Capital & Counties Properties PLC Postpones Dividend Decision As Fundraising Crashes


Net rental income plunged 41% to £ 18m while the estimated rental value of the portfolio fell 12% to £ 96m on a like-for-like basis

Properties PLC () said it remained confident in the long-term outlook for London’s West End and the value of its investments despite a 16.3% drop in the value of its properties in the first half of the year.

However, the directors postponed the decision on the dividend until the end of the year as cash collection levels declined significantly, with 44% of rents collected for the March quarter and 30% for June.

The huge Covent Garden estate of the FTSE 250 group has seen its total property value drop 17% to £ 2.2 billion since the end of December.

Net rental income plunged 41% to £ 18m while the estimated rental value of the portfolio fell 12% to £ 96m on a like-for-like basis.

The group said it has agreed to lease deferrals and certain revenue-related agreements with retail and hospitality tenants on a case-by-case basis if they experience cash pressures from the coronavirus, and that the majority of tenants have reopened their doors “with encouraging early indicators.”

He worked with local pedestrian authorities in other streets around the Piazza in Covent Garden to allow greater freedom of movement and an increase in alfresco dining.

But Capco said that with its loan-to-value ratio reaching 32%, its net debt at 26% of its gross assets and its unused borrowing facilities of £ 616million, it “has the ability to withstand the downturn. market volatility, capitalize on investment opportunities and provide long-term shareholder value ”.

This confidence was manifested in June purchase of £ 436million of a 26.3% stake in real estate group West End PLC () of Hong Kong billionaire Samuel Tak Lee, about which it was confirmed that the second tranche of shares had been acquired.

This and other steps taken in the company’s half position “to benefit from a recovery and thrive over time,” the directors said.

Shares of the company fell more than 4% to 134.7p late in the morning on Wednesday, down 49% since the start of the year.

Analysts for broker Peel Hunt said the results did not reveal any real surprises.

“We lowered our forecast on the back of the trade report in July and it remains unchanged. The shares are trading at a 34% discount to net asset value.

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