(Alliance News) - Capital & Counties Properties PLC reported on Monday its London-based flagship asset, Covent Garden, had a strong second half despite the fast-spreading Omicron variant of coronavirus.
In an update on the valuation of its portfolio and year-end balance sheet position, the London and Johannesburg-listed property firm said rent collection in relation to the first quarter of 2022, invoiced in December, is 86%.
As at December 31, the independent property valuation of Covent Garden stood at GBP1.7 billion, representing a like-for-like increase of 4.6% in the second half of 2021. However, the asset depreciated 0.6% for the full year ended December 31.
The second half increase in valuation was driven by a rise of 3% in estimated rental value on a like-for-like basis, reflecting the positive leasing activity and high occupancy levels across the estate, as well as a reduction in the equivalent yield of five basis points on a like-for-like basis to 3.88%.
The valuer's assumption on loss of near-term income has been reduced from GBP11 million to nothing.
"Covent Garden has had a strong second half of 2021 and despite the backdrop of the Omicron variant, consumers continued to be attracted to the West End's most vibrant destination," said Capital & Counties Chief Executive Ian Hawksworth.
"We are pleased with the strong levels of leasing activity and improving market indicators which have contributed to a valuation uplift in the second half," Hawksworth said.
Gross disposal proceeds of GBP77 million were received in the second half of the year.
Capital & Counties has a strong balance sheet and access to significant liquidity of GBP652 million, including cash of about GBP342 million.
During the second half, the group completed a new GBP300 million unsecured revolving credit facility for Covent Garden, replacing the previous facility which was due to mature in December 2022.
Group net debt at the year end was GBP599 million, resulting in a net debt to gross assets ratio of 24%.
Capital & Counties' investment in Shaftesbury PLC shares was valued at GBP596 million based on a share price of 615 pence per share on December 31, up 8.0% from GBP552 million on June 30 based on a price of 569.5p per share.
Hawksworth said: "We look ahead with confidence to continued progress in 2022 and in the long-term prospects of the Covent Garden estate and the West End."
In Johannesburg, shares in Capital & Counties advanced 1.9% to ZAR37.28 on Monday morning. The stock was up 1.3% to 176.70 pence each in London.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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