Capital Shopping Centres (CSC) said that it has shown 'considerable resilience' in the six months to the end of June, despite like-for-like (LFL) net rental income falling 2.3 per cent, with rental increases offset by the effect of lower occupancy following tenant failures.
Profit was considerably lower at £78m compared to £192m the same half the previous year. However, underlying earnings per share edged higher from 8.0p to 8.1p.
The aggregate market value of CSC's investment properties was broadly steady in the first half of 2012. Overall, a marginal yield improvement in property values was offset by a small reduction in rental values in the period, but there was a range of outcomes for both factors across individual centres, the firm said.
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The occupany level edged lower from 97% to 95% during the half year, the result of tenant administrations.
Footfall at CSC's centres continued to outperform the national benchmark, as measured by Experian, with a one per cent reduction in the first six months compared to a three per cent reduction in the benchmark.
14 brands were brought to CSC centres for the first time during the period, including Locker Room, Lavazza and Schuh Kids.
The interim dividend was maintained at 5p per share.
David Fischel, Chief Executive of CSC, said: "Our prime UK regional shopping centres have continued to show considerable resilience, with robust operating metrics supporting sound financial results.
"We have made good progress on our two strategic priorities for 2012, ensuring that our centres produce a strong performance relative to current economic conditions while positioning each asset for longer term organic growth from an increasing pipeline of active management projects and extensions."
"CSC is in a strong financial position with a debt to asset ratio of 48 per cent. We are looking at steps to improve our overall financial flexibility to enable us to build further on the strong momentum within the business."
The share price fell 0.15% to 327.60p by 08:24.
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