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COVID-19 update
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
(“Capco” or “the Company”)
26 March 2020
COVID-19 update
Given the rapidly evolving situation around COVID-19 and current market
conditions, Capco continues to assess the impact on its business, respond to the
latest guidelines issued by relevant authorities and adapt its activities
accordingly. The priority during this period of uncertainty is the health and
safety of our people, customers and visitors.
The majority of retail and F&B units on the Covent Garden estate are closed
temporarily and whilst Government-related support measures will be helpful for
many occupiers, Capco expects disruption to income during the course of this
year. As a long term investor in London, Capco will work to assist its customers
with bespoke solutions on a case by case basis through this unprecedented period.
This will involve moving from quarterly rental payments in advance to alternative
arrangements and the deferral of rental payments in certain cases, particularly
for smaller and independent operators in order to ease short-term cash flow
issues and to reopen successfully once the current restrictions are lifted. It
is too early at this stage to assess the full impact on rental income and property
valuations.
Capco has a strong balance sheet with access to substantial liquidity and
significant headroom against debt covenants (both loan to value and interest
cover). Total Group cash is currently approximately £250 million with a further
£120 million to be received from the Earls Court sale and in addition, Capco has
access to over £700 million of committed undrawn facilities. Further details are
set out in the appendix to this announcement.
The Company is focused on conserving cash during this period of highly uncertain
market conditions. As part of this, the Board has decided to temporarily suspend
the share buyback programme.
The Company will continue to monitor the COVID-19 situation closely and provide
further updates as appropriate.
-ENDS-
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 Investor +44 (0)20 3214 9165
Relations
Media enquiries
UK: Hudson Sandler Michael Sandler +44 (0)20 7796 4133
SA: Instinctif Frederic Cornet +27 (0)11 447 3030
JSE Sponsor:
Merrill Lynch South Africa (Pty) Limited
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 £2.6 billion (as at 31 December
2019) where its ownership comprises over 1.2 million square feet of lettable
space. The Company is listed on the London Stock Exchange and the Johannesburg
Stock Exchange. www.capitalandcounties.com
Appendix
As at 31 December 2019, Group net debt was £442 million (including £170 million
of cash) representing a Group loan to value ratio of 16 per cent.
Following the recent receipt of £90 million of deferred consideration from the
Earls Court sale and the deployment of £12 million towards the share buyback
programme, total Group cash is currently approximately £250 million.
In addition, a further £105 million of deferred consideration is expected to be
received later this year with the balance of £15 million due in 2021. Capco has
access to substantial committed undrawn facilities, in particular the Covent
Garden revolving credit facility of £705 million.
Debt covenants:
Loan LTV Interest
Maturity outstanding1 covenant cover
covenant
Covent Garden
Revolving credit 2022 - 60% 120%
facility
US private placement 2024 – 2026 £150m 60% 120%
series 1
US private placement 2026 – 2028 £175m 60% 120%
series 2
US private placement 2024 – 2037 £225m 60% 120%
series 3
Lillie Square (50% 2021 £55m 75% -
share)
Total £605m
1. The loan values are the nominal values at 31 December 2019 shown on a Group
share basis. The balance sheet value of the loans includes any unamortised
fees.
For the year ended 31 December 2019, interest cover for the purposes of the
Covent Garden revolving credit facility and private placement notes was 2.9
times, compared with a covenant level of 1.2 times.
Date: 26-03-2020 09:00:00
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