Property developer Capital Shopping Centres (CSC) said retail like-for-like sales in its centres have risen by an estimated 3% in the six months to June 30.
The owner of the Trafford Centre and St David’s Centre in Cardiff also reported that footfall was up 3%, beating a national average decline of 1%.
CSC said occupancy levels have fallen 1% to 97%, reflecting “a number of tenant failures around the June quarter date and the seasonal effect following Christmas”.
CSC said it has benefitted from multichannel retailers “realising that in order to achieve the best growth throughout, they need their brand and full range to be showcased where footfall is strongest” – in large regional shopping centres.
CSC said like-for-like net rental income was up 6% to £8m and that short term lets are becoming a “continuing feature of the market given economic conditions”.
The developer is planning “active management projects through planning, letting and construction” of its existing centres. It said it expects to benefit from the lack of shopping centre development occurring next year and 2013 as a result of the recession.
“This lack of supply is a positive factor for existing owners of top quality assets such as CSC,” it said.
CSC acquired the Trafford Centre in the period and said it has been “performing strongly post acquisition” with footfall up 8%.
CSC chief executive David Fischel said: “With 6% 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.
“The Trafford Centre has proved an excellent addition and the Group has a range of active management projects and extensions in the pipeline to deliver future growth. 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”.
Rival developer Hammerson on Monday reported that like-for-like retail sales in its shopping centres were up 1.9% in the six month ending June 30.
It said that vacancy rate is below 3%, “compared to a 12% average”.
Hammerson, the owner of the Bull Ring in Birmingham and Brent Cross shopping cente, added that footfall was up 2.6% while like-for-like shopping centre net rental income was up 8.8%.