Financial Highlights

Non-statutory measures(1) May 2020 Prior period(2)   Statutory measures May 2020 Prior period(2)
EPRA NTA per share (pence)(3) 430.8 490.8   NAV per share (pence) 423.1 484.2
Total accounting return (%) (12.6) 2.2   Interim dividend per share (pence) 1.1 3.6
Adjusted EPRA earnings (£m) 4.7 16.2   (Loss)/profit for the half year (£m) (134.5) 23.1
Adjusted EPRA EPS (pence) 2.1 7.3   Basic EPS (pence) (60.5) 10.5
See-through loan-to-value (%) 28.1 19.6   Group net debt (£m) 418.3 314.1
  • NAV per share down 12.6% to 423.1 pence (Nov 2019: 484.2 pence) due to pressure on land/retail values.
  • Total accounting return of (12.6)% (2019: 2.2%), in line with reduction in NAV.
  • Adjusted EPRA EPS of 2.1 pence (2019: 7.3 pence), in line with guidance in June.
  • Interim dividend of 1.1 pence (2019: 3.6 pence), reflecting our standard dividend policy.
  • Half year loss of £134.5m (2019: £23.1m profit), 43% of which revaluation of large, complex Wales sites.
  • See-through LTV of 28.1% (Nov 2019: 19.6%), or 25.7% including cash held on short-term deposit.

 

Operational highlights

Momentum has been rebuilt after initial disruption, resulting in operational performance being ahead of initial expectations, whilst positive structural trends in industrial/logistics have accelerated even further and residential demand has returned since lockdown. With a solid financial base, this leaves us well placed for future growth.

 

Industrial & Logistics:

  • Industrial and logistics exposure now accounts for 48% of portfolio (Nov 2019: 44%) following new developments, improving overall resilience, with valuations largely stable and 95% of March and 86% of June rent received, ahead of this point last quarter, and the overall Group collection of 82% and 71%.
  • On track to deliver 1.2m sq ft of new space this year, with 53% of associated £7.7m ERV let or under offer, up from 18% of committed pipeline at start of 2020, reflecting continued strong demand.
  • Preparing to grow committed pipeline to c. 1.5m sq ft in 2021, with significant further potential in 19m sq ft future pipeline and attractive c. 8% yield on cost and c. 9% yield on incremental apex.

 

St. Modwen Homes:

  • Sold 280 units (2019: 411 units) reflecting a pause in build activity during lockdown, with margins down by similar proportion to 10.7% (2019: 14.8%) as operating costs are spread over lower number of sales.
  • Overall private sales, including reserved and exchanged units, on par vs this time last year, with sales rate of 0.8 per week since end of March, ASP in line with book value and private order book up 31%.
  • Home Builders Federation customer satisfaction rating tracking over 95%, supporting 5* rating, and net promotor score of 70 (2019: 76), underlining high quality and continued focus on customer service.

 

Strategic Land & Regeneration:

  • Residual retail assets impacted by mandatory closure of non-essential shops during lockdown, with 65% of March rent received and, so far, 51% of June, ahead of this time last quarter.
  • Exchanged contracts to sell £47m of residential land, £17m of which in July at pricing in line with pre-COVID levels, plus £12m of non-core assets, with c. £200m of disposals planned for the next c. 3 years.
  • Valuation of retail assets and residential land down £113m, 61% driven by large, complex Wales sites.

 

Responding to the current climate:

  • Protected financial strength, with see-through cash of £157m and no Group debt maturing until 2023.
  • Amended interest cover covenants of Group debt facilities and eligible to access CCFF funding scheme, which remains unutilised but provides assurance in the event of a severe market deterioration.
  • Reduced cost base, resulting in c. £6-7m saving this year, or c. 15% of 2019 business unit operating and central administrative expenses; St. Modwen decided not to use Government CJRS furlough support.