Johannesburg - Capital Shopping Centres [JSE:CSO] on Wednesday reported a 2% increase in its underlying earnings per share to 15.4 pence for the year ended December 2010, from 15.1p in the corresponding period in 2009.Net rental income from continuing operations was up 4% up to £277m. The company declared a final dividend of 10p/share, for a total dividend of 15p/share.CSC chairperson Patrick Burgess said the 2010 results demonstrated CSC's recovery is on track with increased like-for-like net rental income, improved operational performance and continuing property valuation surpluses. "CSC has made some striking moves to redefine itself as the specialist REIT focused on pre-eminent UK regional shopping centres, including the demerger of Capco and the transformational acquisition of the Trafford Centre in January 2011."Contributing to the positive operational performance were the 181 long-term lettings, which generated £28m in annual rent - £16m higher than the previous period.The group reported good letting progress at the St David's extension in Cardiff, which was now 83% committed by income.Occupancies remained "strong" at 98.6% and footfall was up a further 3% like-for-like year-on-year and 6% in two years. The group's highlights for the year included the completion of the acquisition of the Trafford Centre and completion of the C&C US transaction with Equity One."It is clear that business in the UK faces a series of challenges over the next couple of years and retailers and consumers remain cautious, not least about the effects of public sector austerity measures, tax increases and the price of commodities including fuel," said Burgess.