TIDMCAL
RNS Number : 0662D
Capital & Regional plc
25 June 2021
25 June 2021
CAPITAL & REGIONAL PLC ("Capital & Regional" or "the
Group")
UK company number 01399411
LSE share code: CAL
ISIN: GB00BL6XZ716
LEI: 21380097W74N9OYF5Z25
UPDATE ON TRADING AND PROGRESS WITH BANKING DISCUSSIONS
Capital & Regional, the UK convenience and community focused
shopping centre REIT, today provides an update on trading and rent
collections as well as progress with banking discussions. Further
details will be provided when the Group announces its results for
the half year ended 30 June 2021, on Thursday 9 September 2021.
Lawrence Hutchings, CEO of Capital & Regional said:
" We are continuing to see the benefits of the reopening of the
economy, with 99% of our retailers open and trading . I am pleased
to say that we have seen a positive response from our retailers and
the local communities we serve with essential and non-discretionary
goods and services. Footfall has been robust and many of our
retailers are reporting strong sales and consumer engagement,
despite the fact that we still have to restrict access to stores
and our common areas at peak times to maintain social distancing
which creates additional scope to improve sales and footfall as
restrictions ease further.
"The positive trends we are seeing as the country gradually
emerges from lockdown have led to improving momentum on both
leasing and our rent collection statistics. We have now collected
70 % of 2021 rents due to date and have agreed outline deals with a
number of occupiers which will improve this further. Our 2020
collection figure has also now climbed to 84%. We continue to
support both our smaller and our independent retailers as
necessary, whilst seeking to ensure that larger well capitalised
retailers honour their commitments . Our community centre offering
and affordable rents continue to position us well on a relative
basis for recovery and the ongoing changes driven by long cycle
structural changes in physical retailing.
"We have made considerable progress on our key initiatives
including planning consent for our Walthamstow residential project,
which moves it one step closer to delivery and a capital receipt,
and completing the GBP4.5 million sale of a parade of shops at
Hemel.
"Occupancy remains robust at 89% - factoring in the closure of
the three Debenhams stores - and discussions with a number of
potential occupiers interested in leasing those three units are
progressing well, supported by continued demand from key community
centre retailers, most notably in London. We are continuing to
benefit from our strategic focus on independent retailers with some
38 deals completed to the end of May, in aggregate above previous
passing rent and ERV, and a further 35 currently in solicitors'
hands .
"With confidence returning and light finally appearing at the
end of the tunnel, discussions with our banks have been progressing
well. With the exception of Luton, where we are working towards
extending the covenant waiver beyond the end of July, we have
agreed waivers on all our assets until October and will continue to
work towards finding a more permanent solution against a backdrop
of an improving operational environment .
"Whilst there are many learnings from the past 18 months we are
increasingly confident that both consumers and retailers share a
need for well-located, accessible community retail and services
with affordable occupancy costs, supporting our community centre
strategy and our belief in the 15 minute neighbourhood.
"Thank you as always to our teams for all their hard work,
particularly in ensuring our retailer customers' stores reopened
quickly and safely to serve our local communities."
Operations
-- 99% of our leased units are back open and trading across the
Group's seven shopping centres.
-- Footfall in the eight weeks since the re-opening of
non-essential retail on 12 April 2021 has risen from about 30%
beforehand to the equivalent of approximately 72% of the
corresponding weeks in 2019. The need to maintain social distancing
places restrictions upon capacity at peak times.
-- Occupancy remains robust at 89% at 31 May 2021. The metric
omits the three Debenhams units which are now vacant as those
stores have ceased to trade. We are progressing plans to break up
the Ilford unit across its three floors. We are under offer on one
floor and have strong interest for the other levels from separate
occupiers whose operations are in line with our Community Strategy.
In Blackburn and Luton we have interest from potential occupiers to
let the space in its entirety.
-- In total we have received 70% of the rent due for the year to
date, encompassing the rent billed on or since the 25 December 2020
quarter date up until 18 June 2021. This is an improvement of
approximately 11% on when we updated the market on 28 April 2021.
We are in active discussions with our retailers seeking to reach an
equitable and amicable resolution to the balance of outstanding
arrears.
-- Leasing progress has been encouraging following the
re-opening on 12 April 2021. To the end of May 2021, we had
completed 38 new lettings and renewals for a combined value of
GBP0.9 million, in aggregate above the previous rent and ERV.
Retailers continue to be attracted to our strategy and community
centres in vibrant neighbourhoods, as well as our affordable,
sustainable rents at GBP12-GBP15 psf.
-- At Luton we have handed over a new unit to Lidl, facilitating
an Autumn opening, and are in active discussions with them about
other sites within the portfolio. At Ilford we continue to progress
to finalising the agreement for lease with the NHS for a new
purpose-built community healthcare facility.
-- We have achieved a number of notable milestones towards
securing the residential development in Walthamstow. The principal
terms of the s.106 planning obligations package have now been
agreed and the local authority recommendation to grant planning
consent has been formally ratified by the Greater London Authority.
Our immediate focus now is to formally conclude the s.106 with the
local authority, which will trigger the formal grant of planning
consent, and to conclude the development agreement with the local
authority. In parallel, we continue to work to discharge the
remaining contractual pre-conditions with Long Harbour to
crystalise the c.GBP20 million land receipt and a start on site for
the residential development phase by the end of the year.
-- The Group's three UK Snozone operations recommenced trading
on 12 April 2021, strictly adhering to current government
guidelines, which reduces current slope capacity to approximately
half. The Madrid operation has been able to trade throughout 2021,
although it remains subject to similar social distancing
restrictions that impact upon most of the services that can be
provided.
Liquidity
-- As at 31 May 2021, the Group had total cash on balance sheet
of GBP74.3 million, which is equivalent to more than one year's
gross revenue. Of this approximately GBP58.2 million was held
centrally, outside of the collateral of any of the debt
facilities.
-- The Group's four drawn debt facilities are all non-recourse,
with no cross-default clauses. The earliest contractual maturity on
any of the Group's property loan facilities is February 2023.
-- On The Mall facility we have agreed a further extension of
the existing covenant waivers until the Interest Payment Date in
October 2021 while we continue discussions with the two lenders
over a longer term modification of the debt facility.
-- On Ilford we have signed a waiver of all covenants until
October 2021 during which time we will work to conclude the outline
agreement we have for longer term relaxation linked to the proposed
healthcare facility project which, if it proceeds, the Group will
partially fund from central cash.
-- On Hemel Hempstead, the disposal of the Edmonds Parade block
of assets adjacent to the scheme completed on 7 June 2021. The net
proceeds of approximately GBP4.5 million will primarily be set
against the outstanding GBP26.9 million of debt. We have also
agreed an effective waiver of all covenant tests until the October
Interest Payment Date while we continue to work closely with the
lender to assess all options for this facility and the asset.
-- On Luton we have a waiver of income covenants until the
interest payment date at the end of July 2021 and have commenced
discussions about extending this for a further quarter.
Our overriding priority remains the health, safety and
protection of our colleagues, guests and customers, and throughout
the pandemic we have been implementing the latest official
government guidelines and advice across our portfolio.
-S -
For further information:
Capital & Regional plc 020 7932 8000
Lawrence Hutchings
Stuart Wetherly
FTI Consulting 020 3727 1000
Richard Sunderland
Claire Turvey
capreg@fticonsulting.com
About Capital & Regional plc:
Capital & Regional is a UK focused retail property REIT
specialising in shopping centres that dominate their catchment,
serving the non-discretionary and value orientated needs of the
local communities. It has a strong track record of delivering value
enhancing retail and leisure asset management opportunities across
its portfolio of in-town shopping centres.
Capital & Regional owns seven shopping centres in Blackburn,
Hemel Hempstead, Ilford, Luton, Maidstone, Walthamstow and Wood
Green. Capital & Regional manages these assets through its
in-house expert property and asset management platform.
Capital & Regional is listed on the main market of the
London Stock Exchange (LSE) and has a secondary listing on the
Johannesburg Stock Exchange (JSE)
For further information see capreg.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTEAKKLAENFEFA
(END) Dow Jones Newswires
June 25, 2021 02:00 ET (06:00 GMT)
Capital & Regional (LSE:CAL)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Capital & Regional (LSE:CAL)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024