CapCo trades will in Q4, declares second interim dividend

Real estate investment trust Capital & Counties said on Monday that trading conditions across its Covent Garden portfolio had been "positive" in Q4, leading the group to declare its second interim dividend.

Capital & Counties stated it had experienced a "successful Christmas trading period", with like-for-like customer sales in aggregate exceeding pre-pandemic levels.

The FTSE 250-listed group noted that an independent property valuation of its Covent Garden estate was unchanged year-on-year at £1.7bn, driven by ERV growth of 6% over the year and its equivalent yield widening by 19 basis points to 4.07%.

Cash and undrawn facilities came to £423.0m at the end of the year, down from £642.0m a year earlier, while group net debt widened to £622m from £599.0m and net debt to gross assets rose from 24% to 28%.

CapCo also declared a second interim dividend of 1.7p per share, bringing its total dividend for the year to 2.5p per share.

Chief executive Ian Hawksworth said: "Strong leasing demand for our prime properties in the West End continues to deliver rental growth, however an outward shift in yields resulted in an unchanged valuation for Covent Garden over the year.

"Backed by our strong balance sheet, long-term strategy, and creative approach we look ahead with confidence in the prospects and resilience of Covent Garden and the West End."

As of 0820 GMT, CapCo shares were down 1.04% at 113.80p.

Reporting by Iain Gilbert at Sharecast.com