Capital & Counties confident of long-term prospects despite falling portfolio valuation

(Sharecast News) - Property investment and development firm Capital & Counties said on Tuesday that it was confident in the long-term prospects for its prime central London locations despite a continued decline in its portfolio valuation throughout the first half of 2021.
Capital & Counties, which owns the majority of the Covent Garden district, said it had seen a bounce back in demand for space from stores and restaurants looking to cash in on the city's recovery.

The FTSE 250-listed firm stated its vacancy rate had dipped slightly to 3.4% from 3.5% in the six months ended 30 June, while the landlord also highlighted that it had inked 29 new leases and renewals in the half.

However, Capco also said the value of its estate had fall 5.1% in the period to £1.8bn - although, this was a tempered rate of decline when compared to the 13% drop in the prior six-month period.

Underlying earnings were 0p, down from 0.3p a year ago, but the group still recommended the recommencement of dividend distribution with a proposed interim dividend of 0.5p per share.

Chief executive Ian Hawksworth said: "We are confident that our approach and the quality of our estate, underpinned by our strong balance sheet, position Capco for recovery.

"Looking ahead, there are challenges in the near term, as the economy moves towards more normal levels of activity, however we remain confident in the resilience of London's West End and the enduring appeal of Covent Garden."

As of 1000 BST, C&C shares were down 0.83% at 167.30p.