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Shaftesbury Capital (GB:SHC)
LSE:SHC

Shaftesbury Capital (SHC) AI Stock Analysis

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GB

Shaftesbury Capital

(LSE:SHC)

Rating:74Outperform
Price Target:
161.00p
▲(6.98%Upside)
Shaftesbury Capital's overall stock score is driven by strong financial performance and positive technical indicators, supported by strategic corporate events. The stock is fairly valued with a decent dividend yield, and recent partnerships enhance its growth outlook. The primary strengths are its robust financial position and technical momentum, while the main risk is operational volatility.
Positive Factors
Financial performance
The proceeds from the investment will reduce the company's loan-to-value ratio to under 20%, enhancing liquidity to repay the £275m exchangeable bond at maturity.
Investment and valuation
The Norwegian sovereign wealth fund acquired a direct 25% stake in Shaftesbury's Covent Garden estate, validating the estate's valuation at a total of £2.7bn.
Operational results
Strong operational results with the group signing 473 leasing transactions, 9% above estimated rental values.
Negative Factors
Market challenges
Some medium-term headwinds, such as a weaker consumer, could hold back the shares compared to peers.

Shaftesbury Capital (SHC) vs. iShares MSCI United Kingdom ETF (EWC)

Shaftesbury Capital Business Overview & Revenue Model

Company DescriptionShaftesbury Capital PLC (Shaftesbury Capital) is the leading central London mixed-use REIT and is a constituent of the FTSE-250 Index. Our property portfolio, valued at £4.9 billion at June 2023, extends to 2.9 million square feet of lettable space across the most vibrant areas of London's West End. With a diverse mix of restaurants, cafés, bars, shops, residential and offices, our destinations include the high footfall, thriving neighbourhoods of Covent Garden, Carnaby, Soho and Chinatown, together with holdings in Fitzrovia. Our properties are close to the main West End Underground stations and transport hubs for the Elizabeth Line. Shaftesbury Capital shares are listed on the London Stock Exchange (primary) and the Johannesburg Stock Exchange (secondary).
How the Company Makes MoneyShaftesbury Capital generates revenue through rental income from its extensive portfolio of commercial and residential properties. Key revenue streams include lease agreements with retail, office, and residential tenants, and profits from property sales and development projects. The company benefits from strategic partnerships with retailers and businesses that enhance property value and attract premium tenants. Additionally, SHC may engage in joint ventures and partnerships to optimize property development and expansion, further contributing to its earnings.

Shaftesbury Capital Financial Statement Overview

Summary
Shaftesbury Capital shows strong revenue growth and profitability, with a healthy gross profit margin and notable net profit margin. However, operational volatility is suggested by fluctuating EBIT margins and high EBITDA, likely due to non-recurring items. The balance sheet is robust, with moderate ROE and a solid debt-to-equity ratio, indicating financial stability. Cash flow improvements are evident, but alignment with net income could be better.
Income Statement
67
Positive
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
72
Positive
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
63
Positive
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
227.10M198.00M87.60M75.30M72.90M
Gross Profit
167.10M144.80M70.90M42.80M13.40M
EBIT
312.00M35.30M6.10M8.50M11.80M
EBITDA
324.70M818.60M-178.40M73.40M-679.10M
Net Income Common Stockholders
252.10M750.40M-177.10M59.10M26.80M
Balance SheetCash, Cash Equivalents and Short-Term Investments
109.80M208.50M129.90M331.10M365.10M
Total Assets
5.23B5.22B2.35B2.80B2.91B
Total Debt
1.47B1.63B744.40M941.00M1.08B
Net Debt
1.36B1.45B728.90M609.90M715.50M
Total Liabilities
1.56B1.74B789.60M1.01B1.15B
Stockholders Equity
3.67B3.48B1.56B1.79B1.76B
Cash FlowFree Cash Flow
49.40M-17.00M-4.10M-8.80M-78.70M
Operating Cash Flow
51.70M-13.60M7.00M-900.00K-54.80M
Investing Cash Flow
103.20M155.80M7.10M101.00M-250.50M
Financing Cash Flow
-231.10M-71.90M-215.30M-147.60M517.30M

Shaftesbury Capital Technical Analysis

Technical Analysis Sentiment
Positive
Last Price150.50
Price Trends
50DMA
137.04
Positive
100DMA
128.64
Positive
200DMA
131.79
Positive
Market Momentum
MACD
2.86
Positive
RSI
68.56
Neutral
STOCH
72.15
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 150.5 is above the 20-day moving average (MA) of 145.69, above the 50-day MA of 137.04, and above the 200-day MA of 131.79, indicating a bullish trend. The MACD of 2.86 indicates Positive momentum. The RSI at 68.56 is Neutral, neither overbought nor oversold. The STOCH value of 72.15 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
£1.40B4.7613.69%6.35%1.66%11.42%
GBSHC
74
Outperform
£2.89B10.717.05%4.66%12.79%-74.41%
61
Neutral
$2.83B10.870.41%8.09%5.96%-21.24%
$2.64B10.198.06%4.11%
70
Outperform
£288.92M12.395.64%4.30%-8.63%-11.48%
GBGPE
64
Neutral
£1.42B11.596.47%2.85%-2.73%91.05%
47
Neutral
£4.59B11.596.13%7.97%-1.73%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SHC
Shaftesbury Capital
150.50
12.46
9.03%
BYLOF
Big Yellow Group
13.45
-1.11
-7.62%
GB:BOOT
Henry Boot
222.00
24.13
12.19%
GB:GPE
Great Portland Estates plc R.E.I.T.
353.00
16.42
4.88%
GB:LAND
Land Securities Group plc REIT
618.50
37.14
6.39%
GB:SAFE
Safestore Holdings
665.00
-105.72
-13.72%

Shaftesbury Capital Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
BlackRock Increases Stake in Shaftesbury Capital
Neutral
Jun 17, 2025

Shaftesbury Capital PLC, a UK-based company, has announced a change in its major holdings due to an acquisition or disposal of voting rights by BlackRock, Inc., a US-based investment management corporation. As of June 13, 2025, BlackRock’s total voting rights in Shaftesbury Capital increased to 5.82%, up from a previous 5.72%, indicating a slight shift in ownership stakes that could influence the company’s strategic decisions and shareholder dynamics.

The most recent analyst rating on (GB:SHC) stock is a Buy with a £165.00 price target. To see the full list of analyst forecasts on Shaftesbury Capital stock, see the GB:SHC Stock Forecast page.

DividendsBusiness Operations and Strategy
Shaftesbury Capital PLC Announces Dividend Impacting Bond Exchange Properties
Neutral
May 30, 2025

Shaftesbury Capital PLC has announced a final cash dividend of GBP 0.018 per share, impacting its secured exchangeable bonds due in 2026. The dividend has resulted in a capital distribution, leading to changes in the exchange property, which now includes additional cash and shares. This adjustment affects bondholders’ entitlements and reflects the company’s strategic financial management, potentially influencing its market positioning and stakeholder interests.

The most recent analyst rating on (GB:SHC) stock is a Buy with a £165.00 price target. To see the full list of analyst forecasts on Shaftesbury Capital stock, see the GB:SHC Stock Forecast page.

Executive/Board ChangesShareholder MeetingsStock BuybackBusiness Operations and Strategy
Shaftesbury Capital PLC Passes Key Resolutions at 2025 AGM
Neutral
May 22, 2025

Shaftesbury Capital PLC held its 2025 Annual General Meeting, where several resolutions were passed, including the approval of the Directors’ Remuneration Report and the re-election of multiple directors. The meeting also saw the re-appointment of PricewaterhouseCoopers LLP as the company’s auditor and the authorization for the company to purchase its own shares. These resolutions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations by reinforcing trust and continuity in leadership.

The most recent analyst rating on (GB:SHC) stock is a Buy with a £165.00 price target. To see the full list of analyst forecasts on Shaftesbury Capital stock, see the GB:SHC Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Shaftesbury Capital Reports Strong West End Leasing and Strategic Partnership
Positive
May 22, 2025

Shaftesbury Capital PLC reports strong demand and leasing activity in its West End portfolio, with occupancy and leasing 8% ahead of December 2024 ERV, and a 3% increase in annualized rent roll. The company has completed a £2.7 billion partnership with NBIM for the Covent Garden estate, enhancing financial flexibility and growth opportunities. With a robust balance sheet and significant liquidity, Shaftesbury Capital is well-positioned to capitalize on market opportunities, despite macroeconomic uncertainties, aiming for sustained income and value growth for shareholders.

The most recent analyst rating on (GB:SHC) stock is a Buy with a £165.00 price target. To see the full list of analyst forecasts on Shaftesbury Capital stock, see the GB:SHC Stock Forecast page.

Regulatory Filings and Compliance
Shaftesbury Capital Announces Change in Voting Rights
Neutral
May 21, 2025

Shaftesbury Capital PLC, a UK-based company, has announced a change in its voting rights structure following an acquisition or disposal by BlackRock, Inc., a major shareholder. The notification indicates that BlackRock’s total voting rights in Shaftesbury Capital have decreased slightly from 5.89% to 5.72%, which may impact the company’s shareholder dynamics and influence within the market.

The most recent analyst rating on (GB:SHC) stock is a Buy with a £165.00 price target. To see the full list of analyst forecasts on Shaftesbury Capital stock, see the GB:SHC Stock Forecast page.

Dividends
Shaftesbury Capital Announces 2024 Final Cash Dividend Details
Neutral
Apr 10, 2025

Shaftesbury Capital PLC announced the details of its 2024 final cash dividend, set at 1.8 pence per ordinary share, to be paid as a property income distribution. The dividend, subject to shareholder approval, will be paid on May 30, 2025, with an exchange rate of 25.25590 ZAR to 1 GBP for South African shareholders. The announcement outlines the tax implications for UK and South African shareholders, including withholding tax details and potential exemptions. This move underscores the company’s commitment to providing returns to its shareholders while navigating complex tax regulations across different jurisdictions.

Regulatory Filings and Compliance
Shaftesbury Capital Director Increases Shareholding
Positive
Apr 1, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Shaftesbury Capital Forms Strategic Partnership with Norges Bank
Positive
Apr 1, 2025

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.

Regulatory Filings and Compliance
Shaftesbury Capital Director Increases Shareholding
Positive
Mar 31, 2025

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.

Executive/Board Changes
Shaftesbury Capital’s Richard Akers to Lead Ibstock plc
Neutral
Mar 25, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Shaftesbury Capital Forms Strategic Partnership with Norges Bank
Positive
Mar 20, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Shaftesbury Capital in Talks for Covent Garden Partnership
Neutral
Mar 19, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.