‘Refocus, restructure and recapitalise’ pays off at Capital & Regional
Capital & Regional has reinstated its dividend and returned to profit, as it claims efforts to “refocus, restructure and recapitalise” have been a success.
Chief executive Lawrence Hutchings said: “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.”
The group has also shrunk net debt from it’s agonising high last year of £348m – 72% of property value – to a more tolerable £136.5m, or 40%.
Capital & Regional has reinstated its dividend and returned to profit, as it claims efforts to “refocus, restructure and recapitalise” have been a success.
Chief executive Lawrence Hutchings said: “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.”
The group has also shrunk net debt from it’s agonising high last year of £348m – 72% of property value – to a more tolerable £136.5m, or 40%.
Net asset value now stands at £195.3m, up from £168.4m at the 2021 year end. Hutchings said this had “put the company on a solid footing to look to the future”.
Sales of non-core assets over the period had also “refocused our portfolio towards our London and SE assets”.
Revenues for the six months to the end of June were £28.4m, up marginally from H1 2021’s £27.4m. IFRS profit for the period was far improved thanks largely to disposals, at £26.8m, up from H1 2021’s loss of £41.3m.
Hutchings said: “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.”
He added: “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.”
And despite the macro-economic storm clouds gathering, Hutchings said that “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.”
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