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(Alliance News) - Capital & Regional PLC on Friday reported an improved operational performance within the second quarter of its financial year, as it continues discussions for an extension to its debt facility.
With 99% of leased units back open, footfall in the eight weeks since the re-opening of non-essential retail since April 12 has risen from 30% of pre-Covid levels to 72%, even as social distancing rules keep restrictions on capacity.
As at May 31, occupancy stands at 89%, and for the year-to date, Capital & Regional has collected 70% of its rent due, an improvement of 11% from April 28. In addition, the London-based manager of property assets had completed 38 new letting and renewals, for a combined value of GBP900,000.
As at May 31, Capital & Regional's cash balance stood at GBP74.3 million, equal to more than a year of gross revenue.
For the On The Mall facility and Ilford, the company has agreed on new covenant waivers or extensions until October, during which time Capital & Regional will work to finish the outline agreement for a longer term relaxation linked to the proposed healthcare facility project.
In addition, the group will use the waivers to continue discussions with lenders for an extension to the debt facility.
"I am pleased to say that we have seen a positive response from our retailers and the local communities we serve with essential and non-discretionary goods and services. Footfall has been robust and many of our retailers are reporting strong sales and consumer engagement, despite the fact that we still have to restrict access to stores and our common areas at peak times to maintain social distancing which creates additional scope to improve sales and footfall as restrictions ease further," said Chief Executive Officer Lawrence Hutchings.
"The positive trends we are seeing as the country gradually emerges from lockdown have led to improving momentum on both leasing and our rent collection statistics. We have now collected 70% of 2021 rents due to date and have agreed outline deals with a number of occupiers which will improve this further. Our 2020 collection figure has also now climbed to 84%," Hutchings added.
Capital & Regional will publish its interim results on September 9.
Shares in Capital & Regional were up 5.6% at 78.76 pence on Friday in London, while its Johannesburg shares were untraded, last quoted at ZAR16.42.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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