Shaftesbury Capital PLC on Wednesday hiked its interim dividend, as leasing remained strong, though half-year profit reflected a huge one-time gain a year before.

The real estate investment trust was formed from the merger of Capital & Counties Properties PLC and Shaftesbury PLC. Shares were up 1.9% to 154.70 pence in London early Wednesday. They were up 1.6% to R 36.08 in Johannesburg.

For the first half of 2024, pretax profit dropped to £86.3 million from £799.1 million a year earlier. Shaftesbury Capital had booked a gain on bargain purchase of £803.7 million in the first six months of 2023 but recorded no such gain this year.

Revenue rose 35% to £111.2 million from £82.4 million, lifted by strong leasing demand across all uses.

‘There has been strong performance and progress in the first half of 2024, characterised by positive momentum across our portfolio, with strong leasing demand across all uses resulting in rental income growth and an increased property valuation,’ Shaftesbury said.

Benefitting its London properties, it said, consistently high footfall across the West End, together with the Elizabeth line enhancing transport connectivity for visitors, shoppers, workers and tourists, were contributing to sales growth for our retail and hospitality customers.

Shaftesbury lifted its interim dividend to 1.7 pence, up 13% from 1.5p a year before.

Earnings per share down plunged to 4.7p from 54.2p, reflecting bargain gain last year. Headline EPS, which excluded the one-off item, more than doubled to 1.8p from 0.8p.

As at June 30, EPRA net tangible asset per share was 193.4p, up 1.6% from 190.3p at December 31.

Chief Executive Officer Ian Hawksworth said the group is well-positioned to generate rental growth and take advantage of market opportunities.

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