Capital & Regional plc, a UK focused REIT with a portfolio of community shopping centers, has announced its full year results to 30 December 2023. The company reported a 5% increase in like-for-like Net Rental Income and a 2.6% increase in like-for-like valuations over 2023. The acquisition of Gyle shopping center in Edinburgh for £40 million, part funded through a £25 million equity raise, has been highlighted as a significant driver of improved profitability and dividends. The company also saw a 9.7% growth in Adjusted Earnings per share and a 7.3% increase in the proposed final dividend, delivering a total dividend for the year of 5.70p per share.
Lawrence Hutchings, Chief Executive, emphasized the company's focus on delivering its proven community strategy and increasing exposure to non-discretionary and needs-based retail and services categories, which has supported their progress and led to positive results. He also noted the evolving retail landscape, with online penetration maturing and a continued return to physical retail by consumers, especially in core categories of value and non-discretionary merchandise.
Operational metrics remained robust, with footfall up 1.5% and occupancy steady at 93.4%. The company also reported a 99.2% rent collection for 2023. Occupier-led demand was identified as a key driver of rental and earnings growth, underpinning the increase in dividends. The company's NRI stood at £23.9 million, reflecting the net impacts of the Gyle acquisition and the sale of Blackburn in August 2022. Additionally, Snozone's EBITDA increased by 64% to £2.3 million, and there was a 23% increase in Adjusted Profit to £12.7 million.
Capital & Regional also invested a net £16.0 million during the year, with expectations of a yield on cost in line with the company's target of 8% to 9%. The company's portfolio valuation saw a 2.6% increase in like-for-like valuations over 2023, with a 4.0% increase in Gyle since purchase. The addition of Gyle contributed to a 15.5% increase in portfolio valuation to £372.8 million. The company's ongoing capex program and a disciplined approach to opportunities were highlighted as key factors in rebuilding the business.
In conclusion, Capital & Regional plc's full year results demonstrated resilient operational performance, active asset management, and the acquisition of Gyle shopping center as driving forces behind improved profitability and dividends. The company's focus on community strategy, exposure to non-discretionary retail, and operational metrics indicate a positive outlook for the future.