Capital GrowthThe company's capital growth prospects are relatively low, and the portfolio equivalent yield was 4.4% at end-June, which should stabilize around 4.5% but is not expected to provide sufficient headroom for capital growth.
Market SentimentThe UK REIT sector remains out of favour, with share prices of many of the long-standing REITs determined by future interest rate expectations rather than property fundamentals.
Shareholder ReturnsThe equity market has a clear preference for companies with embedded organically produced rental income growth, particularly Student Accommodation and Logistic, but the nature of Shaftesbury's low-yielding rarified portfolio means shareholder returns are largely confined to capital.