Capital & Regional pays dividend despite severe challenges

CAPE TOWN – Capital & Regional, the UK Reit with in-town community shopping centres, ended 2019 with a significant new partner, slightly lower net rental income and a focus on needs-based, non-discretionary items at its shopping centres.

A final year dividend of 11pence (R2.16) per share was declared, which brought the pay-out for the year to 21p, slightly lower than 24.22p in 2018. The dividend pay-out was in spite of severe challenges in the UK retail property investment industry as a whole, which has been hurt by Brexit uncertainty and fast changing consumer retail trends.

Basic and European Public Real Estate Association net asset value per share, at 361p and 364p respectively, was well down from 596p and 591p, reflecting the fall in property valuations and IFRS loss of £121million (2018: Loss of £25.6m).

Chief executive Lawrence Hutchings said, however, “2019 was a critical year of progress. Having completed the transaction with Growthpoint in December 2019 (Growthpoint became a 51.1percent shareholder) – the business is on a sound footing”.

Capital & Regional would continue to roll out its community centre asset management strategy, he said.