West End property investor Shaftesbury (SHB) gained 1% to 627.5p as it posted a reassuring update.
This revealed falling vacancy rates and improved rental collection, amid a recovery in footfall following an easing of lockdowns.
In a trading statement for the period between 1 April and 20 August, the company said its available-to-let vacancy rate had fallen to 4.6% at the end of July and 4.1% by 13 August.
That compared to a rate of 8.4% at the end of March.
As for rental collection, it stood at 49% for the three months to December 2020, with 78% of rent billed, and 40% for the three months through March 2021, with 77% of rent billed.
For the three months through June 2021, 51% of of contracted rent had been collected, with 73% billed, and for the month of July, 55% had been collected, with 62% billed.
Shaftesbury said it was confident that further collections would be made over the coming months.
Chief executive Brian Bickell commented: ‘The momentum of the last four months is providing a sound platform for the continuing revival of the West End in the important months ahead, leading up to Christmas and into the New Year, and the prospects for a return to pre-pandemic patterns of life and activity.’
Jefferies commented: ‘West End footfall is back up to 50%-60% of pre-pandemic levels (Londoners, domestic day-trippers, and staycationers replacing international tourists) and office working anticipated from autumn with Assemble, Shaftesbury's fully fitted option, popular with small businesses.
‘Shaftesbury hospitality and leisure occupiers continue to enjoy a strong recovery and retailers are seeing improving trade, particularly at weekends.
‘Occupier interest in shops includes online retailers looking for physical space. Liquidity at 30 June 2021 was £330.7 million with a £135 million term-loan interest cover covenant waiver extension from July 2021 to January 2022.’
