First-half figures from Capital & Counties (CAPC) served as further testimony to the vibrant property market in London, with adjusted net asset value up by 10 per cent at 342p.
The gain from revaluation and sales of its property doubled to £271.7m, taking the value of the property portfolio up to £3.4bn - while net rental income rose by 3 per cent to £38.4m. The solid performance was driven by the group's retail operation in London's Covent Garden and the residential development at Earls Court.
Occupancy at Covent Garden remained strong at 97 per cent, and there is considerable rental income still to be crystallised. A total of 34 leasing transactions representing £5.3m of rental income were completed, with rents at 10.8 per cent above estimated rental value (ERV) at December last year. The ERV for the whole estate, which calculates the potential rental income if all rents were marked to market, grew by 8.2 per cent to £82.6m, and the company remains on track to push this up to £100m by December 2017.
At Earls Court, Capital & Counties is regenerating more than 70 acres of prime land in Chelsea and Fulham, and the target is to build 7,500 new homes. Even while demolition continues, the site valuation rose by 5.7 per cent to £1.3bn.
Analysts at Numis are forecasting adjusted net asset value by December of 351p a share.
| CAPITAL & COUNTIES PROPERTY (CAPC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 449.8p | MARKET VALUE: | £3.79bn | |
| TOUCH: | 449.6-449.9p | 12-MONTH HIGH: | 462p | LOW: 313p |
| DIVIDEND YIELD: | 0.3% | TRADING PROP: | £22.2m | |
| PREMIUM TO NAV: | 37% | |||
| INVESTMENT PROP: | £3.58bn* | NET DEBT: | 11% | |
| Half-year to 30 Jun | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 300 | 140 | 17.8 | 0.5 |
| 2015 | 329 | 277 | 31.4 | 0.5 |
| % change | +10 | +98 | +76 | - |
Ex-div: 3 Sep Payment: 25 Sep *Includes investments in joint ventures of £14.6m | ||||
