Capital & Regional is planning to reinstate dividends after footfall rose across its portfolio.
The convenience and community shopping centre REIT plans to resume dividend payments in the second half of the year.
Speaking ahead of its AGM today, chief executive Lawrence Hutchings said: “Since the start of the year the group has continued to deliver strong operational results, with footfall at almost double what it was for the same period last year and at the highest levels since the restrictions were put in place in March 2020.”
In the four months to the end of April 2022, footfall was 193.3% higher than the equivalent period for 2021. But the 18.4m shopper visits were still below pre-pandemic figures, equating to about 76% of the footfall for the same period in 2019.
Hutchings added that the company had received 96% of rent due and maintained 93% occupancy.
A large chunk of available space is in Walthamstow, E17, where the REIT has secured vacant possession to redevelop its site.
In Ilford, east London, where the REIT is pushing ahead with its community-focused masterplan, TKMaxx has taken the 35,000 sq ft first floor of the former Debenhams department store. Capital & Regional has also signed a 25-year lease agreement with the NHS for a new community healthcare centre. The flagship project will provide a 20,000 sq ft purpose-built facility that is expected to open in 2024.
Hutchings said the agreement was “both a first within the UK shopping centre market and a great example of our community shopping centre strategy”.
He also downplayed concerns over inflation, which has reached 9%, according to the Office for National Statistics.
“While inflationary pressures across the UK economy provide a challenging economic backdrop, we are seeing physical retail reaffirm its important place in the retail mix and signs of a shift in sentiment towards our sector, especially in needs based or non-discretionary community centres.”
To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews
