(Alliance News) - Capital & Regional PLC on Tuesday reported a widened annual loss as Covid-19 and the associated lockdowns battered the retail and leisure industries.
The London-based retail and leisure-focused real estate investment trust posted a net asset value per share at December 30 of 150 pence, sinking 58% from 361p the year prior.
Pretax loss in 2020 widened 68% to GBP203.6 million from GBP121.0 million in 2019.
Rental income fell 31% to GBP34.1 million from GBP49.3 million.
Capital & Regional said 2020 was marred by Covid-19, and in particular the industries on which it focuses.
"2020 turned out to be a year of unprecedented challenges for almost everyone, with the retail, leisure and hospitality industries being amongst the hardest hit by significant restrictions on operations imposed as part of government's efforts to mitigate the impact of the pandemic," the company said.
"98% of units were back up and trading in mid-December when new tier restrictions took effect requiring the closure of non-essential retail. Approximately 30% of units are currently trading," the company added.
Occupancy was at 92% on December 30, down from 97%. Rent collection for 2020 is sitting at 80%, while collection for the first quarter of this year is around 60%.
No dividend was declared for the year, down from 21p the year before.
"With significant reductions in revenue flows, no interim dividend was announced, and the board has concluded that it would be equally inappropriate to pay any final dividend for 2020," the company said.
Going forward, Capital & Regional said: "The general outlook remains uncertain in respect of precisely how long existing government-mandated restrictions will remain in place, and the risk of further infections or lockdowns or government restrictions on our operations and ability to collect rent, coupled with the full macro-economic consequences of Covid-19 still being unclear. In consideration of this, the group has sought to maximise flexibility in its management of liquidity and to prioritise the ability to continue in all reasonable circumstances to service the group's operational costs, including interest on its loans, and to be able to judiciously invest further in its management platform and capital expenditure in its assets, where that is required for the long term protection of value and sustainability of income."
Capital & Regional shares were down 2.9% at ZAR16.50 in Johannesburg on Monday morning, and were up 1.5% at 82.20 pence each in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Capital & Regional (CAL)