(Alliance News) - Capital & Regional PLC reported on Thursday it had restored dividend as the group swung to an interim profit on the back of strong leasing and robust rent collection.
The London-based real estate investment trust focused on community shopping centres returned to profitability, swinging to pretax profit of GBP18.9 million for six months ended June 30 from a loss of GBP29.5 million in the same period last year.
Revenue rose by 3.6% to GBP28.4 million from GBP27.4 million as rent collection was back in line with pre-Covid levels.
The group said 98.0% of rent was collected in the first half. Rent collection for the 2022 year to date, including monthly invoices up to July, is running at 97.3%, representing a return to pre-Covid levels.
Rent collection for the 2021 financial year had improved to 92.7% from 88.1% at the time of the 2021 year-end results in March.
Occupancy improved to 93.7% as at June 30, compared to 92.7% as at December 31 and 89.7% as at June 30, 2021.
Capital & Regional enjoyed another strong period of leasing momentum during the first half, completing 55 new lettings and renewals during the period.
Total dividend of 2.5 pence was declared, having skipped it in the prior year.
"While we are buoyed by the first half performance, we are aware of the current economic environment and inflationary pressures," Chief Executive Lawrence Hutchings said.
Looking ahead, Hutchings warned that the current macroeconomic environment, heightened by inflationary pressures on the consumer and exacerbated by the impact of the tragic war in Ukraine, presented a challenging market backdrop.
Shares in Capital & Regional were up sharply by 6.4% at 63.00 pence on Thursday in London, while its Johannesburg shares were flat at ZAR11.66.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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Capital & Regional (CAL)