Capital & Regional PLC recently disclosed its full-year results for the period ending on 30 December 2023. This article delves into a detailed analysis of the financial performance, operational highlights, strategic actions, and the overall outlook of Capital & Regional PLC.
Financial Performance Analysis
The financial performance of Capital & Regional PLC in 2023 showcased significant growth across key metrics. There was a 5% increase in like-for-like Net Rental Income (NRI) compared to the previous year. This growth indicates a positive trend in the company’s revenue generation capabilities.
Moreover, the company reported a 9.7% increase in Adjusted Earnings per share, reaching 6.8p. This surge in earnings per share reflects enhanced profitability and efficient cost management strategies implemented by the company.
Table 1: Financial Metrics (Year to Dec 2023 vs. Year to Dec 2022)
| Metric | Year to Dec 2023 | Year to Dec 2022 |
|---|---|---|
| Revenue | £59.0m | £56.8m |
| Net Rental Income | £23.9m | £23.5m |
| Adjusted Profit | £12.7m | £10.3m |
| Adjusted Earnings per share | 6.8p | 6.2p |
| NAV per share | 90p | 106p |
The Net Asset Value (NAV) per share increased by 12.8% to 90p, showcasing the company’s ability to create value for its shareholders. However, it’s worth noting that the NAV per share decreased from 106p in the previous year due to an increased number of shares in issue.
Operational Highlights
In terms of operational performance, Capital & Regional PLC demonstrated resilience and efficiency in its core operations. Footfall increased by 1.5% with 44.5 million shopper visits in 2023, indicating sustained consumer interest and engagement with the company’s shopping centres.
Occupancy remained steady at 93.4%, showcasing the company’s ability to maintain a high level of tenant retention despite market challenges. Rent collection stood at an impressive 99.2% for 2023, highlighting the reliability of the company’s revenue streams.
Table 2: Operational Metrics Comparison
| Operational Metric | Year to Dec 2023 | Year to Dec 2022 |
|---|---|---|
| Footfall | 44.5 million | – |
| Occupancy | 93.4% | 94.1% |
| Rent Collection | 99.2% | 97.6% |
Strategic Actions and Investments
Capital & Regional PLC made strategic investments and undertook key actions during the year to enhance its portfolio and drive growth. The acquisition of Gyle shopping centre in Edinburgh for £40 million was a significant move aimed at expanding the company’s asset base and revenue potential.
The successful re-leasing of all three Wilko units to B&M post-Wilko’s administration further bolstered occupancy rates, adding 140 basis points. This demonstrates the company’s agility in responding to market dynamics and capturing new opportunities.
Table 3: Investment Overview
| Investment/Action | Impact/Outcome |
|---|---|
| Acquisition of Gyle shopping centre, Edinburgh | Expansion of asset base and revenue potential |
| Re-leasing of Wilko units to B&M | Increased occupancy rates and tenant retention |
| Investment of £16.0 million in capital expenditure | Expected yield in line with company’s targets |
Debt and Financial Position
Capital & Regional PLC maintained a secure long-term debt position with a focus on managing its debt profile effectively. The company reported a long debt maturity profile of 4.1 years with a low average cost of debt at 4.25%.
While the Group Net Loan to Value increased slightly to 43.6% from 40.6%, this was primarily due to investing cash into capital expenditure and part-funding the Gyle acquisition. The company’s disciplined approach to debt management ensures stability and financial resilience.
Conclusion
Capital & Regional PLC’s year-end results for 2023 reflect a robust financial performance, operational resilience, strategic foresight, and prudent debt management. The company’s focus on value creation, tenant satisfaction, and strategic investments positions it well for continued growth and success in the dynamic real estate market.
