Ian Hawksworth, Chief Executive of Capco, commented:
“Our two central London estates have had an active start to the year. Covent Garden which now represents two thirds of our business is established as a world class retail and dining destination and continues to deliver positive rental and value growth. There has been strong operational progress across the estate with 43 new leasing transactions signed during the period, including brands such as Kent & Curwen, and a number of new openings including The Henrietta Hotel. Our ERV target of £125 million by December 2020 remains in place, reflecting the positive growth prospects of the estate.
At Earls Court land enablement works are on track and we continue to progress plans for the enhanced Masterplan to maximise the potential of this strategic land holding. At Lillie Square, we have now pre-sold over half of the entire development and handover of Phase 1 is expected to complete by the end of the year.
Following the sale of Venues and the financing activities undertaken during the period, Capco enters the second half of the year with a strong balance sheet, low leverage and high liquidity. Whilst the broader macroeconomic and political outlook remains uncertain, Capco is very well positioned to drive long-term value creation from its two unique estates and take advantage of opportunities to create further value as they arise.”
- Equity attributable to owners of the Parent £2.8 billion (Dec 2016: £2.8 billion).
- EPRA NAV adjusted marginally by 0.1 per cent to 339.1 pence per share (Dec 2016: 339.6 pence).
- Total property value £3.5 billion, up 0.2 per cent (like-for-like) (Dec 2016: £3.7 billion).
- Proposed interim 2017 dividend of 0.5 pence per share (Jun 2016: 0.5 pence per share).
Continued rental growth at Covent Garden
- Covent Garden total property value of £2.4 billion, up 1.5 per cent (like-for-like) (Dec 2016: £2.3 billion).
- Positive operational momentum; 43 new leases and renewals 4 per cent above December 2016 ERV.
- ERV up 2.8 per cent (like-for-like) at £99 million.
- Capturing income growth; NRI up 7.4 per cent (like-for-like) since June 2016.
- Development of Floral Court on track for completion by the end of 2017.
- Positive progress towards ERV target of £125 million by December 2020.
Positive progress at Earls Court
- Earls Court interests valued at £1.1 billion, a decrease of 2.4 per cent (like-for-like) (Dec 2016: £1.1 billion).
- Positive engagement with stakeholders on enhancing the Earls Court Masterplan.
- Land enablement works on track for completion by the end of 2017.
- Lillie Square,
- Successful completion of 78 units to date, Phase 1 handovers on track to substantially complete by the end of the year.
- At Phase 2, 86 units reserved or exchanged, pricing continues at a modest premium to comparable units in Phase 1.
Sale of Venues
- Sale of Venues for £296 million, a slight premium to asset value.
- £230 million net proceeds for deployment in core central London estates.
Strong financial position with significant financial flexibility
- Group loan-to-value ratio 18 per cent (Dec 2016: 23 per cent).
- New £225 million US Private Placement signed.
- Cash and available facilities of £577 million (Dec 2016: £556 million).
- Capital commitments of £107 million (Dec 2016: £157 million).