CAPE TOWN - CAPITAL & Counties Properties (Capco), the UK- and JSE-listed real estate investment trust (Reit) that owns Covent Garden real estate, is optimistic that it will benefit from London’s economic recovery, chief executive Ian Hawksworth said yesterday.
Capco, like other Reits, has struggled to collect rentals during the Covid-19-related restrictions, but Capco chairperson Henry Staunton said: “2020 was an extraordinary year with significant market uncertainty. Capco’s support to its people, customers and broader Covent Garden community ensures it is well positioned to benefit from a recovery and prosper over time.”
In the past year, equity attributable to owners of the parent fell to £1.8 billion (about R38.45bn) from £2.5bn in 2019. Capco shares fell 4 percent to R36.07 on the JSE early yesterday afternoon, closing at R35.93.
Asset value fell to 212 pence per share in the 2020 financial year, a decrease of 28 percent from 293p in 2019. Total property value fell to £1.9bn, or 26 percent, from £2.8bn in 2019. The net debt to gross assets ratio rose to 28 percent from 15 percent.
Reported net rental income fell 74 percent to £16 million, and likefor-like net rental income fell 30 percent to £44m. Vacancies were slightly higher at year-end at 3.5 percent versus 3.2 percent in 2019.
Capco continues to provide support to retail and hospitality customers.
Encouraging indicators upon reopening following the easing of lockdown measures in the second half of last year included 65 new leases and renewals.
High-quality brands –including Tiffany & Co, Vashi, The Gentlemen Baristas and Arc’teryx – continued to be attracted, said Staunton.
The sale of the Wellington block was completed for £76.5m, in line with the June 2020 valuation.
New commitments to sustainability and innovation included achieving net zero carbon by 2030, while a new environment, sustainability and community board committee had been established. A net zero carbon pathway was expected to be published this year.
The additional pedestrianisation of streets around the Piazza were improved for air quality. Assistance was provided to Covid-19 funds supporting the homeless, food banks and the elderly, as well as hospitality and retail foundations.
The acquisition of a 25.2 percent stake in Shaftesbury meant involvement with “an exceptional mixed-use portfolio of 600 buildings across the West End and £501m invested”.
Balance strength was maintained. Access to liquidity comprised undrawn facilities and cash of £1bn versus £895m in 2019. Capital commitments of £2m were down from £14m in 2019.
No dividend was proposed for 2020.
BUSINESS REPORT