Capital & Regional plc COVID-19 Update (9200R)
July 03 2020 - 1:00AM
UK Regulatory
TIDMCAL
RNS Number : 9200R
Capital & Regional plc
03 July 2020
3 July 2020
CAPITAL & REGIONAL PLC ("Capital & Regional" or "the
Company" or "the Group")
UK company number 01399411
LSE share code: CAL
ISIN: GB00BL6XZ716
LEI: 21380097W74N9OYF5Z25
COVID-19 UPDATE
Capital & Regional provides a further update on the impact
of the COVID-19 pandemic and rent collections for the
24 June Quarter Date.
Our overriding priority remains the health, safety and
protection of our colleagues, guests and customers and, since the
outbreak of the virus, we have been following the latest official
government guidelines and advice across our portfolio.
Operations
-- All seven of the Company's community shopping centres have remained open throughout the period of lockdown
providing essential services to the communities we serve. The lifting of restrictions enabling non-essential
retailers to open again from 15 June 2020 has seen a significant increase in the number of tenants now back
trading. As of today 470 stores are back open and trading, increased from 68 stores in early May. This
represents 74% of units with a further 10% having confirmed dates for re-opening. We are working closely with the
remaining retailers to re-open as soon as possible noting only 5% of our retailers are currently not authorised
to open.
-- Footfall for the week ending 28 June 2020 was approximately 55% of the equivalent week in the prior year, 97%
higher than the last week prior to the restrictions easing. Feedback from many of our retailers is that average
transaction values have been higher than the comparable period last year with shoppers making focused purpose led
visits.
-- Of the rent for the third quarter of the year that was due on or since the 24 June 2020 we have received or
expect to imminently receive 34%. In total we have collected approximately 40% of all rents that have fallen due
from the 25 March 2020 to the present day, incorporating rents payable on both a quarterly and monthly basis.
-- Approaching half of the balance of rents that are outstanding are due from major well-capitalised retailers who
have capacity and a clear contractual obligation to pay. It is encouraging that several of the non payers have
engaged with us regarding payments now stores are trading and we are fully committed to working constructively
with all our customers.
-- In line with government guidance our Snozone operation closed its two indoor ski slope sites on Friday 20 March
2020. We are making plans for reopening in anticipation of the restrictions being lifted in the coming weeks and
expect the business to be back up and trading in time for the peak Q4 trading quarter.
Liquidity
-- As at close of business on 30 June 2020 the Group had total cash on balance sheet of over GBP81 million, which is
equivalent to more than one year's gross revenue. In addition, the Group has an undrawn revolving credit
facility of GBP15 million available until January 2022. The earliest maturity on any of the Group's other loan
facilities is February 2023.
-- We have signed waivers for all income covenants with quarterly test dates in July and October 2020 on our three
largest asset backed loan facilities. These represent over 93% of our outstanding debt.
-- In light of the uncertain market conditions we have paused on any commitments to the proposed Hemel Hempstead
Leisure project. We are considering alternative options and are in discussions with the lender to review the
loan facility to reflect this.
It remains too early to quantify the medium and longer term
impacts of COVID-19 on the Group's operations. Whilst it is clear
that COVID-19 is rapidly accelerating a number of structural trends
that were already under way in retail industry, we continue to
believe the Group's focus on local community centres providing
non-discretionary and essential goods and services will help
mitigate the Group on a relative basis and provides the business
with a sound base in these unprecedented times.
Further details will be provided when the Group announces its
half-year results for the six months ended 30 June 2020, on Friday
4 September 2020.
This announcement contains Inside Information. The person
responsible for arranging the release of this announcement is
Stuart Wetherly, Company Secretary of Capital & Regional
plc.
- ENDS -
For further information:
Capital & Regional plc 020 7932 8000
Lawrence Hutchings
Stuart Wetherly
FTI Consulting 020 3727 1000
Richard Sunderland
Claire Turvey
Methuselah Tanyanyiwa
capreg@fticonsulting.com
About Capital & Regional plc:
Capital & Regional is a UK focused retail property REIT
specialising in shopping centres that dominate their catchment,
serving the non-discretionary and value orientated needs of the
local communities. It has a strong track record of delivering value
enhancing retail and leisure asset management opportunities across
its portfolio of in-town shopping centres.
Capital & Regional owns seven shopping centres in Blackburn,
Hemel Hempstead, Ilford, Luton, Maidstone, Walthamstow and Wood
Green. Capital & Regional manages these assets through its
in-house expert property and asset management platform.
Capital & Regional is listed on the main market of the
London Stock Exchange (LSE) and has a secondary listing on the
Johannesburg Stock Exchange (JSE)
For further information see capreg.com/
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END
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