Capital & Regional plc COVID-19 Update (9200R)

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

[e-mail]

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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July 03, 2020 02:00 ET (06:00 GMT)