Mall owner profits from Trafford buy
CAPITAL Shopping Centres, the UK’s largest shopping mall owner, said last year’s Trafford Centre acquisition has helped drive underlying earnings, but it saw occupancy drop as retailers fell victim to tough economic times.
CSC, which owns 10 of Britain’s top 25 shopping centres including Metrocentre in Gateshead, said profits excluding one-off items were up 43 per cent to £139m following the £1.6bn purchase of the Trafford Centre from John Whittaker’s Peel Group.
Net rental income jumped to £364m in 2011 as a result, compared with £277m a year before.
The group said occupancy slipped one per cent to 96.7 per cent last year compared with 2010, which it attributed to retailers accounting for around one per cent of rental income collapsing administration in the fourth quarter.
The group highlighted the challenge for retailers to “keep their business moving” while faced with reduced disposable income and changing consumer behaviour as they continued to cut back on spending as shop more online.
Overall, tenants representing three per cent of CSC’s rent roll went into administration last year, and a further two per cent in the “first few weeks” of 2012.
Chief executive David Fischel said the company was “well positioned for growth” in a challenging economic environment.