Capital & Regional plc reported a rise in underlying profits for the first half and reporting its net asset value - a key measure for property companies - rose 12.5% to 799p a share at the end of June from 710p in December.
Pre-tax profits before an exceptional charge of £46.9m rose to £20m from £17.4m.
"There is no doubt that some parts of the retail sector have been finding the last six months tough," said chief executive Martin Barber. "However, where there have been failures we have quickly found replacement tenants.
"The investment market remains strong, our business model is working well, and I am confident that 2005 will prove to be another very good year."