Capital & Regional plc, a UK convenience and community-focused shopping center REIT, has released its half-year results for the period ending 30 June 2024. The company reported a 17.1% increase in Net Rental Income (NRI) to £13.7 million and a 0.8% increase in like-for-like valuations. Additionally, there were 48 new lettings and renewals, with a combined average premium of 8.8% to previous rent and 14.1% to ERV. Adjusted Profit saw a 17.1% increase to £8.2 million, and the proposed interim dividend increased by 3.6% to 2.85p per share.
Lawrence Hutchings, Chief Executive, highlighted the company's positive performance, stating, "We have delivered another positive set of results during the first half of 2024, with our proven community strategy continuing to support our progress." He emphasized the strong leasing momentum and the demand for space in their centers, particularly in London. Hutchings also mentioned significant progress on the repositioning masterplan in Ilford, generating approximately £0.5 million of additional income.
Operational metrics remained robust, with 48 new lettings and renewals, occupancy improving to 93.9%, 21.1 million shopper visits, and rent collection at 99.2% for the first half of 2024. The company's focus on community centers was evident in the occupier-led demand driving rental and earnings growth, with a 17.1% increase in Net Rental Income to £13.7 million and a 19% growth in Snozone's EBITDA to £1.9 million.
Capital & Regional also made significant investments during the period, including the completion of the new NHS community healthcare center in Ilford and the remerchandising of the former WH Smith in Wood Green. The company's long-term secure debt position was highlighted, with a low average cost of debt of 4.25% and a reduction in Group Net Loan to Value to 43% from 44% as at 30 December 2023.
The company also emphasized its progress in delivering energy efficiency, with an 83% reduction in Scope 1 natural gas and a 20% reduction in Scope 2 electricity consumption since 2019 within its shopping centers. Additionally, the EPC rating of Snozone Milton Keynes improved from a 'C' to 'B'. The report concluded with the announcement of a 0.8% increase in like-for-like valuations over 2023 to £374.9 million and a 5% growth in the valuation of the Gyle to £42 million since its acquisition in September 2023 for £40 million.