5th Mar 2020 11:56
(Alliance News) - Capital & Regional PLC on Thursday reported a sharply widened loss in 2019 on revaluation, but said it is now "on sound footing" after completing a deal with Growthpoint Properties Ltd.
The Johannesburg-listed real estate investment trust's 2019 pretax loss widened considerably to GBP121.0 million from GBP25.5 million the year before.
This was mostly the result of a GBP138.6 million loss on revaluation of investment properties in 2019 compared to GBP47.5 million the year before, although a 2.3% drop in revenue to GBP88.9 million from GBP91.0 million was also a small contributing factor.
In December 2019, Capital & Regional completed a transaction with Growthpoint, under which Growthpoint committed to invest around GBP150.4 million for a 51% interest in Capital & Regional.
The company is proposing a final 11 pence per share final dividend, which would cut its total dividend per share for the year by 13% to 21p from 24.2p.
Lawrence Hutchings, chief executive at Capital & Regional, said: "Having completed the transaction with Growthpoint in December 2019 the business is on a sound footing with the support of a significant and well respected international business, enabling Capital & Regional to continue the roll out of our community centre asset management strategy and providing a platform for potential growth."
Hutchings added: "I remain confident that our focus on needs based, non-discretionary merchandise and the urban bias of our real estate, with its close proximity to people and transport nodes provide an attractive opportunity for us to create additional value through mixed use development working alongside experienced partners. This ensures we are well positioned as a business to evolve, adapt and grow in tune with the rapidly evolving retail landscape."
Capital & Regional shares were down 2.2% at 194.69p each on Thursday.
By Anna Farley; [email protected]
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