Capital & Regional - Update on Trading and Property Portfolio
07/12/2022 14:00
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RNS Number : 9384I Capital & Regional plc 07 December 2022
7 December 2022
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 Trading and Property Portfolio
Capital & Regional, the UK convenience and community focused shopping
centre REIT, will host a tour of its 17&Central shopping centre at
Walthamstow at 2.30pm today. During the event, the Company will provide the
following operational update.
· Footfall in the five months to the end of November 2022
footfall was 11% ahead of 2021 and represented 90% of the equivalent period
for 2019 representing one of the strongest periods on a relative basis since
the start of the pandemic.
· In the five months to the end of November 2022, Capital
& Regional completed 42 new lettings and renewals for a combined rent of
£2.1 million, ahead of previous rent and ERV. Key lettings in the period
include agreeing to extend the NHS diagnostics centre at Wood Green by a
further 6,000 sq ft and the letting of the new Walthamstow Food Market to
local operator Crate.
· Occupancy across the Group's Investment Assets has improved
to 94.6% at 30 November 2022 from 93.8% at 30 June 2022. The main driver for
the increase is the inclusion of the NHS medical centre at Ilford which is now
in development following receipt of planning permission in October 2022.
· Rent collection is now nearing pre-Covid levels with
95.9% of the quarterly rent due on 29 September 2022 and 97.0%(2) of the rent
due for the year to date received.
· Snozone has seen revenues recover and generally exceed
the equivalent levels in 2019. In Madrid, increased utility costs have
tempered profit, although the recent installation of solar panels is helping
to mitigate this.
· Sales processes involving the two assets, Luton and
Redditch, that the Group manages on behalf of third parties are continuing.
As noted at the time of the Interim Results this could result in the Group's
involvement as manager ceasing. We will update further once the processes
have concluded.
· During the presentation made at the Walthamstow Asset
Tour this afternoon the Group will present a pathway for Adjusted Profit to
improve by more than 20% in the medium term. This pathway factors in recent
transactional activity, assumptions on occupancy returning to pre-Covid
levels, the impact of ongoing capital expenditure projects and assumes that we
do not see a further meaningful shift in the economic climate. A copy of the
slides from the presentation will be available on the Group's website
following the event.
· No further material new information will be disclosed
Lawrence Hutchings, Chief Executive, commented: "Capital & Regional's
operational performance remains robust and despite current macro uncertainties
we continue to see footfall and occupancy progress back towards 2019 levels.
In addition, the affordability of our rents and focus on value orientated,
non-discretionary and needs based retailers has allowed us to continue to
complete leasing transactions, at premiums to previous passing rent on
average.
"Our focus remains to provide essential goods and services tailored to the
communities we serve. We are proud of the role we play supporting charities
and community events in our vibrant and diverse communities.
"We anticipate the general macro-economic backdrop will likely remain
challenging as we move through the next few months. While valuations are
expected to be impacted by the increases in bond yields and interest rates
seen in the second half of 2022, the profile of our assets with their focus on
non-discretionary goods and services, the benefit of recent rates
revaluations, the resetting of rents and values over the past two to three
years and the portfolio premium to the risk free rate places us in a stronger
position on a relative basis than some other retail property assets and the
wider real estate sector.
"We feel confident that the strong operational performance and defensive
nature of our assets, allied to the actions taken over the last 18 months to
reposition the Company and its balances sheet, leave us well placed to weather
the current market conditions and remain cautiously optimistic on the
medium-term outlook for the business."
Notes
1 - Unless stated otherwise metrics include transactions for Hemel Hempstead,
Ilford, Maidstone, Walthamstow, Wood Green, Blackburn and Luton. Investment
Assets include the Group's centres at Hemel Hempstead, Ilford, Maidstone,
Walthamstow and Wood Green.
2 - Includes amounts billed up to 30 November 2022.
- ENDS -
For further information:
Capital & Regional plc 020 7932
8000
Lawrence Hutchings
Stuart Wetherly
FTI Consulting
020 3727 1000
Richard Sunderland
Maria Saud
Katie Hughes
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 strong track
record of delivering value enhancing retail and leisure asset management
opportunities across its portfolio of in-town shopping centres.
Using its in-house expert property and asset management platform Capital &
Regional owns and/or manages seven shopping centres in Hemel Hempstead,
Ilford, Luton, Maidstone, Redditch, 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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