Wrap Text
Interim results for the six months ended 30 June 2021
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
27 JULY 2021
CAPITAL & COUNTIES PROPERTIES PLC (“CAPCO”)
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2021
Confident in the long-term prospects for prime central London, in particular the
West End
Ian Hawksworth, Chief Executive of Capco, commented:
“Capco’s actions, commitment and creativity over the last 18 months have ensured
that Covent Garden is the most vibrant district in the West End. We are confident
that our approach and the quality of our estate, underpinned by our strong balance
sheet, position Capco for recovery.
The elevated level of enquiries, strong transactional activity and improving
sentiment indicate that the worst of the pandemic may be behind us.
Looking ahead, there are challenges in the near term, as the economy moves towards
more normal levels of activity, however we remain confident in the resilience of
London’s West End and the enduring appeal of Covent Garden."
Key financials
- Total equity of £1.7 billion (Dec 2020: £1.8 billion)
- EPRA NTA declined by 6 per cent to 199 pence per share (Dec 2020: 212 pence per
share)
- Total property value of £1.8 billion, a decrease of 5.1 per cent (like-for-like)
(Dec 2020: £1.9 billion)
- Group net debt to gross assets ratio of 28 per cent (Dec 2020: 28 per cent)
- Covent Garden loan to value ratio of 18 per cent (Dec 2020: 19 per cent)
- Underlying earnings of nil pence per share (Jun 2020: 0.3 pence per share)
- Reported net rental income £21.0 million (Jun 2020: £18.2 million)
- Recommencement of dividend distribution with proposed interim dividend of 0.5
pence per share (Jun 2020: nil)
Covent Garden portfolio
- Covent Garden total property value of £1.7 billion, like-for-like movement of £85
million or 4.9 per cent since 31 Dec 2020
- ERV decreased by 4.3 per cent (like-for-like) to £76 million (Dec 2020: £81
million) while the equivalent yield was stable at 3.94 per cent
Proactive asset management and strong leasing momentum
- 29 new leases and renewals were agreed during the period representing £6.0 million
contracted income (6 per cent below Dec 2020 ERV) with a further £3.1 million
under offer
- Government restrictions have been lifted with retail and hospitality customers
fully reopen
- Growing customer sales recorded through the period with certain premium and luxury
categories amongst the highest performing
- High occupancy with EPRA vacancy at 3.4 per cent (Dec 2020: 3.5 per cent)
performing strongly versus central London
- 12 new openings scheduled over the course of 2021 including Peloton, Glossier and
Ave Mario
- Improved rent collection; 65 per cent of June quarter collected (adjusted for
payment plans)
- Customer support provided in H1 2021 on a case by case basis and expected to
reduce with easing of restrictions
- Pedestrianisation of key streets extended; additional al fresco dining providing
over 800 covers
- Six month cultural programme launched; digital engagement, public art
installations, pop-up bars and terraces across the estate
- Realised value from the sale of two residential-led blocks on Southampton Street
for £50 million (before costs)
Net Zero Carbon by 2030 underlining commitment to sustainability
- Environment, Sustainability and Community (“ESC”) Board Committee setting clear
actions
- Detailed pathway to Net Zero Carbon by 2030 to be published later this year
- Commitment to enhancing air quality with continued pedestrianisation of streets
around Piazza
- Customer engagement programme commenced on carbon, water and waste, intending to
reduce environmental impact
- Partnership with the Wild West End, a charitable partnership which aims to enhance
the quality of green space and the local environment
- Support provided in respect of homelessness charities, local food banks and the
elderly as well as hospitality, retail and cultural foundations
Strong balance sheet position with significant financial flexibility
- Covent Garden net debt of £304 million (Dec 2020: £352 million) and loan to value
ratio of 18 per cent (Dec 2020: 19 per cent)
- Group net debt of £668 million (Dec 2020: £710 million) and net debt to gross
assets of 28 per cent (Dec 2020: 28 per cent)
- Access to Group liquidity comprising undrawn facilities and cash of £989 million
(Dec 2020: £1 billion)
- Capital commitments of £5 million (Dec 2020: £2 million)
- Weighted average maturity on drawn debt of 5.4 years (Dec 2020: 5.4 years) and
average cost of debt of 2.8 per cent (Dec 2020: 2.6 per cent)
Other investments
- Investment in Shaftesbury PLC valued at £552 million (Dec 2020: £552 million),
compared with a £501 million cost; dividend income from Shaftesbury PLC shares of
£2.3 million received in July 2021
- Lillie Square property value of £108 million, a decrease of 7.9 per cent (like-
for-like) since 31 Dec 2020. JV loan facility repaid in full during the period
- Final £15 million of deferred consideration from the Earls Court sale due in
November 2021
FINANCIAL HIGHLIGHTS
Six months Year ended
ended 30 31 December
June
2020
2021
Total equity £1,657m £1,760m
Total equity per share 194.6p 206.8p
-6.1% Total return for six months ended 30 June 2021 (full
year 2020: -27.2%)
EPRA net tangible assets1 £1,696m £1,806m
EPRA net tangible assets per share1 199.2p 212.1p
Dividend per share 0.5p –
-4.1% Total property return for six months ended 30 June 2021
(full year 2020: -24.4%)
Property market value2 £1,796m £1,942m
Net rental income from continuing operations3 £21.0m £15.8m
Loss for the period -£104.1m
-£702.7m
Headline loss per share -1.4p -1.3p
Basic loss per share1 -12.2p -82.5p
Underlying earnings/(loss) per share4 – -0.7p
1.From continuing and discontinued operations. Refer to note 11 “Earnings per share and Net Assets Per Share” on page 41 of
the full announcement.
2. On a Group share basis. Refer to Property Portfolio on page 59 of the full announcement for the Group’s percentage
ownership of property.
3.On a Group share basis. Refer to note 2 “Segmental Reporting” on page 35 of the full announcement.
4. From continuing and discontinued operations. Refer to Underlying Earnings on page 38 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 27 July 2021 via the JSE link at
https://senspdf.jse.co.za/documents/2021/jse/isse/CCO/HY21Result.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
The Directors of Capital & Counties Properties PLC have proposed an interim dividend per ordinary share (ISIN
GB00B62G9D36) of 0.5 pence payable on 23 September 2021.
Dates
The following are the salient dates for payment of the proposed interim dividend:
Sterling/Rand exchange rate struck: 16 August 2021
Sterling/Rand exchange rate and dividend amount in Rand announced: 17 August 2021
Ordinary shares listed ex-dividend on the Johannesburg Stock Exchange: 25 August 2021
Ordinary shares listed ex-dividend on the London Stock Exchange: 26 August 2021
Record date for interim dividend in UK and South Africa: 27 August 2021
Election date for scrip dividend alternative (SA by noon, UK by 5:30pm): 6 September 2021
Dividend payment date for shareholders 23 September 2021
South African shareholders should note that, in accordance with the requirements of Strate, the last day to trade
cum-dividend will be 24 August 2021 and that no dematerialisation of shares will be possible from 25 August 2021
to 27 August 2021 inclusive. No transfers between the UK and South Africa registers may take place from 18
August 2021 to 27 August 2021 inclusive. The above dates are proposed and subject to change.
Subject to SARB approval, the Board intends to offer an optional scrip dividend alternative in respect of the 2021
interim dividend.
The dividend will be split equally between a PID and non-PID. The PID element will be subject to deduction of a 20 per cent UK
withholding tax unless exemptions apply. The non-PID element will be treated as an ordinary UK company dividend.
Information for shareholders
The information below is included only as a general guide to taxation for shareholders based on Capco's
understanding of the law and the practice currently in force. Any shareholder who is in any doubt as to their tax
position should seek independent professional advice.
UK shareholders - PIDs
Certain categories of shareholders may be eligible for exemption from the 20 per cent UK withholding tax and may register to
receive their dividends on a gross basis. Further information, including the required forms, is available from the 'Investors'
section of the Company’s website (capitalandcounties.com), or on request from our UK registrars, Link Group. Validly completed
forms must be received by Link Group no later than the dividend Record Date, as advised; otherwise the dividend will be paid
after deduction of tax.
South African shareholders
The interim dividend declared by the Company is a foreign payment and the funds are sourced from the UK.
PIDs: South African shareholders may apply to HMRC after payment of the PID element of the dividend for a refund of the
difference between the 20 per cent UK withholding tax and the UK/South African double taxation treaty rate of 15 per cent.
The PID element of the cash dividend will be exempt from income tax but will constitute a dividend for Dividends Tax purposes, as it
will be declared in respect of a share listed on the exchange operated by the JSE. SA Dividends Tax will therefore be withheld from the
PID element of the interim cash dividend at a rate of 20 per cent, unless a shareholder qualifies for an exemption and the prescribed
requirements for effecting the exemption are in place by the requisite date. Certain shareholders may also qualify for a reduction of
SA Dividends Tax liability to 5 per cent, (being the difference between the SA dividends tax rate and the effective UK
withholding tax rate of 15 per cent) if the prescribed requirements for effecting the reduction are in place by the requisite date.
Non-PID: The non-PID element of the cash dividend will be exempt from income tax but will constitute a dividend
for SA Dividends Tax purposes, as it will be declared in respect of a share listed on the exchange operated by the
JSE. SA Dividends Tax will therefore be withheld from the non-PID element of the interim cash dividend at a rate
of 20 per cent, unless a shareholder qualifies for an exemption and the prescribed requirements for effecting the
exemption are in place by the requisite date.
Scrip dividend scheme: It is the Company's understanding that the issue and receipt of shares pursuant to the
scrip dividend alternative, whether paid as a PID or Non-PID, will not have any SA Dividends Tax nor income tax
implications. The new shares which are acquired under the scrip dividend alternative should not comprise of a
"foreign dividend" nor a "foreign return of capital" and will be treated as having been acquired for nil
consideration.
Any residual cash payments to account for fractional share payments will be exempt from income tax but will be subject to SA
Dividends Tax, which will be withheld from the residual payment to South African shareholders at a rate of 20 per cent (or for
qualifying shareholders, for PID elements of residual cash amounts, the reduced rate referenced above if the prescribed
requirements for effecting the reduction are in place by the requisite date), unless a shareholder qualifies for an exemption and
the prescribed requirements for effecting the exemption are in place by the requisite date.
Other overseas shareholders:
Other non-UK shareholders may be able to make claims for a refund of UK withholding tax deducted pursuant to the application
of a relevant double taxation convention. UK withholding tax refunds can only be claimed from HMRC, the UK tax authority.
Additional information on PIDs can be found at https://www.capitalandcounties.com/uk-real-estate-investment-trust-reit and the
rules of the Scrip Dividend Scheme, which can be found at
https://www.capitalandcounties.com/sites/default/files/2020_scrip_dividend_booklet.pdf
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 Director of Commercial +44 (0)20 3214 9165
Finance 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 09:45am (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: 27-07-2021 08:00:00
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