Johannesburg - London property company Capital & Counties Properties says its two key assets, Earls Court and Covent Garden, made a positive start to the year.
In its results commentary, released today, the company’s CEO Ian Hawksworth notes its two London estates have had a positive and active start to the year. “Covent Garden is established as a leading destination for global brands wishing to come to London and demand for the estate across all uses is strong.”
Hawksworth adds the company is on track to deliver 10 percent underlying annualised rental growth.
Capital & Counties, which has a primary listing on the London Stock Exchange, employs more than 300 people. Its total assets are worth around R66 billion.
Hawksworth adds its plans at Earls Court continue to advance as its investment vehicle is finalised and demolition is progressing well. At Lillie Square, construction of phase one is on track and it is finalising plans to begin sales of phase two, he adds.
“We enter the second half of the year with a strong balance sheet and a clear strategy to drive long-term value creation for our shareholders."
During the interim period, its property value gained 9 percent as it added around R78 million in value. The company has proposed an interim dividend of 0.5 pence, or almost 10c, per share.
At Covent Garden, the company grew demand and saw new leases and rentals gain 11%, and it spent about R980 million on consolidating its ownership on Henrietta Street and Bedford Street.
The cash flush company also has a low debt ratio, it noted.
However, in the six months to June, the JSE-listed company reported a 4 percent total return on its net asset value, compared to a 25% return at the end of the 2014 year. In addition, its figures show a 9 percent total property return for the interim period, down from 22 percent at year end.
IOL