2015 Annual Results
Our full year results for 2015 were announced at 9am on Friday 4th March 2016
Details of the announcement are shown below, and an on-demand version of the webcast will available on the link below shortly after the presentation.
Capital & Regional Delivers Year of Strong Profit and Dividend Growth
Capital & Regional plc, the UK shopping centre focused REIT, today announces its full year results to 30 December 2015 together with the £10.5 million acquisition of a further property in Hemel Hempstead and the selection of Barratt London as the preferred development partner for the proposed extension of The Mall, Walthamstow.
- Operating Profit increased 24% to £24.0 million (December 2014: £19.3 million) benefiting from our ongoing asset management initiatives and the impact of cost synergies from integrating the Mall portfolio.
- Total profit of £100 million (December 2014: £75.2 million) including unrealised valuation gains.
- 228% increase in total dividend for 2015 of 3.12p per share compared to 2014 (0.95p per share) and ahead of previous guidance.
- NAV per share increased by 20% to 72p (December 2014: 60p), reflecting strengthening investment markets but also growth in income and repositioning of our shopping centres.
- See-through net debt to property of 41% (December 2014: 45%).
- Total shareholder return of 29.8% (December 2014: 24.7%).
- Net rental income on our wholly owned Mall portfolio of £47.1 million, reflecting an increase of 7.3%on a like-for-like basis.
- 72 new lettings with rent of £5.4 million at significant premium to ERV.
- Strong occupancy, further improved to 97.1% (December 2014: 96.1%).
- Continued progress on £65 million Mall Capex plan during 2015, including the:
- £3.2 million redevelopment of Ainsworth Mall in Blackburn, with a new gym handed over in Q1 2016.
- Refurbishment of Walthamstow completed (£3 million) and Maidstone (£4 million) due to complete in June 2016.
- New Sports Direct and TK Maxx units open and trading in Walthamstow.
Strong momentum continues into 2016
- Selection of Barratt London as preferred development partner for extension of The Mall Walthamstow to provide 92,000 sq ft of new retail space and over 400 residential units.
- £10.5 million purchase of Edmonds Parade property announced today, which is adjacent to the Marlowes shopping centre that was acquired in February 2016 for £35.5 million and further consolidates dominance of the town centre retail offer.
- Unsolicited offers received for Buttermarket Centre, Ipswich provide potential for realising significant returns on completion of leisure redevelopment work in summer 2016.
Total shareholder return 1
|NAV per share
EPRA NAV per share
|Group net debt3
See-through net debt to property value 3,4
1 Change in share price plus dividends paid. 2014 based on weighted average to reflect 351.1 million new shares issued on 14 July
2 As defined in Note 1 to the financial statements.
3 2014 is proforma adjusted for £42.1 million of German joint venture net proceeds received in February 2015 and £8.9 million of payments due in respect of Mall performance fee and income due to former unit holders.
4 See-through net debt divided by property valuation.
Commenting on the results, John Clare, Chairman said:
“Following the transformational corporate activity undertaken by management in 2014, we are pleased to report today that Capital & Regional has delivered meaningful increases in both operating profits and NAV during its first year as a REIT. We now have a solid platform for growth from which to drive further income from the Company’s portfolio, as the £65 million multi-year Mall asset management programme begins to bear fruit, alongside the exciting opportunities presented at Hemel Hempstead.
“Reflecting our confidence in these growth prospects, the Board is targeting future dividend growth in the range of 5% to 8% per annum in the medium term.”
Hugh Scott-Barrett, CEO added:
“Operationally, this has been an important year for Capital & Regional. We have consolidated and grown our portfolio through progress on the delivery of the Capex programme, and our entrepreneurial approach to acquisitions has enabled us to further showcase the depth of our asset management capabilities. Our centres are trading profitably, benefitting from a range of high profile tenants and an increasing leisure offer, which accounted for 40% of new lettings in 2015.
“The progress on the extension and the selection of Barratt London as preferred development partner is an endorsement of the potential of Walthamstow. While we have a significant project ahead of us, it is one that will transform the scheme and is expected to deliver attractive returns. This allied with the potential of our investments in Hemel Hempstead and identification of additional opportunities within the rest of our portfolio, over and above our existing £65 million plan, provides us with a strong platform for growth to drive further shareholder value.”
For more information
Capital & Regional:
Hugh Scott-Barrett, Chief Executive
Charles Staveley, Group Finance Director
Tel: 020 7932 8000
Tel: 020 3727 1000
Notes to editors:
About Capital & Regional plc
Capital & Regional is a UK focused specialist property REIT with a strong track record of delivering value enhancing retail and leisure asset management opportunities across a c. £1 billion portfolio of in-town dominant community shopping centres. Capital & Regional is listed on the main market of the London Stock Exchange and has a secondary listing on the Johannesburg Stock Exchange.
Capital & Regional owns seven shopping centres in Blackburn, Camberley, Hemel Hempstead, Luton, Maidstone, Walthamstow and Wood Green. It also has a 20% joint venture interest in the Kingfisher Centre in Redditch and a 50% joint venture in the Buttermarket Centre, Ipswich. Capital & Regional manages these
assets, which comprise over 950 retail units and attract over 1.7 million shopping visits each week, through its in-house expert property and asset management platform.
Forward looking statements
This document contains certain statements that are neither reported financial results nor other historical information. These statements are forward-looking in nature and are subject to risks and uncertainties. Actual future results may differ materially from those expressed in or implied by these statements. Many of these risks and uncertainties relate to factors that are beyond the Group’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of government regulators and other risk factors such as the Group’s ability to continue to obtain financing to meet its liquidity needs, changes in the political, social and regulatory framework in which the Group operates or in economic or technological trends or conditions, including inflation and consumer confidence, on a global, regional or national basis. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this document. The Group does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document. Information contained in this document relating to the Group should not be relied upon as a guide to future performance.