Property and car parks group launches share buy-back programme

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Town Centre Securities, (TCS) a listed property investment, development and car park operator, has today launched a share buy-back programme worth up to £5m.

The Board of the Leeds-based business says it is “acutely aware” of the significant discount its shares trade at relative to TCS’s last reported net asset value (NAV) per share of 286p (EPRA NTA per share – 278p).

It notes: “The Board regularly reviews capital allocation to optimise long-term returns for shareholders.

“Reflecting this TCS has continued to make disposals of non-core assets to reduce debt, whilst investing part of the proceeds in our asset management, development opportunities and car park business.

“Given the wide discount referred to above, the Board believes that share buybacks are an appropriate means of returning value, whilst maximising sustainable long-term growth for shareholders, given the enhancement to NAV and earnings per share (pre the effect of Covid) that will result from reducing the number of shares in issue.”

TCS implemented a successful share buy-back programme in the early 2000s, which significantly enhanced shareholder returns in subsequent years.

The programme begun today is expected to continue until the company’s 2021 Annual General Meeting, which is expected to be held in November 2021.

No purchases will be made by the company under the programme unless they are accretive on a per-share net asset value basis.

Any purchase of ordinary shares will be executed in accordance with the firm’s general authority to repurchase ordinary shares granted by its shareholders on 17 November 2020, up to a maximum of 7,974,292 ordinary shares, representing 15% of TCS’s issued share capital.

TCS adds: “The Board will keep the programme under review to make sure it continues as an efficient and effective means of generating value for shareholders.

“While the company has launched the programme, there is no certainty on the volume of shares that may be acquired under the programme and the pace of acquisitions.”