Capital & Regional has reported a 4.4m loss in its results for 2016.
The shopping centre REIT said this “reflected a non-cash revaluation loss” and was due to the effects of the administration of BHS, long-term refinancing of the group’s core banking arrangements, stamp duty increases and a fall in valuations since the EU referendum.
Despite this, adjusted profits were up 11.7% to £26.8m from £24.0m the year before, while net rental income was up 6.7% to £52.6m.
Chairman John Clare said: “This represents another strong performance in a year where the focus has shifted decisively towards boosting income from delivery of the asset management and development initiatives across the portfolio.
“The results have supported an increase in the dividend for the year of 8.7%, ahead of previous guidance. Reflecting our confidence in the growth prospects of the business, underpinned by our ongoing capex investment, the board is reaffirming its commitment to a target of annual dividend growth in the range of 5-8% in the medium-term.”
During the year the REIT bought the Exchange Centre in Ilford for £78m, a yield of 6.7%. It also bought the Marlowes, Hemel Hempstead and adjacent properties in March 2016 for £53.8m at a yield of 7%.
| 2016 | 2015 | Change | ||
|---|---|---|---|---|
| See-through net rental income | £52.6m | £49.3m | 6.7% | |
| Adjusted profit | £26.8m | £24.0m | 11.7% | |
| Adjusted earnings per share | 3.8p | 3.4p | 11.7% | |
| IFRS (loss)/profit for the period | £(4.4)m | £100.0m | ||
| Total dividend per share | 3.39p | 3.12p | 8.7% | |
| Net asset value per share | 68p | 72p | -4p | |
| EPRA NAV per share | 68p | 71p | -3p | |
| Proforma group net debt3 | £328.6m | £338.1m | -£9.5m | |
| Proforma see-through net debt to property value3,5 | 42% | 41% | +1 p.p. | |
| See-through net debt to property value at date of results3,4,5 | 46% | 45%6 | +1 p.p. | |
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