Capital & Regional (CAL)

Sector:

Real Estate

Index:

FTSE Small Cap

51.90p
   
  • Change Today:
      0.100p
  • 52 Week High: 60.80
  • 52 Week Low: 50.00
  • Currency: UK Pounds
  • Shares Issued: 224.16m
  • Volume: 260,816
  • Market Cap: £116.34m
  • RiskGrade: 438

Capital & Regional resumes dividend after strong first half

By Josh White

Date: Thursday 11 Aug 2022

LONDON (ShareCast) - (Sharecast News) - Capital & Regional reported improved income and profitability in its half-year results on Thursday, with net rental income on its investment assets up 23% year-on-year to £12.2m.
The London-listed firm said that was driven by improved occupancy and rent collection, with statutory revenue totalling £28.4m for the six months ended 30 June, compared to £27.4m a year earlier.

It said the improvement in net rental income flowed through to adjusted profit, which increased 87% to £5.8m, while adjusted earnings per share saw growth of 25% to 3.5p.

IFRS profit for the first half totalled £26.8m, swinging from a loss of £41.3m in the same period last year, which the board put down to the adjusted profit of £5.8m, a revaluation gain of £1.2m, and £12.3m and £6.8m gains from the discounted purchase of the Hemel Hempstead debt facility and deconsolidation of Luton, respectively.

Property valuations on investment assets increased 1.7% over the period to £358.5m on a like-for-like basis, while the net asset value and EPRA net tangible assets per share increased to 118p and 116p, respectively, both from 102p at the end of December.

The directors said that, reflecting the "stabilisation" of the company's operating markets post-Covid and continued stabilisation of its valuations, together with "substantial progress" in reducing debt, they were resuming dividend payments with a proposed Interim dividend of 2.5p per share.

"Our team has had an exceptionally productive six months both in terms of driving a strong operational performance and return to profitability and in building on the restructuring of the Mall debt facility and capital raise that we completed in November last year," said chief executive Lawrence Hutchings.

"The combination of the Blackburn sale above book value, completing the £21m Walthamstow residential disposal, securing the Ilford lettings to the NHS and TK Maxx at Ilford which enabled a positive loan amendment, and the acquisition of our Hemel Hempstead debt at a significant discount, and supported by a new debt facility, have put the company on a solid footing to look to the future.

"Not only have these initiatives refocused our portfolio towards our London and south east assets, they have also enabled us to further reduce debt to a sustainable level, with net loan-to-value on a proforma basis improving considerably to 40% from 72% a year ago."

Hutchings said that while the company was "buoyed" by its first half performance, it was also aware of the current economic environment and inflationary pressures.

"However, the actions that we have taken, together with our well-located, affordable, needs-based community shopping centres, combined with defensive average yields and stabilising values, evidenced by a third set of valuations in the last 12 months, leave us well positioned to withstand these cyclical pressures as we continue to invest in our necessity and convenience focused community strategy and customer proposition."

Operationally, Capital & Regional reported 55 new lettings and renewals achieved in the year at a combined average premium of 34.1% to previous rent and 17.8% to estimated rental value.

Two key new lettings were completed, including a 25 year lease agreement with the NHS for a new community healthcare centre and the upsizing and relocation of TK Maxx, both at Ilford.

The firm said its occupancy improved to 93.7%, from 92.7% on 31 December and 89.7% at the end of June last year, while 29 million shopper visits were made to its properties during the six months, with footfall up 58% on the first half of 2021.

Rent collection was said to be back in line with historic pre-pandemic levels, with 97.3% collected for the year to date.

"We have outperformed in occupancy and leasing, with lettings achieved at strong average premiums to passing rent and ERV which have helped drive a near doubling of adjusted profit," Lawrence Hutchings said.

"Furthermore, rent collection has returned to pre-Covid levels.

"Reflecting this and the Board's confidence in the company's future prospects, we are pleased to confirm the resumption of dividend payments with a proposed interim dividend of 2.5p per share."

At 0919 BST, shares in Capital & Regional were up 12.5% at 66.6p.

Reporting by Josh White at Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

CAL Market Data

Currency UK Pounds
Share Price 51.90p
Change Today 0.100p
% Change 0.19 %
52 Week High 60.80
52 Week Low 50.00
Volume 260,816
Shares Issued 224.16m
Market Cap £116.34m
RiskGrade 438

CAL Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
87.43% above the market average87.43% above the market average87.43% above the market average87.43% above the market average87.43% above the market average
84.62% above the sector average84.62% above the sector average84.62% above the sector average84.62% above the sector average84.62% above the sector average
Price Trend
20.46% below the market average20.46% below the market average20.46% below the market average20.46% below the market average20.46% below the market average
39.53% below the sector average39.53% below the sector average39.53% below the sector average39.53% below the sector average39.53% below the sector average
Income
96.22% above the market average96.22% above the market average96.22% above the market average96.22% above the market average96.22% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
68.82% below the market average68.82% below the market average68.82% below the market average68.82% below the market average68.82% below the market average
43.59% below the sector average43.59% below the sector average43.59% below the sector average43.59% below the sector average43.59% below the sector average

What The Brokers Say

Strong Buy 1
Buy 4
Neutral 0
Sell 0
Strong Sell 0
Total 5
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

CAL Dividends

  Latest Previous
  Final Interim
Ex-Div 11-Apr-24 31-Aug-23
Paid 31-May-24 22-Sep-23
Amount 2.95p 2.75p

Trades for 28-Mar-2024

Time Volume / Share Price
16:28 50,000 @ 51.95p
16:14 8,500 @ 52.05p
16:12 18,667 @ 52.05p
16:09 9,500 @ 52.05p
15:40 2 @ 52.40p

CAL Key Personnel

CEO Lawrence Hutchings
Finance Director Stuart Wetherly

Top of Page