8 March
2024
UK company number
01399411
LSE share code:
CAL
ISIN: GB00BL6XZ716
LEI: 21380097W74N9OYF5Z25
CAPITAL & REGIONAL
PLC
("Capital & Regional" or
the "Company" or the "Group")
Update on Year End results
- Strong operational performance
and continued positive
leasing momentum underpin proposed dividend
increase
Capital & Regional,
the convenience and community focused shopping
centre REIT, provides an update on its
results for the year ended 30 December 2023.
Lawrence Hutchings, Chief Executive,
comments:
"Our ongoing focus on delivering our proven community centre
strategy and increasing our weighting to non-discretionary and
needs-based retail and services categories has helped us deliver
another positive year of progress. The acquisition of Gyle in
Edinburgh also represented an important milestone in our goal of
returning to growth and we are particularly encouraged by the fact
that we have already created value in the centre through our
leasing programme.
Consumers are increasingly focused on value for money as well
as prioritising spend on non-discretionary items. Our
value-based retailers are responding by expanding their store
footprints into the types of well-managed, high footfall centres
offering affordable space in urban locations, that make up our
portfolio. This trend is evidenced by the speed at which our
team was able to rapidly re-lease all
three of our Wilko units to B&M. It is also supporting
our income growth and has underpinned the increase in dividend
we have announced today."
The Group was planning to release
its results in early March 2024. However the Group's new
auditor, Mazars LLP, has requested additional time to complete its
procedures in its first year as auditor. The outstanding work
primarily relates to requests to perform additional audit
procedures on the internal processes of some of the Group's
outsourced service providers who have been working for the Group
since at least early 2021. Consequently, the Group is unable to
confirm a date for its full year preliminary results announcement
but will provide a further update as soon as it is able to do
so.
The Group provides an update on key
metrics and trading performance as follows:
·
86 new lettings and renewals,
compared to 80 in 2022, at a combined average premium of 6.8% to
previous rent1 and 16.6% to ERV1.
·
Footfall increased 1.5% with 44.5
million shopper visits in 2023, representing 86.7% of the
equivalent period for 2019.
· Occupancy steady at 93.4% (December 2022: 94.1%) with the
marginal decline being due to Wilko's administration.
·
All three units vacated
following Wilko's administration in August 2023 have been relet
post year end, with B&M signing a portfolio deal in February
2024 and due to open in April 2024, adding 140 basis points to
occupancy.
· Rent collection of 99.0% for 2023 (December 2022: 97.6% at the
time of Year End results).
·
2.6% increase in like-for-like
valuations in 2023, with a 4.0% increase in Gyle since purchase,
which was primarily as a result of the completion of six new
lettings and renewals. 15.5% increase in portfolio valuation
to £372.82 million (December 2022: £322.8 million)
including the addition of Gyle.
·
Adjusted Profit3 is
expected be approximately £12.7 million (December 2022: £10.3
million).
· Group Net Loan to Value (LTV) has increased to 43.6% (40.6% at
30 December 2022) as a result of investing a net £14.7 million of
cash into capital expenditure during 2023 and part funding of the
Gyle acquisition from central cash reserves.
·
Average cost of £199 million debt is
3.71% (at 30 December 2023) which has a weighted average maturity
profile of 4.1 years4 and is approximately 80% hedged
for the next three years. Ilford loan extension agreed to
September 2025 with further conditional options to extend term to
end of 2027.
· The Group
anticipates EPRA NTA per share to be approximately 89p (December
2022: 103p) due to the increased number of shares in issue
following the £25 million equity raise in September 2023 for the
Gyle acquisition.
· 7.3% increase in proposed final dividend of 2.95p per share
delivering a total dividend for the year of 5.70p per share
(December 2022: 2.75p per share and 5.25p per share,
respectively)5.
1 For lettings and renewals (excluding development deals and CVA
variations) with a term of 1 year or longer which do not include
turnover rent, like-for like excludes Gyle.
2 Property at independent valuation
3 Adjusted Profit incorporates profits from operating activities
and excludes revaluation of properties and financial instruments,
gains or losses on disposal, and other non-operational
items.
|
30 December
2023
|
30
December 2022
|
|
£m
|
NIY
%
|
NEY
%
|
£m
|
NIY
%
|
NEY
%
|
Maidstone
|
31.5
|
11.90%
|
11.66%
|
32.65
|
11.28%
|
11.49%
|
Walthamstow
|
77.7
|
6.84%
|
7.00%
|
80.0
|
5.97%
|
7.00%
|
Wood Green
|
149.5
|
7.13%
|
7.28%
|
144.0
|
7.55%
|
7.38%
|
Hemel Hempstead
|
9.2
|
9.57%
|
17.40%
|
10.5
|
14.49%
|
17.49%
|
Ilford
|
63.3
|
5.65%
|
7.90%
|
55.6
|
5.04%
|
7.79%
|
Gyle, Edinburgh
|
41.6
|
11.92%
|
10.13%
|
-
|
-
|
-
|
Total
|
372.8
|
7.80%
|
8.79%
|
322.75
|
7.23%
|
8.59%
|
Total like for like (excluding
Gyle)
|
331.2
|
7.25%
|
8.55%
|
|
|
|
4 Weighted average debt maturity assuming exercise of all
extension options.
5 The Directors recommend
a final dividend of 2.95 pence per share. The dividend will be paid entirely as a Property Income
Distribution (PID) and a Scrip dividend option will be
offered. Subject to approval of
shareholders at the Annual General Meeting (AGM) scheduled for 23
May 2024, the final dividend will be paid on Friday, 31 May
2024. The key dates are set out as below:
· Confirmation of ZAR equivalent dividend and Scrip dividend
pricing
Thursday, 28 March
2024
· Last
day to trade on Johannesburg Stock Exchange (JSE)
Tuesday, 9 April 2024
· Shares
trade ex-dividend on the
JSE
Wednesday, 10 April 2024
· Shares
trade ex-dividend on the
London Stock Exchange (LSE)
Thursday, 11 April 2024
· Record
date for LSE and JSE and last election for Scrip
Friday, 12 April 2024
· Annual
General Meeting
Thursday, 23 May 2024
· Results of Scrip dividend announced by
Friday, 24 May
2024
· Dividend payment date
Friday, 31
May 2024
South African shareholders are
advised that the final dividend will be regarded as a foreign
dividend. Further details relating to Withholding Tax for
shareholders on the South African register will be provided within
the announcement detailing the currency conversion rate on
Thursday, 28 March 2024. Share certificates on the South
African register may not be dematerialised or rematerialised
between 10 April 2024 and 12 April 2024, both dates
inclusive. Transfers between the UK and South African
registers may not take place between 28 March 2024 and 12 April
2024 both dates inclusive.
- ENDS -
For further
information:
Capital & Regional plc
020 7932 8000
Lawrence Hutchings
Stuart Wetherly
FTI
Consulting
020 3727
1000
Richard
Sunderland
Oliver Parsons
capreg@fticonsulting.com
About Capital & Regional
plc
Capital & Regional is a UK
focused retail property REIT specialising in shopping centres that
dominate their catchment, serving the non-discretionary and value
orientated needs of the local communities. It has a track record of
delivering value enhancing retail and leisure asset management
opportunities across a portfolio of tailored in-town community
shopping centres.
Using its expert property and asset
management platform Capital & Regional owns and manages
shopping centres in Edinburgh, Hemel Hempstead, Ilford, Maidstone,
Walthamstow and Wood Green.
Capital & Regional is listed on
the main market of the London Stock Exchange (LSE) and has a
secondary listing on the Johannesburg Stock Exchange
(JSE).
For further information
see www.capreg.com.