Mixed fortunes for retail landlords British Land and Capital & Regional
There were two differing tales of retail on Tuesday, as property giant British Land warned of “challenging” conditions, but malls landlord Capital & Regional boasted about new tenants and more shoppers.
FTSE 100 firm British Land said of the retail market: “The impact of long-term structural change driven by the internet is being compounded by short-term trading headwinds.”
It said CVAs — a move that allows businesses to quit stores or seek rent cuts — coupled with administrations since April 2017, had resulted in a 1.6% fall in its retail rent income.
The firm said its offices arm was strong, but the City appeared unimpressed with the retail update, and the shares fell 7p, or 1%, to 644.8p.
Elsewhere in the industry, Capital & Regional’s boss Lawrence Hutchings said his firm was largely “unscathed” by recent CVAs.
His shopping centres, including in Wood Green and Walthamstow, are less reliant on fashion chains and focus on budget and “needs-based” chains.
Capital & Regional agreed 21 new lettings in the first half, including to Boots and Burger King.
There was a 1.7% comparable rise in footfall to 37.9 million shoppers.
The shares edged up 0.65p to 49.95p.
