(Alliance News) - Capital & Counties Properties PLC on Tuesday said it has made progress in collecting rent for 2020 and 2021 to date, even as the value of its Covent Garden portfolio declined annually.
For 2020, the London and Johannesburg-listed property firm said gross rents stood at GBP67.8 million, of which 60%, or GBP40.8 million, has been received. Capco said that 36% of the rent is under alternative arrangements, leaving 4% of rent outstanding.
For the first quarter of 2021 to date, 42% of rent has been collected, with 52% under alternative arrangements and 6% outstanding.
At the end of December, the independent property value for the Covent Garden estate was GBP1.8 billion, reflecting a 27% decline year-on-year from GBP2.6 billion, and a 13% drop from GBP2.2 billion at the end of June 2020.
The portfolio value drop was attributed to the retail, leisure and food & beverage assets, which make up 75% of the portfolio, and suffered a 22% like-for-like decline in rental values.
As at December 31, net debt was GBP352 million, down from GBP779 million at the end of June, following Capco's completion of a GBP125 million loan secured against shares in Shaftesbury PLC,and proceeds from the sale of the Earl's Court estate to reduce borrowings under the Covent Garden revolving credit facility.
"Whilst there are significant near-term challenges to trading and an uncertain economic outlook due to the impact of the pandemic, we are encouraged by the enduring appeal of Covent Garden for customers as evidenced by recovery in footfall and trade following easing measures in the second half of 2020. Capco is in a strong financial position and we remain confident in the long-term prospects for Covent Garden and the West End," said Chief Executive Ian Hawksworth.
Shares in Capco were up 3.6% at ZAR29.05 on Tuesday morning in Johannesburg, while the stock traded 1.0% lower in London at 134.50 pence.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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