26th Jul 2016 07:11
LONDON (Alliance News) - Capital & Counties Properties PLC on Tuesday said its net asset value fell in the first half due to a decline in the like-for-like value of its portfolio, as it said Chief Financial Officer Soumen Das was resigning to join FTSE-250 listed SEGRO PLC.
The FTSE 250-listed property developer said its net asset value per share fell to 344 pence per share, down 5.0% from the 361p reported at the end of December. The company's total property portfolio value fell 4.0% on a like-for-like basis in the half to GBP3.60 billion from GBP3.70 billion.
Capital & Counties said the decline was due to the increased stamp duty land tax levels announced in the March 2016 budget as well as valuers' assessment of the weakened sentiment in the central London residential market following the UK referendum on European Union membership. This drove down the valuation of Capital & Counties' Earls Court development by 14% to GBP1.20 billion when compared to the end of December, the company said.
Capital & Counties said it will pay an interim dividend of 0.50p per share, flat year-on-year.
"Covent Garden is established as a world class retail location, attracting high retailer and consumer demand and continues to deliver immediate value creation. At Earls Court, we continue to make positive progress on site. Whilst the last quarter has been characterised by uncertainty in the London market as a whole, the value of this estate will increasingly be realised in the years ahead," said Chief Executive Ian Hawksworth.
"Whilst it is too early to make firm predictions following the result of the EU referendum, we remain confident in our estates and current conditions on the ground remain positive," Hawksworth added.
The interim results came as Capital & Counties said its Managing Director and Chief Financial Officer Soumen Das was resigning from his position to join fellow FTSE 250-listed property developer SEGRO as chief financial officer at the end of 2016.
Capital & Counties said it has commenced a process to appoint a successor.
Capital & Counties shares were down 1.2% to 293.20 pence at the open on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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