Strong asset growth at Capital and Regional

23rd Aug 2011 12:56

Capital and Regional shot higher on Tuesday after announcing strong growth in net assets per share.The specialist property company said net assets at the end of June were worth 56p per share, up 12% from the year-end figure. On a European Public Real Estate Association (EPRA) basis, net asset value per share climbed 11% from the year-end level to 63p.Profit before tax rose to £21.2m in the first half of 2011 from £17.5m the year before, while recurring profit before tax eased to £8.8m from £8.9m last year. The recurring pre-tax profit is derived from two principal segments, namely the Asset businesses and the Earnings businesses. Basic earnings per share edged up to 6p from 5p in the first half of 2010.Group net debt eased to £47.0m from £47.8m a year earlier and £49.8m at the end of 2010.The net debt to equity ratio came down to 24% at the end of June compared to 29% at the end of 2010.Occupancy levels across the group's three UK funds were up by 0.8 percentage points from a year earlier to 94.9%.Occupancy at The Mall portfolio rose to 95.0% from 94.0% a year earlier, while the X-Leisure portfolio also had an occupancy level of 95.0%, up from 94.3% at the end of June 2010; the Junction portfolio saw occupancy levels rise to 94.7% from 94.2% at the end of June 2010.Occupancy in the German portfolio fell to 95.7% at 30 June 2011 from 98.5% a year earlier due to a lease break being exercised at the start of the year. Management is currently assessing various options to re-let this property.Passing rent for the UK funds on a like-for-like value edged lower to £149.7m from £149.8m at the end of 2010, but improved to €43.9m from €43.6m on the German fund. The increase in passing rent for the German portfolio is due to rent indexation offset by a lease break being exercised at the start of the year. "Asset management initiatives that boost income remain a priority. Whilst we will continue to selectively eye disposals, the focus is shifting to unlocking development potential in The Mall and The Junction," the company's chief executive, Hugh Scott-Barrett, said. "We are also now exploring with our partners strategic options on how best to secure the long-term future of The Mall well ahead of the refinancing of the CMBS [commercial mortgage-backed securities] in 2015. Given our intended focus on shopping centres and retail parks we will look to realise the value of our investments in X-Leisure," Scott-Barrett added.The group has elected not to propose an interim dividend payment this year.The shares added 3.25p at 33.5p in the morning trading session on the day of the announcement. --jh