Retail property specialist Capital Shopping Centres (CSC) has posted increases in footfall and incomes but a slight fall in occupancy in full-year results published today.
For the year ending December 31st 2011, the owner of several of the UK’s leading shopping centres, including Manchester Arndale, Cardiff’s St David’s, and Eldon Square in Newcastle, saw an annual jump in footfall to its sites of two per cent.
Net rental income grew 3.6 per cent like-for-like over the year, with much of that due to a sharp rise recorded during the first half as the effect of leases signed in 2010 flowed through.
Estimated rental values dropped two per cent year-on-year across its portfolio due to variable performance between its centres and different regions, with Lakeside, for example, rising in value by £10 million while the value of The Harlequin in Watford fell £26 million during the year.
Total profits for the year reached 33.6 million which is dramatically down from the 528.6 million recorded in 2010, although last year’s total was significantly boosted by exceptional items and disposals, and for profits excluding changes in asset values and one-time items the figure actually rose to 138.6 million in 2011 compared to 96.6 million during the previous twelve months.
In January 2011 CSC purchased the Trafford Centre in Manchester for £1.6 billion and towards the end of the year acquired a 75 per cent share in the Broadmarsh shopping centre in Nottingham for £55 million.
David Fischel, CEO of CSC, said: “The results demonstrate CSC’s considerable progress in 2011. The transformational Trafford Centre acquisition has driven our strong performance and has exceeded our expectations.
“While the UK economic environment is challenging, CSC is well positioned for growth with assets of uniquely high quality, a considerable capital base, a committed management team and a pipeline of future projects.”
Occupancy levels dropped slightly to 96.7 per cent from 97.7 per cent due to tenants entering administration during the fourth quarter, and the share of tenants which failed during the year reached three per cent.
In the first few weeks of 2012 failures amounting to a further two per cent of rent occurred, although most of these businesses are still currently operating.
CSC points out that while the trading environment remain difficult, its centres are still outperforming other shopping centres and large prime town centres in terms footfall, occupancy & sales, and the centre remains well placed to continue its growth over the next year.