GLEN ARNOLD INVESTMENTS
  • About
  • Henry Spain
  • Books
    • My Books
    • Other Books
  • Blog
  • Portfolio
    • Buffett-style
    • Modified price earnings ratio
    • Net Current Asset Value
  • Resources
    • glossary of investment terms >
      • A - B
      • C
      • D - E
      • F - G
      • H - I - J - K
      • L - M - N
      • O - P
      • Q - R
      • S
      • T - U - V - W - Y - Z
    • TOP 10 TIPS FOR INVESTORS

Capital and Counties properties – can it weather the financial storm?

11/11/2020

0 Comments

 
Capital and Counties, Capco (LSE:CAPC), owner of Covent Garden, is selling at less than net current asset value, and therefore appears to be a bargain.  However, Mr Market marked it down because he fears that so much rental income will be lost due to Covid-19 and property investors will demand higher yields that property values will decline significantly wiping out a lot of the balance sheet assets – an issue dealt with in my last newsletter. Mr Market also fears that the loss of cash inflows and profits will result in it being unable to manage its debt load.
Debt
The table provides the key data on debt. Note that in 2020 debt rose as the company drew down some of its revolving credit facility. But this was not distressed borrowing. An asset was bought with the money: 26% of Shaftesbury, which owns 15.2 acres of West London including Carnaby Street and Chinatown.
  June 2020 Dec 2019 Dec 2018
Cash, £m 295 153 33
Loan notes -548 -546 -548
Bank loans     -63
Finance lease obligations -10 -11 -6
Revolving credit facility maturing between 2024 and 2037 -449 nil nil
Net debt -712 -404 -585
       
Undrawn committed facilities under the RCF, £m 255 715 802
       
LTV ratio (net debt to property value) 32% (Limit set by banks 40%) 16.3………………To read more subscribe to my premium newsletter Deep Value Shares – click here http://newsletters.advfn.com/deepvalueshares/subscribe-1
0 Comments



Leave a Reply.

    Picture

    Glen Arnold

    I'm a full-time investor running my portfolio. I invest other people's money into the same shares I hold under the Managed Portfolio Service at Henry Spain. Each of my client's individual accounts is invested in roughly the same proportions as my "Model Portfolio" for which we charge 1.2% + VAT per year. If you would like to join us contact Jackie.Tran@henryspain.co.uk

     investing is about making the right decisions, not many decisions.

    Categories

    All
    Berkshire Hathaway (NYSE:BRK.A)
    Caffyns
    Capital And Counties
    Character Group
    Charlie Munger
    Connect Group
    Daejan-lsedjan
    Dewhurst-lsedwhta
    Highcroft
    Investment-ideas
    Investment Philosophy
    John Templeton
    J Smart
    McCarthy And Stone
    MS International
    Orchard Funding
    Samuel Heath
    Tandem
    TClarke (LSE:CTO)
    Town Centre Securities
    Wynnstay

    Archives

    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    October 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020

    RSS Feed

In the short-run, the market is a voting machine – reflecting a voter-registration test that requires only money, not intelligence or emotional stability – but in the long-run, the market is a weighing machine.  Benjamin Graham




  • About
  • Henry Spain
  • Books
    • My Books
    • Other Books
  • Blog
  • Portfolio
    • Buffett-style
    • Modified price earnings ratio
    • Net Current Asset Value
  • Resources
    • glossary of investment terms >
      • A - B
      • C
      • D - E
      • F - G
      • H - I - J - K
      • L - M - N
      • O - P
      • Q - R
      • S
      • T - U - V - W - Y - Z
    • TOP 10 TIPS FOR INVESTORS