Consistent trading performance at listed property investor
Property investor Town Centre Securities (TCS) says its diverse portfolio of assets has ensured a stable, secure six months for the business.
In a half year-end trading update today the company, which is headquartered in the Merrion Centre in Leeds, adds it has continued its strategy of repositioning its portfolio and investing in its estate.
It reports that its occupancy levels increased to 96.7% (June 2019: 95.8%), while like-for-like passing rent was up by 0.4% underlying (FY19: 2.6%) versus a year ago.
TCS’s redevelopment of The Cube, Leeds is now underway, temporarily reducing income by £1.2m on an annualised basis.
Merrion footfall of 11.2m over the 12 month period was robust, being marginally up year on year. The final ten weeks of the year however were particularly strong at the centre, with footfall up 6.7% on the prior year.
The company’s car parking operation, CitiPark, continues to grow its revenues and profits.
TCS’s update adds: “We have completed or renewed 42 new leases in the past six months, 16 of which related to the Merrion Estate. New tenants we will be welcoming in early 2020 include Domino’s, Co-op, and We are Cow.
“We continue to invest in our assets in Leeds and Manchester including redeveloping The Cube in Leeds, and Ducie House in Manchester.
“We are also about to commence stage four design of our George St Joint Venture development with Leeds City Council with work anticipated to begin in the next six months.”
The company expects to issue its results for the half-year ended 31 December 2019 on 26 February 2020.
Edward Ziff, chairman and chief executive, said: “Once again our diversified regional portfolio and high quality tenant mix have ensured a stable and secure first six months of the year.
“Underlying rent continues to grow, with reductions largely being planned, strategic and for long term gain. We remain confident about our future direction, highlighted by our continued investment in our existing properties and progress in our development pipeline.
“We continue to explore opportunities to dispose of further retail assets, but will only do so for the right deal.
“This is our sixtieth year, and I am proud that our conservative approach combined with our local expertise and strong asset management skills continue to ensure we deliver for our shareholders over the long term.”
