Shares 

CapCo's maiden results so-so

Capital & Counties' maiden results following its recent demerger from Capital Shopping Centres (previously Liberty International) show that even central London markets can prove rocky for property investors.

, its shares have fallen 20 per cent since May's listing due to a hangover of selling pressure from South African investors and institutional investors divesting their holdings (CapCo is no longer a real estate investment trust, and its size means its now a FTSE 250 company).

So do the shares now offer value for new investors? Based on pro-forma figures, the market value of the portfolio - which includes large chunks of Covent Garden and the Earls Court and Olympia exhibition centres - rose by 5.3 per cent in the period. Stripping out the exhibition centres (which in reality are a long-term development play) the uplift was 7.8 per cent. But this underperforms the industry's benchmark IPD West End Index - which registered 10.4 per cent growth in the same period.

Achievements include letting a flagship Covent Garden store to Apple (which opens next month) and another to fashion retailer Burberry, and the appointment of Sir Terry Farrell to masterplan the Earls Court site's predominantly residential development.

Broker KBC Peel Hunt forecasts 2011 adjusted NAV of 147p.

CAPITAL & COUNTIES
ORD PRICE:112pMARKET VALUE:£696.4m
TOUCH:111.75p-112p12-MONTH HIGH:139pLOW: 99.6p
DIVIDEND YIELD:0.4%TRADING STOCK:£0.3m
INVESTMENT PROPERTIES:£1.31bnNET DEBT:60%
DISCOUNT TO NAV:19%

Half-year to 30 JunNet asset value (p)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
2009*127-139.0-19.4 nil
201013854.88.70.5
% change+9   

Ex-div: 6 Oct

Payment: 27 Oct

*Calculated on a pro-forma basis prior to demerger from Capital Shopping Centres; NAV is Dec 2009

Click for a guide to the terms used in IC results tables.

IC View

Further valuation uplifts seem uncertain, and while Earls Court would dramatically boost values, this will take years of progress through the planning system. Fairly priced for now at 112p.

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