Capital Shopping Centres bought the Trafford Centre against the wishes of a major shareholder in the company so there was an element of vindication in the company's 2011 results, with the management boasting that the performance of the Manchester shopping centre had exceeded expectations.
The shopping centres operator, which also owns the Lakeside centre in Thurrock, Essex, said net rental income rose 31% in 2011 to £364m from £277m in 2010.
Underlying earnings were up 43% to £139m from £97m the year before as the effect of the Trafford Centre purchase, made at the beginning of the year, began to boost income.
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David Fischel, Chief Executive, commented: "The transformational Trafford Centre acquisition has driven our strong performance and has exceeded our expectations." He added, though, that "the UK economic environment is challenging".
The acquisition of the Trafford Centre was opposed by US shopping mall giant Simon Property, which objected to the size of the stake Trafford vendor Peel Holdings received in Capital Shopping (CSG) as a result of the sale.
Since the acquisition was approved by 82% of shareholders CSG's management has hardly stopped going on about what a marvelous move it was to buy the asset.
The company's acquisitive streak has, however, seen its external debt rise to £3,374m, from £2,437m the year before but the debt to assets ratio has been maintained at 48%.
The market value of CSG's investment properties was £6,960m by the end of 2011, a rise of 36% over 2010.
The net asset value (NAV) per share climbed 1p to 390p.
Capital Shoping Centre's final dividend will be 10p per share, bringing the full year figure to 15p, flat on 2010.
Occupancy rates across all of the group's 14 shopping centres fell from 97.7% in 2010 to 96.7% in 2011 although the firm still considers this "high".
Footfall, or the number of people visiting the centres, rose 2% last year, with the period between April and June particularly strong.
Chapelfield, Norwich, gained 13%, and Manchester Arndale 7% on 2010, with other good performances from Eldon Square, Newcastle, and St David's, Cardiff although the firm notes: "Some of the smaller centres recorded small negative figures ... including The Potteries, Stoke-on-Trent, situated in a region whose economy has suffered more than most."
The market seemed non-plussed at the results, with Capital's shares little changed. Over the last year the group's shares have lost 12% of their value.
BS
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