Shaftesbury Capital Plc (formerly: Capital & Counties Properties Plc)

Earnings Release • Nov 10, 2015

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RNS Number : 0982F

Capital & Counties Properties Plc

10 November 2015

10 November 2015

CAPITAL & COUNTIES PROPERTIES PLC ("CAPCO")

TRADING UPDATE

Capco today publishes a trading update for the period 1 July 2015 to 10 November 2015.

Ian Hawksworth, Chief Executive of Capco, commented:

"Capco has had a positive and active second half of the year. Covent Garden continues to attract new brands, including a letting to premium brand kikki.K as well as store openings by KIKO and Kiehl's. We remain on course to achieve our ERV target of £100 million by December 2017.

Earls Court is a hub of activity as we continue to de-risk our land holdings through demolition while construction of Lillie Square is on track with first completions due in 2016. In line with expectations, Phase 2 of Lillie Square launched positively in September with pricing approximately 5 per cent higher than comparable units in Phase 1.

We are in a strong financial position with a conservative LTV of 16 per cent and over £470 million in cash and available facilities."

Covent Garden:

Driving rental growth through granular asset management, strategic investment and placemaking

·      On track to achieve ERV target of £100 million by 2017, representing underlying annualised rental growth of circa 10 per cent

·      Continued activity on James Street following a letting to Australian brand, kikki.K which will open its first London store offering premium stationery. The letting further supports a rental tone of £1,400 Zone A for James Street

·      The repositioning of The Royal Opera House Arcade is underway with pop-up lettings to Harrods, which has opened its Christmas concept store, and Lulu Guinness which will bring its contemporary luxury accessories to the estate

·      New openings across the estate including KIKO and Kiehl's, while Charlotte Tilbury and the new larger Chanel store are expected to open shortly 

·      Continued investment in the estate with the development of Kings Court & Carriage Hall on track

Earls Court Properties:

Driving value creation through planning, land assembly, land enablement and selective development

·      Continued de-risking of land holdings through demolition at Earls Court

o  Demolition of EC1 & EC2 buildings to ground level is progressing well and is on track for completion in the second half of 2016

·      Plans on track at Lillie Square

o  Phase 1: construction is on track with first completions expected in 2016

o  Phase 2: 40 per cent of the first release for sale, which comprises 70 units, has been reserved at values approximately 5 per cent higher than comparable units in Phase 1

·      £14 million of acquisitions around the Masterplan area in the period, enhancing implementation of the scheme

Venues:

·     Following the successful transition of shows from the former Earls Court Exhibition Centres and a major refurbishment programme, Capco is conducting a strategic review which may or may not lead to a sale of its Venues business

·      Olympia London continues to attract new shows including Cakes & Bakes and the Packaging Innovations show following its reinvigoration as one of London's most desirable venues

Strong financial position

·      Loan-to-value of 16 per cent (based on 30 June 2015 property values) and liquidity of £470 million

	30 September 2015	30 June 2015
Gross debt	£592m	£497m
Cash balance	£72m	£66m
Net debt	£520m	£431m
Liquidity (cash and available facilities)	£470m	£570m
Property loan-to-value	16%	13%
Weighted average debt maturity	4.4 years	4.6 years
Weighted average cost of debt	3.4%	3.3%
Proportion of gross debt with interest rate protection	94%	92%

As at 30 September 2015, Capco had capital commitments of £241 million.

All figures quoted above are adjusted to include Capco's share of joint ventures and its 63 per cent interest in Earls Court Partnership Limited.

Enquiries

Capital & Counties Properties PLC:

Ian Hawksworth	Chief Executive	+44 (0)20 3214 9188
Soumen Das	Managing Director & Chief Financial Officer	+44 (0)20 3214 9183
Michelle McGrath	Director of Investor Relations	+44 (0)20 7297 6093

Media enquiries:

Sarah Hagan	Director of Communications & Marketing	+44 (0)20 3214 9185
UK: Tulchan	Susanna Voyle, Martha Walsh	+44 (0)20 7353 4200
SA: Instinctif Partners	Frederic Cornet	+27 (0) 11 447 3030

This announcement includes statements that are forward-looking in nature. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Capital & Counties Properties PLC to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Any information contained in this announcement on the price at which shares or other securities in Capital & Counties Properties PLC have been bought or sold in the past, or on the yield on such shares or other securities, should not be relied upon as a guide to future performance.

About Capital & Counties Properties PLC (Capco):

Capital & Counties Properties PLC is one of the largest investment and development property companies that specialises in central London real estate and is a constituent of the FTSE-250 Index. Capco's landmark London estates are valued at £3.4 billion (as at 30 June 2015): Covent Garden, which has assets valued at £1.8 billion including the historic Market Building; and Earls Court Properties including the Empress State Building together with the Venues business with aggregate property assets of £1.6 billion. The company is listed on the London Stock Exchange and the Johannesburg Stock Exchange.

www.capitalandcounties.com 

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTPKCDQABDDODK