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CAPITAL & COUNTIES PROPERTIES PLC - Trading Update

Release Date: 10/11/2015 09:00
Code(s): CCO     PDF:  
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Trading 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

10 November 2015
                       CAPITAL & COUNTIES PROPERTIES PLC (“CAPCO”)
                                          TRADING UPDATE


Capco today publishes a trading update for the period 1 July 2015 to 10 November 2015.
Ian Hawksworth, Chief Executive of Capco, commented:

“Capco has had a positive and active second half of the year. Covent Garden continues to attract new
brands, including a letting to premium brand kikki.K as well as store openings by KIKO and Kiehl’s.
We remain on course to achieve our ERV target of £100 million by December 2017.

Earls Court is a hub of activity as we continue to de-risk our land holdings through demolition while
construction of Lillie Square is on track with first completions due in 2016. In line with expectations,
Phase 2 of Lillie Square launched positively in September with pricing approximately 5 per cent higher
than comparable units in Phase 1.

We are in a strong financial position with a conservative LTV of 16 per cent and over £470 million in
cash and available facilities.”

Covent Garden:
Driving rental growth through granular asset management, strategic investment and
placemaking
-   On track to achieve ERV target of £100 million by 2017, representing underlying annualised rental
    growth of circa 10 per cent
-   Continued activity on James Street following a letting to Australian brand, kikki.K which will open
    its first London store offering premium stationery. The letting further supports a rental tone of
    £1,400 Zone A for James Street
-   The repositioning of The Royal Opera House Arcade is underway with pop-up lettings to Harrods,
    which has opened its Christmas concept store, and Lulu Guinness which will bring its
    contemporary luxury accessories to the estate
-   New openings across the estate including KIKO and Kiehl’s, while Charlotte Tilbury and the new
    larger Chanel store are expected to open shortly
-   Continued investment in the estate with the development of Kings Court & Carriage Hall on track

Earls Court Properties:

Driving value creation through planning, land assembly, land enablement and selective
development
-   Continued de-risking of land holdings through demolition at Earls Court
        o   Demolition of EC1 & EC2 buildings to ground level is progressing well and is on track for
            completion in the second half of 2016
-   Plans on track at Lillie Square
        o   Phase 1: construction is on track with first completions expected in 2016
        o   Phase 2: 40 per cent of the first release for sale, which comprises 70 units, has been
            reserved at values approximately 5 per cent higher than comparable units in Phase 1
-   £14 million of acquisitions around the Masterplan area in the period, enhancing implementation
    of the scheme

Venues:

-   Following the successful transition of shows from the former Earls Court Exhibition Centres and a
    major refurbishment programme, Capco is conducting a strategic review which may or may not
    lead to a sale of its Venues business
-   Olympia London continues to attract new shows including Cakes & Bakes and the Packaging
    Innovations show following its reinvigoration as one of London’s most desirable venues

Strong financial position

-   Loan-to-value of 16 per cent (based on 30 June 2015 property values) and liquidity of £470 million

                                                         30 September 2015               30 June 2015

Gross debt                                                             £592m                    £497m
Cash balance                                                             £72m                     £66m
Net debt                                                               £520m                    £431m
Liquidity (cash and available facilities)                              £470m                    £570m
Property loan-to-value                                                    16%                      13%
Weighted average debt maturity                                       4.4 years                4.6 years
Weighted average cost of debt                                            3.4%                     3.3%
Proportion of gross debt with interest rate protection                    94%                      92%


As at 30 September 2015, Capco had capital commitments of £241 million.

All figures quoted above are adjusted to include Capco’s share of joint ventures and its 63 per cent
interest in Earls Court Partnership Limited.

Enquiries
Capital & Counties Properties PLC:
Ian Hawksworth            Chief Executive                               +44 (0)20 3214 9188
Soumen Das                Managing Director & Chief Financial Officer   +44 (0)20 3214 9183
Michelle McGrath          Director of Investor Relations                +44 (0)20 7297 6093

Media enquiries:
Sarah Hagan               Director of Communications & Marketing        +44 (0)20 3214 9185
UK: Tulchan               Susanna Voyle, Martha Walsh                   +44 (0)20 7353 4200
SA: Instinctif Partners   Frederic Cornet                               +27 (0) 11 447 3030

This announcement 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. Any information contained in this announcement on the price at which shares or
other securities in Capital & Counties Properties PLC have been bought or sold in the past, or on the
yield on such shares or other securities, should not be relied upon as a guide to future performance.

About Capital & Counties Properties PLC (Capco):
Capital & Counties Properties PLC is one of the largest investment and development property
companies that specialises in central London real estate and is a constituent of the FTSE-250 Index.
Capco’s landmark London estates are valued at £3.4 billion (as at 30 June 2015): Covent Garden,
which has assets valued at £1.8 billion including the historic Market Building; and Earls Court
Properties including the Empress State Building together with the Venues business with aggregate
property assets of £1.6 billion. The company is listed on the London Stock Exchange and the
Johannesburg Stock Exchange.

www.capitalandcounties.com

Sponsor:
Merrill Lynch South Africa (Pty) Limited

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