Capital & Counties Properties Plc Trading Update (6312N)
February 02 2021 - 2:00AM
UK Regulatory
TIDMCAPC
RNS Number : 6312N
Capital & Counties Properties Plc
02 February 2021
02 February 2021
CAPITAL & COUNTIES PROPERTIES PLC ("CAPCO")
UPDATE ON RENT COLLECTION, VALUATION AND BALANCE SHEET
Capco today publishes an update on rent collection, the Covent
Garden property valuation and year end balance sheet position.
Capco intends to release its preliminary results for the year ended
31 December 2020 on Tuesday 9 March 2021.
Ian Hawksworth, Chief Executive of Capco, commented:
"Whilst there are significant near-term challenges to trading
and an uncertain economic outlook due to the impact of the
pandemic, we are encouraged by the enduring appeal of Covent Garden
for customers as evidenced by recovery in footfall and trade
following easing measures in the second half of 2020. Capco is in a
strong financial position and we remain confident in the long-term
prospects for Covent Garden and the West End."
Rent collection
As a result of recent and ongoing Government restrictions to
trading activity, support continues to be provided to our customers
as appropriate on a case by case basis. Capco's support to its
customers and the broader Covent Garden community will position the
business to benefit from a recovery and prosper over time. As at 28
January 2021, 42 per cent of December rents (in respect of Q1 2021)
have been collected, which is broadly in line with collection rates
at the same point in the previous quarter. Rent collection levels
for previous periods have continued to increase, with collections
at 50 per cent, 44 per cent and 51 per cent for Q2 to Q4 2020.
Gross Alternative
rents Received Collected arrangements Outstanding
GBPm GBPm % % %
--------- -------------- --------------- ---------- --------------- --------------
Q1 16.2 15.9 98% - 2%
Q2 16.9 8.4 50% 47% 3%
H1 2020 33.1 24.3 73% 24% 3%
Q3 17.9 7.9 44% 52% 4%
Q4 16.8 8.6 51% 44% 5%
--------- -------------- --------------- ---------- --------------- --------------
H2 2020 34.7 16.5 48% 48% 4%
FY 2020 67.8 40.8 60% 36% 4%
Q1 2021 17.1 7.1 42% 52% 6%
Numbers shown in the table relate to rents due on quarterly
terms.
Covent Garden property valuation
As at 31 December 2020, the independent property valuation for
the Covent Garden estate was GBP1.8 billion, representing a decline
of 13 per cent in the second half (30 June 2020: GBP2.2 billion)
and 27 per cent for the full year (31 December 2019: GBP2.6
billion) on a like-for-like basis.
The majority of the valuation movement relates to the retail,
leisure and F&B (food and beverage) portfolio which represents
75 per cent of total property value. The main contributors were a
22 per cent like-for-like decline in rental values (ERV of GBP80.8
million), expansion of 28 basis points to 3.91 per cent in the
equivalent yield over the year and other movements including the
valuer's assumption on loss of income over the next six to 12
months.
Strong balance sheet with significant financial flexibility
Following the issuance of GBP275 million of exchangeable bonds,
in December 2020 Capco completed a three-year loan of GBP125
million secured against shares in Shaftesbury PLC, at an interest
rate broadly in line with the Group's weighted average cost of
debt.
Proceeds from these financings, together with disposal proceeds
received from the sale of the Wellington block of GBP76.5 million
and the further payment of GBP105 million from the Earls Court
disposal, have been used to reduce borrowings under the Covent
Garden revolving credit facility.
As a result, at the year end the net debt and loan to value
ratio of Covent Garden have been reduced significantly to GBP352
million and 19 per cent respectively (30 June 2020: GBP779 million
and 36 per cent). Group net debt at the year end was GBP710 million
resulting in a net debt to gross assets ratio of 28 per cent (30
June 2020: GBP721 million and 26 per cent).
There is substantial headroom against the Covent Garden loan to
value covenant, with the ability for property values to fall by a
further 68 per cent. Waivers have been agreed with the Covent
Garden lenders in relation to the interest cover covenant for the
six months ending 30 June 2021 and the 12 months ending 31 December
2021. The Group has access to total undrawn facilities and cash of
GBP1 billion (30 June 2020: GBP616 million).
Note: this announcement includes unaudited financial information
in relation to the year ended 31 December 2020.
ENQUIRIES
Capital & Counties Properties PLC:
Ian Hawksworth Chief Executive +44 (0)20 3214 9188
Situl Jobanputra Chief Financial Officer +44 (0)20 3214 9183
Head of Commercial Finance and
Sarah Corbett Investor Relations +44 (0)20 3214 9165
Media enquiries:
+44 (0)20 7796
UK: Hudson Sandler Michael Sandler 4133
+27 (0)11 447
SA: Instinctif Frederic Cornet 3030
About Capital & Counties Properties PLC ("Capco")
Capital & Counties Properties PLC is one of the largest
listed property investment companies in central London and is a
constituent of the FTSE-250 Index. Capco's landmark estate at
Covent Garden was valued at GBP1.8 billion (as at 31 December 2020)
where its ownership comprises over 1.1 million square feet of
lettable space. As at the date hereof, Capco owns a 25.2 per cent
shareholding in Shaftesbury PLC. Capco shares are listed on the
London Stock Exchange and the Johannesburg Stock Exchange.
www.capitalandcounties.com
This press release includes statements that are forward-looking
in nature. Forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Capital & Counties
Properties PLC to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. These forward-looking statements are
made only as at the date of this announcement. Nothing in this
announcement should be construed as a profit forecast. Except as
required by applicable law, Capital & Counties Properties PLC
undertakes no obligation to update the forward-looking statements,
whether as a result of new information, future developments or
otherwise.
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END
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