UK-based Capco reports decline in net asset value
UK-BASED Reit Capital & Counties (Capco) said yesterday that equity attributable to owners of £2.5 billion (R49.19bn) in the year to December fell when compared with £2.7bn in 2018.
The group said its European Public Real Estate net asset value declined 10 percent to 293 pence per share from 326p in 2018, and down from 315p at the last year.
The decline was driven primarily by Earl’s Court and Covent Garden valuation movement, directors said yesterday.
A proposed final dividend of 1p per share resulted in a full-year dividend of 1.5p. The total shareholder return came to 14 percent in 2019.
Property value amounted to £2.8bn, a decrease of 1.7 percent on a like-for-like basis, compared with 2018, adjusted for the sale of the Earls Court interests.
Chief executive Ian Hawksworth said Capco looked forward to the next phase of growth, with focus on the West End and Covent Garden, “where we have created a world-class estate”.
As a strongly capitalised Reit, with access to substantial liquidity, Capco was in a good position to take advantage of investment opportunities whilst also offering resilience during periods of economic uncertainty, he said.
“Our creative approach to leasing and asset management contributes to increased footfall and tenant sales at Covent Garden, giving us confidence in the long-term prospects of the business to deliver superior total returns,” he said.
Group loan-to-value reduced from 18 percent to 16 percent, before the £425 million receipt of the Earl’s Court deferred consideration.
Group cash and undrawn facilities were at £895m (2018: £854m)
At Covent Garden average sales and footfall continue to trend upwards.
Net rental income, was up 1.8 percent (like-for-like) and 7 percent in absolute terms
Thirteen new brands were opened across the estate including Lacoste, Polo Ralph Lauren, VyTA and Glossier.
Capco’s shares were 2.67 percent lower at R44.79 on the JSE yesterday early afternoon, but declined 4.50 percent to close at R43.95.