Capital & Regional (LSE:CAL)
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RNS Number : 1347I

Capital & Regional plc

31 March 2020

31 March 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 an update on the impact of the COVID-19 pandemic, the management actions being undertaken and the resources that are available to support the business during this evolving situation.

Our overriding priority during this time is 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.

Trading

   -- All seven of the Company's community shopping centres currently remain open to provide essential services during 
      this unprecedented situation.  Approximately 23% of our occupiers by contracted rent remain trading. 
 
   -- Of the rent for the second quarter of the year that was due on 25 March 2020 we have received or expect to 
      imminently receive approximately 50%, compared to a typical collection rate of at least 80% at the equivalent 
      time. 
 
   -- We are in active discussions with all our retailer customers on the outstanding rents appreciating these are 
      challenging times.  With our larger chain store and multiple unit retailers we are in dialogue to understand and 
      assess the impact that the relief measures announced by the government could potentially have on their businesses 
      and anticipate further collections as we work through these discussions. We are likewise engaging with our 
      smaller independent retailers as to how we are best able to offer support, sensitive particularly to the impact 
      that the current situation is having on them. 
 
   -- In line with government guidance our Snozone operation closed its two indoor ski slope sites on Friday 20 March 
      2020 and management are taking actions to minimise costs while the business is not trading. 
 
   -- It is too early to quantify the overall impact of COVID-19 on the Group's operations.  While there will clearly 
      be a significant level of disruption, the Group's focus on non-discretionary goods and services will help 
      mitigate this and provides a sound base for the business when conditions allow a return to a more normalised 
      trading environment. 

Liquidity

   -- A significant part of the Company's focus for the immediate future is on maintaining liquidity during the current 
      period of disruption. 
 
   -- As at close of business on 25 March 2020 the Group had total cash on balance sheet of over GBP90 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. 
 
   -- The Group's four asset backed loan facilities each have covenants in respect of minimum interest cover ratios, 
      both projected and historic, that are tested quarterly.  At the most recent test date, in January 2020, headroom 
      on the respective covenants was a minimum of 37% of the respective annual income, most facilities were in the 
      range of 37% to 45%. 
 
   -- To further improve cash flow the Company has suspended all non-committed capital expenditure projects which could 
      preserve over GBP10 million over the next 12 months. 

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/

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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March 31, 2020 02:00 ET (06:00 GMT)