(Capital & Regional PLC corrects its headline earnings per share figures for 2022 and 2021.)
Capital & Regional PLC on Thursday said it has returned to the black after a strong performance in 2022, leaving room to cut debt and resume dividend payments.
The London-based real estate investment trust focused on community shopping centres swung to a pretax profit of £5.0 million in 2022 from a loss of £16.9 million in 2021.
Revenue grew by 11% to £60.6 million from £54.6 million, with occupancies improving. The occupancy rate rose to 94.1% from 92.9%.
Capital & Regional resumed dividends, paying out 5.25 pence. Adjusted earnings per share rose to 6.2p from 5.4p, while headline EPS, however, slipped to 6.0p from 6.5p.
‘After the very obvious challenges of 2020 and 2021, the retail environment facing the company in 2022 was more nuanced. 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,’ Chair David Hunter said.
‘Counteracting the good news, the UK economy faced increasing difficulties from low growth, high inflation and a sharp end to over a decade of very low interest rates accompanying a dramatic fall in consumer confidence,’ Hunter said.
Net asset value per share increased 3.9% to 106p from 102p.
Chief Executive Lawrence Hutchings said the group strengthened its balance sheet following a successful capital raise and debt restructuring in November 2021.
Net debt was £130.9 million at the end of 2022, down 29% from £185.3 million a year before.
Looking forward, Capital & Regional predicted a more than 20% increase in adjusted profit in the medium term. In 2022, adjusted profit rose by 59% to £10.3 million from £6.5 million.
Shares in Capital & Regional were up 1.8% at 59.46 pence on Wednesday afternoon in London, while its Johannesburg shares were unchanged at R 13.00.
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