Lakeside and Eldon Square owner Capital Shopping Centres (CSC) has today reported a strong performance for the half-year period to June 30th 2011, with sales and footfall rising considerably year-on-year across its portfolio of 14 UK centres.
Over the course of the six months footfall at CSC’s sites was up three per cent compared to the same period in 2010, while sales grew at a similar rate.
A spate of retail collapses across the UK resulted in occupancy levels at CSC sites dipping one per cent to 97 per cent, but overall the business finds itself in a healthy position despite the fragile state of the retail industry in the country as a whole.
Today’s announcement also indicated that the 80 long-term lettings secured during the half-year resulted in £5 million in additional rent, with short-term lets reportedly still a major feature of the market given the current economic conditions.
Underlying earnings increased 53 per cent from £43 million to £66 million with net rental income growing from £135 million to £178 million, partly due to this year’s acquisition of the Trafford Centre in Manchester which has an annual property income of £85 million.
David Fischel, CEO of CSC Group, commented: “With six per cent growth in like-for-like (LFL) net rental income and increased footfall at our centres, CSC has delivered a sound operating performance in the first half of 2011.
“The Trafford Centre has proved an excellent addition and the group has a range of active management projects and extensions in the pipeline to deliver future growth.”
CSC’s results come just one day after fellow shopping centre owner Hammerson reported a 1.9 per cent rise in LFL sales at its centres, which include Brent Cross in north London and Birmingham’s Bullring, for the same period.
Profits for both shopping centre owners were down annually, with CSC’s profits for the period dropping from £291 million in 2010 H1 to £193 million, representing the loss of £73 million from discontinued operations Capco and C&C US.
Fischel added: “Although the economic environment remains challenging, large centres such as those owned by CSC with a strong catering and leisure component are continuing to outperform.”