LONDON (ShareCast) - (Sharecast News) - Capital & Counties reported total equity of £1.8bn at the end of its first half on Tuesday, remaining stable compared to the end of 2021, as it awaited regulatory approval of its proposed merger with Shaftesbury.

Its EPRA net tangible assets slipped to 209p per share as at 30 June, from 212p on 31 December.

The FTSE 250 company said its total property value increased 4.5% on a like-for-like basis over the six months, to £1.9bn.

Its group net debt-to-gross assets ratio stood at 25%, up from 24% at the end of December, while its Covent Garden loan-to-value ratio increased to 20% from 15%.

Underlying earnings came in at 0.5p per share, up from nil pence per share a year ago, as the board proposed an interim dividend of 0.8p per share, up from the 0.5p distribution it made at the same time last year.

"There has been strong operational progress at Covent Garden with high occupancy levels and excellent demand across all uses," said chief executive officer Ian Hawksworth.

"Leasing activity for the first half was 9% ahead of the December estimated rental value, resulting in a 5% valuation uplift.

"The progress reflects the continued attraction of London's West End to domestic and a growing number of international visitors, with customer sales in aggregate ahead of 2019."

Hawksworth said that, while the broader macroeconomic and political outlook remained uncertain, Capco was "very well positioned" with a "strong" balance sheet, low leverage and high liquidity.

Capco's proposed merger with Shaftesbury, meanwhile, was approved by shareholders on 29 July, with the company saying completion was expected by the end of the year, subject to the clearance of the Competition and Markets Authority.

"We are delighted that shareholders have recognised the benefits of the merger with Shaftesbury by voting in favour of the transaction last week," Ian Hawksworth added.

"Blending the best of both companies, Shaftesbury Capital aims to be a leading central London mixed-used real estate investment trust with an exceptional portfolio of approximately 670 properties across the West End delivering sustainable value for shareholders."

At 1004 BST, shares in Capital & Counties Properties were down 1.83% at 144.5p.

Reporting by Josh White at Sharecast.com.

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