Capital & Regional welcomes ‘rapid re-leasing’ as demand lifts

Capital & Regional has seen a rise in retail lettings and renewals, including a quick turnaround for its former Wilco stores. Over the six months to 30 June, the company posted a 17.1% year-on-year increase in net rental income to £13.7m and a 0.8% increase in like-for-like valuations. Adjusted profit also came in 17.1% ahead of a year ago, at £8.2m. Over the half-year the company struck 48 new lettings and renewals, compared to 42 in the same period a year ago, at a combined average premium of 8.8% to previous rent and 14.1% to estimated rental value. Chief executive Lawrence Hutchings said the leasing figures showed the company was capitalising on strong demand from retailers “against what at times has been a challenging economic backdrop”. “Not only did we complete more lettings and renewals than over the same period last year, we also achieved these at both a higher average rent per lease and average premium to the previous rent,” Hutchins said. “The rapid re-leasing of all three of our former Wilko units to B&M in the first few months of 2024 is one of the most notable examples of the demand for space in our centres from retailers that need to be at the heart of local communities, which is further evidenced by the strong start we have made to the second half of the year.” The company is at the centre of a potential bidding battle between NewRiver REIT and Praxis, which have until 15 August to make a takeover offer. “Notwithstanding the previously announced and ongoing corporate activity, Capital & Regional remains well placed to continue to deliver on its successful community strategy to drive income growth and value in support of progressive shareholder dividends,” Hutchings said.