Our 2011 interim results show continued strengthening of our financial position including NAV growth, profit and reduced debt & gearing.

Highlights:

Continued strengthening of financial position

• Strong growth in net assets per share to £0.56 up 12% from 2010 year end, and EPRA net assets per share to £0.63 up 11% from 2010 year end.
• Robust recurring pre-tax profit of £8.8 million in the first half of 2011
• Group share of cash distributions from funds and joint ventures of £5.8 million in the first half of 2011
• Continued degearing with a fall in the group net debt to equity ratio to 24% compared to 29% at 2010 year end and a see-through net debt to property value for the three UK funds of 54% at 30 June 2011
• Out-performance by all three UK funds of their IPD index
• Successful extension of the maturity of the €162.3 million debt in one of the German joint venture portfolios by three years
• Upward trend in net valued rental income for all three UK funds and continued growth in all three UK fund property valuations during the first half of 2011

Impressive operational performance in challenging market conditions 

• Effective asset management delivering 53 new lettings and 31 lease renewals at an average of 4.8% above ERV and 78 rent reviews for an uplift to previous rent of 6.9% across all three UK funds supporting the affordability of our portfolio properties
• Occupancy up year on year by 0.8% to 94.9% across all three UK funds
• Uplift of 2.1% for The Mall footfall for the first 32 weeks of the year and outperformance against the national index demonstrating the well positioned nature of the portfolio
• Attractive and exciting asset management and development pipeline with near term plans for three Junction properties, Waterside Lincoln, Hemel Hempstead, Great Northern and The Mall Walthamstow

Commenting on the results John Clare, Chairman said:
"We have delivered a strong set of results in the first half of this year. Our operational focus remains on boosting income through asset management initiatives. Our strategic focus is on realising value from non-core investments and on reinvesting in our core retail activities in the UK and Germany. The company is well placed to take advantage of any new opportunities without compromising a conservative approach to the management of the balance sheet."