Capco swings back to earnings as West End visitors return

Capital & Counties reported total equity of £1.8bn in its final results on Wednesday, in line with last year, while EPRA net tangible assets rose marginally to 212.4p per share from 212.1p a year ago.

The FTSE 250 West End-focussed property investor said its total property return was a positive 1.5% for the 12 months ended 31 December, swinging from a negative return of 24.4% in 2020, while total shareholder return was a positive 16.5%, compared to a negative 44.3%.

Its total property value decreased 2.3% on a like-for-like basis to £1.8bn, while the group’s net debt-to-gross assets ratio fell to 24% from 28% year-on-year.

Underlying net rental income increased to £52.3m from £43.6mm while the company swung to underlying earnings of 0.5p per share from losses of 0.7p in 2020.

The board proposed a final dividend for 2021 of 1p per share, resulting in a full-year distribution of 1.5p per share.

“We are pleased with the strong level of leasing demand for Covent Garden, which has contributed to a valuation uplift in the second half,” said chief executive officer Ian Hawksworth.

“With footfall continuing to increase, customer sales approaching 2019 levels and our creative approach, Covent Garden is the most vibrant district in the West End and is well-positioned for further rental growth.”

Hawksworth said Capco had a “strong” balance sheet, enabling it to further invest in its estate to accelerate value creation, and take advantage of market opportunities.

“We look ahead with confidence to continued progress in 2022 to generate long-term returns for shareholders from our unique portfolio of West End investments.”

At 0924 GMT, shares in Capital & Counties Properties were up 1.03% at 166.7p.