Heady valuation gains buoyed shares in Capital & Counties (CAPC) up 5 per cent on the morning these results for 2012 were announced. The exhibition centre at Earls Court in west London was marked up 58 per cent to £336m - £14.8m per acre - as Sir Terry Farrell's masterplan for its transformation into "four villages and one high street" received outline planning consent from the relevant London boroughs. The next hurdle is formal planning consent, which chief executive Ian Hawksworth expects before July.
The adjacent car park at Seagrave Road gives some idea of the valuation growth potential. CapCo's surveyors marked it up 62 per cent when it received its own formal planning consent last March. That's about £28m an acre, says Mr Hawksworth - nearly double Earls Court's holding value.
The company's largest asset by far, however, is its £952m estate at Covent Garden, which includes the famous covered market and various buildings on the surrounding roads. Rental growth moderated to 4.2 per cent last year, but Mr Hawksworth says that reflects the timing of demand and supply rather than the maturing of CapCo's regeneration plans. The company continues to buy more buildings in the area - acquisitions cost £89m in total last year.
Brokerage Investec currently expects adjusted book value of 211p at the year-end (up from 202p), but is likely to increase its forecast.
CAPITAL & COUNTIES PROPERTIES (CAPC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 255p | MARKET VALUE: | £1.92bn | |
| TOUCH: | 254-255p | 12M HIGH / LOW | 259p | 185p |
| DIVIDEND YIELD: | 0.6% | TRADING PROP: | £84.4m | |
| PREMIUM TO NAV: | 30% | |||
| INVESTMENT PROPERTIES: | £1.59bn | NET DEBT: | 11% | |
| Year to 31 Dec | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010* | 142 | 133 | 21.2 | 1.5 |
| 2011 | 162 | 162 | 23.9 | 1.5 |
| 2012 | 196 | 246 | 34.1 | 1.5 |
| % change | +21 | +52 | +43 | |
Ex-div: 22 May Payment: 20 Jun *Capital & Counties demerged from Liberty International on 10 May 2010 | ||||
