Ian Durant, Chairman of Capco, commented: "Capco's strong performance in 2012 continues the positive momentum generated since the Company was established in 2010. I am confident that Capco's strategy to unlock value from its core estates whilst maintaining a strong financial position will enable it to capitalise on opportunities for its shareholders and achieve market leading returns."
Ian Hawksworth, Chief Executive of Capco, commented: "The clear and focused business model and strategy has delivered strong results in 2012 with the continued transformation of Covent Garden and significant planning milestones achieved at Earls Court. We have maintained the pace of capital recycling, underpinning our strong balance sheet and conservative leverage. Capco is well positioned within its core central London retail and residential property markets, and our assets continue to offer the potential for outperformance."
Strong valuation performance
- 22 per cent increase in EPRA adjusted, diluted NAV to 203 pence per share (2011 restated: 167 pence)
- 15 per cent increase in total property value to £1.7 billion (17 per cent like-for-like) (2011: £1.6 billion)
- Proposed final 2012 dividend of 1 pence per share giving full-year dividend of 1.5 pence per share
- 23 per cent total return in the period
Transformation of Covent Garden continues to drive value
- Property value of £952 million up 7.2 per cent (on a like-for-like basis) (2011: £808 million)
- 9.99 per cent equity placing for further investment raised £149 million in September
- Revised ERV target of £60-65 million by 2015, new lettings at 4.6 per cent above December 2011 ERV
- 14 new retailer and restaurant signings in 2012 including Chanel and Jo Malone
- Acquisitions of £89 million including the Wellington Portfolio and a number of units on Henrietta Street and Floral Street
- New benchmark set of £2,250 per square foot for premium residential
Resolutions to grant outline planning consent at Earls Court
- 57.6 per cent increase in Earls Court valuation (on a like-for-like basis) to £336 million (£14.8 million per acre) (2011: £195 million)
- Resolutions to grant outline planning consent for the Earls Court Masterplan from LBHF and RBKC
- CLSA signed with LBHF for inclusion of its land in the Masterplan
- Discussions continue with TfL on regear of Earls Court leasehold interests
- Improvement works to Olympia London completed
Planning consent at Seagrave Road and joint venture focused on implementation
- 61.5 per cent increase in valuation (on a like-for-like basis) to £104 million (Capco share) (2011: £116 million)
- Formal planning consent granted for Seagrave Road development and joint venture completed
£320 million of disposals continue capital recycling
- £320 million (Capco share) of disposals in 2012, principally from investments in GCP and China as well as completion of the Seagrave Road JV
Strong financial position with low leverage and high liquidity
- Property LTV reduced to 10 per cent (2011: 29 per cent)
- Cash and available facilities of £401 million as at 31 December 2012 (2011: £245 million)
- £70 million revolving credit facility arranged giving increased financial flexibility
