Capital & Counties benefits from rise in London's property value

published 28 February 2013

Capital & Counties Properties reported an increase in return on investments in 2012 driven by a rise in real estate value in London.

The UK property investment firm said EPRA adjusted net asset value per share grew 22% to 203p per share from 167p in 2011.

The EPRA (European Public Real Estate Association) net asset value excludes the mark-to-market on effective cash flow hedges and related debt adjustments, deferred taxation on revaluations and diluting for the effect of those shares potentially issuable under employee share schemes.

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Underlying earnings per share rose to 1.8p from 1.4p as the company benefited from increased valuation of property in London's Convent Garden, Earls Court and Seagrave Road.

Covent Garden's property value increased 7.2% to £952m on a like-for-like basis. The company acquired 14 new retailer signings during the year including Chanel and Jo Malone along with a number of units on Henrietta Street and Floral Street.

In Earls Court, the company saw a 57.6% jump in valuation on a like-for-like basis to £336m as the company made resolutions to grant outline planning consent for development in the area.

The group's Earls Court venue, which hosted a volleyball tournament for the 2012 Olympic Games, attracted more than half a million visitors.

A 61.5% in valuation on a like-for-life basis to £104m was realised at Seagrave Road where the firm was granted formal planning consent for development.

The company said it ended the year with a strong financial position as it reduced property loan-to-value by 10% and increased cash and available facilities to £401m from £245m.

A £70m revolving credit facility also helped fund operations during the period.

Directors proposed a final dividend of 1.0p per share, bringing the total dividend for 2012 to 1.5p per share.

"Over this period, the company has delivered market leading returns to its shareholders as a result of a focus on executing its strategy of unlocking value across its business supported by effective capital management," Chairman Ian Durant said.

He said London property continued to thrive despite a weak markets elsewhere in the UK thanks in part to the Olympics and the Queen's Diamond Jubilee.

Looking forward, he said he expects the group's strategy to unlock value from its core estates will enable it to capitalise on opportunities for its shareholders and continue to achieve market leading returns.

Shares rose 1.31% to 255.70p at 11:03 Thursday.