Landlord cum real estate investment trust (Reit) Capital & Regional (CAL) focuses on in-town community shopping centres, a market segment that has been under some pressure since the referendum, although Capital & Regional has performed a lot better than the headline figures suggest.
On a like-for-like basis the portfolio valuation fell by 1 per cent, against the 8 per cent fall recorded by the IPD shopping centres index. Crucially, net rental income was up 6.7 per cent at £52.6m, and the headline loss reflected a £14.5m property devaluation compared with a £74.8m revaluation the previous year. New lettings and lease renewals generated £5.6m, with rents agreed 2.1 per cent ahead of estimated rental value.
Once again, Capital & Regional has been adept at recycling capital, disposing of mature schemes at a premium to book value and investing in new property. The Mall in Camberly was sold for £86m while the Marlowes shopping centre in Hemel Hempstead was bought for £53.8m. And shortly after the year-end, the sale of the Buttermarket Centre in Ipswich was concluded, realising £13.5m. The proceeds from the sale were used to buy The Exchange Centre in Ilford for £78m, completed in early March this year.
Analysts at Peel Hunt are forecasting adjusted net asset value at the December 2017 year-end of 68p, unchanged from 2016.
CAPITAL & REGIONAL (CAL) | ||||
---|---|---|---|---|
ORD PRICE: | 59p | MARKET VALUE: | £414m | |
TOUCH: | 59-59.5p | 12-MONTH HIGH: | 67p | LOW: 44p |
DIVIDEND YIELD: | 5.7% | TRADING PROPERTIES: | £13.9m | |
DISCOUNT TO NAV: | 13% | NET DEBT: | 69% | |
INVESTMENT PROPERTIES: | £852m* |
Year to 31 Dec | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2012 | 51 | -13.0 | -3.0 | nil |
2013 | 54 | 7.3 | 2.0 | 0.65 |
2014 | 60 | 67.2 | 13.6 | 0.95 |
2015 | 72 | -19.9 | 13.9 | 3.12 |
2016 | 68 | -33.0 | -0.6 | 3.39 |
% change | -6 | - | - | +9 |
Ex-div: 27 Apr Payment: 16 May *Includes investments in associates |