth in London’s West End.

Shaftesbury Capital in Talks for Covent Garden Partnership

Shaftesbury Capital PLC is in advanced discussions with Norges Bank Investment Management regarding a potential partnership involving the company’s Covent Garden portfolio, valued at £2.7 billion. If finalized, this transaction would see NBIM acquiring a 25% stake, while Shaftesbury Capital retains control and management, positioning the company for future growth and value creation. However, there is no certainty that the transaction will be completed.

Shaftesbury Capital Releases 2024 Annual Report and 2025 AGM Notice

Shaftesbury Capital PLC has released its Annual Report for the year ending December 31, 2024, and the Notice of the 2025 Annual General Meeting. These documents are accessible on the company’s website and have been submitted to the National Storage Mechanism for inspection. The Annual General Meeting is scheduled for May 22, 2025, in London, with specific dates provided for shareholders on the South African register to trade and vote.

Shaftesbury Capital Announces Dividend Impact on Bond Exchange Property

Shaftesbury Capital PLC has announced a final cash dividend of GBP 0.018 per share, scheduled for payment on 30 May 2025. This dividend will result in a Capital Distribution, as it exceeds the Reference Amount for the relevant period, affecting the Exchange Property of their secured exchangeable bonds due in 2026. The company has decided not to issue a Purchase Election Notice, and the adjustment to the Exchange Property will be effective on the same date.

Shaftesbury Capital Reports Robust 2024 Financial Growth Amid High West End Demand

Shaftesbury Capital PLC reported strong financial results for 2024, with significant growth in rental income and property valuation. The company’s West End estates experienced high footfall and customer sales growth, contributing to a 4.5% increase in portfolio valuation and a 16.2% rise in underlying earnings. With a strong balance sheet and significant liquidity, Shaftesbury Capital is well-positioned to capitalize on market opportunities, despite a challenging macro-economic environment. The company has completed numerous leasing transactions and property disposals, reinvesting in acquisitions with promising rental growth prospects. The West End portfolio remains a prime destination for market entry and expansion, benefiting from enhanced transport connectivity and reduced vacancy rates.

Shaftesbury Capital to Announce 2024 Financial Results

Shaftesbury Capital PLC has announced its intention to release its preliminary results for the fiscal year ending December 31, 2024, on February 27, 2025. This announcement sets expectations for stakeholders, providing insights into the company’s financial performance and strategic positioning over the past year.