TIDMCAPC

RNS Number : 6319H

Capital & Counties Properties Plc

26 March 2020

26 March 2020

CAPITAL & COUNTIES PROPERTIES PLC ("Capco" or "the Company")

COVID-19 update

Given the rapidly evolving situation around COVID-19 and current market conditions, Capco continues to assess the impact on its business, respond to the latest guidelines issued by relevant authorities and adapt its activities accordingly. The priority during this period of uncertainty is the health and safety of our people, customers and visitors.

The majority of retail and F&B units on the Covent Garden estate are closed temporarily and whilst Government-related support measures will be helpful for many occupiers, Capco expects disruption to income during the course of this year. As a long term investor in London, Capco will work to assist its customers with bespoke solutions on a case by case basis through this unprecedented period.

This will involve moving from quarterly rental payments in advance to alternative arrangements and the deferral of rental payments in certain cases, particularly for smaller and independent operators in order to ease short-term cash flow issues and to reopen successfully once the current restrictions are lifted. It is too early at this stage to assess the full impact on rental income and property valuations.

Capco has a strong balance sheet with access to substantial liquidity and significant headroom against debt covenants (both loan to value and interest cover). Total Group cash is currently approximately GBP250 million with a further GBP120 million to be received from the Earls Court sale and in addition, Capco has access to over GBP700 million of committed undrawn facilities. Further details are set out in the appendix to this announcement.

The Company is focused on conserving cash during this period of highly uncertain market conditions. As part of this, the Board has decided to temporarily suspend the share buyback programme.

The Company will continue to monitor the COVID-19 situation closely and provide further updates as appropriate.

-ENDS-

Enquiries:

Capital & Counties Properties PLC

 
                                                   +44 (0)20 3214 
 Ian Hawksworth      Chief Executive                9188 
                                                   +44 (0)20 3214 
 Situl Jobanputra    Chief Financial Officer        9183 
                                                   +44 (0)20 3214 
 Sarah Corbett       Head of Investor Relations     9165

Media enquiries

 
                                          +44 (0)20 7796 
 UK: Hudson Sandler    Michael Sandler     4133 
 SA: Instinctif        Frederic Cornet    +27 (0)11 447 3030

About Capital & Counties Properties PLC ("Capco")

Capital & Counties Properties PLC is one of the largest listed property investment companies in central London and is a constituent of the FTSE-250 Index. Capco's landmark estate at Covent Garden was valued at GBP2.6 billion (as at 31 December 2019) where its ownership comprises over 1.2 million square feet of lettable space. The Company is listed on the London Stock Exchange and the Johannesburg Stock Exchange. www.capitalandcounties.com

Appendix

As at 31 December 2019, Group net debt was GBP442 million (including GBP170 million of cash) representing a Group loan to value ratio of 16 per cent.

Following the recent receipt of GBP90 million of deferred consideration from the Earls Court sale and the deployment of GBP12 million towards the share buyback programme, total Group cash is currently approximately GBP250 million.

In addition, a further GBP105 million of deferred consideration is expected to be received later this year with the balance of GBP15 million due in 2021. Capco has access to substantial committed undrawn facilities, in particular the Covent Garden revolving credit facility of GBP705 million.

Debt covenants:

 
                                             Loan outstanding(1)    LTV         Interest 
                                Maturity                             covenant    cover covenant 
---------------------------  -------------  ---------------------  ----------  ---------------- 
 Covent Garden 
---------------------------  -------------  ---------------------  ----------  ---------------- 
 Revolving credit facility    2022           -                      60%         120% 
 US private placement 
  series 1                    2024 - 2026    GBP150m                60%         120% 
 US private placement 
  series 2                    2026 - 2028    GBP175m                60%         120% 
 US private placement 
  series 3                    2024 - 2037    GBP225m                60%         120% 
 Lillie Square (50%           2021           GBP55m                 75%         - 
  share) 
---------------------------  -------------  ---------------------  ----------  ---------------- 
 Total                                        GBP605m 
------------------------------------------   --------------------  ----------  ----------------

1. The loan values are the nominal values at 31 December 2019 shown on a Group share basis. The balance sheet value of the loans includes any unamortised fees.

For the year ended 31 December 2019, interest cover for the purposes of the Covent Garden revolving credit facility and private placement notes was 2.9 times, compared with a covenant level of 1.2 times.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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March 26, 2020 03:00 ET (07:00 GMT)

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