Capital & Regional (LSE: CAL), the UK focused REIT with a portfolio of in-town community shopping centres, today announces its full year results to 30 December 2022.

Lawrence Hutchings, Chief Executive, comments: “2022 was a good year for Capital & Regional, both operationally, as well as in terms of strengthening the Company’s balance sheet following the successful capital raise and Mall debt restructuring in November 2021. Despite the broader macro-economic headwinds throughout the year, the continued retail recovery from Covid and a robust Christmas trading season has helped us drive a strong operational performance in 2022. 

“We maintained leasing momentum with an average uplift on previous rents of 34%3, supported by our affordable average rents of c. £14 per sq ft, helping us to grow occupancy, net rental income and profit.  Occupier profitability will be further supported by the recent rates revaluation which will take effect from April 2023 with average reductions in business rates to our occupiers of 30%-35% across most of our portfolio.  

“The Group has delivered a significant improvement in Net LTV from 49% to 41%, despite the market wide fall in valuations in the second half of 2022.  As a result, we are now able to focus on investing in our portfolio, allowing us to further reposition and remerchandise our centres at the heart of the local communities that we serve, driving footfall back towards pre-pandemic levels and creating vibrant trading places for our occupiers’ essential goods and services whilst growing our occupancy, income, and profit as part of our post Covid recovery.

“We are encouraged by our operational resilience and a growing appreciation of the critical role which physical stores play in successful omnichannel retailing. We believe we are well-positioned to continue to navigate the current cyclical pressures and the Board’s confidence in the Company’s future prospects is reflected in a proposed final dividend of 2.75p per share, resulting in a total dividend for 2022 of 5.25p per share.  Finally, I would like to thank our teams and stakeholders for all their hard work and support during 2022.”