CAPITAL & Regional, the UK convenience and community-focused shopping centre Reit, was experiencing strong operational momentum and had achieved a higher volume of leasing deals in the first nine months of 2021 than for the whole of 2019, chief executive Lawrence Hutchings said.
The new leases were also at rental levels above previous rent, while footfall, occupancy and rent collection were also trending positively, he said in a trading update yesterday.
The share price increased 15.6 percent to R11.62 on the JSE yesterday afternoon.
Hutchings said there was evidence that the company’s property values were stabilising, with investment assets increasing in value by 0.5 percent over the three months to September 30, 2021.
“This, allied with the positive transformational impact of the proposed open offer and mall debt restructure on the balance sheet, which if approved will result in the business being in a materially stronger position, provides us with increased optimism as the important Christmas period and New Year approaches,” he said.
Footfall continued to outperform the national index by 5.4 percent, with 32.4 million visits in the nine months to September 2021.
Agreements or formalised payment plans representing 88 percent of the rent due for the year to date had been received.
“We are confident rent collection will ultimately grow beyond the 90 percent of contracted rent we have collected or agreed payment plans for 2020.
“We are proud of the support we have provided to our retailers, particularly our smaller independents, with payment plans and concessions totalling 5 percent of total rent year-to-date,” he said.
Strong momentum in leasing activity continued and occupancy was at 90.2 percent at the end of September.
On October 21, formal planning consent was secured for the 538 apartment residential development at Walthamstow.
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