Capital & Counties property value falls amid Covid-19

(Sharecast News) - Real estate investment trust Capital & Counties said on Tuesday that the total value of its properties had decreased in 2020 but stated it was "well-positioned" to benefit from recovery over time.
Capco said Covid-19 had widened annual pre-tax losses from £61.3m to £704.7m and dragged property values down 26% to £1.9bn, leaving it with a net asset value per share of 206.8p each at the end of 2020, down from 290.0p a year earlier.

Net rental income also sunk to £15.9m from £61.1m, with the FTSE 250-listed group stating that the Covid-19 pandemic had made a "material impact" on its overall financial performance.

Capco also failed to pay any dividends to investors, a marked difference when measured against the 1.5p per share returned to investors in 2019.

Looking forward, Capco cautioned that operating conditions would remain difficult for customers, which it anticipates will lead to enhanced levels of vacancy and further adjustments in valuation and rental levels.

However, Capco added that the upcoming easing of restrictions and the reopening of hospitality, retail and leisure activities would likely lead to "a gradual return of domestic footfall".

Chairman 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 the business is well-positioned to benefit from a recovery and prosper over time.

"We remain focused on responsible stewardship, disciplined capital management and are committed to delivering long-term value for shareholders from our unique portfolio of West End focused investments."

As of 1025 GMT, Capco shares were down 0.46% at 171.30p.