Capital unties Properties : Audited Annual Report for year ended 31 December 2022

Annual report

2022

Capital & Counties

Properties PLC

Capital & Counties Properties PLC (Capco) is one of the largest listed property companies in central London. Our key asset is the landmark Covent Garden estate. We create and grow value through a combination

of creative asset management and strategic investment.

Strategic Report

Who we are	2
Our competitive strengths	6
Our estate	8
Operational highlights	10
Chief Executive's review	12
Purpose, business model and
strategy	18
Our values	19
Key performance indicators	20
Stakeholder engagement	22
Companies Act 2006 - S172(1)
statement	26
Operating review	28
Principal risks and uncertainties	43
Financial review	52
Responsibility	63

Governance

At a glance	84
Corporate governance report	86
Board leadership and company
purpose	88
Division of responsibilities	94
Nomination Committee report	96
Audit Committee report	99
Board ESC Committee report	103
Directors' Remuneration Report	105
Directors' report	128

Financial Statements

Directors' responsibilities	131
Independent auditors' report	132
Financial statements	141
Notes to the accounts	145
Other information	201
Board and advisers	211
Dividends	212
Glossary	213
Shareholder information	217

A leading London property company

www.capitalandcounties.com 1

Strategic Report

Who we are

A prime central

London

REIT

About us

A prime central London REIT driving long-term value creation centred around our landmark Covent Garden estate.

Our purpose

Our purpose is to invest in and create world- class places, focusing on central London. Using our vision, long-term approach and responsible stewardship, we deliver economic and social value and generate benefits for our stakeholders.

Our values

Collegiate, supportive and inclusive

Environmentally and socially responsible

High performance and entrepreneurial

Innovative and creative

Professional: We act with integrity and hold ourselves to the highest standards

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Capco Annual Report 2022

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Strategic Report

Who we are continued

Portfolio valuation

£2.2bn¹

Covent Garden

£1,742m 80%

About Capco

2022 financial results

2.2p

Underlying earnings per share

2.5p1

Dividend per share

182.1p

EPRA net tangible assets per share

2.8%

Total property return

1. Including distributions of Shaftesbury dividend received in February 2023.

Financial strength

Covent Garden portfolio

Lettable space

1.1m sq ft

1. buildings

1. units

Covent Garden

Portfolio valuation

£1.7bn

% of portfolio

Shaftesbury Investment

£357m 16%

Lillie Square2

£79m 4%

See pages 28 to 42 for our operating review

£1.6bn

Group net assets

£622m

Group net debt

£366m

Covent Garden net debt

£423m

Access to liquidity

28%

Group net debt to gross assets

21%

Covent Garden loan to value

Sector	Sq ft	by value
	0.4m	48%
Retail
Food &	0.2m	26%
beverage

Office 0.2m 16%

Residential 0.2m1 7%

Leisure 0.1m 3%

1. Includes Capco's property interests and its investment in Shaftesbury shares.
2. Includes Capco's interests in the Lillie Square joint venture and properties in the adjacent area.

See page 20 to 21 and 201 where we discuss our alternative performance measures.

See page 52 to 62 for the financial review.

1. Residential includes units sold on long lease interest covering approximately 159,000 square feet.

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Capco Annual Report 2022

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Strategic Report

Our competitive strengths

Our competitive

strengths

Prime assets

A focus on prime central London, centred around the landmark Covent Garden estate in the heart of London's West End.

For more on our assets, see page 8.

Experienced leadership

Experienced management team with a strong track record of leading the Group in delivering its strategy.

For more on our leadership, see page 88.

Strong capital structure

Resilient and flexible financing, characterised by low leverage and high liquidity, together with a disciplined approach to capital allocation.

For more on our capital structure, see page 59.

Sustainable approach

Delivering positive environmental and social outcomes that enhance value for our stakeholders.

For more on our sustainability, see page 63.

Effective governance

The framework of oversight, controls and reporting provided by Capco's governance structure supports the business and allows Capco to operate with transparency to achieve its objectives.

For more on our governance, see page 84.

Dynamic, inclusive culture

High-performance, inclusive and entrepreneurial culture and values, reflective of our business strategy where innovation and creativity are promoted across the business.

For more on our culture, see pages 79 and 92.

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Capco Annual Report 2022

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