The value of Capital & Counties Properties’ Covent Garden estate dropped by a further £96m last year, although the company has hailed improving sentiment and leasing activity in the West End.
Capco said in its full-year results that its Covent Garden assets were valued at £1.7bn, down by 0.6% year-on-year, but noted that the valuation had improved by 4.6% during the second half of the year on a rise in ERV. The total portfolio valuation was down by 1.3% at £1.8bn.
Net rental income for the year rose by 193% year-on-year to £46.4m, with the company back in the black with a £29.3m profit. Total shareholder return for the year was 16.5%, with net tangible assets edging up at 212.4p per share
Chief executive Ian Hawksworth said: “We are pleased with the strong level of leasing demand for Covent Garden, which has contributed to a valuation uplift in the second half. With footfall continuing to increase, customer sales approaching 2019 levels and our creative approach, Covent Garden is the most vibrant district in the West End and is well-positioned for further rental growth.”
He added: “Capco has a strong balance sheet, enabling us to further invest in our estate to accelerate value creation as well as take advantage of market opportunities. We look ahead with confidence to continued progress in 2022 to generate long-term returns for shareholders from our unique portfolio of West End investments.”
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