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Trading Update
CAPITAL & REGIONAL PLC
(Incorporated in the United Kingdom)
(UK company number 01399411)
LSE share code: CAL JSE share code: CRP
ISIN: GB0001741544
(“Capital & Regional” or “the Company”)
TRADING UPDATE
Capital & Regional plc (LSE: CAL), the UK focused specialist property REIT, announces a trading update for the second half of
2016, prior to its year end results announcement on 9 March 2017.
Operating performance (wholly-owned portfolio)
- Our schemes enjoyed a good Christmas with like-for-like footfall over the last two weeks of the year up 2.2% on the
prior year. Footfall improved in the second half of 2016 and for the whole of 2016 the portfolio once again outperformed
the industry benchmark, by 1.9%.
- There has been continued good momentum in leasing activity in the second half of 2016 with 34 new lettings and
15 lease renewals totalling £2.8 million(1) in annual rental income, at a combined 6.1% premium to ERV(2). Key lettings in
the period include Burger King, Footasylum and Wilko at Blackburn; Card Factory and an upsized JD Sports at Luton;
The Gym at Walthamstow; Foot Locker at Wood Green; and upsized Holland & Barrett stores at both Luton and
Maidstone.
- Contracted rent was £57.5 million as at 31 December 2016. Following the sale of The Mall, Camberley in October 2016,
this represents a like-for-like increase of £0.3 million on 30 June 2016 or £0.9 million on 31 December 2015(3).
- Occupancy remains strong at 95.4% for the portfolio at 31 December 2016.
Property valuations
- The valuation of the wholly-owned portfolio at 31 December 2016 was £794.1 million at a net initial yield of 6.01%, an
increase of £0.5 million on the valuation of £793.6 million at 30 June 2016 (adjusted for the disposal of The Mall,
Camberley), which represented a net initial yield of 6.00%. The capital expenditure spent on the wholly-owned portfolio
during the second half of the year was £7.7 million.
Refinancing
- As announced on 4 January 2017 the Group has completed the refinancing of the debt on its five wholly-owned Mall
properties by entering into new debt facilities totalling £372.5 million. Interest on the three new facilities has been fixed
resulting in an overall blended rate of 3.27%. The weighted average maturity is 7.8 years, rising to 8.8 years if extension
options are assumed to be exercised.
Hugh Scott-Barrett, Chief Executive, commented:
“The operating performance has been very encouraging reflecting stronger consumer confidence in the second half of the year
than had been anticipated following the result of the EU referendum. Footfall is up and, as has become the trend for our schemes,
is well ahead of the national benchmark, while letting momentum has been maintained as the mix of town centre locations and
affordable rents continues to attract new retailers and leisure operators.
“Activity in the investment markets continues to highlight the attractiveness of assets which have the potential for leisure and
residential development, and this evidence, alongside our geographical focus on London and the south east, has helped to
underpin the valuations for our wholly owned portfolio.
“Having disposed of The Mall, Camberley and refinanced our core banking facility on very attractive terms, Capital & Regional
is well placed to maintain the momentum behind the execution and delivery of our asset management programme. We also expect
to be able to take advantage of opportunities to recycle capital into higher yielding investments with greater growth potential.
“Reflecting the positive operating performance and our confidence in our ability to continue to grow income we expect the
increase in the final dividend for 2016 to be at the top end of the 5% to 8% per annum targeted range.”
1 New letting and renewal activity excludes The Mall, Camberley
2 For lettings and renewals with a term of five years or longer and which did not include a turnover element
3 Using Contracted Rent for Hemel Hempstead at date of acquisition
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) prior to its release as part of this announcement.
11 January 2017
JSE sponsor
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Notes to editors:
About Capital & Regional plc
Capital & Regional is a UK focused specialist property REIT with a strong track record of delivering value enhancing retail and
leisure asset management opportunities across a c. GBP 1 billion portfolio of in-town dominant community shopping centres.
Capital & Regional is listed on the main market of the London Stock Exchange and has a secondary listing on the Johannesburg
Stock Exchange.
Capital & Regional owns six shopping centres in Blackburn, Hemel Hempstead, Luton, Maidstone, Walthamstow and Wood
Green. It also has a 20% joint venture interest in the Kingfisher Centre in Redditch and a 50% joint venture in the Buttermarket
Centre, Ipswich. Capital & Regional manages these assets, which comprise over 830 retail units and attract c. 1.6 million
shopping visits each week, through its in-house expert property and asset management platform.
For further information see www.capreg.com.
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