Capital Markets Day and Trading update

RNS Number : 3585Y

Capital & Regional plc

05 December 2017

 

5 December 2017

Capital & Regional plc

("Capital & Regional" or the "Company" or "Group")

Capital Markets Day and Trading update

Capital & Regional (LSE: CAL), the UK focused Community Shopping centre REIT will today host a Capital Markets Day and visit to The Exchange Shopping Centre in Ilford for analysts and investors.  In advance of the Capital Markets Day, the Company would like to provide the following update on current trading.

Trading update¹

·     Passing Rent was £61.1 million at 30 November 2017, up £1.2 million or 2% from 30 June 2017.  The opening of major new units for Lidl and The Gym in Walthamstow, as well as the Travelodge at Wood Green, have contributed to the uplift.

·     The strong momentum in letting activity generated in the first half of the year has continued since 30 June 2017.  In the five months to 30 November 2017 there were 15 new lettings and 18 lease renewals totalling £1.9 million in contracted income, at a combined premium to ERV² of 7.1%. 

·     Total occupancy has increased to 96.6% at 30 November 2017, up from 95.5% at 30 June 2017.

·     Footfall across the Company's shopping centres in the 21 weeks since the half year has increased by 0.2%³, significantly outperforming the national index which fell by 2.7%, reflecting the ongoing strength of Capital & Regional's proposition against the evolving retail backdrop.

·     Good progress has been made on the cost reduction programme, with the business on track to meet the targeted annualised savings of at least c. £1.8 million by 2018, equivalent to a c. 20% reduction in 2016 central costs.

·     Management reiterates its guidance for the total Full Year 2017 dividend at top end of the stated 5% to 8% per annum growth range.

Commenting on the Company's strategy Lawrence Hutchings, Chief Executive, said:

"In the short period since joining Capital & Regional in June 2017, the team and I have carried out a detailed review of the business, including the important role that our community shopping centres play in the rapidly evolving retail marketplace. A crucial part of this process has been the direct engagement we have undertaken with a wide ranging group of stakeholders, including members of the local communities that our centres serve, together with in-depth external research. 

"The results of all of this work, which we will share at today's Capital Markets Day, provide me with even greater confidence than when I first joined that our shopping centres, which are entrenched in their local communities, will continue to play a critical role in serving the "needs" based end of consumer demand.  Capital & Regional's experience and management expertise present us with a significant opportunity to redefine and take further ownership of this specialised sector, in which rebased affordable rents provide occupiers with a competitive base for future growth in local centres that continue to be the engine room for retailers' profits."

Materials from today's Capital Markets Day, together with a recording of the presentations, will be made available on the Company's website at http://capreg.com/investor-relations/default.html. No further new trading information will be released.

¹ Wholly-owned portfolio unless otherwise stated.

² For lettings and renewals (excluding development deals) with a term of five years or longer and which did not include a turnover element.

³ Excluding entrances impacted by development work.

- ENDS -

For further information:

Capital & Regional plc                  020 7932 8000

Lawrence Hutchings

Charles Staveley

FTI Consulting                               020 3727 1000

Richard Sunderland                        

Claire Turvey

[e-mail]

About Capital & Regional plc

Capital & Regional is a UK focused specialist property REIT with a strong track record of delivering significant value enhancing retail and leisure asset management opportunities across its c. £1 billion portfolio of in-town, dominant community shopping centres.

Capital & Regional owns seven shopping centres in Blackburn, Hemel Hempstead, Ilford, Luton, Maidstone, Walthamstow and Wood Green. It also has a 20% joint venture interest in the Kingfisher Centre in Redditch. Capital & Regional manages these assets through its in-house expert property and asset management platform.

For further information see capreg.com.

Forward Looking Statements

This document contains certain statements that are neither reported financial results nor other historical information.  These statements are forward-looking in nature and are subject to risks and uncertainties.  Actual future results may differ materially from those expressed in or implied by these statements.  Many of these risks and uncertainties relate to factors that are beyond Capital & Regional's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of governmental regulators and other risk factors such as the Group's ability to continue to obtain financing to meet its liquidity needs, changes in the political, social and regulatory framework in which the Group operates or in economic or technological trends or conditions, including inflation and consumer confidence, on a global, regional or national basis.  Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this document.  Capital & Regional does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document.  Information contained in this document relating to the Group should not be relied upon as a guide to future performance.

 

END

 

 

TSTDGBDDXXGBGRS