Capital & Regional (CAL) has spent a number of years climbing out of the hole it dug for itself by entering the financial crisis with too much debt - a hole many predicted would be its grave. Evidence of its recovery is reflected in the company's first promise of a final dividend since 2008, the interim payout having been restored at the half-year stage.
The group has paid off its balance sheet debt by selling all its wholly-owned assets, while the loan-to-value ratio relating to its associates and jointly-held properties eased a little from 55 per cent to 52 per cent. That has allowed the company to increase its stake in the Mall fund - a holding vehicle for six regional shopping centres - from 20.2 per cent to 29.3 per cent.
UK shopping centre activities now form the core of the company's activities. After adjusting for the £8.5m sale of Jarman Fields in Hemel Hempstead after the year-end, shopping centres and a small cash balance account for 75 per cent of net assets (NAV) - up from 47 per cent two years ago, when the group also owned a stake in the X-Leisure cinema fund since bought by Land Securities (LAND).
Broker Numis Securities expects adjusted NAV by the year-end of 58p a share (56p in 2013).
| CAPITAL & REGIONAL (CAL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 50p | MARKET VALUE: | £175m | |
| TOUCH: | 49-50p | 12-MONTH HIGH: | 53p | LOW: 28p |
| DIVIDEND YIELD: | 1.3% | TRADING PROPERTIES: | nil | |
| DISCOUNT TO NAV: | 7% | NET DEBT: | 129%* | |
| INVESTMENT PROPERTIES: | £144m* | |||
| Year to 31 Dec | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 37 | -113 | -59 | nil |
| 2010 | 50 | 46 | 13 | nil |
| 2011 | 56 | 23 | 6 | nil |
| 2012 | 51 | -13 | -3 | nil |
| 2013 | 54 | 9 | 3 | 0.65 |
| % change | +6 | - | - | - |
Ex-div: 12 Mar Payment: 11 Apr *Relates to investments in associates and joint ventures | ||||
