Capital unties Properties : Audited Preliminary Results For The Year Ended 31 December 2020

Henry Staunton, Chairman of Capco, commented:

'2020 was an extraordinary year with significant market uncertainty. Capco's support to its people, customers and broader Covent Garden community ensures the business is well-positioned to benefit from a recovery and prosper over time. We remain focused on responsible stewardship, disciplined capital management and are committed to delivering long-term value for shareholders from our unique portfolio of West End focused investments.'

Ian Hawksworth, Chief Executive ofCapco, commented:

'Capco's financial strength has allowed us to support our customers and business partners whilst taking advantage of market opportunities during an unprecedented year which significantly impacted rents and property valuations. As a long-term investor we are optimistic about the enduring appeal of Covent Garden and London's West End and are confident that Capco is well-positioned to benefit from London's economic recovery.'

Key financials

• Equity attributable to owners of the Parent of £1.8 billion (2019: £2.5 billion)
• EPRA NTA 212 pence per share, a decrease of 28 per cent (2019: 293 pence per share)
• Total property value £1.9 billion, a decrease of 26 per cent (like-for-like) (2019: £2.8 billion)
• Group net debt to gross assets ratio of 28 per cent (2019: 15 per cent)
• Underlying earnings per share -0.7 pence (2019: 1.0 pence per share)

Covent Garden,a landmark estate positioned for future value creation

• Covent Garden total property value of £1.8 billion, a decrease of 27 per cent (like-for-like) since 31 December 2019
• ERV decreased by 22 per cent (like-for-like) to £81 million (2019: £108 million) and equivalent yield of 3.91 per cent (2019: 3.65 per cent)
• Reported net rental income down 74 per cent to £16 million against December 2019 and underlying net rental income down 30 per cent (like-for-like) to £44 million
• EPRA vacancy is 3.5 per cent (2019: 3.2 per cent)
• Capco continues to provide support to retail and hospitality customers on a short-term basis, with rental agreements being adjusted case-by-case to include deferrals and turnover-linked arrangements
• Encouraging indicators upon reopening following easing of measures in the second half of 2020
• 65 new leases and renewals, representing £6.2 million of contracted income were agreed during the year
• Continuing to attract high quality brands including Tiffany & Co., Vashi, The Gentlemen Baristas and Arc'teryx
• Public realm improvements including pedestrianisation and 500 al fresco dining covers, enhancing trading prospects
• Completed the sale of the Wellington block for £76.5 million, in line with June 2020 valuation

Committed to sustainability and innovating to meet customer needs

• New commitment to achieve Net Zero Carbon by 2030
• A new Environment, Sustainability and Community ('ESC') Board Committee has been established
• Net Zero Carbon Pathway to be published in 2021
• Additional pedestrianisation of streets around the Piazza further improving air quality
• Assistance provided to COVID-19 funds supporting homelessness, food banks and the elderly as well as hospitality and retail foundations.

Acquisition of significant stake in Shaftesbury PLC

• Unique opportunity to acquire a significant stake in a company with an exceptional mixed-use portfolio of c.600 buildings across the West End
• £501 million invested, resulting in a shareholding of 25.2 per cent
• Represents a compelling investment and entry point at an implied value of approximately £1,200 per square foot
• Consistent with Capco's strategy to invest in complementary opportunities on or near Covent Garden

Maintaining a strong balance sheet with significant financial flexibility

• Covent Garden net debt £352 million (2019: £555 million) and loan to value ratio of 19 per cent (30 June 2020: 36 per cent) (2019: 21 per cent)
• Significant headroom against the LTV covenant position, and interest cover covenant waivers agreed for 2021
• Group net debt of £710 million (2019: £442 million) and net debt to gross assets of 28 per cent
• Access to Group liquidity comprising undrawn facilities and cash of £1 billion (2019: £895 million), and capital commitments of £2 million (2019: £14 million)
• Weighted average maturity on drawn debt of over 5 years (2019: 7.3 years) and average cost of debt of 2.6 per cent (2019: 3.0 per cent)
• The Directors have decided not to propose a dividend for 2020 (2019: 1.5 pence per share)

Other investments

• £195 million of deferred consideration from the Earls Court sale was received with the final payment of £15 million due later this year
• Completion of Lillie Square Phase 2 with 94 units handed over this year, representing £116 million of net proceeds (£58 million Capco share)

KEY FINANCIALS

	2020	2019
Equity attributable to owners of the Parent	£1,760m	£2,478m
Equity attributable to owners of the Parent per share	206.8p	290.0p
-27.2% Total return in 2020 (2019: -9.6%)
EPRA net tangible assets	£1,806m	£2,506m
EPRA net tangible assets per share	212.1p	292.9p
Dividend per share	-	1.5p
-24.4% Total property return in 2020 (2019: -5.4%)
Property market value1	£1,942m	£2,774m
Net rental income from continuing operations2	£15.8m	£61.2m
Loss for the year attributable to owners of the Parent	-£702.7m	-£253.6m
Headline loss per share	-1.3p	-2.2p
Basic loss per share3	-82.5p	-29.7p
Underlying (loss)/earnings per share4	-0.7p	1.0p

ENQUIRIES

Ian Hawksworth	Chief Executive	[phone]
Situl Jobanputra	Chief Financial Officer	[phone]
Sarah Corbett	Head of Commercial Finance and Investor Relations	[phone]

Media enquiries:

UK: Hudson Sandler	Michael Sandler	[phone]
SA: Instinctif	Frederic Cornet	[phone]

A presentation will take place today at 08.30am through a webcast on the Group's website www.capitalandcounties.comfollowed by analyst Q&A.

A copy of this announcement is available for download from our website at www.capitalandcounties.com and hard copies can be requested via the website or by contacting the Company ([e-mail] or telephone [phone]).