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CAPITAL SHOPPING CENTRES GROUP PLC - INTERIM REPORT FOR THE HALF YEAR ENDED 30 JUNE 2012

Release Date: 26/07/2012 08:00
Code(s): CSO
Wrap Text
INTERIM REPORT FOR THE HALF YEAR ENDED 30 JUNE 2012

CAPITAL SHOPPING CENTRES GROUP PLC
(Registration number UK3685527)
ISIN Code: GB0006834344
JSE Code: CSO
Issuer Code: CSCSCG

26 July 2012

CAPITAL SHOPPING CENTRES GROUP PLC

INTERIM REPORT FOR THE HALF YEAR ENDED 30 JUNE 2012

RESULTS DEMONSTRATE CONTINUING RESILIENCE OF CSC'S PRIME ASSETS

David Fischel, Chief Executive of Capital Shopping Centres Group PLC,
commented:

"Our prime UK regional shopping centres have continued to show considerable
resilience, with robust operating metrics supporting sound financial results. We
have made good progress on our two strategic priorities for 2012, ensuring that
our centres produce a strong performance relative to current economic
conditions while positioning each asset for longer term organic growth from an
increasing pipeline of active management projects and extensions."

Enquiries:

Capital Shopping    Centres Group PLC ("CSC"):
David Fischel        Chief Executive                              +44 (0)20 7960 1207
Matthew Roberts      Finance Director                             +44 (0)20 7960 1353
Kate Bowyer          Head of Investor Relations                   +44 (0)20 7960 1250

Public relations:
UK:                 Michael Sandler/Wendy Baker, Hudson Sandler   +44 (0)20 7796 4133
SA:                 Nick Williams/Morné Reinders, College Hill    +27 (0)11 447 3030

A presentation to analysts and investors will take place at UBS, Room 29, 1 Finsbury Avenue,
London EC2M 2PP at 09.30BST on 26 July 2012. The presentation will also be available to
international analysts and investors through a live audio call and webcast. The presentation and
this announcement will be available for download from our website www.capital-shopping-
centres.co.uk.

Contents:

Highlights
Operating and Financial Review
Directors' Responsibility Statement
Independent Review Report
Unaudited Financial Information
Investment and Development Property
Other Information
Dividends
Glossary
Top Ten Properties

NOTES TO EDITORS

Capital Shopping Centres is the leading specialist UK regional shopping centre REIT

We own and operate many of the very best shopping centres, in the strongest locations right across the
country, attracting over 320 million customer visits a year. Two thirds of the UK population live within a 45
minute drive time of a CSC centre.

With over 16 million sq. ft. of retail space, valued at £7 billion, every single one of the UK's top 20 retailers
is in our shopping centres, alongside some of the world's most iconic global brands.

Our five major out-of-town centres and nine in-town destinations include ten of the UK's top 25 shopping
centres. Our out-of-town centres are The Trafford Centre, Lakeside, Metrocentre, Braehead, and The Mall at
Cribbs Causeway, and our in-town prime destinations are in Cardiff, Manchester, Newcastle, Norwich,
Nottingham, Bromley, Uxbridge, Watford and Stoke-on-Trent.

In November 2011, we acquired Broadmarsh shopping centre in Nottingham bringing our portfolio to 15
centres.

We are fully committed to supporting our local communities and the wider environment through meaningful
and hands-on initiatives.

For further information see www.capital-shopping-centres.co.uk

This announcement contains "forward-looking statements" regarding the belief or current expectations of Capital Shopping Centres Group
PLC, its Directors and other members of its senior management about Capital Shopping Centres Group PLC's businesses, financial
performance and results of operations. These forward-looking statements are not guarantees of future performance. Rather, they are
based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside
the control of Capital Shopping Centres Group PLC and are difficult to predict, that may cause actual results, performance or developments
to differ materially from any future results, performance or developments expressed or implied by the forward-looking statements. These
forward-looking statements speak only as at the date of this announcement. Except as required by applicable law, Capital Shopping
Centres Group PLC makes no representation or warranty in relation to them and expressly disclaims any obligation to update or revise any
forward-looking statements contained herein to reflect any change in Capital Shopping Centres Group PLC's expectations with regard
thereto or any change in events, conditions or circumstances on which any such statement is based.

Any information contained in this announcement on the price at which shares or other securities in Capital Shopping Centres Group PLC
have been bought or sold in the past, or on the yield on such shares or other securities, should not be relied upon as a guide to future
performance.

FIRST HALF 2012 HIGHLIGHTS

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

Financial highlights (1)
                                               Six months ended 30 June
                                               2012             2011(2)

Net rental income (£m)                          182                178
Underlying earnings (£m)                         70                 66
Property revaluation surplus (£m)                                  58
Profit for the period (£m)                       78                192

Underlying EPS (pence)                          8.1                8.0
Interim dividend per share (pence)              5.0                5.0

                                            30 June        31 December
                                               2012               2011

Market value of investment properties (£m)    6,980              6,960
Net external debt (£m)                        3,344              3,374

NAV per share (diluted, adjusted) (pence)       390                391
Debt to assets ratio (per cent)                  48                 48

(1) Please refer to glossary for definition of terms.

(2) 30 June 2011 income data includes Trafford Centre results for the 5 month period from acquisition in January 2011.

OPERATING AND FINANCIAL REVIEW
OPERATING REVIEW

INTRODUCTION
Capital Shopping Centres has delivered a robust operating performance in the first half of 2012, supporting sound
earnings and a resilient valuation outcome. These results demonstrate the continuing attraction of prime regional
shopping centre assets against the backdrop of a weak national economy.

We have made good progress on our two strategic priorities for 2012, ensuring that our centres produce a strong
performance relative to current economic conditions while positioning each asset for longer term organic growth.

We are working on a range of projects to enhance our centres and reinforce their position as the most vibrant and
dynamic retail and leisure destinations in their communities.

CSC is in a strong financial position with a debt to asset ratio of 48 per cent. We are looking at steps to improve our
overall financial flexibility to enable us to build further on the strong momentum within the business.

CSC asset valuations
[GRAPHIC REMOVED  PLEASE SEE PAGE 4 OF FULL ANNOUNCEMENT WHICH CAN BE FOUND AT
WWW.CAPITAL-SHOPPING-CENTRES.CO.UK]

The diagram above illustrates the extent of CSC's focus, with two thirds by value invested in five of the UK's eight super-
regional out-of-town centres and over 85 per cent in ten of the UK's top 25 shopping centres. These top centres are best
positioned to benefit from the current retail trends of customers increasingly favouring highest quality destinations and
retailers focusing on fewer, but flagship, stores.

Retail property occupational market background
The unsettled macro environment remains a significant influence on the UK retail property occupational market. The UK
economy has been performing poorly for some time with a third consecutive quarter of negative GDP growth to June
2012.

For CSC, tenant failures are the most direct effect of the weak environment, with some short term disruption while
agreements are reached with successor or replacement operators. Further, current conditions reinforce the importance of
CSC's pro-active approach to management of lease expiries as retailers focus intensely on optimising their pan-UK store
network to ensure they have the right stores in the right locations.

External statistics indicate that average disposable income continues to fall but, with inflation easing and in particular fuel
costs falling, the rate of decline has been slowing this year. Consumer confidence has not improved in the period and the
BRC's non-food like-for-like sales index continues to show marginal declines. Against this backdrop, the level of retail
spend and footfall at CSC centres is encouraging evidence of the strength of CSC's business.

BRC data also shows non-store sales continuing to record above-trend growth. For many retailers, the role of the store is
broadening. As well as driving in-store sales, the shop is increasingly functioning as a brand and product showroom with
the objective of driving revenues across all their channels. In many cases this means focusing investment on fewer
stores which offer more theatre and personal engagement to the visitor and allow access to the full range either
physically or complemented by online capabilities within the store.

As a further dynamic, construction of new shopping centre space, which was curtailed during the credit crisis, remains
exceedingly low and is not expected to pick up until a sustained economic upturn occurs. The lack of new supply,
particularly of units suitable for modern retailing, is to the benefit of existing prime centres such as CSC's.

Retail property investment market background

Comparison of CSC yield and 10 year gilt yield
[GRAPHIC REMOVED  PLEASE SEE PAGE 5 OF FULL ANNOUNCEMENT WHICH CAN BE FOUND AT
WWW.CAPITAL-SHOPPING-CENTRES.CO.UK]

The chart above illustrates the extent to which yields on gilts and other fixed income instruments have dropped below
those of retail property. In this context prime shopping centres represent an attractive asset class particularly to long
term investors such as major pension funds and sovereign wealth funds.

Yields for prime regional shopping centres such as those owned by CSC have remained stable in the period. Conversely,
investor concern about the occupational market is affecting appetite for secondary assets and causing yields for
secondary shopping centres to increase markedly and values to come under pressure.

Property valuations
                                                                    First    Second    First
                                                                     half      half     half
                                                                     2012      2011     2011

 Revaluation surplus  like-for-like                                                  1.2%
 IPD monthly index retail capital growth                            -2.9%     -0.5%     1.1%
 Nominal equivalent yield                                           5.96%     5.98%    6.06%
 Like-for-like change in nominal equivalent yield ("yield shift")    -2bp      -8bp    -11bp
 Initial yield                                                      5.08%     5.14%    5.20%
 CSC change in ERV  like-for-like                                  -0.3%     -2.2%    -0.1%

The aggregate market value of CSC's investment properties was broadly steady in the first half of 2012. This represents
a significant out-performance of IPD UK monthly index (retail), which showed 2.9 per cent negative capital growth in the
period.

Overall, a marginal yield improvement was offset by a small reduction in rental values in the period, but there was a
range of outcomes for both factors across individual centres. Notable movements included:

    -   positive evidence on new lettings and recent rent reviews increasing ERVs at Trafford Centre and Manchester
        Arndale
    -   outward yield movement at Victoria Centre, Nottingham, due to CSC building increased flexibility on lease terms
        in the run-up to development; and at The Potteries, Stoke-on-Trent, to allow for risk in the upcoming lease
        expiry cycle
    -   the valuer taking a more cautious approach to expected rents on the few remaining unlet units at St David's,
        Cardiff
    -   improved yield at Braehead due to letting evidence and increased footfall following tenant mix improvements in
        2011 and at Metrocentre reflecting reduced risk following further progress on the 2011/12 lease expiries

ROBUST OPERATING PERFORMANCE
Despite the weak trading environment, CSC has generated a robust operating performance.

Net rental income

Growth in like-for-like net rental income
[GRAPHIC REMOVED  PLEASE SEE PAGE 6 OF FULL ANNOUNCEMENT WHICH CAN BE FOUND AT
WWW.CAPITAL-SHOPPING-CENTRES.CO.UK]

After a 3.6 per cent increase in 2011, like-for-like net rental income fell 2.3 per cent in the first six months of 2012.
While rental revenue increased £10 million due to an extra month of The Trafford Centre and marginal overall rent
increases at existing centres, the impact of vacancy and related direct costs has reduced like-for-like net rental income in
the period.

Occupancy
Occupancy remains firm at the 95 per cent level reported at the end of the first quarter (31 December 2011: 97 per
cent).

By way of comparison with the CSC occupancy ratio, UK shop vacancy amounts to 15 per cent (source: Local Data
Company, May 2012).

The reduction in CSC's occupancy since the year end is the result of tenant administrations and we continue to take a
robust approach to relettings which could result in this slightly higher level of vacancy continuing in the short term.

At 30 June 2012 CSC had 80 units and 3 per cent of rent occupied by tenants in administration and not yet relet (31
March 2012: 78 units and 3 per cent of rent; 31 December 2011: 50 units and 2 per cent of rent). 27 of these units (1
per cent of rent) are being traded during administration. The remaining 53 units (2 per cent of rent) are treated as
unoccupied.

At 30 June 2012 CSC had 129 short-term leases which represented 2 per cent of passing rent, 2 per cent of space and 3
per cent of ERV (31 December 2011: 1 per cent, 2 per cent and 4 per cent respectively).

Footfall
Footfall at CSC's centres continued to outperform the national benchmark as measured by Experian. Encouragingly the
number of customer visits is unchanged year on year since the end of the first quarter, in aggregate a one per cent
reduction in the first six months compared to a 3 per cent reduction in the benchmark. Footfall remains well above the
visitor numbers of 2010.

Retailer sales
Retailer sales in CSC centres were broadly stable in the year to 30 June 2012, out-performing the national trend. The
benchmark BRC non-food like-for-like index has indicated declines for the last seven quarters.

The estimated occupancy cost ratio (annual rent to retailer turnover) is 13.0 per cent excluding anchor stores, compared
to 13.2 per cent for the year ended 31 December 2011 and 13.7 per cent for the year ended 30 June 2011.

TENANT MIX IMPROVEMENTS
Lettings
We have made good progress in the period in agreeing leases which enhance or reinforce the tenant mix in our centres.

79 new long term leases have been agreed, representing £15 million of new annual rent, in aggregate approximately 6
per cent above previous passing rent and in line with valuation assumptions for those units. These include:
    -    a major global brand already trading in several CSC centres to double its space at Manchester Arndale and to
         open in Harlequin, Watford, and The Glades, Bromley in September 2012
    -    significant tenant mix improvements at individual centres including Hugo Boss doubling its space at Trafford,
         Thomas Sabo to open at Victoria Centre, Nottingham and Braehead, River Island to take a flagship store at St
         David's, Cardiff, and Forever 21 now open at The Trafford Centre
    -    more "firsts for Wales" at St David's, Cardiff, including two new catering operators
    -    14 new brands to CSC including Locker Room by Footlocker and Schuh Kids at Lakeside, Lavazza and Nespresso
         at The Trafford Centre

Lease expiry profile
[GRAPHIC REMOVED  PLEASE SEE PAGE 7 OF FULL ANNOUNCEMENT WHICH CAN BE FOUND AT
WWW.CAPITAL-SHOPPING-CENTRES.CO.UK]

CSC's average lease maturity has increased slightly to 8.1 years (31 December 2011: 7.5 years). As lease expiries are
an area where the weak macro environment can have an impact on our business, centre-specific concentrations of
expiries in the next few years are being managed closely:
    -     the Metrocentre 2011/12 expiries process is progressing well, with over three quarters now settled or in
          solicitors' hands
    -     we are starting to implement our plans for the 2013 expiries at each of The Trafford Centre, Cribbs Causeway
          and The Potteries, Stoke-on-Trent

MAJOR ORGANIC PROJECTS POSITIONING THE BUSINESS FOR THE FUTURE
As consumers and retailers focus their attention and investments on a smaller number of retailing destinations, one of our
strategic priorities for 2012 and beyond is to position our centres to fulfil a broader range of their needs in a vibrant and
dynamic environment:
     -   active management initiatives totalling some £200 million to the end of 2017 are driving change across most
         centres
     -   we have recently secured seven planning consents, with other applications awaiting determination and more
         being prepared
     -   we have recently acquired adjacent property at Braehead and Cribbs Causeway to give us flexibility for future
         development. We are in the process of acquiring further sites around other centres
     -   major extensions are now being planned at five centres, starting with Lakeside, Nottingham and Watford with
         Braehead and Cribbs Causeway to follow. We aim to be on site with at least one of these projects during 2014.
         These projects would add around 2 million sq. ft. including, for all five, a significantly enhanced catering and
         leisure concept
     -   in aggregate, our plans project an overall investment of around £1 billion over the next ten years

Significant progress in the first half includes:
Lakeside
    -    our application for a 325,000 sq. ft. extension is awaiting determination. Our current objective is for work to
         commence in 2014, with the majority of the c. £180 million investment made within two years of
         commencement
    -    we have submitted a further planning application for a 34,000 sq. ft., 81 bed hotel to be operated by Travelodge
         and public consultation has recently started on our plans for a new leisure destination including restaurants,
         bars, family entertainment and fitness facilities
    -    the construction of a roof box to accommodate Forever 21's 35,000 sq. ft. flagship store is on schedule for
         handover in August
The Harlequin, Watford
    -    we have agreed outline terms with Watford Borough Council for CSC to acquire and redevelop the Charter Place
         centre adjacent to The Harlequin. The plan, also incorporating CSC's existing holdings on the High Street, would
         add 320,000 sq. ft. of restaurants and a modern configuration of retail and leisure facilities to create an enlarged
         Harlequin Centre of over 1 million sq. ft.
    -    we look forward to commencing this c. £100 million redevelopment and expect to move quickly with planning
         applications and securing pre-lettings
Victoria Centre & Broadmarsh, Nottingham
    -    following our acquisition of Broadmarsh, Nottingham's second shopping centre, in late 2011, we have an exciting
         opportunity to move Nottingham back up the rankings with a more modern retail offer
    -    we are in discussion with the local authority regarding our plans that would see both centres and the city centre
         much improved. These would give each a distinct focus playing to its inherent strengths and would anchor a
         diverse retail offer between them. We have also appointed agents to assess the needs of retailers and we expect
         to move forward in the next 12 months with submitting planning applications
The Trafford Centre
    -    we have secured planning consent at Barton Square for 100,000 sq. ft, of additional retail space
    -    we have agreed terms, subject to planning permission, for an aquarium attraction at Barton Square
Metrocentre, Gateshead
    -    construction of the MetrOasis fully pre-let restaurant development is on programme and on budget and is
         scheduled to open in September 2012
    -    we have further restaurant projects and other upgrades within the centre under consideration

Eldon Square, Newcastle
    -   we have applied for planning consent for construction of an impressive new entrance from Northumberland St.,
        the main shopping street. This is the start of the next phase of a modernisation programme which follows the
        opening of the St Andrew's Way mall in February 2010. This phase will enhance the existing malls and
        reconfigure units to current retailer and restaurant operator needs
The Potteries, Stoke-on-Trent
    -   we have secured planning consent for a 58,000 sq. ft. leisure and catering development and are in advanced
        negotiations with cinema and restaurant operators
    -   this is in line with our objective of ensuring that The Potteries remains the prime retail destination in the Stoke-
        on-Trent area

Dividends
The Directors have resolved to pay an interim dividend of 5.0 pence per share on 20 November 2012 to shareholders on
the register on 19 October 2012. This dividend will be a property income distribution ("PID") subject to applicable
withholding tax.

Following the approval by shareholders at the Annual General Meeting on 29 April 2012 of the scrip dividend scheme, the
Board may choose to offer a scrip dividend for any individual dividend. Should the Directors decide to offer a scrip
alternative to the 2012 interim dividend, shareholders will be advised no later than Friday 28 September 2012. The
Board's decision will be dependent on the stock market conditions, in particular the level of the share price relative to the
net asset value per share, up to that date.

PROSPECTS

We set out in our 2011 Annual Report our strategic priorities for 2012, which are unchanged:

    -    to optimise the performance of our existing assets, prioritising medium-term value creation
    -    to identify further initiatives and create the financing flexibility to advance CSC's business and deliver
         incremental returns

In a period of weak UK economic performance and low growth, when absolute returns are muted, our focus is on
strengthening our assets' relative position such that they attract an increasing share of consumer interest and retailer
investment.

Pro-active management of the risks relating to tenant failures and lease expiries is likely to remain a feature of the
business, with a view to sustaining the virtuous circle of strong footfall and compelling tenant mix.

We look forward to implementing the substantial profitable organic growth opportunities at our high quality shopping
centres, reinforcing their status among the very top UK retail and leisure destinations.

FINANCIAL REVIEW

FINANCING STRATEGY AND FINANCIAL MANAGEMENT

Notable financial highlights for the period include:
-   Underlying earnings up by 4.8 per cent
-   NAV per share at 390 pence; total financial return for the six months of 2.3 per cent
-   Debt to assets ratio at 48 per cent in target range of 40-50 per cent and interest cover for the six months of 1.70x
    exceeds target minimum of 1.60x

RESULTS FOR THE PERIOD ENDED 30 JUNE 2012

Income statement
The Group recorded a profit for the period of £78 million, compared to the £192 million achieved for the comparable prior
year period.

The 2012 results include a £0.2 million gain on property valuations and a £29 million non-cash gain on the movement in
the fair value of derivative financial instruments. The 2011 profit included a £58 million gain on property valuations and a
£22 million favourable movement in the fair value of derivative financial instruments.

Underlying earnings which excludes valuation and exceptional items, increased by £3.2 million to £70 million, as shown in
the chart below. Underlying earnings per share increased by 1 per cent from 8.0 pence per share in 2011 to 8.1 pence
per share in the current period.

The Group's net rental income which increased by 2 per cent to £182 million in the period, benefitted by £7 million from
an additional one month's contribution as a result of the acquisition of the Trafford Centre in January 2011. On a like-for-
like basis net rental income fell by 2 per cent. Further commentary on the rental performance is included in the
Operating Review.

Underlying net finance costs of £102 million, which exclude exceptional items, were in line with the comparable prior
period. The benefit of the interest rate swap amendments undertaken in January 2012 offset the £4 million additional
month's cost of the Trafford Centre CMBS notes.

Administration expenses, excluding the £1 million exceptional costs, increased from £12 million in 2011 to £13 million in
2012 largely due to higher employee related costs.

Underlying earnings bridge H1 2011 - H1 2012
[GRAPHIC REMOVED  PLEASE SEE PAGE 9 OF FULL ANNOUNCEMENT WHICH CAN BE FOUND AT
WWW.CAPITAL-SHOPPING-CENTRES.CO.UK]

Exceptional costs in the period include finance costs of £39 million incurred on interest rate swap amendment costs. The
exceptional administration costs of £1 million largely relate to costs associated with the Broadmarsh acquisition that was
completed at the end of 2011.

Provogue, the Indian retailer in which the Group holds a 9.9 per cent stake, undertook a demerger of its 75 per cent
holding in Prozone, a shopping centre developer, in the first half of 2012. The demerger was achieved by way of
distribution of shares in Prozone. The receipt of the additional shares is treated as a dividend valued at £10.2 million.
Prior to the demerger the Group had a direct 25 per cent holding in Prozone and following the demerger the Group's
holding in Prozone has now increased to 32.4 per cent. As Prozone is classified as an associate company of the Group,
the holding is valued as the Group's percentage share of the associate's underlying net assets. The Group's 32.4 per cent
holding in Prozone's net assets post the demerger is therefore valued at £42 million.

Balance sheet
The Group's net assets attributable to equity shareholders remain broadly the same level as the £2.9 billion disclosed in
the 2011 annual report.

As detailed in the table below, net assets (diluted, adjusted) have decreased by £8 million from 31 December 2011 with
2011 final dividend of £85 million being largely offset by the earnings for the current six month period.

Balance sheet
                                                 30 June    31 December
                                                    2012           2011
                                                      £m             £m

Investment, development and trading properties   6,920.9        6,903.7
Investments                                        197.1          203.7
Net external debt                              (3,344.4)      (3,374.2)
Other assets and liabilities                     (810.1)        (787.6)
Net assets                                       2,963.5        2,945.6
Minority interest                                 (25.7)         (23.5)
Attributable to equity shareholders              2,937.8        2,922.1
Fair value of derivatives (net of tax)             487.9          520.9
Other adjustments                                   55.0           45.9
Effect of dilution                                   3.8            3.8
Net assets (diluted, adjusted)                   3,484.5        3,492.7

The investments of £197 million as at 30 June 2012 comprise the Group's interests in the US and India. The investment
in the US comprises the 11.4 million shares in a joint venture with Equity One, that the Group received in exchange for its
interest in C&C US. Based on the Equity One share price of $21.20 the Group's investment has been valued at £154
million at 30 June 2012.

The most significant factor in the increase in other assets and liabilities is the accrual for the 2011 final dividend. This
dividend, totalling £85 million, was paid after the period end.

Adjusted net assets per share
As illustrated in the chart below, diluted adjusted net assets per share were 390 pence at 30 June 2012, a small decrease
in the period that is largely due to the 2011 final dividend of 10 pence per share, partially offset by the earnings for the
first half of 2012.

Adjusted net assets per share
[GRAPHIC REMOVED  PLEASE SEE PAGE 10 OF FULL ANNOUNCEMENT WHICH CAN BE FOUND AT
WWW.CAPITAL-SHOPPING-CENTRES.CO.UK]

Cash flow
The cash flow summary below shows an increase in the Group's cash balance in the period. This can be attributed to the
cash generated from operations. In addition, the capital expenditure for the period of £30 million was more than covered
by the £49 million proceeds from the disposal of 4.1 million shares in Equity One.

                                                       Six months    Six months
                                                          to June       to June
                                                             2012          2011
                                                               £m            £m

Underlying operating cash generated                         179.0         167.0
Net finance charges paid                                    (97.9)       (100.4)
Exceptional finance and other costs                         (39.5)        (49.9)
Net movement in working capital                              (3.9)          2.3
Taxation/REIT entry charge                                  (10.6)        (23.1)
Cash flow from operations                                    27.1          (4.1)
Property development/investments                            (30.2)        (11.3)
Sale proceeds of property/investments                        49.3           1.7
Other investing activities                                   (8.4)         (8.3)
Cash acquired with businesses                                             37.6
Cash sold with businesses                                                (20.3)
Dividends                                                    (7.9)        (90.9)
Cash flow before financing and equity raises                 29.9         (95.6)
Net debt repaid                                             (20.4)        (52.2)
Equity capital raised                                         0.1          68.4
Other                                                         0.2          (1.8)
Net increase/(decrease) in cash and cash equivalents          9.8         (81.2)

Investment in property related assets includes £13 million in respect of the purchase of the Group's 50 per cent share of
the Centaurus Retail Park, which is adjacent to the Mall at Cribbs Causeway, and £5 million in respect of King George V
dock, which is adjacent to Braehead.

Expenditure on existing assets included St David's, Cardiff (£3 million), Lakeside (£3 million) and Metrocentre (£2
million).

Net debt repayments of £20 million are discussed in the Debt structure section below.

The dividend payment in the period relates to withholding tax in respect of the 2011 interim dividend. The 2011 final
dividend of 10p per ordinary share was paid in July 2012.

Capital commitments
The Group has an aggregate commitment to capital projects of £47 million at 30 June 2012. In addition to the committed
expenditure, the Group has an identified project pipeline, excluding major extensions, of some £200 million covering the
period up to the end of 2017. It is anticipated that approximately £50 million relating to capital projects, including those
projects currently accrued on the Group's balance sheet, will be funded in the balance of 2012.

Group debt ratios were as follows:                         30 June    31 December
                                                              2012           2011

Debt to assets                                                 48%            48%
Interest cover for the period                                1.70x          1.71x
Weighted average debt maturity                           6.6 years      7.0 years
Weighted average cost of gross debt                           5.4%           5.6%
Proportion of gross debt with interest rate protection         97%            97%

Financial position and financing structure
At 30 June 2012, the Group had net external debt of £3,344 million, a decrease of £30 million compared to the 31
December 2011 balance of £3,374 million. In addition to cash balances of £100 million the Group had £320 million
undrawn on the revolving credit facility at 30 June 2012, giving total headroom of £420 million.

Debt structure
The Group's debt is largely arranged on an asset-specific basis, with limited or non-recourse from the borrowing entities
to other Group companies. It is largely syndicated bank debt and CMBS structures with corporate-level debt limited to
the revolving credit facility.

Debt maturity profile
[GRAPHIC REMOVED  PLEASE SEE PAGE 12 OF FULL ANNOUNCEMENT WHICH CAN BE FOUND AT
WWW.CAPITAL-SHOPPING-CENTRES.CO.UK]

During the period debt repayments of £30 million were made which related to scheduled debt amortisation payments. A
further £10 million was drawn under the Group's revolving credit facility.

The revolving credit facility which was successfully refinanced in November 2011 was the first step towards a broader
refinancing of the Group's asset specific debt. The above table shows that the value of maturities peaks in 2015-2017.
Planning continues in connection with the possibility of replacing these facilities early. A further update will be given
when the full year results are presented in February 2013.

The Group intends to continue with a diversified funding structure, allowing opportunistic access to bank and bond
markets, whilst minimising its cost of funds. Despite the current uncertain economic outlook, demand for fixed income
issuance backed by quality assets has remained strong.

Hedging
The majority of the Group's debt is floating rate. The Group uses interest rate swaps to fix short and medium-term
interest obligations, reducing cash flow volatility caused by changes in interest rates. The Group is currently effectively
fully hedged.

The table below sets out the nominal amount and average rate of hedging, excluding lenders' margins, in place under
current and forward starting swap contracts:

                                          Average
                         Nominal amount       rate
In effect on or after:              £m          %

1 year                            2,981      4.27
2 years                           2,944      4.27
5 years                             809      4.99
10 years                            688      4.82
15 years                            679      4.83
20 years                            468      4.59
25 years                             75      5.12

Covenants
Full details of the loan financial covenants are included in the Other Information section of this report. The Group is in
compliance with all of its corporate and asset-specific loan covenants. As detailed in that analysis, the headroom over the
minimum covenant levels has remained broadly in line with December 2011 levels although the headroom has improved
on a number of interest cover covenants due to lower interest costs.

Taxation
Since the Group became a UK REIT on 1 January 2007, the Group has made REIT entry charge payments of £199 million,
with £15 million paid in the period. The payments in the period largely relate to, and complete, the amounts due in
respect of the Trafford Centre. The cash flow benefits to date have amounted to £200 million, comprising net rental
income and capital gains sheltered from UK tax.

Key risks and uncertainties
The key risks and uncertainties facing the Group are as set out in the table below:

Risk and impact               Mitigation                          Change   2012 commentary
Property market               - Focus on prime assets                      - Although the prime nature of CSC's assets means
Macro environment                                                            the Group continues to outperform the IPD
weakness could                - Covenant headroom                            monthly index retail capital growth, higher levels
undermine rental income         monitored and stress tested                  of tenant administrations and falling property
levels and property                                                          values as measured by the index indicates general
values, reducing return       - Regular monitoring of tenant                 market conditions have deteriorated during 2012
on investment and               strength and diversity
covenant headroom                                                          - Covenant headroom on individual properties has
                                                                             remained largely at December 2011 levels
Financing                     - Regular reporting to Board                 - Although CSC does not have immediate re-
Reduced availability of         of current and projected                     financing needs, continued economic uncertainty
funds could limit liquidity     funding position                             means banking and debt markets are challenging
leading to restriction of
investing and operating       - Effective treasury
activities and/or increase      management aimed at
in funding cost                 balancing long debt maturity
                                profile with diversification of
                                sources of finance
Operations                    - Strong business process and                - Additional focus on crisis management and
Accident, system failure        procedures supported by                      business continuity planning during 2012.
or external factors could       regular training and                         External audits continue to highlight strong safety
threaten the safe and           exercises                                    culture
secure environment
provided for shoppers         - Annual audits of operational
and retailers, leading to       standards carried out by
financial and/or                internal and external
reputational loss               consultants

                              - Culture of visitor safety

                              - Retailer liaison and briefings

                              - Appropriate levels of
                                insurance
Strategy and                  - Annual strategic review by                 - Focus on optimising performance of pre-eminent
execution                       Board informed by external                   centres to benefit from ongoing structural shift in
Misjudged or poorly             research and advice                          UK retail, including broader offer of leisure and
executed strategy fails to                                                   catering and inclusion of "theatre"
create shareholder value      - Board and management
                                team experienced in                        - Fresh perspective from new directors/management
                                shopping centre and broader                  has enhanced debate while maintaining our long
                                retail industry                              term sustainable growth objective

                              - Engagement with national
                                and international retailers

                              - Key staff succession
                                planning, performance-
                                based incentives
Development and               - Capital Projects Committee                 - Increased focus on pre-let space before
acquisitions                    reviews detailed appraisals                  committing capital to projects
Misjudged or poorly             before and monitors
executed project results        progress during significant                - A number of planning applications including local
in increased cost or            projects                                     consultations, positioning the Group for next phase
income foregone, hence                                                       of growth
fails to create               - Research and third party
shareholder value               due diligence undertaken for
                                transactions

DIRECTORS' RESPONSIBILITY STATEMENT
The Directors are responsible for preparing the interim report and condensed set of financial statements, in accordance
with applicable law and regulations. The Directors confirm that, to the best of their knowledge:

  -   the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial
      Reporting, as adopted by the European Union; and
  -   the interim report includes a fair review of the information required by Sections DTR 4.2.7R and DTR 4.2.8R of the
      Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

The operating and financial review refers to important events which have taken place in the period.

The principal risks and uncertainties facing the business are referred to in the operating and financial review.

Related party transactions are set out in note 22 of the condensed set of financial statements.

A list of current Directors is maintained on the Capital Shopping Centres Group PLC website: www.capital-shopping-
centres.co.uk.

By order of the Board

David Fischel
Chief Executive

Matthew Roberts
Finance Director
26 July 2012

INDEPENDENT REVIEW REPORT TO CAPITAL SHOPPING CENTRES GROUP PLC
Introduction
We have been engaged by the company to review the condensed set of financial statements in the interim report for the
half year ended 30 June 2012, which comprises the consolidated income statement, consolidated statement of
comprehensive income, consolidated balance sheet, consolidated statement of changes in equity, consolidated statement
of cash flows and related notes. We have read the other information contained in the interim report and considered
whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of
financial statements.

Directors' responsibilities
The interim report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for
preparing the interim report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial
Services Authority.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by
the European Union. The condensed set of financial statements included in this interim report has been prepared in
accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the interim
report based on our review. This report, including the conclusion, has been prepared for and only for the company for the
purpose of the Disclosure and Transparency Rules of the Financial Services Authority and for no other purpose. We do
not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this
report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410,
Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial
statements in the interim report for the half year ended 30 June 2012 is not prepared, in all material respects, in
accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and
Transparency Rules of the United Kingdom's Financial Services Authority.

PricewaterhouseCoopers LLP
Chartered Accountants
London
26 July 2012

CONSOLIDATED INCOME STATEMENT (unaudited)
For the six months ended 30 June 2012
                                                                                  Re-presented
                                                                     Six months     Six months          Year
                                                                          ended          ended         ended
                                                                        30 June        30 June   31 December
                                                                           2012           2011          2011
                                                            Notes            £m             £m            £m

Continuing operations
Revenue                                                         4         263.4          256.0          516.1
Net rental income                                               4         181.8          177.9          364.0
Net other income                                                5           3.1            3.7            7.8
Revaluation and sale of investment and development property     6           0.4           58.4           63.0
Gain on acquisition of subsidiaries                                                      52.9           52.9
Gain on sale of subsidiaries                                                             40.4           40.4
Sale and impairment of other investments                                    1.4           (8.7)          (8.7)
Distribution of shares received from Provogue                              10.2                            
Administration expenses  ongoing                                         (13.3)         (11.8)         (24.1)
Administration expenses  exceptional                                      (1.0)         (15.5)         (20.9)
Operating profit                                                          182.6          297.3          474.4
Finance costs                                                   7         (98.5)         (98.1)        (198.9)
Finance income                                                              0.1            0.6            0.8
Other finance costs                                             8         (42.8)         (38.4)         (55.7)
Change in fair value of derivative financial instruments                   28.8           21.7         (193.4)
Net finance costs                                                        (112.4)        (114.2)        (447.2)
Profit before tax and associates                                            70.2         183.1           27.2
Current tax                                                     9          (0.1)          (0.7)          (0.3)
Deferred tax                                                    9           7.2            0.2           (2.3)
Taxation                                                                     7.1          (0.5)          (2.6)
Share of profit of associates                                  14            0.8           9.0            9.0
Profit for the period                                                       78.1         191.6           33.6
Attributable to:
Equity shareholders of CSC Group PLC                                       78.9          181.9           30.0
Non-controlling interest                                                   (0.8)           9.7            3.6
                                                                            78.1         191.6           33.6
Basic earnings per share                                       11           8.9p          21.7p          2.9p
Diluted earnings per share                                     11           8.8p          21.1p          2.9p

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (unaudited)
For the six months ended 30 June 2012

                                                                       Re-presented
                                                          Six months     Six months           Year
                                                               ended          ended          ended
                                                             30 June        30 June    31 December
                                                                2012           2011           2011
                                                                  £m             £m             £m

Profit for the period                                           78.1          191.6           33.6
Other comprehensive income:
Revaluation of other investments                                30.0            0.6          (17.3)
Recognised in sale and impairment of other investments           2.7            8.7            8.7
Recognised in gain on sale of subsidiaries                                   (10.9)         (10.9)
Exchange differences                                            (2.4)          (3.4)          (5.5)
Tax relating to components of other comprehensive income        (7.6)          (0.2)           2.3
Other comprehensive income for the period                       22.7          (5.2)         (22.7)
Total comprehensive income for the period                      100.8          186.4           10.9
Attributable to:
Equity shareholders of CSC Group PLC                           101.6          176.7            7.3
Non-controlling interest                                        (0.8)           9.7            3.6

                                                               100.8          186.4           10.9

CONSOLIDATED BALANCE SHEET (unaudited)
As at 30 June 2012
                                                                                 Re-presented
                                                         As at          As at           As at
                                                       30 June    31 December         30 June
                                                          2012           2011            2011
                                              Notes         £m             £m              £m

Non-current assets
Investment and development property             13     6,916.8        6,896.2         6,804.1
Plant and equipment                                        4.8            5.1             5.4
Investments in associate companies              14        41.5           32.5            37.1
Other investments                               14       155.6          171.2           184.6
Goodwill                                                   8.8            9.3               
Derivative financial instruments                          22.7           22.7            22.7
Trade and other receivables                              101.1           91.1            86.1
                                                       7,251.3        7,228.1         7,140.0
Current assets
Trading property                                           4.1            7.5           10.4
Current tax assets                                                       4.0            4.0
Trade and other receivables                               68.5           69.6           56.6
Derivative financial instruments                           1.6                          0.1
Cash and cash equivalents                       15       100.4           90.7          164.5
                                                         174.6          171.8          235.6
Total assets                                           7,425.9        7,399.9         7,375.6
Current liabilities
Trade and other payables                               (328.9)         (278.3)        (268.7)
Current tax liabilities                                  (0.6)                            
Borrowings                                      16      (92.3)          (65.4)         (65.3)
Derivative financial instruments                        (27.4)          (27.5)          (0.8)
                                                       (449.2)         (371.2)        (334.8)
Non-current liabilities
Borrowings                                      16    (3,502.6)      (3,546.1)      (3,527.6)
Derivative financial instruments                        (509.1)        (535.7)        (346.8)
Other provisions                                          (1.2)          (1.2)          (1.1)
Other payables                                            (0.3)          (0.1)          (0.1)
                                                      (4,013.2)      (4,083.1)      (3,875.6)
Total liabilities                                     (4,462.4)      (4,454.3)      (4,210.4)
Net assets                                             2,963.5        2,945.6         3,165.2
Equity
Share capital                                   18       432.6          430.2           430.2
Share premium                                            577.4          564.1           564.1
Treasury shares                                          (44.5)         (29.5)          (29.6)
Convertible bonds                               19       143.7          143.7           143.7
Other reserves                                           341.4          318.7           521.3
Retained earnings                                      1,487.2        1,494.9         1,505.9
Amounts attributable to equity shareholders
of CSC Group PLC                                       2,937.8        2,922.1         3,135.6
Non-controlling interest                                  25.7           23.5            29.6
Total equity                                           2,963.5        2,945.6         3,165.2

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (unaudited)
For the six months ended 30 June 2012

                                        Attributable to equity shareholders of CSC Group PLC
                                                                                                                Non-
                               Share      Share   Treasury  Convertible    O ther   Retained             controlling      Total
                             capital    premium     shares        bonds  reserves   earnings     Total      interest     equity
                                  £m         £m         £m           £m        £m         £m        £m            £m         £m

At 1 January 2012              430.2      564.1     (29.5)        143.7     318.7    1,494.9    2,922.1         23.5     2,945.6
Profit for the period                                                              78.9       78.9         (0.8)       78.1
Other comprehensive
income:
  Revaluation of other
  investments                                                            30.0                 30.0                    30.0
  Recognised in sale
  of other investments                                                    2.7                  2.7                     2.7
  Exchange differences                                                   (2.4)                (2.4)                   (2.4)
  Tax relating to
  components of other
  comprehensive income                                                   (7.6)                (7.6)                   (7.6)
Total comprehensive
income for the period                                                    22.7       78.9      101.6         (0.8)      100.8
Ordinary shares issued           2.4       13.3                                                15.7                    15.7
Dividends (note 10)                                                               (85.4)     (85.4)                  (85.4)
Interest on convertible
bonds (note 19)                                                                    (2.9)      (2.9)                   (2.9)
Share-based payments                                                                2.2        2.2                     2.2
Acquisition of treasury
shares                                            (15.6)                                     (15.6)                  (15.6)
Disposal of treasury shares                         0.6                             (0.5)       0.1                     0.1
Non-controlling interest
additions                                                                                                 3.0         3.0
                                 2.4       13.3     (15.0)                           (86.6)     (85.9)         3.0       (82.9)
At 30 June 2012                432.6      577.4     (44.5)        143.7     341.4     1,487.2    2,937.8        25.7      2,963.5

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (unaudited)
For the year ended 31 December 2011

                                               Attributable to equity shareholders of CSC Group PLC
                                                                                                                       Non-
                                  Share      Share   Treasury       Convertible     Other   Retained            controlling      Total
                                capital    premium     shares             bonds  reserves   earnings     Total     interest     equity
                                     £m         £m         £m                £m        £m         £m        £m           £m         £m

At 1 January 2011                 346.3        20.4    (29.9)                     526.5    1,410.1    2,273.4         19.9    2,293.3
Profit for the year                                                                       30.0       30.0           3.6      33.6
Other comprehensive income:
  Revaluation of other
  investments                                                                   (17.3)              (17.3)                 (17.3)
  Recognised in impairment
  of other investments                                                            8.7                  8.7                    8.7
  Recognised in gain on
  sale of subsidiaries                                                         (10.9)               (10.9)                 (10.9)
  Exchange differences                                                          (5.5)                (5.5)                  (5.5)
  Tax relating to components
  of other comprehensive
  income                                                                         2.3                   2.3                   2.3
Total comprehensive
income for the year                                                            (22.7)      30.0         7.3          3.6      10.9
Ordinary shares issued             83.9      543.7                                                   627.6                  627.6
Dividends (note 10)                                                                     (127.8)    (127.8)                (127.8)
Convertible bonds
issued (note 19)                                                       143.7                        143.7                  143.7
Interest on convertible
bonds (note 19)                                                                           (5.3)      (5.3)                  (5.3)
Share-based payments                                                                       3.6        3.6                    3.6
Acquisition of treasury shares                        (0.2)                                          (0.2)                  (0.2)
Disposal of treasury shares                            0.6                                 (0.8)      (0.2)                  (0.2)
Realisation of merger reserve                                                 (185.1)     185.1                                
                                   83.9      543.7       0.4          143.7       (185.1)      54.8      641.4                  641.4
At 31 December 2011              430.2       564.1    (29.5)          143.7        318.7     1,494.9    2,922.1         23.5   2,945.6

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (unaudited)
For the six months ended 30 June 2011

                                          Attributable to equity shareholders of CSC Group PLC
                                                                                                                 Non-
                               Share     Share  Treasury    Convertible      Other   Retained             controlling      Total
                             capital   premium    shares          bonds   reserves   earnings      Total     interest     equity
                                  £m        £m        £m             £m         £m         £m         £m           £m         £m

At 1 January 2011              346.3     20.4     (29.9)                    526.5    1,410.1    2,273.4         19.9    2,293.3
Profit for the period                                                              181.9      181.9          9.7      191.6
Other comprehensive
income:
  Revaluation of other
  investments                                                              0.6                   0.6                    0.6
  Recognised in impairment
  of other investments                                                     8.7                   8.7                    8.7
  Recognised in gain on
  sale of subsidiaries                                                   (10.9)               (10.9)                 (10.9)
  Exchange differences                                                    (3.4)                (3.4)                  (3.4)
  Tax relating to
  components of other
  comprehensive income                                                    (0.2)                (0.2)                  (0.2)
Total comprehensive
income for the period                                                     (5.2)     181.9      176.7          9.7      186.4
Ordinary shares issued          83.9    543.7                                                  627.6                  627.6
Dividends paid (note 10)                                                           (85.2)     (85.2)                 (85.2)
Convertible bonds issued
(note 19)                                                      143.7                          143.7                  143.7
Interest on convertible
bonds (notes 19)                                                                    (2.4)      (2.4)                  (2.4)
Share-based payments                                                                 1.7        1.7                    1.7
Disposal of treasury shares                        0.3                               (0.2)       0.1                    0.1
                                83.9     543.7       0.3          143.7                (86.1)     685.5                  685.5
At 30 June 2011               430.2      564.1     (29.6)         143.7      521.3     1,505.9   3,135.6         29.6    3,165.2

CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
For the six months ended 30 June 2012
                                                                   Six months   Six months           Year
                                                                        ended        ended          ended
                                                                      30 June      30 June    31 December
                                                                         2012         2011           2011
                                                            Notes          £m           £m             £m

Cash flows from continuing operations
Cash generated from operations                               17         173.9        153.8          323.0
Interest paid                                                          (136.3)      (135.4)        (250.0)
Interest received                                                         0.1          0.6            0.8
Taxation                                                                  4.6         (2.0)          (2.2)
REIT entry charge                                                       (15.2)       (21.1)         (38.9)
Cash flows from operating activities                                      27.1        (4.1)          32.7
Cash flows from investing activities
Purchase and development of property, plant and equipment               (30.2)       (11.3)         (26.9)
Sale of property                                                          0.6          1.7            1.7
Sale of other investments                                                48.7                          
Acquisition of business                                                                           (72.8)
Cash sold with businesses                                                           (20.3)         (20.3)
Cash acquired with businesses                                                        37.6           37.6
Other investing activities                                               (8.4)        (8.3)          (8.3)
Cash flows from investing activities                                      10.7        (0.6)         (89.0)
Cash flows from financing activities
Issue of ordinary shares                                                  0.1         44.7           44.7
Issue of convertible bonds                                                           23.7           23.7
Acquisition of treasury shares                                           (0.1)                      (0.2)
Sale of treasury shares                                                   0.1          0.1            0.3
Partnership equity introduced                                             3.0                          
Cash transferred from restricted accounts                                 0.1          0.5            1.1
Borrowings drawn                                                         10.0         56.3          101.4
Borrowings repaid                                                       (30.4)      (108.5)        (138.2)
Interest on convertible bonds                                            (2.9)        (2.4)          (5.3)
Equity dividends paid                                                    (7.9)       (90.9)        (125.6)
Cash flows from financing activities                                    (28.0)       (76.5)         (98.1)
Net increase/(decrease) in cash and cash equivalents                       9.8       (81.2)        (154.4)
Cash and cash equivalents at beginning of period                          88.2       242.6          242.6
Cash and cash equivalents at end of period                   15           98.0       161.4           88.2

NOTES (unaudited)

1 Basis of preparation
The condensed set of financial statements for the six months ended 30 June 2012 is unaudited and does not constitute
statutory accounts within the meaning of s434 of the Companies Act 2006. The condensed set of financial statements has
been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with IAS 34
as adopted by the European Union.

The comparative information presented for the year ended 31 December 2011 is not the Group's statutory accounts for that
year. Those accounts have been reported on by the Group's auditors and delivered to the registrar of companies. The
auditors' opinion on those accounts was unqualified and did not contain an emphasis of matter paragraph or a statement
made under Section 498 (2) or (3) of the Companies Act 2006.

The condensed set of financial statements should be read in conjunction with the Group's statutory accounts for the year
ended 31 December 2011 which have been prepared in accordance with International Financial Reporting Standards (IFRSs)
as adopted by the European Union.

The comparative information for the six months ended 30 June 2011 has been re-presented to reflect the finalisation of the
acquisition accounting for The Trafford Centre. This has resulted in the gain on acquisition of subsidiaries being reduced by
£1.4 million with a corresponding increase in trade and other payables. There is no impact on the balance sheet at 1 January
2011.

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported amount of assets and liabilities, income and expense. Actual
results may differ from these estimates. Except as described below, in preparing the condensed set of financial statements,
the significant judgements made by management in applying the Group accounting policies and the key sources of estimation
uncertainty were the same as those applied to the consolidated financial statements as at and for the year ended 31
December 2011.

The largest area of estimation and uncertainty in the condensed set of financial statements is in respect of the valuation of the
property portfolio, where external valuations were obtained.

The Directors have concluded, based on the Group's forecasts and projections and taking into account reasonably possible
changes in trading performance, that there is a reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in
preparing the condensed set of financial statements.

2 Accounting policies
Except as described below, the accounting policies applied are consistent with those of the Group's statutory accounts for the
year ended 31 December 2011 as set out on pages 93 to 96 of the Annual Report.

Taxes on income in interim periods are accrued using tax rates expected to be applicable to total annual earnings.
There are no standards, amendments and interpretations that impact the Group's financial statements and are effective for
the first time for the Group's 31 December 2012 year end.

3 Seasonality and cyclicality
There is no material seasonality or cyclicality impacting interim financial reporting.

4 Segmental reporting
Operating segments are determined based on the internal reporting and operational management of the Group. The
Group is a UK Shopping Centre focussed business and has one reportable operating segment being UK Shopping Centres.

The principal profit indicator used to measure performance is net rental income. All net rental income is derived from the
UK Shopping Centres segment and an analysis of net rental income is given below.

                                                               Six months   Six months          Year
                                                                    ended        ended         ended
                                                                  30 June      30 June   31 December
                                                                     2012         2011          2011
                                                                       £m           £m            £m

Revenue                                                             263.4        256.0          516.1
Rent receivable                                                     221.2        211.3          432.1
Service charge income                                                38.7         36.8           76.5
                                                                    259.9        248.1          508.6
Rent payable                                                        (12.7)       (13.0)         (25.5)
Service charge costs                                                (42.6)       (39.8)         (82.1)
Other non-recoverable costs                                         (22.8)       (17.4)         (37.0)
Net rental income                                                   181.8        177.9          364.0


5 Net other income
                                                               Six months   Six months          Year
                                                                    ended        ended         ended
                                                                  30 June      30 June   31 December
                                                                     2012         2011          2011
                                                                       £m           £m            £m

Profit on sale of trading property                                                0.3            0.5
Write down of trading property                                       (0.1)        (0.5)          (1.0)
Dividends received from other investments                             3.2          3.9            8.3
Net other income                                                       3.1          3.7           7.8

6 Revaluation and sale of investment and development property
                                                               Six months   Six months          Year
                                                                    ended        ended         ended
                                                                  30 June      30 June   31 December
                                                                     2012         2011          2011
                                                                       £m           £m            £m

Revaluation of investment and development property                     0.2        58.3           63.0
Sale of investment property                                            0.2         0.1              
Revaluation and sale of investment and development property            0.4        58.4           63.0

7 Finance costs
                                     Six months   Six months           Year
                                          ended        ended          ended
                                        30 June      30 June    31 December
                                           2012         2011           2011
                                             £m           £m             £m

On bank loans and overdrafts               96.5         96.1          195.0
On obligations under finance leases         2.0          2.0            3.9
Finance costs                              98.5         98.1          198.9

No finance costs were capitalised in the six months ended 30 June 2012 nor in the comparative periods presented.

8 Other finance costs
                                                                             Six months   Six months           Year
                                                                                  ended        ended          ended
                                                                                30 June      30 June    31 December
                                                                                   2012         2011           2011
                                                                                    £m            £m            £m
Amortisation of Metrocentre compound financial instrument                           3.5          4.0            7.9
Costs of termination of derivative financial instruments and other fees(1)         38.5         34.4           47.8
Foreign currency movements (1)                                                      0.8                          
Other finance costs                                                                42.8         38.4           55.7

(1) Amounts totalling £39.3 million in the six months ended 30 June 2012 are treated as exceptional and therefore excluded from underlying earnings (six months ended 30 June 2011 - £34.4 million, year
end 31 December 2011 - £47.8 million).

9 Taxation
Taxation for the period:
                                     Six months   Six months          Year
                                          ended        ended         ended
                                        30 June      30 June   31 December
                                           2012         2011          2011
                                             £m           £m            £m

Current tax                                  0.1          0.7           0.3
Deferred tax:
On other investments                       (1.0)        13.4            7.6
On derivative financial instruments        (5.6)       (12.5)          (4.1)
On other temporary differences             (0.6)        (1.1)          (1.2)
Deferred tax                               (7.2)        (0.2)           2.3
Total tax (credit)/expense                 (7.1)          0.5           2.6

9 Taxation (continued)
Movements in the provision for deferred tax:
                                                             Derivative          Other
                                                    Other     financial      temporary
                                              investments   instruments    differences    Total
                                                       £m            £m             £m       £m

Deferred tax provision:
At 1 January 2012                                     5.0          (8.0)           3.0        
Recognised in the income statement                   (1.0)         (5.6)         (0.6)    (7.2)
Recognised in other comprehensive income              7.2                                 7.2
At 30 June 2012                                      11.2         (13.6)           2.4        
Unrecognised deferred tax asset:
At 1 January 2012                                                (39.1)         (23.1)   (62.2)
Income statement items                                              6.1          (3.5)     2.6
At 30 June 2012                                                  (33.0)         (26.6)   (59.6)

In accordance with the requirements of IAS 12 Income Taxes, the deferred tax asset has not been recognised in the
Group financial statements due to uncertainty over the level of profits that will be available in the non-REIT elements of
the Group in future periods.

10 Dividends                                            Six months   Six months          Year   
                                                             ended        ended         ended   
                                                           30 June      30 June   31 December   
                                                              2012         2011          2011   
                                                                £m           £m            £m   
Ordinary shares                                                                                 
Final dividend declared of 10.0 pence per share               85.4         85.2          85.2   
2011 interim dividend paid of 5.0 pence per share                                      42.6   
Dividends declared                                            85.4         85.2         127.8   
Proposed 2012 interim dividend of 5.0 pence per share         42.7                              


11 Earnings per share
(a) Earnings per share
Basic and diluted earnings per share as calculated in accordance with IAS 33 Earnings per Share. All earnings arise from
continuing operations.

                                                                      Re-presented
                                    Six months ended             Six months ended                       Year ended
                                      30 June 2012                    30 June 2011               31 December 2011
                                                     Pence                           Pence                           Pence
                                 Earnings Shares       per Earnings     Shares         per   Earnings      Shares      per
                                     £m million      share      £m      million      share       £m       million    share
                        
Basic earnings per share (1)       76.0   853.6      8.9p     179.5      828.2       21.7p       24.7       840.9    2.9p
Dilutive convertible bonds,
share options and share awards      2.9    39.5                 2.4       33.1                               0.6

Diluted earnings per share         78.9   893.1      8.8p     181.9      861.3       21.1p       24.7       841.5    2.9p

(1) The weighted average number of shares used for the calculation of basic earnings per share has been adjusted for shares held in the ESOP and treasury shares. Basic earnings per share are stated after
deducting interest on convertible bonds recognised directly in equity of £2.9 million in the six months ended 30 June 2012 (six months ended 30 June 2011 £2.4 million, year ended 31 December 2011 £5.3
million) in accordance with IAS 33 Earnings per share.

(b) Headline earnings per share
Headline earnings per share has been calculated and presented as required by the Johannesburg Stock Exchange listing
requirements.

                                                                              Re-presented
                                                     Six months ended       Six months ended            Year ended
                                                      30 June 2012           30 June 2011            31 December 2011
                                                                                                                     
                                                      Gross     Net (1)       Gross     Net (1)        Gross        Net (1)
                                                        £m          £m           £m         £m            £m            £m

Basic earnings                                                    76.0                   179.5                        24.7
Remove:
Revaluation and sale of investment and
development property                                   (1.0)      (1.8)       (58.4)     (48.8)        (72.1)        (66.3)
Gain on acquisition of subsidiaries                                         (52.9)     (52.9)        (52.9)        (52.9)
Gain on sale of subsidiaries                                                (40.4)     (25.9)        (40.4)        (25.9)
Sale and impairment of other investments               (1.4)      (1.8)         8.7        8.7           8.7           8.7
Headline earnings/(loss)                                          72.4                    60.6                      (111.7)
Dilution (2)                                                       2.9                     2.4                           
Diluted headline earnings/(loss)                                  75.3                    63.0                     (111.7)
Weighted average number of shares                                853.6                   828.2                       840.9
Dilution (2)                                                      39.5                    33.1                         0.6
Diluted weighted average number of shares                        893.1                   861.3                       841.5
Headline earnings/(loss) per share (pence)                        8.5p                    7.3p                     (13.3)p
Diluted headline earnings/(loss) per share (pence)                8.4p                    7.3p                     (13.3)p

(1) Net of tax and non-controlling interest
(2) The dilution impact is required to be included as for earnings per share as calculated in note 11(a) even where this is not dilutive for headline earnings per share.

(c) Underlying earnings per share
Underlying earnings per share is a non-GAAP measure but has been included as it is considered to be a key measure of the

                                                                         Re-presented
                                         Six months ended              Six months ended                   Year ended
                                           30 June 2012                  30 June 2011                 31 December 2011
                                                        Pence                             Pence                          Pence
                                      Earnings Shares       per   Earnings   Shares         per    Earnings   Shares       per
                                           £m million     share       £m     million      share        £m     million    share

Basic earnings per share (1)            76.0    853.6      8.9p     179.5    828.2        21.7p       24.7     840.9      2.9p
Remove:
Revaluation and sale of
investment and
development property                    (0.4)                      (58.4)                (7.1)p     (63.0)              (7.5)p
Share of associates revaluation
of investment and development
property                                (0.6)           (0.1)p       (9.1)                (1.1)p      (9.1)              (1.1)p
Distribution of shares received
from Provogue                          (10.2)           (1.2)p                                                            
Sale and impairment of other
investments                             (1.4)           (0.2)p        8.7                   1.1p        8.7                1.1p
Gain on acquisition of subsidiaries                               (52.9)                (6.5)p     (52.9)              (6.3)p
Gain on sale of subsidiaries                                      (40.4)                (4.9)p     (40.4)              (4.8)p
Exceptional administration costs         1.0              0.1p       15.5                   1.9p       20.9                2.5p
Exceptional finance charges             39.3              4.6p       34.4                   4.2p       47.8                5.7p
Change in fair value of
derivative financial instruments       (28.8)           (3.4)p      (21.7)                (2.6)p     193.4               23.0p
Tax on the above                        (7.6)           (0.9)p       (0.2)                            1.6                0.2p
Non-controlling interest
in respect of the above                  2.2               0.3p       10.9                 1.3p        6.9                0.8p
Underlying earnings per share           69.5    853.6      8.1p      66.3    828.2         8.0p      138.6     840.9     16.5p
Dilutive convertible bonds,
share options and share awards           2.9     39.5                 2.4      33.1                             0.6
Underlying, diluted earnings
per share                               72.4    893.1      8.1p      68.7    861.3         8.0p      138.6     841.5     16.5p

(1) The weighted average number of shares used for the calculation of basic earnings per share has been adjusted for shares held in the ESOP and treasury shares. Basic earnings per share are stated after
deducting interest on convertible bonds recognised directly in equity of £2.9 million in the six months ended 30 June 2012 (six months ended 30 June 2011 £2.4 million, year ended 31 December 2011 £5.3
million) in accordance with IAS 33 Earnings per share.

12 Net assets per share
                                                                                                       Re-presented
                                  As at 30 June 2012            As at 31 December 2011           As at 30 June 2011
                                  Net               NAV per        Net               NAV per       Net                 NAV per
                               assets   Shares        share     assets     Shares      share    assets      Shares       share
                                   £m  million      (pence)         £m    million    (pence)        £m     million     (pence)

NAV attributable to equity
shareholders of
CSC Group PLC (1)             2,937.8    853.7         344p    2,922.1      853.5       342p   3,135.6       853.5        367p
Dilutive convertible bonds,
share options and share
awards                            3.8     40.9                     3.8       40.3                            39.1
Diluted NAV                   2,941.6    894.6         329p    2,925.9      893.8       327p   3,135.6       892.6        351p
Remove:
Fair value of derivative
financial instruments
(net of tax)                    487.9                   55p     520.9                    58p     298.7                     33p
Deferred tax on investment
and development property
and other investments            11.2                    1p       5.0                     1p      13.3                      2p
Non-controlling interest
on the above                   (27.5)                  (3)p     (30.4)                  (3)p    (30.2)                    (3)p
Add:
Non-controlling interest
recoverable balance not
recognised                       71.3                    8p      71.3                     8p      71.3                      8p
NAV per share (diluted,
adjusted)                     3,484.5    894.6         390p   3,492.7      893.8        391p   3,488.7      892.6         391p

(1) The number of shares used has been adjusted for shares held in the ESOP and treasury shares.
                                                                        
13 Investment and development property                                                             £m   
At 1 January 2012                                                                             6,896.2   
Additions                                                                                        20.8   
Disposals                                                                                       (0.4)   
Surplus on revaluation                                                                            0.2   
At 30 June 2012                                                                               6,916.8   
                                                                        As at         As at     As at   
                                                                      30 June   31 December   30 June   
                                                                         2012          2011      2011   
                                                                           £m            £m        £m   
Balance sheet carrying value of investment and development property   6,916.8       6,896.2   6,804.1   
Adjustment in respect of tenant incentives                              100.9         101.9      95.0   
Adjustment in respect of head leases                                   (37.5)        (37.9)    (38.3)   
Market value of investment and development property                   6,980.2       6,960.2   6,860.8   


The fair value of the Group's investment and development properties as at 30 June 2012 was determined by independent
external valuers at that date. The valuation conforms with the Royal Institution of Chartered Surveyors (RICS) Valuation
Standards 7th Edition and with IVS 1 of International Valuation Standards, and was arrived at by reference to market
transactions for similar properties.

The main assumptions underlying the valuations are in relation to market rent, taking into account forecast growth rates and
yields based on known transactions for similar properties and likely incentives offered to tenants.

14 Investments in associate companies and other investments
                                                             Investments
                                                            in associate          Other
                                                               companies    investments
                                                                      £m             £m

At 1 January 2012                                                    32.5          171.2
Share of profit of associates                                         0.8              
Disposal of Equity One shares                                                     (44.4)
Distribution of shares received from Provogue                        10.2              
Revaluation                                                                        30.0
Foreign exchange movements                                           (2.0)          (1.2)
At 30 June 2012                                                      41.5          155.6

15 Cash and cash equivalents
                                 As at        As at    As at
                               30 June  31 December  30 June
                                  2012         2011     2011
                                   £m            £m       £m

Unrestricted cash                98.0          88.2    161.4
Restricted cash                   2.4           2.5      3.1
                                100.4          90.7    164.5

Restricted cash reflects amounts held to match the 2014 loan notes shown within borrowings.

16 Borrowings
                                                                             As at         As at      As at
                                                                           30 June   31 December    30 June
                                                                              2012          2011       2011
                                                                                £m            £m         £m
Current
Bank loans and overdrafts                                                     18.5          18.5       18.4
Commercial mortgage backed securities ("CMBS") notes                          41.8          41.1       40.1
Loan notes 2014                                                                2.4           2.5        3.1
CSC bonds 2013                                                                26.8                       
Current borrowings, excluding finance leases                                  89.5          62.1       61.6
Finance lease obligations                                                      2.8           3.3        3.7
                                                                              92.3          65.4       65.3
Non-current
CMBS notes 2015                                                              975.9          994.4    1,012.9
CMBS notes 2022                                                               52.0           52.1       52.2
CMBS notes 2029                                                              100.5          103.1      105.8
CMBS notes 2033                                                              379.1          380.4      381.7
CMBS notes 2035                                                              180.6          179.5      178.4
Bank loan 2014                                                               115.0          114.8      114.7
Bank loans 2016                                                              782.8          779.9      742.0
Bank loan 2017                                                               504.6          506.8      508.9
Debentures 2027                                                              227.3          227.1      227.0
CSC bonds 2013                                                                              26.8       26.7
Non-current borrowings, excluding finance leases and Metrocentre compound
financial instrument                                                        3,317.8       3,364.9    3,350.3
Metrocentre compound financial instrument                                     150.1         146.6      142.7
Finance lease obligations                                                      34.7          34.6       34.6
                                                                            3,502.6       3,546.1    3,527.6
Total borrowings                                                            3,594.9       3,611.5    3,592.9
Cash and cash equivalents                                                   (100.4)         (90.7)    (164.5)
Net debt                                                                    3,494.5       3,520.8    3,428.4

Net external debt (adjusted for Metrocentre compound financial instrument) at 30 June 2012 was £3,344.4 million (31
December 2011 £3,374.2 million; 30 June 2011 £3,285.7 million). The fair value of total borrowings as at 30 June 2012 was
£3,519.9 million.
                                                                             
17 Cash generated from operations                                                                             
                                                                Six months ended  Six months ended     Year   
                                                                         30 June      30 June   31 December 
                                                                            2012         2011          2011
                                                              Notes           £m           £m            £m   
Continuing operations
Profit before tax and associates                                            70.2        183.1          27.2   
Revaluation and sale of investment and development property       6        (0.4)       (58.4)        (63.0)   
Gain on acquisition of subsidiaries                                                   (52.9)        (52.9)   
Gain on sale of subsidiaries                                                          (40.4)        (40.4)   
Sale and impairment of other investments                                   (1.4)          8.7           8.7   
Distribution of shares received from Provogue                             (10.2)                            
Depreciation                                                                 0.7          0.7           1.4   
Share-based payments                                                         2.2          0.8           3.6   
Amortisation of lease incentives and other direct costs                      4.3        (4.3)         (4.0)   
Finance costs                                                     7         98.5         98.1         198.9   
Finance income                                                             (0.1)        (0.6)         (0.8)   
Other finance costs                                               8         42.8         38.4          55.7   
Change in fair value of derivative financial instruments                  (28.8)       (21.7)         193.4   
Changes in working capital:                                                                                   
Change in trading property                                                   3.4          3.6           6.5   
Change in trade and other receivables                                      (4.8)        (5.7)        (11.6)   
Change in trade and other payables                                         (2.5)          4.4           0.3   
Cash generated from operations                                             173.9        153.8         323.0   


18 Share capital
                                                                   £m
Issued and fully paid
At 31 December 2011  860,347,169 ordinary shares of 50p each   430.2
Shares issued                                                     2.4
At 30 June 2012  865,193,730 ordinary shares of 50p each       432.6

During the period the Company issued a total of 56,427 ordinary shares in connection with the exercise of options under the
Capital Shopping Centres Group PLC Approved Share Option Scheme and the Capital Shopping Centres Group PLC
Unapproved Share Option Scheme.

In connection with joint ownership elections by participants under the Company's Joint Share Ownership Plan (JSOP) a total of
4,790,134 ordinary shares were issued during the period to the trustee of the Company's Employee Benefit Trust.

19 Convertible bonds
The Company issued £154.3 million, 3.75 per cent perpetual subordinated convertible bonds, with a conversion price of £4.00,
in connection with the acquisition of The Trafford Centre. These are accounted for as equity at their fair value on issue which
totalled £143.7 million and they all remain outstanding at 30 June 2012.

During the six months ended 30 June 2012, interest of £2.9 million has been recognised on these bonds directly in equity (six
months ended 30 June 2011 £2.4 million, year ended 31 December 2011 £5.3 million).

20 Capital commitments
At 30 June 2012, the Group was contractually committed to £46.5 million (31 December 2011 £34.6 million, 30 June 2011
£54.5 million) of future expenditure for the purchase, construction, development and enhancement of investment property.
Additionally capital accruals of £35.0 million are provided for on the balance sheet.

The Group's share of joint venture commitments included above at 30 June 2012 was £11.4 million (31 December 2011 £13.3
million, 30 June 2011 £21.0 million).

21 Business combinations
The acquisition accounting for The Trafford Centre was finalised in the second half of 2011, after the Group's 2011 interim
financial statements had been published. This resulted in an increase of £1.4 million in the trade and other payables
recognised on acquisition with a corresponding decrease in the gain on acquisition of subsidiaries recognised in the income
statement. The figures presented for the six months ended 30 June 2011 have therefore been re-presented to reflect these
adjustments as at the date of the acquisition.

22 Related party transactions
During the period the Group entered into two transactions with the Peel Group. These are disclosed as related party
transactions as John Whittaker, Deputy Chairman and Non-Executive Director of CSC, is connected with the Peel Group. The
first transaction was the acquisition for £4.7 million of a 30.96 acre site known as King George V Docks (West) adjacent to
CSC's shopping centre at Braehead, Glasgow. The second transaction is the acquisition for 2.5 million of a three year option
alongside a refundable deposit of 7.5 million to purchase two parcels of land in the province of Malaga, Spain.
There have been no other related party transactions during the period that require disclosure under Section DTR 4.2.8 R of the
Disclosure and Transparency Rules or under IAS 34 Interim Financial Reporting except those disclosed elsewhere in this
condensed set of financial statements.

INVESTMENT AND DEVELOPMENT PROPERTY (unaudited)
Property data

                                                 Market                       Initial                    Nominal               
                                                  value                         yield   "Topped-up"   equivalent               
                                                     £m   Ownership   Notes    (EPRA)    NIY (EPRA)        yield   Occupancy   
As at 30 June 2012                                                                                                             
The Trafford Centre, Manchester                 1,732.0        100%              4.7%          4.9%         5.5%         97%   
Lakeside, Thurrock                              1,081.0        100%              5.0%          5.1%         5.6%         94%   
Metrocentre, Gateshead                            866.2         90%       A      5.4%          5.5%         5.8%         96%   
Braehead, Glasgow                                 599.0        100%              4.9%          5.1%         5.9%         94%   
Manchester, Arndale                               371.7         48%       B      5.0%          5.2%         5.7%         96%   
The Harlequin, Watford                            325.0         93%              5.4%          5.4%         6.6%         94%   
Victoria Centre, Nottingham                       323.0        100%              5.0%          5.1%         6.5%         97%   
St David's, Cardiff                               273.8         50%              4.6%          5.3%         5.9%         92%   
Eldon Square, Newcastle upon Tyne                 257.0         60%              5.1%          5.2%         6.7%         97%   
Chapelfield, Norwich                              240.0        100%              5.7%          5.8%         6.7%         99%   
Cribbs Causeway, Bristol                          230.0         33%       C      5.4%          5.4%         6.1%         94%   
The Chimes, Uxbridge                              213.0        100%              5.9%          5.9%         6.5%         96%   
The Potteries, Stoke-on-Trent                     176.1        100%              7.1%          7.3%         7.7%         94%   
The Glades, Bromley                               172.0         64%       D      5.6%          5.7%         7.3%         93%   
Other                                             120.4         
Total investment and development property       6,980.2                         5.08%         5.22%        5.96%        95%F   
As at 31 December 2011                          6,960.2                        5.14%E       5.34% E       5.98%E        97%E   


                                       As at         As at   
                                     30 June   31 December   
                                        2012          2011   
                                          £m            £m   
Passing rent                           354.6        358.4E   
ERV                                    453.3        448.9E   
Weighted average unexpired lease   8.1 years    7.5 yearsE   


Please refer to the glossary for the definition of terms.

Notes
A        Interest shown is that of the Metrocentre Partnership in the Metrocentre (90 per cent) and the Metro Retail Park (100 per cent).
         The Group has a 60 per cent interest in the Metrocentre Partnership which is consolidated as a subsidiary of the Group.
B        The Group's interest is through a joint venture ownership of a 95 per cent interest in Manchester Arndale, and a 90 per cent
         interest in New Cathedral Street, Manchester.
C        The Group's interest is through a joint venture ownership of a 66 per cent interest in The Mall at Cribbs Causeway and a 100
         per cent interest in The Retail Park, Cribbs Causeway.
D        Includes the Group's 67 per cent economic interest in Broadmarsh, Nottingham and the Group's 50 per cent economic interest
         in Xscape, Braehead.
E        Amounts quoted exclude Broadmarsh, Nottingham.
F        The EPRA vacancy rate at 30 June 2012 is 4 per cent.

Analysis of capital return in the period
                                                                                           Market value
                                                                                         30 June   31 December      Revaluation surplus *
                                                                                            2012          2011         30 June 2012
                                                                                              £m            £m         £m          %

Like-for-like property                                                                   6,956.4       6,954.4        0.9          
Acquisitions                                                                                17.0                   (0.7)       (3.7)
Redevelopments and developments                                                              6.8           5.8                    
Total investment and development property                                                6,980.2       6,960.2        0.2          

* Revaluation surplus includes amortisation of lease incentives and fixed head leases.

OTHER INFORMATION

FINANCIAL COVENANTS (unaudited)
Financial covenants on asset-specific debt excluding joint ventures

                                  Loan
                        outstanding at                          Loan to         Interest   Interest
                       25 July 2012 (1)             LTV     30 June 2012           cover      cover
              Maturity              £m         covenant  market value (2)       covenant   actual (3)

Metrocentre      2015            529.6              90%            61%              120%      130%
Braehead         2015            319.5              n/a            n/a              120%      196%
Watford          2015            247.0              n/a            n/a              120%      161%
Nottingham       2016            242.7              90%            75%              120%      396%
Chapelfield      2016            208.6              n/a            n/a              120%      161%
Uxbridge         2016            155.8              85%            73%              120%      176%
Bromley          2016            134.2              85%            78%              120%      182%
Lakeside         2017            513.2              75%            47%              140%      206%
Total                          2,350.6

The Trafford Centre
There are no financial covenants on the Trafford Centre debt. However a debt service charge ratio is assessed quarterly and
where this falls below specified levels certain restrictions come into force. The loan to 30 June 2012 market value ratio is 45 per cent.

Financial covenants on joint ventures asset-specific debt

                              Loan
                    outstanding at                            Loan to          Interest  Interest
                      25 July 2012 (1)             LTV   30 June 2012             cover     cover
          Maturity              £m            covenant   market value (2)      covenant    actual (3)
                                      
Cardiff      2014             93.4 (4)             70%            35%              180%      256%
Xscape       2014             22.8 (4)             90%            85%              120%      208%
Total                        116.2

Notes
(1)     The loan values are the actual principal balances outstanding at 25 July 2012, which take into account any principal
        repayments made up to 25 July 2012. The balance sheet value of the loans includes any unamortised fees.
(2)     The Loan to 30 June 2012 market value provides an indication of the impact the 30 June 2012 property valuations
        undertaken for inclusion in the condensed financial statements could have on the LTV covenants. The actual timing and
        manner of testing LTV covenants varies and is loan specific.
(3)     Based on latest certified figures, calculated in accordance with loan agreements, which have been submitted between
        30 June 2012 and 25 July 2012. The calculations are loan specific and include a variety of historic, forecast and in
        certain instances a combined historic and forecast basis.
(4)     50 per cent of the debt is shown which is consistent with accounting treatment and the Group's economic interest.

Financial covenants on corporate facilities at 30 June 2012
                                                                Interest  Interest    Borrowings/     Borrowings/
                                   Net worth    Net worth         cover      cover      net worth       net worth
                                   covenant*       actual     covenant*     actual      covenant*          actual

£375m facility, maturing in 2016      £750m      £1,167m          120%       210%           110%              26%

* Tested on the Borrower Group which excludes, at the Group's election, certain subsidiaries with asset-specific finance. The
facility is secured on the Group's investments in Arndale, Manchester and Cribbs Causeway, Bristol.

Capital Shopping Centres Debenture PLC at 30 June 2012
                                                          Capital  Capital    Interest   Interest
                                                 Loan       cover    cover       cover      cover
                                  Maturity        £m     covenant   actual    covenant     actual

                                     2027       231.4       150%      187%        100%       106%

The debenture is currently secured on the Group's interests in The Potteries, Stoke-on-Trent and Eldon Square, Newcastle.

Should the capital cover or interest cover test be breached, Capital Shopping Centres Debenture PLC (the issuer) has three
months from the date of delivery of the valuation or the latest certificate to the Trustees to make good any deficiencies. The
issuer may withdraw property secured on the debenture by paying a sum of money or through the substitution of alternative
property provided that the loan to value and income tests are satisfied immediately following the substitution.

UNDERLYING PROFIT STATEMENT (unaudited)
For the six months ended 30 June 2012

                                                           Six months   Six months    Six months           Year
                                                                ended        ended         ended          ended
                                                              30 June      30 June   31 December    31 December
                                                                 2012         2011          2011           2011
                                                                   £m           £m            £m             £m

Net rental income                                               181.8        177.9          186.1          364.0
Net other income                                                  3.1          3.7            4.1            7.8
                                                                184.9        181.6          190.2          371.8
Administration expenses                                         (13.3)       (11.8)         (12.3)         (24.1)
Underlying operating profit                                     171.6        169.8          177.9          347.7
Finance costs                                                   (98.5)       (98.1)        (100.8)        (198.9)
Finance income                                                    0.1          0.6            0.2            0.8
Other finance costs                                              (3.5)        (4.0)          (3.9)          (7.9)
Underlying net finance costs                                   (101.9)      (101.5)        (104.5)        (206.0)
Underlying profit before tax and associates                      69.7         68.3           73.4          141.7
Tax on adjusted profit                                           (0.5)        (0.7)          (0.3)          (1.0)
Remove amounts attributable to non-controlling interest           3.0          1.2            2.1            3.3
Share of underlying profit/(loss) of associates                   0.2         (0.1)                        (0.1)
Interest on convertible bonds deducted directly in equity        (2.9)        (2.4)          (2.9)          (5.3)
Underlying earnings                                               69.5        66.3           72.3          138.6
Underlying earnings per share (pence)                             8.1p         8.0p          8.5p          16.5p

DIVIDENDS
The Directors of Capital Shopping Centres Group PLC have announced an interim dividend per ordinary share (ISIN
GB0006834344) of 5.0 pence (2011 5.0 pence) payable on 20 November 2012 (see salient dates below). This dividend will be
paid totally as a Property Income Distribution ("PID") and will be wholly subject to a 20 per cent UK withholding tax unless
exemptions apply (please refer to the SPECIAL NOTE below).

Dates
The following are the salient dates for the payment of the interim dividend:

Thursday, 4 October 2012                      Sterling/Rand exchange rate struck

Friday, 5 October 2012                        Sterling/Rand exchange rate and dividend amount in SA currency announced

Monday, 15 October 2012                       Ordinary shares listed ex-dividend on the Johannesburg Stock Exchange

Wednesday, 17 October 2012                    Ordinary shares listed ex-dividend on the London Stock Exchange

Friday, 19 October 2012                       Record date for interim dividend in London and Johannesburg

Friday, 19 October 2012                       UK shareholders only: Last date for receipt of Tax Exemption Declaration
                                              forms to permit dividends to be paid gross

Tuesday, 20 November 2012                     Dividend payment day for shareholders

Should the Directors decide to offer shareholders a scrip alternative to the 2012 interim dividend, shareholders will be advised no
later than Friday 28 September 2012.

South African shareholders should note that, in accordance with the requirements of Strate, the last day to trade cum-dividend
will be Friday, 12 October 2012 and that no dematerialisation or rematerialisation of shares will be possible from Monday, 15
October to Friday, 19 October 2012 inclusive. No transfers between the UK and South African registers may take place from
Thursday, 4 October to Sunday, 21 October 2012 inclusive.

PID SPECIAL NOTE:
UK shareholders:
For those who are eligible for exemption from the 20 per cent withholding tax and have not previously registered for
exemption, an HM Revenue & Customs ("HMRC") Tax Exemption Declaration is available for download from the REITs page of
the "Investors" section of the Capital Shopping Centres Group website (www.capital-shopping-centres.co.uk), or on request to
our UK registrars, Capita Registrars. Validly completed forms must be received by Capita Registrars no later than the Record
Date, Friday 19 October 2012; otherwise the dividend will be paid after deduction of tax.

South African and other non-UK shareholders:
South African shareholders may apply to HMRC after payment of the dividend for a refund of the difference between the 20 per
cent withholding tax and the UK/South African double taxation treaty rate of 15 per cent. The residual UK tax deducted of 15 per
cent offsets any liability to South African Dividends Tax and so no Dividends Tax will be deducted from the 2012 interim dividend.

Other non-UK shareholders may be able to make similar claims for a refund of UK withholding tax deducted.

Refund application forms for all non-UK shareholders are available for download from the REITs page of the "Investors" section of
the Capital Shopping Centres Group website (www.capital-shopping-centres.co.uk), or on request to our SA registrars,
Computershare, or HMRC. UK withholding tax refunds are not claimable from Capital Shopping Centres Group, the South African
Revenue Service ("SARS") or other national authorities, only from the UK's HMRC.

Additional information on PIDs can be found at www.capital-shopping-centres.co.uk/investors/shareholder_info/reit.

The above does not constitute advice and shareholders should seek their own professional guidance. Capital Shopping Centres
Group PLC does not accept liability for any loss suffered arising from reliance on the above.

GLOSSARY

ABC1 customers
Proportion of customers within UK social groups A, B and C1 defined as members of households whose chief earner's occupation is
professional, higher or intermediate management or supervisory.

Annual property income
The Group's share of passing rent plus the external valuers' estimate of annual excess turnover rent, additional rent in respect of
unsettled rent reviews and sundry income such as that from car parks and mall commercialisation.

Debt to assets ratio
Net external debt divided by the market value of investment and development property.

Diluted figures
Reported amounts adjusted to include the effects of dilutive potential shares issuable under convertible bonds and employee
incentive arrangements.

Earnings per share
Profit for the period attributable to equity shareholders of CSC divided by the weighted average number of shares in issue during
the period.

EPRA
European Public Real Estate Association, the publisher of Best Practice Recommendations intended to make financial statements of
public real estate companies in Europe clearer, more transparent and comparable.

ERV (estimated rental value)
The external valuers' estimate of the Group's share of the current annual market rent of all lettable space net of any non-
recoverable charges, before bad debt provision and adjustments required under IFRS regarding tenant lease incentives.

Exceptional items
Exceptional items are those items that in the Directors' view are required to be separately disclosed by virtue of their size or
incidence to enable a full understanding of the Group's financial performance.

Headline rent ITZA
Annual contracted rent per square foot after expiry of concessionary periods in terms of Zone A.

Initial yield to the Group
Annualised net rent (as net initial yield (EPRA)) on investment properties expressed as a percentage of the net market value,
representing the yield that would be foregone by the Group were the asset to be sold.

Interest cover
Underlying operating profit excluding trading property related items divided by the net finance cost plus interest on convertible
bonds recognised in equity excluding the change in fair value of derivatives, exceptional finance costs and amortisation of
compound financial instruments.

Interest rate swap
A derivative financial instrument enabling parties to exchange interest rate obligations for a predetermined period. These are used
by the Group to convert floating rate debt to fixed rates.

IPD
Investment Property Databank Ltd, producer of an independent benchmark of property returns.

Like-for-like property
Investment properties which have been owned throughout both periods without significant capital expenditure in either period, so
that income can be compared on a like-for-like basis. For the purposes of comparison of capital values, this will also include assets
owned at the previous reporting period end but not throughout the prior period.

Loan-to-value (LTV)
LTV is the ratio of attributable debt to the market value of an investment property.

NAV per share (diluted, adjusted)
NAV per share calculated on a diluted basis and adjusted to reflect any unrecognised surplus on trading properties (net of tax), to
remove the fair value of derivatives (net of tax) and to remove deferred tax on investment development property and other
investments.

Net asset value (NAV) per share
Net assets attributable to equity shareholders of CSC Group PLC dividend by the number of ordinary shares in issue at the period
end.

Net external debt
Net debt after removing the Metrocentre compound financial instrument.

Net initial yield (EPRA)
Annualised net rent on investment property (after deduction of revenue costs such as head rent, running void, service charge after
shortfalls, empty rates and merchant association contribution) expressed as a percentage of the gross market value before deduction of
theoretical acquisition costs, consistent with EPRA's net initial yield.

GLOSSARY

Net rental income
The Group's share of net rents receivable as shown in the income statement, having taken due account of non-recoverable costs, bad
debt provisions and adjustments to comply with IFRS including those regarding tenant lease incentives.

Nominal equivalent yield
Effective annual yield to a purchaser from the assets individually at market value after taking account of notional acquisition costs
assuming rent is receivable annually in arrears, reflecting estimated rental values (ERV) but disregarding potential changes in market
rents.

Occupancy
The passing rent of let and under offer units expressed as a percentage of the passing rent of let and under offer units plus ERV of un-
let units, excluding development and recently completed properties. Units let to tenants in administration and still trading are treated
as let and those no longer trading are treated as un-let.

Passing rent
The Group's share of contracted annual rents receivable at the balance sheet date. This takes no account of accounting adjustments
made in respect of rent free periods or tenant incentives, the reclassification of certain lease payments as finance charges or any
irrecoverable costs and expenses, and does not include excess turnover rent, additional rent in respect of unsettled rent reviews or
sundry income such as from car parks etc. Contracted annual rents in respect of tenants in administration are excluded.

Property Income Distribution (PID)
A dividend, generally subject to UK withholding tax at the basic rate of income tax, that a UK REIT is required to pay to its shareholders
from its qualifying rental profits. Certain classes of shareholder may qualify to receive a PID gross  shareholders should refer to
www.capital-shopping-centres.co.uk for further information. The Group can also pay non-PID dividends which are not subject to UK
withholding tax.

Real Estate Investment Trust (REIT)
A tax regime which exempts from corporation tax the rental profits and capital gains of the REIT's qualifying investment property
activities. In the UK, the regime must be elected into and the REIT must meet certain ongoing qualifications including the requirement
to distribute at least 90 per cent of qualifying rental profits to shareholders. The Group elected for REIT status with effect from 1
January 2007.

Tenant (or lease) incentives
Any incentives offered to occupiers to enter into a lease. Typically incentives are in the form of an initial rent free period and/or a cash
contribution to fitout the premises. Under IFRS the value of incentives granted to tenants is amortised through the income statement
on a straight-line basis over the lease term.

Topped-up NIY (EPRA)
Net initial yield adjusted for the expiration of rent free periods and other unexpired lease incentives.

Total financial return
The change in adjusted NAV per share (diluted, adjusted) plus dividends per share declared in the period expressed as a percentage of
opening NAV per share (diluted, adjusted).

Trading property
Properties held for trading purposes rather than to earn rentals or for capital appreciation and shown as current assets in the balance
sheet.

Underlying earnings per share (EPS)
Earnings per share adjusted to exclude valuation movements, exceptional items and related tax.

Underlying figures
Amounts described as underlying exclude valuation movements, exceptional items and related tax.

Vacancy rate (EPRA)
The ERV of vacant space divided by total ERV.

Yield shift
A movement (usually expressed in basis points) in the yield of a property asset.

Top Properties
[GRAPHIC REMOVED  PLEASE SEE PAGES 40-41 OF FULL ANNOUNCEMENT WHICH CAN BE FOUND AT
WWW.CAPITAL-SHOPPING-CENTRES.CO.UK]



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