Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Capital & Regional hikes dividend after year of rental growth
(Sharecast News) - Shopping centre specialist Capital & Regional reported a 5% increase in like-for-like net rental income (NRI) in its full-year results for 2023 on Tuesday, as well as a 2.6% increase in like-for-like valuations compared to the prior year. The London-listed real estate investment trust said it achieved 86 new lettings and renewals, surpassing the previous year's figure of 80, with a combined average premium of 6.8% to previous rent and 16.6% to estimated rental value (ERV).
In September, Capital & Regional acquired the Gyle shopping centre in Edinburgh for £40m, partly funded through a £25m equity raise.
The board said the acquisition, made at a net initial yield of 13.5%, was expected to rebase to around 12%.
It also reported 9.7% growth in adjusted earnings per share, rising to 6.8p from 6.2p in December 2022.
The proposed final dividend was hiked by 7.3% to 2.95p per share, resulting in a total dividend for the year of 5.7p per share compared to 5.25p per share in the previous year.
"Our ongoing focus on delivering our proven community strategy and increasing our exposure to non-discretionary and needs based retail and services categories, continues to support our progress and has helped us deliver another positive set of results," said chief executive officer Lawrence Hutchings.
"Occupier demand coupled with our accretive capex programme has driven rental growth, underpinned a 9.7% increase in earnings and, with values also up slightly, given us the confidence to increase the dividend.
"The structural changes in retail continue to evolve, with online penetration now maturing and a continued return to the store by consumers meaning physical retail has cemented its position as a vital part of the distribution framework."
Hutchings said that was especially evident in the firm's core categories of value and non-discretionary merchandise, adding that retailers were continuing to focus on coupling the online platform with stores in a seamless guest experience.
"The rapid re-leasing of all three of our Wilko units to B&M in the first few months of 2024, further demonstrates the quality of our locations, the relevance of our strategy and our team's ability to capture demand from retailers for affordable space in urban locations.
"This backdrop, coupled with the improvement in our underlying operational business, and with the Company's balance sheet stable, gave us the confidence to proceed with the Gyle acquisition in September 2023.
"It marks our first step towards rebuilding the business through our continued capex programme and a disciplined approach to opportunities to buy well positioned retail led real estate at attractive entry points."
At 0923 BST, shares in Capital & Regional were up 4.79% at 51.87p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.