Quarterly report to 31 March 2008 & webcast 07 May 2008
Back to listingLiberty International PLC has today released its quarterly report for the period ended 31 March 2008 which consists of:
- Highlights
- Summary of Investment and Development Properties
- Operating and Financial Review
- Unaudited Financial Information
Sir Robert Finch, Chairman of Liberty International, commented:
“Liberty International’s net asset value per share (diluted, adjusted) has declined from 1264p to 1181p reflecting unsettled property market conditions in the UK.
However, our prime UK regional shopping centres which constitute some 75 per cent of our business continue to demonstrate their defensive merits with stable and resilient income streams and a 98.5 per cent occupancy level.
We have substantially expanded the business of Capital & Counties in recent years and these activities, including the Covent Garden Estate, Earls Court & Olympia, the Great Capital Partnership and our international businesses, continue to trade encouragingly.
In addition to the high quality developments on which we are currently engaged, especially at St David’s, Cardiff and Eldon Square, Newcastle, we are pursuing a broad range of active management initiatives and development prospects within our existing £8.3 billion of investment properties. While such activity is subject to suitable market conditions, these prospects provide substantial scope for future organic growth.
Liberty International has a business of exceptional quality, a high degree of specialisation on prime retail which constitutes around 90 per cent of our assets, the benefits of scale and financial strength with a prudent debt to assets ratio and long-term fixed-rate debt.
We remain confident in the ability of the company to respond to the more difficult conditions now prevailing in commercial property and retail markets.”
A conference call with analysts and investors took place at 9.30am on 7 May 2008, a recording of which is available on this page.
Enquiries:
Liberty International PLC:
Sir Robert Finch, Chairman +44 (0)20 7960 1273
David Fischel, Chief Executive +44 (0)20 7960 1207
Ian Durant, Finance Director +44 (0)20 7960 1210
Public relations:
UK: Michael Sandler, Hudson Sandler +44 (0)20 7796 4133
SA: Gareth David, College Hill Associates +44 (0)20 7457 2020
SA: Nicholas Williams, College Hill Associates +27 (0)11 447 3030
HIGHLIGHTS
| Quarter ended 31 March 2008 |
Quarter ended 31 March 2007 |
Year ended 31 December 2007 |
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|---|---|---|---|---|---|---|---|
| Net rental income | £104m | £91m | £374m | ||||
| Profit before tax (underlying)* | £34m | £36m | £131m | ||||
| (Deficit)/gain on revaluation and sale of investment properties | £(345)m | £156m | £(279)m | ||||
| (Loss)/profit before tax | £(335)m | £293m | £(125)m | ||||
| Total properties | £8,341m | ***£8,540m | £8,666m | ||||
| Net debt | £3,639m | **£3,293m | £3,668m | ||||
| Net assets (diluted, adjusted) | £4,448m | £5,190m | £4,757m | ||||
| Basic earnings per share | (84.7p) | 75.4p | (29.0p) | ||||
| Adjusted earnings per share | 8.4p | 9.8p | 36.0p | ||||
| Dividend per share | 34.1p | ||||||
| Net assets per share (diluted, adjusted)** | 1181p | 1376p | 1264p | ||||
* Before valuation and exceptional items. ** Net assets per share (diluted, adjusted) would increase by 100p per share to 1281p at 31 March 2008 (31 March 2007 – by 100p to 1476p, 31 December 2007 - by 104p to 1368p) if adjusted for notional acquisition costs amounting to £375 million (31 March 2007 - £377 million, 31 December 2007 - £390 million). *** Restated numbers for quarter ended 31 March 2007 now include 100 per cent of MetroCentre, Gateshead rather than the 60 per cent previously reported - see note 1 to the 31 March 2008 accounts. Note 15 to the 31 March 2008 accounts sets out full details and calculations of basic and adjusted earnings per share and net assets (diluted, adjusted). |
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HIGHLIGHTS OF QUARTER ENDED 31 MARCH 2008
- Stable and resilient operating performance of CSC’s £6.2 billion UK regional shopping centres
- like-for-like net rental income growth of 1.8 per cent
- high occupancy level of 98.5 per cent
- Valuation outcome
| Quarter ended 31 March 2008 | Year ended 31 December 2007 | |||||
|---|---|---|---|---|---|---|
| - UK regional shopping centres | -4.5% | -3.9% | ||||
| - UK non-shopping centre properties | -2.0% | -0.2% | ||||
| - USA | -0.4% | +6.5% | ||||
| - Total | -4.0% | -3.5% |
- Change in valuation yields as follows:
| Nominal equivalent yields | |||||||
|---|---|---|---|---|---|---|---|
| 31 March 2008 |
31 December 2007 |
||||||
| - UK regional shopping centres | + 26bp | 5.34% | 5.08% | ||||
| - UK non-shopping centre properties | + 7bp | 5.23% | 5.16% |
- Total return for the period minus 6.5 per cent, with net asset value per share (diluted, adjusted) reduced from 1264p to 1181p.
- Additions of £100 million including £51 million development expenditure and £30 million as part of the Great Capital Partnership’s asset swap with the Crown Estate.
- Disposals of £75 million at £1 million surplus to 31 December 2007 book values
- Committed expenditure to complete current development programme around £300 million including
- St David’s 2, Cardiff opening Autumn 2009
- Eldon Square, South, Newcastle opening Spring 2010
- Robust financial position
- 44 per cent debt to assets ratio
- over £640 million cash and undrawn committed facilities
- no significant debt maturities before 2011
- debt mostly fixed-rate and asset-specific
