2012 Interim Results | Capital Shopping Centres

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2012 Interim Results 26 July 2012

INTERIM REPORT FOR THE HALF YEAR ENDED 30 JUNE 2012

RESULTS DEMONSTRATE CONTINUING RESILIENCE OF CSC’S PRIME ASSETS

David Fischel, Chief Executive of Capital Shopping Centres Group PLC, commented:

“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.”

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

Financial highlights⁽¹⁾

	Six months ended 30 June
	2012	2011⁽²⁾
Net rental income (£m)	182	178
Underlying earnings (£m)	70	66
Property revaluation surplus (£m)	–	58
Profit for the period(£m)	78	192
Underlying EPS (pence)	8.1	8.0
Interim dividend per share (pence)	5.0	5.0

	30 June 2012	31 December 2011
Market value of investment properties (£m)	6,980	6,960
Net external debt (£m)	3,344	3,374
NAV per share (diluted, adjusted) (pence)	390	391
Debt to assets ratio (per cent)	48	48

^{(1) Please refer to glossary for definition of terms

(2) 30 June 2011 income data includes Trafford Centre results for the 5 month period from acquisition in January 2011.}

ENQUIRIES:

Captial Shopping Centres Group PLC
David Fischel, Chief Executive
Matthew Roberts, Finance Director
Kate Bowyer, Head of Investor Relations

Public relations:
UK:
Michael Sandler/Wendy Baker, Hudson Sandler
SA:
Nick Williams/Morne Reinders, College Hill

A copy of the full press release is available for download. This comprises: