Real investment trust Shaftesbury made a £699.5m loss for the 2020 financial year as a result of the “significant impact” of the pandemic.
The loss comes after Shaftesbury, which owns a 16-acre portfolio in the heart of London’s West End, reported £26m profit for the previous year.
The company saw net property income fall by 24.2 per cent to £74.3m for the year ended 39 September, due to a decrease in rental income and charges for expected credit losses and impairments.
And, the value of Shaftesbury’s portfolio slumped by 18.3 per cent to £3.1bn.
Brian Bickell, chief executive, commented: “Rarely in history has the world seen such widespread disruption to normal patterns of life. Only now are we seeing the first positive signs that conditions will begin to improve in the year ahead.
The pandemic has had a significant impact on our performance, particularly during the second half of the financial year, depriving our hospitality and retail occupiers of footfall and trade and resulting in reduced rent collections, increased vacancy, reduced occupier demand and a fall in property valuations. Our key priority has been, and continues to be, supporting our occupiers through this period of disruption.”
He continued: “Although near-term challenges will be with us throughout 2021, I am confident we are well placed, both financially and operationally, to return to long-term prosperity and growth as the current global and local pandemic disruption recedes into history.”
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