Underlying earnings were up 53% to £66 million, while net rental income from continuing operations was 32% higher at £178 million.
An unchanged interim dividend of 5 pence per share was declared.
CEO David Fischel commented: "With 6 percent growth in like-for-like net rental income and increased footfall at our centres, CSC has delivered a sound operating performance in the first half of 2011."
CSC's assets comprise five major out-of-town centres including four of the UK's top six - The Trafford Centre, Manchester; Lakeside, Thurrock; Metrocentre, Gateshead; Braehead, Glasgow and The Mall at Cribbs Causeway, Bristol - and nine in-town centres including centres in prime destinations such as Cardiff, Manchester, Newcastle, Norwich and Nottingham.
Fischel said that the Trafford Centre in Manchester had proved an excellent addition and the group has a range of active management projects and extensions in the pipeline to deliver future growth.
The group reported like-for-like net rental income was up 6%, or GBP8 million, compared to the same period of 2010, reflecting lettings undertaken throughout 2010 and further openings at Cardiff.
Occupancy remained high at 97%, compared with 98% at end December 2010. The slight increase in vacancy reflects a number of tenant failures around the June quarter date and the seasonal effect following Christmas.
Footfall in CSC's centres was estimated to be up 3% year-on-year for the third consecutive year, while Experian data indicates UK retail footfall overall has fallen by around 1%.
The group noted that 80 long term lettings were achieved in the period for GBP18 million annual rent, an increase of GBP5 million over previous rent for those units and in aggregate around 2% below estimated rental value (ERV).
A number of positive deals on larger units in bigger centres have enhanced the overall terms achieved in the period, with the average of other deals remaining in the range of 90% to 95% of ERV.
Long term lettings in the period include 18 new retailers to CSC centres including 4 international brands.
"We continue to see competitive demand for space in CSC's centres for larger units suitable for flagship stores and well located smaller units for catering outlets. CSC has a strong track record of creative active management and professional project execution to deliver appropriately configured space to meet retailers' requirements," the group said.
Looking ahead, the group said the results for the first half of 2011 demonstrate a continuation of recovery by CSC, although a more cautious occupier market is reflecting challenging macro-economic conditions.
"Although the economic environment remains challenging, large centres such as those owned by CSC with a strong catering and leisure component are continuing to outperform," Fischel said.
CSC added that after a very strong first half result, the quieter letting market implies a lower increase in the second half of the year.
With regards to The Trafford Centre, it is looking for continued strong performance from this pre-eminent retail and leisure destination and to further access the broader benefits to the Group from this acquisition.
Source: I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge
