(Alliance News) - Capital & Counties Properties PLC on Wednesday reported a decline in net asset value following a decline from its Covent Garden properties and a sale in Earls Court.
The London-focused property firm, which is listed in both London and Johannesburg, said its EPRA net asset value per share on December 31 was 293 pence, a 10% decline from the previous year's figure of 326p.
The total value of Capco's property portfolio dropped as movements in estimated rental value and yield caused the valuation on its Covent Garden property to fall, while it also sold its Earls Court property for GBP425 million, having considered a demerger in the year.
The company swung to a pretax loss of GBP61.3 million from a GBP41.6 million profit despite a 6.3% revenue rise to GBP79.4 million from GBP74.7 million. Net rental income was up 6.4% at GBP61.1 million from GBP57.4 million.
The loss was due to a GBP43.3 million loss on revaluation and the sale in Covent Garden. Capco maintained its annual dividend at 1.5p per share.
Equity attributable to owners of the parent fell 9.5% to GBP2.48 billion from GBP2.74 billion.
It was an eventful year for the company. Candy Ventures in October 2019 said it was considering a possible cash offer. However, after the Earls Court sale, Candy Ventures backed down.
Capco said "no substantive approach regarding an offer" was made by Candy Ventures.
Chief Executive Ian Hawksworth said: "Capco looks forward to the next phase of growth, with a strategic focus on the West End and Covent Garden, where we have created a world-class estate. As a strongly capitalised real estate investment trust, with access to substantial liquidity, Capco is well-positioned to take advantage of investment opportunities whilst also offering resilience during periods of economic uncertainty.
"Our creative approach to leasing and asset management continues to contribute to increased footfall and tenant sales at Covent Garden, giving us confidence in the long-term prospects of the business to deliver superior total returns to our shareholders."
Separately, Capco announced it has promoted Michelle McGrath to executive director with immediate effect.
"Michelle has been a senior executive of Capco for six years, most recently as director of Covent Garden with responsibility for investment and asset management of the portfolio. She is an experienced corporate broker having previously been at UBS Investment Bank, focusing on the UK listed real estate sector," the company said.
Senior Non-Executive Director Andrew Strang and Senior Independent Non-Executive Director Gerry Murphy have said they will not be seeking re-election at its annual general meeting.
Non-Executive Director Anthony Steains will become senior independent director.
Strang would have chaired Capco's Earls Court business if it had been demerged.
By Anna Farley; annafarley@alliancenews.com
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