By Andries Mahlangu

The UK-based Capital Shopping Centres (CSC) said on Thursday that The Trafford Centre performance had exceeded expectations, 11 months after the British shopping mall was integrated into its operations.

The London- and JSE-listed group posted growth in both like-for-like net rental income and underlying earnings per share, two of the group's key measures of performance, in the year ended December 2011, from the previous corresponding period.

Net rental income on a like-for-like basis was up 3.6% as the effect of leases signed in 2010 flowed through to the period under review.

Taking into account additional shares issued as part of the Trafford Centre acquisition, underlying earnings per share increased by 7% to 16.5 pence.

Chief executive David Fischel said: "The results demonstrate CSC's considerable progress in 2011.

"The transformational Trafford Centre acquisition has driven our strong performance and has exceeded our expectations.

"While the UK economic environment is challenging, CSC is well positioned for growth with assets of uniquely high quality, a considerable capital base, a committed management team and a pipeline of future projects."

The Trafford Centre's value increased by £50 million, as improved tenant mix, including new flagship store openings, reinforced its position as a top prime centre.

CSC successfully completed the acquisition of The Trafford Centre from the Peel Group on January 28 last year.

Individual shopping centres showing strong recovery included Lakeside, up 5%, and Chapelfield, Norwich, up 10%, due to improved occupancy levels and tenant mix.

The extension to St David's, now 95% committed, contributed an extra £4 million.

Conversely, flexible deals in preparation for the planned extension at Victoria Centre, Nottingham, brought its net rental income down by 9%.

The group has set aside £120 million for its pipeline projects, which include the acquisitions of land with potential for future development and asset management initiatives.

At 3.23pm, the share was price was flat at R40.37 on the JSE.

Source: I-Net Bridge