Capital & Regional Back In Black After Strong Performance in 2022
Real estate investment trust Capital & Regional said it had returned to the black after a strong performance in 2022, leaving the company room to cut debt and resume dividend payments.
The London-based company, which is focused on community shopping centres, recorded a pre-tax profit of £5M in 2022 compared with a loss of £16.9M in 2021.
Revenues grew by 11% to £60.6M from £54.6M, with the occupancy rate rising to 94.1% from 92.9%, it reported.
“After the very obvious challenges of 2020 and 2021, the retail environment facing the company in 2022 was more nuanced," Capital & Regional Chair David Hunter said. "On the positive side, we saw an end to the pandemic restrictions with all traders open for business and footfall trending back upwards towards 2019 levels. Retail failures were significantly down and rent collection levels much improved."
CEO Lawrence Hutchings said that the group had bolstered its balance sheet following a capital raise and debt restructuring in November 2021.
During 2022 the company completed a number of acquisitions and disposals, including the £40M sale of The Mall, Blackburn completed at a circa 5% premium to the December 2021 valuation.
In May 2022, the group secured ownership of the Marlowes centre in Hemel Hempstead through the buyback at a 51% discount of the asset's loan facility for £11.8M, while it also signed a package of amendments to its £39M Ilford loan, facilitating the investment of more than £10M for the creation of a new community healthcare centre and anchor unit for TK Maxx.
The company’s proposed disposal of the group's investment in The Mall, Luton is expected to complete “imminently” and in July 2022 it completed the sale of land for residential development at its 17&Central community shopping centre in Walthamstow to Long Harbour for £21.6M.
The first phase of the development, which will see the creation of 495 build-to-rent apartments in two residential towers, is now underway.
Net debt was £130.9M at the end of 2022, down 29% from £185.3M a year earlier.
