(Alliance News) - Capital & Regional PLC on Friday said it delivered a "robust" set of results despite like-for-like rental income slipping.
Capital & Regional said it agreed 44 new lettings and renewals in the first half of 2019, totalling GBP3.1 million in rental income.
Contracted rent was "robust" at GBP61.1 million, though this was down 1.9% year-on-year, benefitting from new leasing activity but weighed down by company voluntary arrangements and administrations.
Like-for-like rental income was down 3.1%, or GBP800,000, to GBP25.2 million year-on-year. This included a GBP1.1 million hit from CVAs and retailer restructurings.
The company's portfolio valuations fell by 6.8% to GBP797.3 million from GBP855.2 million at the end of December.
Providing an update on the fire at its Walthamstow shopping centre in July, Capital & Regional said the first stores have now reopened with further openings planned over the coming weeks for around 75% of the stores. The remaining areas are expected to re-open progressively over the next six to nine months, and the firm emphasised that it is fully insured for both reinstatement and loss of income.
"The progress on Walthamstow both in terms of re-opening the centre and in selecting a residential partner, where we have seen strong interest and bidding, to deliver the consented residential scheme is testament to the quality of our assets and our approach to unlocking value," said Chief Executive Lawrence Hutchings. "Likewise, the decision to unlock value by selling the residential site at Wood Green to an experienced developer is appropriate at this point."
The firm on Friday said it has agreed to sale non-core land at Wood Green, London, for GBP5 million, in line with book value. The proceeds are expected in the fourth quarter.
Overall, Hutchings said, Capital & Regional delivered a "robust" set of operational results in a "challenging" period for UK retail.
Capital & Regional (CAL)