8th Nov 2013 09:27
LONDON (Alliance News) - Capital & Regional PLC Friday said new lettings momentum has continued during the third quarter with 19 completed within UK shopping centres, adding GBP1.3 million of rental income per annum in aggregate.
In an interim management statement for the period July 1 to November 7, the property investment company, which focuses on retail and leisure spaces, said the additional 19 lettings pushes the total for the year thus far to 46, with a rental income worth GBP3.4 million per annum.
Capital & Regional said this is almost 3% ahead of estimated rental value (ERV).
Occupancy levels at its UK shopping centres remained "stable" during the third quarter at 94% at the end of September. However this was down slightly from 94% in June and 95% in September 2012.
Passing rent declined to GBP67.4 million, from GBP68.7 million in 2012. Passing rent is the contractual rent received from a tenant, as opposed to market-rate rents.
Capital said rents would have increased further but for "two asset management initiatives targeting longer-term income growth."
These were in Lincoln, where the firm took a "surrender" of two leases for a net premium and in Redditch, where budget retailer Poundland was relocated as part of a strategic plan.
During the period Capital sold its Great Northern Warehouse property in Manchester to Resolution Property for GBP71.1 million.
Part of the proceeds of the sale were used to repay the loan secured on the property. The sale also meant the company removed the debt from its balance sheet.
The stock was trading at 44.25 pence Friday morning, up 0.50 pence or 1.1%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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