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(Alliance News) - UK-focused real estate investment trust Capital & Regional PLC said its net asset value per share fell sharply in the first half of 2020 after a steep drop in portfolio valuation.
Capital & Regional 's NAV per share was 229 pence as at June 30, down from 361p on December 31 after a 16% drop in the valuation of its portfolio to GBP611.3 million - allowing for capital expenditure of GBP6.6 million.
This valuation drop was attributed to: "A significant acceleration in negative sentiment on retail assets with the impact of Covid-19 exacerbating existing structural trends, along with income declines driven by the impact of [company voluntary arrangements] and administrations, as well as reduced levels of rent collection currently."
The firm's EPRA net tangible assets per share fell to 236p on June 30 from 364p at the end of 2019.
It recorded a GBP115.5 million pretax loss for the six months ended June 30, more than twice its GBP55.4 million loss the year before. Revenue fell to GBP36.5 million from GP45.2 million.
The company has suspended its dividend until markets stabilise.
Chief Executive Lawrence Hutchings said: "While the current Covid-19 situation has placed pressure on leverage, we believe that the combination of the level of cash of approximately GBP80 million, largely maintained from the recapitalisation of the group in December 2019; the measures agreed with our lenders; and the focus on local centres offering non-discretionary goods and services, provide a sound base for navigating the short to medium term.
"We are now working to better understand the long term impact of the current uncertainties to determine the best approach for reducing debt levels and shaping the group's future position to best capitalise on its strengths as an owner and manager of community shopping centres."
Shares in Capital & Regional were down 5.1% in Johannesburg on Friday morning at ZAR14.71 but were up 1.2% in London at 69.40p.
By Anna Farley; annafarley@alliancenews.com
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