Capital & Regional plc (JSE:CRP) News - Click below to view full PDF article
https://senspdf.jse.co.za/documents/2022/jse/isse/crpe/HY2022.pdf
Interim results to 30 June 2022

CAPITAL  June 2021: 89.7%).

-    29 million shopper visits during the six months with footfall up 58% on H1 2021.

-    Rent collection back in line with historic pre-Covid levels, with 97.3% collected for the year to date.

-    Snozone’s EBITDA (1) for the year of £0.8 million (2021: £0.8 million - including £2.5 million business continuity
     insurance receipt) with trading improving as the year progresses.

Refocus, Restructure and Recapitalise

-   The combined impact of transactional activity has reduced the Group’s Net Loan to Value ratio from 49% at 30
    December 2021 and 30 June 2022 (and 72% at 30 June 2021) to 40% on a proforma basis at 30 June 2022,
    adjusting for the Walthamstow residential and Blackburn sale proceeds received post the period end.

-   Debt maturity of 4.1 years with average cost of debt of 3.54% with 98% fixed.

-   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 when it completed the
    buyback of the loan facility held against the asset for £11.8 million, representing a discount of 51%, which also
    increased Group Net Asset Value by approximately £12.3 million.

-   Signed package of amendments to the £39 million Ilford loan in May 2022, facilitating the investment of
    approximately £10 million for the creation of the new community healthcare centre and anchor unit for TK Maxx.

-   Proposed disposal of the majority or all of the Group’s investment in The Mall, Luton remains ongoing and is
    expected to reach a conclusion in the next few months. The Group’s investment in Luton has now been
    deconsolidated 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.£21.65 million. The first phase of the development will
    see the creation of 495 Build to Rent residential apartments in two residential towers.

Improved profitability supporting resumption of dividend

-   Net Rental Income (1) (NRI) on Investment Assets increased 23% to £12.2 million (June 2021: £9.9 million) driven
    by improved occupancy and rent collection. Statutory revenue was £28.4 million (June 2021: £27.4 million).

-   The improvement in NRI flowed through to Adjusted Profit (1,2) which increased 87% to £5.8 million (June 2021:
    £3.1 million (2)).

-   25% growth in Adjusted earnings per share to 3.5p (June 2021: 2.8p).

-   IFRS Profit for the period of £26.8 million (June 2021: Loss of £41.3 million) due primarily to the Adjusted Profit
    of £5.8 million, a revaluation gain of £1.2 million and £12.3 million and £6.8 million gains from the discounted
    purchase of the Hemel Hempstead debt facility and deconsolidation of Luton respectively.

-   Property valuations on Investment Assets increased by 1.7% in the first half of 2022 to £358.5 million at year
    end (30 December 2021: £352.4 million) on a like for like basis.

-   Net Asset Value per share and EPRA NTA per share increased to 118p and 116p respectively (December 2021:
    102p and 102p).

-   Reflecting the stabilisation of operating markets post Covid-19 and continued stabilisation of our valuations,
    together with the substantial progress made in reducing debt, the Group is resuming dividend payments.
    Proposed Interim dividend of 2.5 pence per share.

                                                          6 months to         6 months to            Year to
                                                            June 2022           June 2021           Dec 2021
     Revenue (2)                                               £28.4m              £27.4m             £56.2m
     Net Rental Income – Investment Assets                     £12.2m               £9.9m             £21.5m
     Adjusted Profit (1, 2)                                     £5.8m               £3.1m              £8.1m
     Adjusted Earnings per share (1, 2)                          3.5p                2.8p               6.8p
     Headline Earnings per share                                 4.3p                3.2p               7.8p
     IFRS Profit/(Loss) for the period                         £26.8m            £(41.3)m           £(26.4)m
     Basic earnings/(loss) per share                            16.2p             (36.9)p            (22.0)p
     Total dividend per share (5)                                2.5p                   -                  -
     Net Asset Value                                          £195.3m             £126.7m            £168.4m
     Net Asset Value (NAV) per share                             118p                113p               102p
     EPRA NTA per share                                          116p                117p               102p
     Group net debt (4)                                       £136.5m             £348.0m            £185.3m
     Net debt to property value (4)                               40%                 72%                49%

Notes

1)  Adjusted Profit, Adjusted Earnings per share, Net Rental Income, Net Debt and the new 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 6 to the condensed
    financial statements.
2)  2021 Revenue has been restated to remove Luton given its reclassification as a Discontinued Operation. Adjusted Profit for the six months to
    June 2021 has been restated to reflect the introduction of the Snozone EBITDA performance measure during 2021.
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)  On a proforma basis, adjusted for the Walthamstow residential land and Blackburn disposal proceeds which were received post 30 June 2022.
    Net debt to property value was 49% at 30 June 2022 on an unadjusted basis.
5)  Represents dividends declared post period end but related to the period in question.

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.

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 Interim Results to 30 June 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/2022/jse/isse/crpe/HY2022.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

11 August 2022


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 eight
shopping centres in Hemel Hempstead, Ilford, Luton, Maidstone, Redditch, Walthamstow and Wood Green.

For further information see capreg.com.

Date: 11-08-2022 08:00:00
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