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Opinion

Running bumper profits

Running bumper profits
August 27, 2015
Running bumper profits

Firstly, FTSE Small Cap constituent and shopping centre owner Capital & Regional (CAL:67p) released the bumper set of interim results I had anticipated when I suggested buying the shares at 60.25p. The share price duly hit my 70p target price ('Hot property', 27 July 2015), so it's hardly surprising that some investors were tempted to bank a 16 per cent short-term profit.

I am inclined to run profits though with the shares currently trading on a bid-offer spread of 66.5p to 67p. That's because in the first six months of this year valuation gains lifted the company's net asset value (NAV) per share by 12 per cent to 67p a share, prompting analysts to see potential for upgrades to their end 2015 NAV forecasts of 70p. Moreover, with occupancy rates up too, and balance sheet gearing comfortable, the interim payout was lifted more than four-fold to 1.5p a share. A full-year expected payout of 3p a share implies a decent prospective yield of 4.5 per cent.

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