Our interim year results for 2016 were announced at 9am on Thursday 18th August 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. 

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CAPITAL & REGIONAL DELIVERS STRONG OPERATING PROFIT GROWTH

Capital & Regional plc (LSE: CAL), the UK focused specialist REIT with a portfolio of dominant in-town community shopping centres, today announces its half year results to 30 June 2016.

Highlights

Financial

• 16% increase in Operating Profit¹ to £13.7 million (June 2015: £11.8 million).

• Profit for the period of £7.2 million (June 2015: £57.0 million) as a result of a £42.7 million revaluation gain in H1 2015 compared to a £10.3 million fall in this period primarily due to the 1% increase in SDLT.

• Interim dividend increased by 8% to 1.62p per share (June 2015: 1.50p per share).

• EPRA NAV per share unchanged at 71p (December 2015: 71p).

• See-through net debt to property value² of 45% (June 2015: 43%, December 2015: 41%) following the Hemel Hempstead acquisitions and cash investment into capex.

Operational

• Transformation of The Buttermarket Centre, Ipswich nearing completion delivering £7.2 million revaluation gain, net of capex, in the period.  87% now let and strong interest in remaining units.

• Acquisition of The Marlows Centre and two adjacent properties in Hemel Hempstead giving substantial control of town centre retail and providing significant opportunity to reposition the combined scheme in this growing London satellite town.

• Advanced plans for re-letting of BHS units with strong new tenants improving the schemes and delivering uplift to previous passing rent.

• Continued momentum from capex investment programme with completion of extensive new entrance works and opening of new gym at Blackburn and £4.7 million Maidstone refurbishment completed.

• Like for like net rental income on wholly-owned portfolio increased by 3.9% to £23.8 million (June 2015: £22.9 million).

• 27 new lettings and 11 lease renewals totalling £3.0 million at combined premium to ERV of 0.7%. 

• Positive leasing momentum since the referendum across the whole portfolio, with 29 permanent new leases or renewals exchanged or completed since 24 June 2016.

• Like-for-like occupancy on wholly-owned portfolio increased to 96.5% (30 June 2015: 96.4%).

• Footfall outperforming the industry benchmark by 1.4% in first six months of the year. Footfall for July up 1.6% year on year.

• Enhanced focus on asset recycling opportunities, including active consideration of unsolicited offer for sale of The Mall, Camberley around current valuation.

¹ As defined in Glossary.
² See-through net debt divided by property valuation.

Hugh Scott-Barrett, Chief Executive, commented:

“This strong set of operational results is reflective of the focus we continue to place on the delivery of our asset management initiatives and it is extremely pleasing to see these starting to bear fruit in the first half of the year. Our letting activity remains robust and, while it is too early to point to any definitive trends, so far we have seen no sign of this abating post the EU referendum. Retail and leisure operators continue to be attracted by the good quality space that we offer at affordable rents in vibrant, high footfall town centre locations which have strong underlying fundamentals. This reinforces our ability to grow income and the dividend, which we have increased by 8% today in anticipation of a positive second half of the year.

“Furthermore, encouragingly, as markets have stabilised in recent weeks we are seeing a number of opportunities to recycle capital on terms which will enable us to crystallise attractive returns and specifically we are actively considering the sale of The Mall, Camberley following an unsolicited offer received around current valuation. Recycling will enable us to take advantage of accretive investment opportunities whilst having due regard to prudent balance sheet management.”

For further information: 

Capital & Regional: Tel:  020 7932 8000

Hugh Scott-Barrett, Chief Executive
Charles Staveley, Group Finance Director

FTI Consulting: Tel: 020 3727 1000

Richard Sunderland
Claire Turvey

Email: Capreg@fticonsulting.com

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.