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Audited preliminary results for the year ended 31 december 2020
Capital & Counties Properties PLC
(Incorporated and registered in the United Kingdom and
Wales with registration Number 07145041 and registered in
South Africa as an external company with Registration
Number 2010/003387/10)
JSE code: CCO
ISIN: GB00B62G9D36
09 MARCH 2021
CAPITAL & COUNTIES PROPERTIES PLC (“CAPCO”)
Audited preliminary results for the year ended 31 december 2020
Prime central London REIT centred around Covent Garden, well-positioned to benefit
from recovery over time
Henry Staunton, Chairman of Capco, commented:
“2020 was an extraordinary year with significant market uncertainty. Capco’s support
to its people, customers and broader Covent Garden community ensures the business is
well-positioned to benefit from a recovery and prosper over time. We remain focused
on responsible stewardship, disciplined capital management and are committed to
delivering long-term value for shareholders from our unique portfolio of West End
focused investments.”
Ian Hawksworth, Chief Executive of Capco, commented:
“Capco’s financial strength has allowed us to support our customers and business
partners whilst taking advantage of market opportunities during an unprecedented year
which significantly impacted rents and property valuations. As a long-term investor
we are optimistic about the enduring appeal of Covent Garden and London’s West End
and are confident that Capco is well-positioned to benefit from London’s economic
recovery.”
Key financials
- Equity attributable to owners of the Parent of £1.8 billion (2019: £2.5 billion)
- EPRA NTA 212 pence per share, a decrease of 28 per cent (2019: 293 pence per
share)
- Total property value £1.9 billion, a decrease of 26 per cent (like-for-like)
(2019: £2.8 billion)
- Group net debt to gross assets ratio of 28 per cent (2019: 15 per cent)
- Underlying earnings per share -0.7 pence (2019: 1.0 pence per share)
Covent Garden, a landmark estate positioned for future value creation
- Covent Garden total property value of £1.8 billion, a decrease of 27 per cent
(like-for-like) since 31 December 2019
- ERV decreased by 22 per cent (like-for-like) to £81 million (2019: £108 million)
and equivalent yield of 3.91 per cent (2019: 3.65 per cent)
- Reported net rental income down 74 per cent to £16 million against December 2019
and underlying net rental income down 30 per cent (like-for-like) to £44 million
- EPRA vacancy is 3.5 per cent (2019: 3.2 per cent)
- Capco continues to provide support to retail and hospitality customers on a short-
term basis, with rental agreements being adjusted case-by-case to include
deferrals and turnover-linked arrangements
- Encouraging indicators upon reopening following easing of measures in the second
half of 2020
- 65 new leases and renewals, representing £6.2 million of contracted income were
agreed during the year
- Continuing to attract high quality brands including Tiffany & Co., Vashi, The
Gentlemen Baristas and Arc’teryx
- Public realm improvements including pedestrianisation and 500 al fresco dining
covers, enhancing trading prospects
- Completed the sale of the Wellington block for £76.5 million, in line with June
2020 valuation
Committed to sustainability and innovating to meet customer needs
- New commitment to achieve Net Zero Carbon by 2030
- A new Environment, Sustainability and Community (“ESC”) Board Committee has been
established
- Net Zero Carbon Pathway to be published in 2021
- Additional pedestrianisation of streets around the Piazza further improving air
quality
- Assistance provided to COVID-19 funds supporting homelessness, food banks and the
elderly as well as hospitality and retail foundations.
Acquisition of significant stake in Shaftesbury PLC
- Unique opportunity to acquire a significant stake in a company with an exceptional
mixed-use portfolio of c.600 buildings across the West End
- £501 million invested, resulting in a shareholding of 25.2 per cent
- Represents a compelling investment and entry point at an implied value of
approximately £1,200 per square foot
- Consistent with Capco’s strategy to invest in complementary opportunities on or
near Covent Garden
Maintaining a strong balance sheet with significant financial flexibility
- Covent Garden net debt £352 million (2019: £555 million) and loan to value ratio
of 19 per cent (30 June 2020: 36 per cent) (2019: 21 per cent)
- Significant headroom against the LTV covenant position, and interest cover
covenant waivers agreed for 2021
- Group net debt of £710 million (2019: £442 million) and net debt to gross assets
of 28 per cent
- Access to Group liquidity comprising undrawn facilities and cash of £1 billion
(2019: £895 million), and capital commitments of £2 million (2019: £14 million)
- Weighted average maturity on drawn debt of over 5 years (2019: 7.3 years) and
average cost of debt of 2.6 per cent (2019: 3.0 per cent)
- The Directors have decided not to propose a dividend for 2020 (2019: 1.5 pence per
share)
Other investments
- £195 million of deferred consideration from the Earls Court sale was received with
the final payment of £15 million due later this year
- Completion of Lillie Square Phase 2 with 94 units handed over this year,
representing £116 million of net proceeds (£58 million Capco share)
KEY FINANCIALS
2020 2019
Equity attributable to owners of the Parent £1,760m £2,478m
Equity attributable to owners of the Parent per share 206.8p 290.0p
-27.2% Total return in 2020 (2019: -9.6%)
EPRA net tangible assets £1,806m £2,506m
EPRA net tangible assets per share 212.1p 292.9p
Dividend per share – 1.5p
-24.4% Total property return in 2020 (2019: -5.4%)
1
Property market value £1,942m £2,774m
2
Net rental income from continuing operations £15.8m £61.2m
Loss for the year attributable to owners of the Parent -£702.7m -£253.6m
Headline loss per share -1.3p -2.2p
3
Basic loss per share -82.5p -29.7p
4
Underlying (loss)/earnings per share -0.7p 1.0p
1. On a Group share basis. Refer to Property Data on page 73 of the full announcement for the Group’s percentage ownership of property.
2. On a Group share basis. Refer to note 2 “Segmental Reporting” on page 43 of the full announcement.
3. From continuing and discontinued operations. Refer to note 12 “Earnings per share and Net Assets Per Share” on page 53 of the full announcement.
4. From continuing and discontinued operations. Refer to note 3 ‘Underlying Earnings’ on page 46 of the full announcement.
SHORT FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the Directors. It is only a
summary of the information contained in the full announcement and does not contain
full or complete details. Any investment decision should be based on the full
announcement accessible from 09 March 2021 via the JSE link at
https://senspdf.jse.co.za/documents/2021/jse/isse/CCO/FY20Result.pdf
and also available on the Company’s website at www.capitalandcounties.com. Copies of
the full announcement may also be requested by contacting the Company
(feedback@capitalandcounties.com or telephone +44 (0)20 3214 9170).
DIVIDENDS
Given current market conditions and the significant uncertainties, the Board has
taken the decision to not declare a dividend for 2020. The Company will recommence
dividend payments as soon as it is appropriate.
Enquiries:
Capital & Counties Properties PLC:
Ian Hawksworth Chief Executive +44 (0)20 3214 9188
Situl Jobanputra Chief Financial Officer +44 (0)20 3214 9183
Sarah Corbett Head of Commercial Finance +44 (0)20 3214 9165
and Investor Relations
Media enquiries:
UK: Hudson Sandler Michael Sandler +44 (0)20 7796 4133
SA: Instinctif Frederic Cornet +27 (0)11 447 3030
A presentation will take place today at 08:30am (UK time) through a webcast on the
Group’s website www.capitalandcounties.com followed by an analyst Q&A.
JSE Sponsor
UBS South Africa (Pty) Ltd
Date: 09-03-2021 09:00:00
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