TIDMCAL
RNS Number : 9366N
Capital & Regional plc
24 January 2019
24 January 2019
CAPITAL & REGIONAL PLC ("Capital & Regional" or "the
Company")
UK company number 01399411
LSE share code: CAL
ISIN: GB0001741544
LEI: 21380097W74N9OYF5Z25
Trading Update
Capital & Regional, the convenience and community focused
shopping centre REIT, today announces a trading update for the
second half of 2018.
Commenting on the trading update, CEO Lawrence Hutchings
said:
"We have again delivered a robust performance for the second
half of the year, against a difficult operating environment in the
UK. Our assets are located in some of the highest population growth
areas, principally in London and the South East and benefit from
excellent public transport connectivity. We have achieved positive
operating metrics in leasing, footfall and income and, notably,
these are strongest where we are most progressed in delivering our
"needs" focussed community shopping centres strategy. This is
encouraging and reinforces the quality of our portfolio and
strength of our management platform."
Operational update
-- Group NRI for 2018 is expected to be in line with 2017
despite 20 CVAs and retailer restructurings which have impacted NRI
by approximately GBP1.5 million over the whole year.
-- 87 leasing transactions completed in 2018 at an average
premium of 3.1% to previous passing rent and 1.5% to ERV(1) ,
comprising 42 new lettings and 45 renewals totalling a combined
GBP5.5 million in annual income.
-- Our affordable rents, which average GBP15.00 psf across the
portfolio, and footfall outperformance mean our assets remain
attractive to existing and new occupiers, supporting the
remerchandising of our centres towards more diverse uses including
leisure, 'grab n go' dining and essential non-discretionary
community services.
-- Occupancy increased across the portfolio from 96.9% at 30
June 2018 to 97.0% at 31 December 2018.
-- Footfall across our wholly owned portfolio increased by 0.7%
in the second half of 2018, once again significantly outperforming
the national index, down by 3.7% in the same period, with the
strongest performances at centres where we are most advanced in
delivering our strategy. Footfall for the whole of 2018 increased
by 1.2% on a like-for-like basis across the wholly owned portfolio,
compared to the national index decline of 3.5%.
-- Adjusted Profit(2) for 2018 is expected to be in line with market expectations.
-- We are in ongoing dialogue with Debenhams and are advancing
plans for the right sizing of some stores. Debenhams pays an
average rent of GBP8.65 psf on units in three of the Group's seven
wholly owned assets, a total of circa 340,000 sqft, representing
5.8% of total income.
-- M&S has announced the closure of the Luton store, the
only full line store remaining in our portfolio. We have
demonstrated our ability in remerchandising former department store
space with BHS and are advancing plans for the unit. M&S has 8
years remaining on its lease.
Net Asset Value ("NAV") update
-- The valuation of the wholly owned portfolio, net of GBP11.6
million in capex spend, decreased by 4.5% in the second half of the
year to GBP855.3 million driven by negative sentiment towards
retail assets. While our centres outside London saw a net decrease
of 10.1%, our three London assets increased by 1.1%, driven by
income growth.
-- In total the revaluation loss, including the impact of our
minority stake in the Redditch Joint Venture, which is in the
process of being restructured, and a write down following the final
true-up of deferred consideration on the Ipswich disposal is circa
GBP46 million, equivalent to approximately 6.4p of NAV per share
compared to the last reported NAV per share of 66p as at 30 June
2018.
(1) For lettings and renewals (excluding development deals and
leases impacted by CVA's) with a term of five years or longer and
which did not include a turnover element.
(2) Adjusted Profit incorporates profits from operating
activities and excludes revaluation of properties and financial
instruments, gains or losses on disposal, exceptional items and
other defined terms.
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) prior to its release as part of this
announcement.
- ENDS -
For further information:
Capital & Regional plc 020 7932 8000
Lawrence Hutchings
Stuart Wetherly
FTI Consulting 020 3727 1000
Richard Sunderland
Claire Turvey
Methuselah Tanyanyiwa
capreg@fticonsulting.com
About Capital & Regional plc
Capital & Regional is a UK focused specialist property REIT
with a strong track record of delivering significant value
enhancing retail and leisure asset management opportunities across
its c. GBP1 billion portfolio of in-town, dominant community
shopping centres.
Capital & Regional owns seven shopping centres in Blackburn,
Hemel Hempstead, Ilford, Luton, Maidstone, Walthamstow and Wood
Green. It also has a 20% joint venture interest in the Kingfisher
Centre in Redditch. Capital & Regional manages these assets
through its in-house expert property and asset management
platform.
For further information see www.capreg.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTCKNDKFBKDQDB
(END) Dow Jones Newswires
January 24, 2019 02:00 ET (07:00 GMT)
Capital & Regional (LSE:CAL)
Historical Stock Chart
From Apr 2024 to May 2024
Capital & Regional (LSE:CAL)
Historical Stock Chart
From May 2023 to May 2024