2018 Full Year Results

Our 2018 Full Year Results have been announced this morning on 14th March 2019.

The results presentation can be viewed live on the webcast link below, and the presentation and press release are also now available for download by clicking the links below.


Lawrence Hutchings, Chief Executive, said: “These operational results clearly support the new strategy we launched just over a year ago that is focused on responding to the structural changes currently underway in the retail sector. The assets where we are most advanced in delivering our strategy have performed very strongly even in a challenging UK macro environment. This is evidenced by our footfall figures and our 87 new lettings and renewals which have on average been secured at premiums to both previous rents and ERV, while remaining at rent levels that are cost effective for occupiers.

“We have seen an increase in the pace of the structural change that is underway in the retail sector and this requires us to continue our proactivity, with a focus on the repositioning and remerchandising of our assets whilst investing in our internalised management platform to ensure that we have the rights skills and culture to respond effectively to the changes in the sector.

“I remain confident that our strategy will realise the potential of our existing portfolio, which is underpinned by its bias towards high population growth areas in London and proximity to busy transport hubs. We continue to believe that the intersection of where product meets people remains of critical importance to brands and retailers and that our centres have a vital role to play as distribution platforms for goods and services.”


Adjusted Profit growth delivered against challenging market conditions

  •  Like-for-like2 Net Rental Income flat despite 20 CVAs and retailer restructurings which impacted 2018 NRI by approximately £1.5 million, or 2.9%
  • Adjusted Profit1 up 4.8% to £30.5 million (December 2017: £29.1 million); Adjusted Earnings per Share1 up 3.2% to 4.23p (December 2017: 4.10p)
  •  IFRS Loss for the period of £25.6 million due to a fall in property valuations (December 2017: Profit of£22.4 million) driven by negative sentiment towards our regional retail assets which did not offset the positive valuation gains across our London portfolio
  • Cost efficiencies delivered annual savings of £1.5 million in 2018 and total savings of £2.7 million from 2016, equating to c.25% of 2016 gross central costs
  • A reduced final dividend of 0.60 pence per share (December 2017: 1.91p) preserving cash to fund capex investment and mitigate leverage while maintaining the Group’s REIT distribution requirements

Community shopping centre strategy delivering as expected 

  • Like-for-like2 footfall growth of 1.2% with 78.8 million shopper visits in 2018, once again significantly outperforming the national index which was down by 3.5%
  • 87 new lettings and renewals achieved an average 3.1%3 premium to previous rents and a 1.5%3 premium to ERV
  • Letting activity maintained a strong occupancy rate of 97%. (December 2017: 97.3%)
  • £18.5 million of capex investment deployed delivering the remerchandising strategy. Key projects including Luton office refurbishment and delivery of flagship Ilford family precinct
  • 25 year lease signed in February 2019 with Empire for new nine screen, state of the art cinema in Hemel Hempstead, anchoring transformation of its leisure offering and facilitating an investment of over £15 million in next two years

Long-term diversified debt structure at competitive pricing

  • Group cost of debt of 3.27% with average debt maturity of 6.3 years4
  • Basic and EPRA NAV per share, at 60p and 59p respectively (December 2017: both 67p), impacted by fall in property valuations at our regional assets
  • Net LTV increased to 48% (December 2017: 46%)
  • Restructured Group Revolving Credit Facility and Hemel Hempstead loan agreement to improve headroom







Net Rental Income





Adjusted Profit1





Adjusted Earnings per share1





IFRS Profit for the period





Total dividend per share










Net Asset Value (NAV) per share





EPRA NAV per share










Group net debt





Net debt to property value






Use of Alternative Performance Measures (APMs)

Throughout the results statement we use a range of financial and non-financial measures to assess our performance. A number of the financial measures, including Adjusted Profit, Adjusted Earnings per share and the industry best practice EPRA (European Public Real Estate Association) performance measures are not defined under IFRS, so they are termed APMs. Management use these measures to monitor the Group’s financial performance alongside IFRS measures because they help illustrate the underlying performance and position of the Group. All APMs are defined in the Glossary and further detail on their use is provided within the Financial Review.


All metrics are for the 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.

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 2018, assuming exercise of all extension options.


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