REG - Capital & Regional - Update on Year End results

Capital & RegionalAnnouncement

08/03/2024 07:00

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RNS Number : 0569G  Capital & Regional plc  08 March 2024

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 rent(1) and 16.6% to ERV(1).

·      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 £372.8(2) million (December 2022: £322.8 million) including the
addition of Gyle.

·       Adjusted Profit(3) 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 years(4) 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 (mailto: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 (http://www.capreg.com/) .

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