CAPITAL & REGIONAL PLC
(Incorporated in the United Kingdom)
(UK company number 01399411)
LSE share code: CAL JSE share code: CRP
LEI: 21380097W74N9OYF5Z25
ISIN: GB0001741544
(“Capital & Regional” or “the Company” or “the Group”)


SHORT FORM ANNOUNCEMENT: YEAR END RESULTS TO 30 DECEMBER 2022


Capital & Regional (LSE: CAL), the UK focused REIT with a portfolio of in-town community shopping centres, today
announces its full year results to 30 December 2023.

Lawrence Hutchings, Chief Executive, comments:
“2022 was a good year for Capital & Regional, both operationally, as well as in terms of strengthening the Company’s
balance sheet following the successful capital raise and Mall debt restructuring in November 2021. Despite the
broader macro-economic headwinds throughout the year, the continued retail recovery from Covid and a robust
Christmas trading season has helped us drive a strong operational performance in 2022.

“We maintained leasing momentum with an average uplift on previous rents of 34%3, supported by our affordable
average rents of c. £14 per sq ft, helping us to grow occupancy, net rental income and profit. Occupier profitability
will be further supported by the recent rates revaluation which will take effect from April 2023 with average reductions
in business rates to our occupiers of 30%-35% across most of our portfolio.

“The Group has delivered a significant improvement in Net LTV from 49% to 41%, despite the market wide fall in
valuations in the second half of 2022. As a result, we are now able to focus on investing in our portfolio, allowing us
to further reposition and remerchandise our centres at the heart of the local communities that we serve, driving footfall
back towards pre-pandemic levels and creating vibrant trading places for our occupiers’ essential goods and services
whilst growing our occupancy, income and profit as part of our post covid recovery.

“We are encouraged by our operational resilience and a growing appreciation of the critical role which physical stores
play in successful omnichannel retailing. We believe we are well-positioned to continue to navigate the current cyclical
pressures and the Board’s confidence in the Company’s future prospects is reflected in a proposed final dividend of
2.75p per share, resulting in a total dividend for 2022 of 5.25p per share. Finally, I would like to thank our teams and
stakeholders for all their hard work and support during 2022.”

Continuing operational resilience

•    109 new lettings and renewals achieved during the year at a combined average premium of 34.0% to previous
     rent3 and 13.7% to ERV3 representing £5.4 million of annual rent (2021: £5.2 million). Key lettings completed
     include the Walthamstow food hall, extension to Wood Green diagnostics centre, and at Ilford a 25-year lease
     agreement with the NHS for a new community healthcare centre and the upsizing and relocation of TK Maxx.
•    Occupancy has improved to 94.1% (December 2021: 92.9%).

•    53 million shopper visits in 2022 (up 27.4% on 2021) and footfall continuing recovery at c.84% of 2019 levels
     (88% for H2 22).

•    Rent collection back in line with pre-pandemic levels, with 97.6% collected for the 2022 financial year.
•    Snozone’s EBITDA1 for the year increased to £1.4 million (2021: £0.8 million, which included £2.5 million
     business continuity insurance receipt) with trading continuing to improve throughout the year.
•    42% fall in carbon emissions by 2022 against the 2019 baseline, driven by a 28% reduction in energy
     consumption.
Improved profitability supporting resumption of dividend

•   16.9% growth in Net Rental Income1, 2 (NRI) on Investment Assets to £23.5 million (December 2021: £20.1
    million2) driven by improved occupancy and rent collection. Statutory revenue2 increased 10.9% to £60.6 million
    (December 2021: £54.6 million2).

•   58.5% increase in Adjusted Profit1 to £10.3 million (December 2021: £6.5 million1,2), reflecting the improvement
    in NRI. Adjusted EPS increased to 6.2p (December 2021: 5.4p2) reflecting the improvement in Adjusted Profit,
    partially offset by the higher number of shares in issue from the £30 million capital raise which completed in
    November 2021.

•   Significant improvement in IFRS Profit for the period to £12.1 million (December 2021: Loss of £26.4 million)
    primarily due to the Adjusted Profit of £10.3 million, combined with gains of £12.5 million and £6.8 million
    respectively from the discounted purchase of the Hemel Hempstead loan facility and deconsolidation of Luton.
    This was partially offset by a 3.6% like-for-like fall in the value of the portfolio which led to a £19.6 million
    revaluation loss.
•   6.3% growth in NAV to £179.1 million (31 December 2021: £168.4 million)
•   Net Asset Value per share and EPRA NTA per share increased to 106p and 103p respectively (December 2021:
    102p and 102p).

•   Resumption of dividends during the year, reflecting the recovery of the business post-pandemic together with
    the substantial progress made in reducing debt. Following an interim dividend of 2.5p per share a final dividend
    of 2.75p per share is being proposed resulting in total dividends for 2022 of 5.25p per share (2021: nil).


Refocus, Restructure and Recapitalise
•   Transactional activity during 2022 reduced the Group’s Net Loan to Value (LTV) ratio from 49% at 30 December
    2021 (and 72% at 30 June 2021) to 41% at 30 December 2022.

•   Debt maturity of 4.5 years5 with average cost of debt of 3.66%5, 98% fixed5.
•   In August 2022, the £40 million disposal of The Mall, Blackburn completed at a c. 5% premium to the December
    2021 valuation.
•   In May 2022, the Group secured ownership of the Marlowes centre in Hemel Hempstead through the buyback
    at a 51% discount of the asset’s loan facility for £11.8 million, which also increased Group Net Asset Value by
    approximately £12.5 million.

•   Signed package of amendments to the £39 million Ilford loan in May 2022, facilitating the investment of more
    than £10 million for the creation of the new community healthcare centre and anchor unit for TK Maxx.
•   Proposed disposal of the Group’s investment in The Mall, Luton is expected to complete imminently. The
    Group’s investment in Luton was deconsolidated during the year resulting in an increase to Net Asset Value of
    £6.8 million.
•   In July 2022, the Group completed the sale of land for residential development at its 17&Central community
    shopping centre in Walthamstow to Long Harbour for c. £21.6 million. The first phase of the development is
    now under way which will see the creation of 495 Build to Rent apartments in two residential towers and providing
    a new captive audience of shoppers for the centre.
                                                                                           Year to            Year to
                                                                                         Dec 2022           Dec 2021

     Revenue 2                                                                              £60.6m             £54.6m
     Net Rental Income 2                                                                    £23.5m             £20.1m
     Adjusted Profit 1, 2                                                                   £10.3m               £6.5m
                                      1, 2
     Adjusted Earnings per share                                                                6.2p               5.4p
     Headline Earnings per share                                                                9.9p               7.8p
     IFRS Profit/(Loss) for the period                                                      £12.1m            £(26.4)m
     Basic earnings/(loss) per share                                                            7.3p            (22.0)p
                                 4
     Total dividend per share                                                                 5.25p                    -


     Net Asset Value                                                                       £179.1m            £168.4m
     Net Asset Value (NAV) per share                                                           106p               102p
     EPRA NTA per share                                                                        103p               102p


     Group net debt                                                                        £130.9m            £185.3m
     Net debt to property value                                                                 41%                49%



Use of Alternative Performance Measures (APMs)
Throughout the results statement we use a range of financial and non-financial measures to assess our performance. A number
of the financial measures, including Net Rental Income, Adjusted Profit, Adjusted Earnings per share, Net Debt and the industry
best practice EPRA (European Public Real Estate Association) performance measures are not defined under IFRS, so they are
termed APMs. APMs are not considered superior to the relevant IFRS measures, rather Management use them alongside IFRS
measures to monitor the Group’s financial performance because they help illustrate the trading performance and position of the
Group. All APMs are defined in the Glossary and further detail on their use is provided within the Financial Review.

Notes
1
  Adjusted Profit, Adjusted Earnings per share, Net Rental Income, Net Debt and the Snozone EBITDA metric are as defined in the Glossary.
Adjusted Profit incorporates profits from operating activities and excludes revaluation of properties and financial instruments, gains or losses on
disposal, and other non-operational items. A reconciliation to the equivalent EPRA and statutory measures is provided in Note 5 to the condensed
financial statements.
2
  2021 comparative figures have been restated for a prior year adjustment to the treatment of rent concessions due to an IASB IFRS
interpretation issued in October 2022 as detailed in Note 1 to the condensed financial statements. The amendment stipulates that losses which
were incurred on granting rent concessions, which for the Group occurred during the Covid-19 pandemic, should be charged to the income
statement in the year they are granted. 2021 revenue has also been impacted by the reclassification of Luton as a Discontinued Operation.
The adjustment for the treatment of rent concessions reduced revenue and Adjusted Profit in 2021 by £1.6 million, with a corresponding
reduction in the loss on revaluation of investment properties. The Adjusted Profit for 2022 is £0.3 million higher than it would have been without
this adjustment to rent concessions. The reclassification of Luton as a Discontinued Operation reduced revenue in 2021 by £13.8 million.
3
 For lettings and renewals (excluding development deals and CVA variations) with a term of 5 years or longer which do not include turnover rent
or service charge restrictions.
4
    Includes dividends declared post period end but related to the period in question.
5
    Weighted average, debt maturity assumes exercise of extension options.
Dividend
Reflecting the stabilisation of operational results from the impacts of Covid-19, the substantial progress made in
reducing debt levels and the Board’s confidence in the future prospects, the Group resumed dividend payments with
the payment of an interim dividend of 2.5 pence per share on 7 October 2022.
The Directors recommend a final dividend of 2.75 pence per share, making a total distribution for the year ended
30 December 2022 of 5.25 pence per share (2021: nil). This satisfies the Group’s policy of paying a dividend of at
least 90% of the Group’s EPRA profits. The dividend will be paid entirely as a Property Income Distribution (PID)
and a Scrip dividend option will be offered.
Subject to approval of shareholders at the Annual General Meeting (AGM) to be held on 25 May 2023, the final
dividend will be paid on Friday, 2 June 2023. The key dates proposed are set out below:

    •   Confirmation of ZAR equivalent and Scrip dividend pricing        Friday, 31 March 2023
    •   Last day to trade on Johannesburg Stock Exchange (JSE)           Tuesday, 11 April 2023
    •   Shares trade ex-dividend on the JSE                              Wednesday, 12 April 2023
    •   Shares trade ex-dividend on the LSE                              Thursday, 13 April 2023
    •   Record date for LSE and JSE and last election for Scrip          Friday, 14 April 2023
    •   AGM                                                              Thursday, 25 May 2023
    •   Dividend payment date/New Scrip shares issued                    Friday, 2 June 2023

South African shareholders are advised that the dividend will be regarded as a foreign dividend. Further details
relating to Withholding Tax for shareholders on the South African register will be provided within the announcement
detailing the currency conversion rate on 31 March 2023. Share certificates on the South African register may not
be dematerialised or rematerialised between 12 April 2023 and 14 April 2023, both dates inclusive. Transfers
between the UK and South African registers may not take place between 31 March 2023 and 14 April 2023, both
dates inclusive.

About this announcement:
This short-form announcement is the responsibility of the Directors of the Company. It is only a summary of the
information contained in the full Year End Results to 30 December 2022 announcement and does not contain full or
complete details.

Any investment decision by investors and/or shareholders should be based on consideration of the full announcement
published on SENS, available on the Company’s website at capreg.com and on the JSE website at:
https://senspdf.jse.co.za/documents/2023/jse/isse/crpe/FY2022.pdf

Copies of the full announcement may be requested by emailing capinfo@capreg.com.

By order of the Board,

L. Hutchings                    S. Wetherly
Chief Executive                 Group Finance Director

2 March 2023



JSE sponsor
Java Capital


Notes to editors:

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 a portfolio of in-town
shopping centres. 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).

Using its in-house expert property and asset management platform Capital & Regional owns and / or manages
shopping centres in Hemel Hempstead, Ilford, Luton, Maidstone, Redditch, Walthamstow and Wood Green.

For further information see capreg.com.