Update On Year End and Fund V

RNS Number : 2618P

Capital & Regional plc

23 March 2009

 



                                                                                                   23 March 2009

                                                        CAPITAL & REGIONAL PLC

             UPDATE ON YEAR END POSITION AND FEBRUARY VALUATION OF MALL FUND

Capital & Regional plc, the co-investing property asset manager, today provides an update on its 2008 year end position.

The Company confirms that it will issue the Group's audited results for the year ended 30 December 2008 on 24 April 2009. It is currently anticipated that these will show a year end net asset value of at least £175 million, equivalent to a basic net asset value per share of 245 pence. This estimate includes a liability for the group's share of the mark to market valuation (see Note 1 below) of interest rate swaps of £39.6 million. This had moved from an asset with a value of £31.4 million at half year as a consequence of the reduction of interest rates.

Recurring pre tax profit is expected to be around £27 million for 2008.

Progress continues to be made on plans to provide long term stability to both the X-Leisure and Junction Funds. Further details will be given at or before the publication of the annual results.

As we mentioned in our post close statement on 12 January, the main financial covenants were met as at the 2008 year end, being those for the core Group facility, the core facility for each of the X-Leisure and Junction funds, and for the Mall bonds. Group debt (unaudited) at 30 December was £113 million, of which £27 million was the amount drawn on the Group's central facility.

The Company also announces that the unit value of the Mall Limited Partnership as at 28 February 2009 was as follows:  

	Valuation of properties	Unit value at  28 February 2009	Unit value at  31 January 2009	Underlying valuation change in month (2)	Change in unit value (geared) in month (3)	Units owned by C&R	C&R percentage of fund
Mall Fund	£1,543,893,916	£0.4310	£0.5062	(4.4)%	(14.8)%	157,742,057	16.7%

As announced last month, following the result of votes by the respective unit holders in both the Junction Fund and the X-Leisure Fund the next unit price for these funds will be calculated as at 31 March 2009. In addition, the Mall unit holders are being asked to vote on moving to quarterly valuations with effect from 31 March 2009.

Notes: 

The Group uses interest rate swaps to fix the majority of the interest payments on borrowings made by its wholly-owned entities, associates and joint ventures.  Under IFRS accounting these swaps must be revalued at each reporting date with valuation movements shown in the income statement.  The value of the swaps is calculated as the present value of the payments under the fixed and floating legs over the remaining life of the swap, based on market assumptions of future interest rates.  Where, as is the case at present, the floating rate amounts receivable are expected to be lower than the fixed rate amounts payable, a liability is recognised.  However, that liability would only be crystallised if the swap was cancelled before its expiry date. Included in the figure stated above is the group's share of the three funds interest rate swap mark to market liability at 30 December which was £25.1 million.

The underlying valuation change shows the increase/(decrease) in the value of the portfolio in the month as a percentage of the value of the portfolio at the beginning of the month.

The change in unit value reflects the movement in the capital value (excluding the impact of interest rate mark to market adjustments) of the fund in the month. Investors separately benefit from quarterly distributions of net income and periodic capital distributions.  

- ENDS -

For further information:

Capital & Regional:

Hugh Scott-Barrett, Chief Executive                        Tel:     [phone]

Charles Staveley, Group Finance Director                  Tel:      [phone]

Maitland:

Martin Leeburn                                                     Tel:     [phone]

Emma Burdett                                                      Tel:      [phone]

 

END

 

 

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