● Entry: Consider entering at or near R30 per share, as the price is consolidating around this level.
● Stop Loss: If the price closes below R27.00, downside risk increases, with the next key support at R23.50. To manage risk effectively, set a stop loss to limit potential losses.
● Target: The price target is R37.35 by the end of the investment horizon, representing a 24.5% potential upside from the current price.
1. Strong rental growth & high occupancy:
● Rental demand is increasing across Shaftesbury Capital’s prime London real estate, driving a 3.2% rise in estimated rental value (ERV) to £241.0 million.
● The company signed 217 leasing transactions, with rents averaging 7% above previous valuations.
2. Prime London real estate exposure:
● Shaftesbury Capital owns a £4.8 billion portfolio in high footfall areas like Covent Garden, Carnaby, Soho, and Chinatown, benefiting from strong demand for premium retail, hospitality, and office spaces.
3. Financial strength & dividend growth:
● Underlying earnings per share rose to £0.019, supporting a £0.017 interim dividend.
● The company has a strong balance sheet with £579 million in liquidity.
4. Increased international tourism & foot traffic:
● High levels of tourism in London’s West End and the impact of the Elizabeth Line have increased footfall, boosting retail and hospitality revenues.
The share is moving within a well-defined ascending channel, forming a series of higher highs and higher lows, signaling a strong upward trend. Recently, it tested the lower boundary of the channel near the key support level at R28 and maintained its position above it, affirming support. If the price continues to hold above this level, it could strengthen the bullish momentum, with the next significant resistance to monitor at R38.
1. Economic challenges & interest rates:
Higher interest rates could impact the real estate sector and borrowing costs.
2. Market volatility:
Geopolitical and economic uncertainty in the UK may create fluctuations in property valuations.
3. Regulatory changes:
Potential policy shifts in London's property market could affect rental yields and asset values.
Disclaimer:
*Any opinions, views, analysis or other information provided in this article is provided by BCS Markets SA trading as BROKSTOCK as general market commentary and should not be viewed as advice according to the FAIS Act of 2002. BCS Markets SA does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information provided by third parties. You must rely upon your judgement in all aspects of your investment decisions and all decisions are made at your own risk. BCS Markets SA and any of its employees shall not be responsible for and will not accept any liability for any direct or indirect loss including without limitation any loss of profit which may arise directly or indirectly from use of the market commentary. The content contained within the article is subject to change at any time without notice. BCS Markets SA is an authorised financial services provider FSP No. 51404.
** This article was prepared by BROKSTOCK analyst Maboko Seabi
