Specialist central London property company Capital & Counties Properties announced on Wednesday that its net rental income for the year ended December 2010 declined to £69 million compared with £78.1 million in the previous corresponding period.

The final dividend came in at one pence, bring the total dividend to 1.5 pence.

The group's total return in 2010 was 18%, driven by the valuation of its properties, which increased by 10.8% on a like-for-like basis in the year, outperforming the Investment Property Databank index of capital values for 2010, which rose 6.9%.

Rising rental values in Covent Garden were a significant contributor to its growth.

The increase in values has generated an adjusted, diluted net asset value per share at December 31 of 148 pence. The group said it had a prudent balance sheet and significant cash reserves to support its stated asset plans.

These are Capco's first annual results as a stand-alone listed company since its demerger from Liberty International in May 2010.

CE Ian Hawksworth said Capco continued to see the benefits of its strategy of concentrating its investments in prime locations in central London with strong net asset value growth and positive momentum across the business.

"Covent Garden is well on the way to becoming a world-class retail, leisure and residential district with a series of key lettings driving exceptional growth in the rental values of the estate.

"The EC&O business has the opportunity to redefine the area around Earls Court through its planning activities, while maximising the profitability of the Olympia exhibition facilities. The prospects for 2011 and into 2012 remain positive as Capco continues to target superior valuation and net asset value growth," said Hawksworth.

In its outlook, Capco said the UK macroeconomic situation was delicately poised and so the requirement to be conservative with cash and debt continued.

"We are now turning our attention to developing the longer-term strategic blueprint for Capco as a London 'place maker' - the property investment company that brings new life to London districts, commercially, creatively and responsibly. London offers excellent opportunities for medium- and long-term sustainable growth in capital and rental values and Capco has a management team capable of realising that potential," the company said.

Source: I-Net Bridge

Publisher: I-Net Bridge
Source: I-Net Bridge