2017 Annual Results Announcement
Our 2017 full year results were announced on Thursday 8th March. 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 plc
Full Year Results to 30 December 2017
Capital & Regional plc (LSE: CAL), the UK focused REIT with a portfolio of dominant in-town community shopping centres, today announces its full year results to 30 December 2017.
Income growth driving 7.4% increase in total 2017 dividend
- Adjusted Profit1 up 8.6% to £29.1 million (December 2016: £26.8 million); Adjusted Earnings per Share1 up 7.3% to 4.10p (December 2016: 3.82p)
- IFRS Profit for the period of £22.4 million (December 2016: Loss of £4.4 million)
- Like-for-like2 Net Rental Income up 1.9%
- 79 new lettings and renewals achieved at an average 10.3% 3 premium to previous rents and an 8.4%3 premium to ERV. Passing rent up 3.0% on a like-for-like basis
- Occupancy improved to 97.3% (December 2016: 95.4%)
- Cost efficiencies delivered annual savings of £1.2 million, on track for annualised savings of at least £1.8 million by end of 2018
- 7.4% increase in total dividend to 3.64p per share (December 2016: 3.39p)
Community shopping centre strategy
- Strong progress since launch at Capital Markets Day in December 2017
- Highly successful implementation of Ilford and Maidstone pilot projects – contributed to 0.5% increase in footfall in second half of 2017, significantly outperforming national index at -2.9%
- Positive footfall momentum has continued in 2018, portfolio up 3.1% for two months to end of February 2018 compared to national index at -2.9%
- Strategic asset management masterplans now implemented across portfolio focused on further enhancing and improving our shopping centres’ community offer and trading environments
- Revised Capex plan with opportunities for over 50 projects across the portfolio totalling over £100 million
Robust balance sheet with long term debt security
- Basic and EPRA NAV per share resilient, both at 67p (December 2016: both 68p)
- Group Cost of debt of 3.25% with average debt maturity of 7.3 years4
|Net Rental Income||£51.6m||£50.4m||+£1.2m||+2.4%|
|Adjusted Earnings per share1||4.10p||3.82p||+0.28||+7.3%|
|IFRS Profit/(Loss) for the period||£22.4m||£(4.4)m|
|Total dividend per share||3.64p||3.39p||+0.25p||+7.4%|
|Net Asset Value (NAV) per share||67p||68p||-1p||-1.5%|
|EPRA NAV per share||67p||68p||-1p||-1.5%|
|Group net debt5||£404.0m||£398.1m||+£5.9m||+1.5%|
|Net debt to property value5||46%||46%||-|
All metrics are for wholly-owned portfolio unless otherwise stated.
1 Adjusted Profit and Adjusted Earnings per share are as defined in the Glossary. 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. A reconciliation to the equivalent EPRA and statutory measures is provided in Note 5 to the financial statements.
2 Like-for-like excludes the impact of property purchases and sales on year to year comparatives. Like-for-like footfall also excludes entrances impacted by development work. A reconciliation of like-for-like Net Rental Income to total Net Rental Income for the period is provided in the Financial Review.
3 For lettings and renewals (excluding development deals) with a term of five years or longer and which did not include a turnover element.
4 As at 30 December 2017, assuming exercise of all extension options.
5 December 2016 figures are proforma, adjusted for the refinancing of Mall assets completed on 4 January 2017, Ipswich disposal completed on 17 February 2017 and Ilford acquisition completed on 8 March 2017.
Lawrence Hutchings, Chief Executive, said: “This is another strong set of results that provides me with further confidence in our decision to focus on serving the non-discretionary, value and "needs" based end of consumer demand through our portfolio of community shopping centres. I believe that C&R through our platform, quality portfolio, energy, insight and experience, can redefine and be recognised as the specialist owner/manager, driving strong returns in this high yielding sector. We have confidence that our repositioning programme and rebased affordable occupancy costs allow our retailer customers to trade profitably in these high footfall locations that have proven to be the engine room for their profits.
“The Board has announced a 7.4% increase in total dividend for 2017 and, while fully aware that recent occupier failures present some challenges to short term results, believes that both the momentum we have carried through into 2018 and our strategic asset management masterplans, underpin our objective of delivering annual dividend growth in a range of 5% and 8% over the medium-term.”
For further information:
Capital & Regional: Tel: +44 (0)20 7932 8000
Lawrence Hutchings, Chief Executive
Charles Staveley, Group Finance Director
FTI Consulting: Tel: +44 (0)20 3727 1000