Capital Shopping Centres Half Yearly 2012 Results

DividendMax Ltd.

Capital Shopping Centres Half Yearly 2012 Results


Operational highlights

Robust operating performance supporting earnings and valuations:

  • Occupancy remains firm at the 95 per cent level reported in the first quarter IMS (31 December 2011: 97 per cent)
  • Like-for-like net rental income down 2.3 per cent, with rental increases offset by the effect of lower occupancy following tenant failures
  • Underlying earnings per share up 1 per cent to 8.1 pence
  • Resilient property values: unchanged, out-performance compared with IPD retail down 2.9 per cent
  • Encouragingly footfall has been steady since the end of first quarter and down only one per cent year to date, out-performing the national benchmark

Tenant mix improvements:

  • 79 new long term leases signed, £15 million annual rent, in aggregate around 6 per cent above previous passing rent and in line with valuation assumptions
  • 14 brands brought to CSC centres for the first time including Schuh Kids, Lavazza, Nespresso and Locker Room

Major organic projects positioning the business for the future:

  • £1 billion ten year pipeline of projects including major extensions and active management initiatives
  • Lakeside - proposed 325,000 sq. ft. extension awaiting determination and plans for new leisure destination published
  • Watford - agreement with Watford Borough Council to acquire and redevelop the adjacent Charter Place creating with The Harlequin a retail, catering and leisure destination of over 1 million sq. ft.
  • Nottingham - active discussions with retailers and local authority regarding a strategy for the city centre
  • Acquisitions at Braehead and Cribbs Causeway of adjacent property with potential for future development

Strong financial position:

  • Loan to value ratio unchanged at 48 per cent; cash and available facilities of £420 million
  • Wholly owned assets, mostly freehold, make up 75 per cent of investment properties by value giving flexibility to recycle equity
  • £49 million was realised in March from part disposal of Equity One shareholding

Companies mentioned