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Update on rent collection, valuation and balance sheet
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
LEI: 549300TTXXZ1SHUI0D54
02 February 2021
CAPITAL & COUNTIES PROPERTIES PLC (“CAPCO”)
UPDATE ON RENT COLLECTION, VALUATION AND BALANCE SHEET
Capco today publishes an update on rent collection, the Covent Garden property valuation and year end balance
sheet position. Capco intends to release its preliminary results for the year ended 31 December 2020 on Tuesday
9 March 2021.
Ian Hawksworth, Chief Executive of Capco, commented:
“Whilst there are significant near-term challenges to trading and an uncertain economic outlook due to the impact
of the pandemic, we are encouraged by the enduring appeal of Covent Garden for customers as evidenced by
recovery in footfall and trade following easing measures in the second half of 2020. Capco is in a strong financial
position and we remain confident in the long-term prospects for Covent Garden and the West End.”
Rent collection
As a result of recent and ongoing Government restrictions to trading activity, support continues to be
provided to our customers as appropriate on a case by case basis. Capco’s support to its customers and the
broader Covent Garden community will position the business to benefit from a recovery and prosper over
time. As at 28 January 2021, 42 per cent of December rents (in respect of Q1 2021) have been collected,
which is broadly in line with collection rates at the same point in the previous quarter. Rent collection levels
for previous periods have continued to increase, with collections at 50 per cent, 44 per cent and 51 per cent
for Q2 to Q4 2020.
Gross Alternative
rents Received Collected arrangements Outstanding
£m £m % % %
Q1 16.2 15.9 98% - 2%
Q2 16.9 8.4 50% 47% 3%
H1 2020 33.1 24.3 73% 24% 3%
Q3 17.9 7.9 44% 52% 4%
Q4 16.8 8.6 51% 44% 5%
H2 2020 34.7 16.5 48% 48% 4%
FY 2020 67.8 40.8 60% 36% 4%
Q1 2021 17.1 7.1 42% 52% 6%
Numbers shown in the table relate to rents due on quarterly terms.
Covent Garden property valuation
As at 31 December 2020, the independent property valuation for the Covent Garden estate was £1.8 billion,
representing a decline of 13 per cent in the second half (30 June 2020: £2.2 billion) and 27 per cent for the full
year (31 December 2019: £2.6 billion) on a like-for-like basis.
The majority of the valuation movement relates to the retail, leisure and F&B (food and beverage) portfolio which
represents 75 per cent of total property value. The main contributors were a 22 per cent like-for-like decline in
rental values (ERV of £80.8 million), expansion of 28 basis points to 3.91 per cent in the equivalent yield over the
year and other movements including the valuer’s assumption on loss of income over the next six to 12 months.
Strong balance sheet with significant financial flexibility
Following the issuance of £275 million of exchangeable bonds, in December 2020 Capco completed a three-
year loan of £125 million secured against shares in Shaftesbury PLC, at an interest rate broadly in line with
the Group’s weighted average cost of debt.
Proceeds from these financings, together with disposal proceeds received from the sale of the Wellington
block of £76.5 million and the further payment of £105 million from the Earls Court disposal, have been used
to reduce borrowings under the Covent Garden revolving credit facility.
As a result, at the year end the net debt and loan to value ratio of Covent Garden have been reduced
significantly to £352 million and 19 per cent respectively (30 June 2020: £779 million and 36 per cent). Group
net debt at the year end was £710 million resulting in a net debt to gross assets ratio of 28 per cent (30 June
2020: £721 million and 26 per cent).
There is substantial headroom against the Covent Garden loan to value covenant, with the ability for
property values to fall by a further 68 per cent. Waivers have been agreed with the Covent Garden lenders in
relation to the interest cover covenant for the six months ending 30 June 2021 and the 12 months ending 31
December 2021. The Group has access to total undrawn facilities and cash of £1 billion (30 June 2020: £616
million).
Note: this announcement includes unaudited financial information in relation to the year ended 31 December 2020.
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 Commercial Finance and Investor Relations +44 (0)20 3214 9165
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 £1.8 billion
(as at 31 December 2020) where its ownership comprises over 1.1 million square feet of lettable space. As at the
date hereof, Capco owns a 25.2 per cent shareholding in Shaftesbury PLC. Capco shares are listed on the
London Stock Exchange and the Johannesburg Stock Exchange. www.capitalandcounties.com
This press release 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. These forward-looking statements are made only as at the date of this announcement. Nothing in this announcement
should be construed as a profit forecast. Except as required by applicable law, Capital & Counties Properties PLC undertakes no
obligation to update the forward-looking statements, whether as a result of new information, future developments or otherwise.
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Date: 02-02-2021 09:00:00
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