Performance against our strategy
Capital Shopping Centres is the leading specialist developer, owner and manager of pre-eminent UK regional shopping centres. With a dedicated and skilled management team, CSC aims to be the landlord of choice for retailers, to provide compelling destinations for shoppers and to offer clarity and transparency to investors.
CSC is a responsible and environmentally conscious participant in the communities where it invests. CSC focuses on the creation of long term and sustainable growth in net rental income with a view to generating superior shareholder returns through dividend growth and capital appreciation.
Performance
The following indicators are the key measures used to evaluate the Group’s performance against our peer group*, other external benchmarks and the FTSE REIT Index as appropriate.
1 Shareholder return
Strategic aim
Superior shareholder returns
Why is this important?
Combines share price movement and dividends
to produce a direct measure of the movement in
shareholder value in the year.
How is this measured?
Uses the movement in share price during the year
plus dividends paid in the year.†
How have we performed?
Share price has outperformed FTSE REIT Index.
Long-term trend
See chart below.
2 Total financial return
Strategic aim
Capital appreciation
Why is this important?
This is a measurement of the total return
movement in the Group’s balance sheet value
through the change in the Group’s property
valuations and its capital structure.
How is this measured?
Uses the movement in adjusted net asset value
plus the impact of dividends paid in the year.
How have we performed?
Although net asset value per share increased in
the year due to property valuation gains the
return did not match that of the peer group
largely due to their exposure to the strong
performing London office sector.
Long-term trend***
3 Income performance
Strategic aim
Dividend growth
Why is this important?
The measure gives the underlying income
generated in the year which gives an indication
of the Group's ability to grow its dividends.
How is this measured?
Uses underlying earnings per share, which
excludes property and derivative valuation
movements and exceptional income or charges.
How have we performed?
Underlying earnings per share has grown in
2010 compared to the 2009 CSC figure due
to improved net rental income and tight
cost control.
Long-term trend***
4 Prime property assets
Strategic aim
Capital appreciation
Why is this important?
Measures the capital return on the Group’s
property assets and compares this with the
IPD index, a recognised industry benchmark.
How is this measured?
Includes the capital growth from the
Group’s properties.
How have we performed?
The quality of the Group's properties has resulted
in strong outperformance of the benchmark index
in 2010.
Long-term trend
See chart below.
5 Like-for-like net rental income
Strategic aim
Sustainable growth in net rental income
Why is this important?
Measures the organic growth in income
generated from the Group’s properties
in the year.
How is this measured?
Removes from the year on year movement
in net rental income the impact of acquisitions,
developments and disposals.
How have we performed?
After the severe downturn in the commercial
property market that affected the last two years,
the Group returned to positive like-for-like net
rental income growth in 2010.
Long-term trend
See chart below.
6 Occupancy
Strategic aim
Landlord of choice for retailers
Why is this important?
CSC aims to maximise the occupancy of its
properties as vacant space will adversely impact
on profitability.
How is this measured?
The passing rent of the Group’s properties
currently occupied expressed as a percentage
of the passing rent of occupied and the ERV
of unoccupied properties.
How have we performed?
The attractiveness of the Group's properties to
retailers is evidenced by the continued above
average occupancy levels.
Long-term trend
See chart below.
- * Our peer group consists of Land Securities Group Plc, The British Land Company Plc and Hammerson Plc. ** Data source: Bloomberg
- *** Due to the demerger of Capco in May 2010, no long term track record of comparable data exists for total financial return and underlying earnings per share.
- † Uses the CSC share price on 11 January 2011 as the closing value being the day on which Simon Property Group announced they had no intention to make a firm offer for the Group.
Total Shareholder Return (TSR) for period 1 January 2006 to 31 December 2010
Prime property assets:
Change in like-for-like capital values since June 2007
Change in like-for-like net rental income - long-term track record
CSC occupancy rate
