JSE and London-listed Capital & Regional (Capreg), which has become the target of two takeover bids, has proposed a 3.6% increase in its interim dividend to 2.85 pence per share.

The group, which has South Africa’s Growthpoint Properties as its major shareholder, received a cash and shares offer from UK-listed NewRiver REIT in May. Then, on July 19, Praxis Group expressed interest in making a cash offer – NewRiver and Praxis have until August 15 and 16, respectively, to put in a formal offer.

The owner of UK shopping centres that serve the value-orientated needs of local communities, yesterday reported its net rental income had increased 7.1% for the six months to June to £13.7 million, while valuations increased 0.8% on a like-for-like basis.

"We have delivered another positive set of results... Against what at times has been a challenging economic backdrop, our team has been able to capitalise on the continued strong demand from retailers for space within our centres, particularly those in London. This is reflected in the strong leasing momentum we have maintained,” chief executive Lawrence Hutchings said.

He said that over the six months they had completed more lettings and renewals than over the same period last year, and at a higher average rent per lease and average premium to the previous rent.

The rapid re-leasing of the three former Wilko units to B&M in the first few months was an example of the demand for space in the centres from retailers that needed to be at the heart of local communities, he said.

Group occupancy improved to 93.9% from 93.4% in December 2023, due to re-letting the three former Wilko units. Loan to value fell to 43% from 44%. A strong start had been made to the second half, he said.

Progress had also been made on the repositioning masterplan in Ilford, where the terms on two major leases had been agreed that could generate about £0.5 million of additional income.

"We have seen a further period of stable valuations and successfully integrated Gyle Shopping Centre into our portfolio, where the initiatives we have undertaken since acquisition last September have already led to a 5% increase in value,” said Hutchings.

He said the firm remained well placed to continue to deliver on its community strategy to drive income growth and value in support of progressive shareholder dividends, notwithstanding the buyout offers.

The first phase of the Walthamstow residential development undertaken by Long Harbour, creating 495 build-to-rent apartments in two residential towers and providing a new captive audience of shoppers for the Walthamstow centre, was entering its final stages, with the development due to complete in early 2025.

Net asset value per share was at 88p. In London the share price was trading 2.02% higher at 66.31p, almost 35% higher than the price on April 30. The group said it has 100% renewable and Renewable Energy Guarantees of Origin certified electricity at all its shopping centres and Snozone venues.

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