FIRST HALF 2012 HIGHLIGHTS
Operational highlights
Robust operating performance supporting earnings and valuations:
- Occupancy remains firm at the 95 per cent level reported in the first quarter IMS (31 December 2011: 97 per cent)
- Like-for-like net rental income down 2.3 per cent, with rental increases offset by the effect of lower occupancy following tenant failures
- Underlying earnings per share up 1 per cent to 8.1 pence
- Resilient property values: unchanged, out-performance compared with IPD retail down 2.9 per cent
- Encouragingly footfall has been steady since the end of first quarter and down only one per cent year to date, out-performing the national benchmark
Tenant mix improvements:
- 79 new long term leases signed, £15 million annual rent, in aggregate around 6 per cent above previous passing rent and in line with valuation assumptions
- 14 brands brought to CSC centres for the first time including Schuh Kids, Lavazza, Nespresso and Locker Room
Major organic projects positioning the business for the future:
- £1 billion ten year pipeline of projects including major extensions and active management initiatives
- Lakeside - proposed 325,000 sq. ft. extension awaiting determination and plans for new leisure destination published
- Watford - agreement with Watford Borough Council to acquire and redevelop the adjacent Charter Place creating with The Harlequin a retail, catering and leisure destination of over 1 million sq. ft.
- Nottingham - active discussions with retailers and local authority regarding a strategy for the city centre
- Acquisitions at Braehead and Cribbs Causeway of adjacent property with potential for future development
Strong financial position:
- Loan to value ratio unchanged at 48 per cent; cash and available facilities of £420 million
- Wholly owned assets, mostly freehold, make up 75 per cent of investment properties by value giving flexibility to recycle equity
- £49 million was realised in March from part disposal of Equity One shareholding
