Capital & Counties Properties PLC (LON:CAPC) said it remained confident in the long-term prospects of London’s West End and the value of its investments despite a 16.3% decline in the value of its properties in the first half of the year.
Directors, however, deferred a decision on the dividend until the end of the year as levels of cash collection reduced significantly, with 44% of rents collected for the March quarter and 30% for June.
The FTSE 250 group’s huge Covent Garden estate saw its total property value fall 17% to £2.2bn since the end of December, with
Net rental income plunged 41% to £18mln while the estimated rental value of the portfolio decreased 12% to £96mln on a like-for-like basis.
The group said it has agreed rental deferrals and some turnover-linked arrangements with retail and hospitality tenants on a case-by-case basis if they are experiencing cash flow pressures from the coronavirus.
It has worked with the local authorities to pedestrianise further streets around the Covent Garden Piazza to allow for greater freedom of movement and increased al fresco dining.
But Capco said with its loan-to-value ratio rising to 32%, net debt at 26% of gross assets cash and undrawn borrowing facilities of £616mln, it “has the ability to withstand market volatility, capitalise on investment opportunities and deliver long-term shareholder value”.
Actions taken in the half “position the estate to benefit from a recovery and prosper over time,” the board said.
Published at Wed, 12 Aug 2020 07:45:00 +0000-Capco defers dividend decision as cash collection crumbles