‘Robust’ performance for listed property investor
Town Centre Securities, (TCS) a property investment, development and car park operator, says continued investment in its assets has bolstered its position for the second half of 2019.
The company, which is headquartered in the Merrion Centre in Leeds, has today announced its results for the six months ended 31 December 2019, which feature a 1.2% fall in like for like portfolio value.
Like for like passing rent was up by 0.4% (FY19: 2.6%) versus a year ago, excluding the effect of the company’s Milngavie and Cube redevelopment projects.
Overall occupancy level increased to 96.7% (June 2019: 95.8%) Retail & leisure exposure reduced to 49%, from 70% in 2016. Pure retail now only accounts for 35% of TCS’s portfolio by value.
TCS said it has applied IFRS 16 lease accounting standard for the first time, which has reduced its earnings by £0.3m.
In future the company says it will also report Adjusted EPRA Earnings which, removes the effect of IFRS 16.
Its adjusted EPRA Earnings before tax increased to £4.4m (2018: £3.7m), mainly driven by one off dilapidations income in the current year. EPRA Earnings were £4.1m (2018: £3.7m).
And TCS recorded a statutory loss before tax of £0.2m, with EPRA Earnings offset by unrealised valuation movements (2018: £8.7m loss).
Edward Ziff, chairman and chief executive, said: “In our sixtieth year I am pleased to report a resilient set of results and the continuation of our strong dividend track record.
“We continue to invest in our assets, with significant redevelopment schemes underway in both Leeds and Manchester.
“Plans for our next development, a joint venture with Leeds City Council to build a 136-room aparthotel, are progressing well.
“The active management of our portfolio has ensured delivery of resilient earnings and a stable valuation.
“Of particular note, is the increase in value of the Merrion Estate. The ongoing diversification of our portfolio, with our retail assets representing only 35% of the portfolio, will continue as we actively look to further sell retail assets.”
TCS said its Merrion Estate income has increased and the valuation, both including and excluding offices, has also risen.
Merrion footfall increased over the past 12 months, with the final ten weeks of the year proving particularly strong, up 6.7% on the prior year.
TCS said its development pipeline currently has an estimated gross development value of over £600m.
It is investing £4m in The Cube offices in Leeds. Acquired in 2018, the investment will create 50,000 sq ft of office space, and deliver a post-investment running yield of over 8.5%.
