CSC reports resilient performance
Capital Shopping Centres said its shopping malls had shown 'considerable resilience' in the six months to the end of June, despite the firms fall in profit and net rental income.
Like-for-like net rental income was down 2.3% in the period as occupancy levels fell from 97% to 95% as a result of tenant administrations. While revenue rose to £181.8 million from £177.9 million in the same period last year, profit was considerably lower at £78.1 million compared to £191.6 million in the previous year.
Footfall held steady, down only 1% in the year to date, and outperformed the national benchmark of 3% as measured by Experian.
The company said it has a £1 billion ten year pipeline of projects including a number of major extensions and active management initiatives. A total of 79 new long term leases were agreed in the period, representing £15 million of new annual rent, and 14 new brands signed to the centres including Locker Room by Footlocker, Schuh Kids, Lavazza and Nespresso.
David Fischel, chief executive of CSC, said: "Our prime UK regional shopping centres have continued to show considerable resilience, with robust operating metrics supporting sound financial results.
"We have made good progress on our two strategic priorities for 2012, ensuring that our centres produce a strong performance relative to current economic conditions while positioning each asset for longer term organic growth from an increasing pipeline of active management projects and extensions."
"CSC is in a strong financial position with a debt to asset ratio of 48%. We are looking at steps to improve our overall financial flexibility to enable us to build further on the strong momentum within the business."
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