Capital & Regional Share Discussion Threads

[hugepants] 30/9/2022 16:04

I topped up here on the fall to 50p. 10% yield, 57% discount to NTA and 40% LTV. Definitely at the riskier end of the REIT spectrum but its a positive Growthpoint are taking shares instead of cash for their dividend.
The shopping centres appear well let and favourably located and I think this sector may outperform going forwards.

Re interest rates, "Debt maturity of 4.1 years with average cost of debt of 3.54% with 98% fixed."

[nickrl] 15/8/2022 23:13

rambutan that interesting on Growthpoint as they are big chunk of the register so saves a fair amount of cash in the short term. Surprised gp haven't just bought this one out

[rambutan2] 15/8/2022 21:47

Re the div, forgot to mention the important fact that both Growthpoint (and the board) are taking scrip, not cash.

htt ps://growthpoint.co.za

[rambutan2] 15/8/2022 15:38

Here we go. In the classic estate agents/developers way, they try to call it everything but Wood Green ie posher Ally Pally and Hornsey, but it is within 100m of the back of the Mall.

[spectoacc] 15/8/2022 15:37

Thanks @rambutan2, good to know.

[rambutan2] 15/8/2022 15:31

Yes, a turnaround.
In the webcast the FD said that they should be able to repeat the 2.5p for the finals.
Currently approx 30% of nav is on leases which are to some degree inflation linked.
Very little on turnover based leases.
Are hoping that recession doesn't hit them too hard as mainly at the low cost/essentials end of the mkt.
All in all, quite upbeat.

I would add, that as a long time Wood Green resident, the much maligned Mall is looking in slightly better shape these days. And certainly much better than the nadir of a few year's ago. And WG itself is moving up in the world - more middle class types. There is a big housing development just behind the Mall, and other bits and pieces of building in the area. My non expert view would be that one way or another, there is potential for the value of the Mall to rise over the the next few years.

[nickrl] 11/8/2022 09:49

Specto to be fair to them they've transformed the business over the last 12mths from what looked liked worthless assets being overwhelmed by so much debt. The deals they've done buying off the debt at well below par has to be applauded. Be interesting to know who the lender was for Hemel who has forgone 50% of the debt just to get the loan off its book. They will be paying off the 6%+SONIA facility following receipt of sales proceeds from Blackburn/Walthamstow and LTV will be down to c40%.
Div also restored and if they can repeat 2.5p at finals that puts them on a 7.5% yield although with loss of Blackburn income and even reduced interest costs not sure that achievable but they are back in the game.

[spectoacc] 11/8/2022 09:18

Too overweight small REITs to add more, but CAL do seem to be pulling through IMO. Not sure that NAV rise isn't more due to a technicality (property held for sale) but the LTV seems genuinely manageable without further dilution now.

Just in time.

[nickrl] 25/4/2022 18:50

Not sure how a company that has lost so much value has the temerity to award its CEO 937,857 and CFO 513,217 shares under its 2021 bonus scheme!

Not one for me.

[nickrl] 08/3/2022 10:46

Had a watch of the presentation on FY results which was actually with an audience (makes a change) of 10-15 presumably analysts.

Headlines NAV down to 102 from 150p partly from capital raise. I like the way that once they've offloaded the non performing Hemel and Luton centres NAV increases to 114p. They say as in SPVs they aren't liable for losses. So would be discount at 50-50%.

LTV now down to manageable 49% and forecast down to 46% shortly once Walthamstow development sold on.

No FY divi but say they will declare a divi at half year although no forecast given but looks like it had c10m of FCF at FY although CEX talked about quite a few mil needed for CAPEX projects and ESG stuff. Need to delve into it more but a few pence would be worthwhile at current share price although how sustainable it would be given discretionary spending is going to get hammered over next 12mths not so sure.

By the way im not in here (yet) and I do wonder why Growthpoint don't just take it out especially as they fully subscribed to the capital raise last year. Also not a lot of shares traded so not an easy one to get into or out of.

Also i don't want to brag but i asked the only other question (how much rent free for new leases - CEX answers oh we don't do that much and then finished by saying to CFO its around 6 months isn't it!!) so if they were analysts guess they were only there for a free coffee and an opportunity to get out of wfh!

[sphere25] 19/1/2022 11:38

Some whoppers going through here:

2m @ 63p
2.0055m @ 63.125p

It looks like it needs to break 64p to breakout.

Might be worth keeping an eye on.

All imo
DYOR

[nickrl] 17/1/2022 18:45

Trading update today reasonably positive and at least reinforces that even ordinary retail is close to the bottom or stabilising. Perhaps valuers will turn there irk onto offices now which would be good as they got rid of an office to help LTV a bit. Also optimistic that Walthamstow development will crystallise shortly and lower LTV further. Finals due 8th March.

[swindon41] 16/10/2021 06:10

LH in denial....downward spiral for Mall-centred retail unless they can reinvent themselves. Lidl taken over M&S in Luton Mall & Debenhams cheep & cheerful sub units. Has a place but not in cash generative top quality covenant imho

[nickrl] 15/10/2021 20:49

Hefty dilution but Growthpoint are committed so will get it away.

Lucky RBS was prepared to write off 19% of the 100m loan to get rid of it but not sure its out of intensive care yet and whilst they say there's a possibility of small dividend in a years time.

Lets see.

[rambutan2] 14/10/2021 22:27

It lives!

Mall Debt Restructure and Reduction, Launch of Open Offer, Posting of Prospectus

as well as Notice of General Meeting

Capital & Regional plc (LSE: CAL) ("Capital & Regional", the "Company", or the "Group"), the UK convenience and community focused shopping centre REIT, is pleased to announce that it has reached an agreement with its lenders to restructure and reduce the debt secured over its four Mall Assets (the "Mall Facility") (the "Mall Debt Restructuring"), including the launch of a fully underwritten open offer to raise GBP30.0 million (the "Open Offer").

Lawrence Hutchings, Chief Executive Officer, comments: "We recently announced a set of results which clearly demonstrate the relevance of our Community Centres Strategy, the underlying strength of our portfolio and the skills and commitment of our team. Against the backdrop of a positive reopening of the economy following the disruption caused by the pandemic and increased confidence in our segment of the retail and services market we have been focusing our resources on generating the highest returns from our core Mall investment assets while working closely with our lenders towards both restructuring and reducing the Group's debt.

"These proposed transactions, which will recapitalise the balance sheet, allow us to achieve just that and represent a significant and positive step forward for the Group. They will allow us to once again focus fully on continuing our repositioning and merchandising, while looking at how we can best leverage the expertise in our platform and, in due course, the reintroduction of cash dividends."

"I would also like to take this opportunity to thank all of our stakeholders including our lenders, major shareholders and Growthpoint, as well as our teams, retailer customers and the local communities for their continued support throughout the challenges that the pandemic has presented."

Key Highlights

-- The Mall Facility currently comprises a GBP265 million debt facility with RBS and TIAA secured over the Four Mall Assets, being the Mall Blackburn, the Mall Maidstone, the Mall Wood Green and the Mall Walthamstow. TIAA currently has a balance outstanding of GBP165 million and RBS has a balance outstanding of GBP100 million.

-- Under the terms of the Mall Debt Restructuring, Capital & Regional Holdings Limited (the "Purchaser") has agreed to acquire the GBP100 million of debt outstanding with RBS (the "RBS Debt") for a principal amount of GBP81 million, representing a discount of GBP19 million or 19 per cent.

[1nf3rn0] 15/3/2021 10:25

Shares of Capital & Regional are worth holding onto, the Sunday Times's Sabah Meddings said in her 'Inside the City' column.The tipster pointed out how the shopping centre operator was outperforming rivals on several key metrics.Furthermore, its net asset value was 75% higher than its current share price, a possible indication of an "opportunity" for investors, Meddings also said.Year-to-date, CapReg's rent-collection was running at 60% and a spate of deals may boost that figure to 70%, versus 41% at Hammerson.In parallel, Hammerson's net asset value had plummeted 85% to 85.0p per share.CapReg's portfolio value meanwhile had fallen by 27.5% or £200m, versus a 41% drop at another of it rivals, Intu.Helping CapReg, many of its community-based centres, which are anchored around a grocery tenant, "put it in a strong position".Indeed, the company was busy refurbishing its food halls to appeal to Deliveroo.Nevertheless, Company Voluntary Arrangements were likely to continue, Meddings cautioned, and as CapReg's boss Lawrence Hutchings had argued in the past, there is 30% more retail in the UK than is needed.Over the preceding year, 17 of CapReg's tenants had gone insolvent through CVAs, twice the 2019 figure."Hold", said Meddings.

[nickrl] 10/3/2021 13:18

Suspect some of that cash will get trapped in the SPVs to deal with covenant breaches and they at least attack their cost base. Also had reasonable number of lease events but didn't give much away.

[spectoacc] 10/3/2021 12:46

Yes should have said "..Take it out in a D4E..".

[2wild] 10/3/2021 12:37

They still have £80 million in cash and are making money, excluding non-cash property revaluations. No need for a rights issue.

[spectoacc] 10/3/2021 07:02

CAL's a strange beast, worth possibly nothing but with a supportive major shareholder. If they think there's value, suspect they'll take it out in a rescue rights eventually. In meantime, with a small free-float it can go anywhere, & not one to be caught short on.

[nickrl] 09/3/2021 21:35

Taken a look at CALs result but not in detail

NRI down 30.8%
NAV down 58% (got to be the worst of them all)
LTV 46% > 65% (ouch but have a few years to refinance if they can)

Have 3 DEBs which will cost them 2.1m in rates plus lost rent but say 2 units have offers (interesting but guess almost £0/sqft avoids the rates)

Several of the lending vehicles are in breach of covenants but so far lenders are waiving.

Surprised share price moved upwards.

[nickrl] 25/1/2021 19:30

CAL have three Debenhams that are down the swanny although rents have been bashed down by the CVA already so maybe not so much to lose but there stuffed with not having service charge income as well as empty rates to pay.

Not going to break them but there Arcadia outlets also unlikely to be reopened so no wonder share price is down

[knowing] 23/12/2020 15:58

Feels like Christmas

[1nf3rn0] 23/12/2020 15:38

British Land raised 400M today. Others that I hold have also made disposals around or above NAV revently which may be used to acquire discounted assets.

[knowing] 23/12/2020 14:36

Not that I have seen but also not complaining