Property firm announces new share buyback programme
Town Centre Securities (TCS) announced a the latest in a series of share buyback programmes to the London Stock Exchange on Thursday morning.
The Leeds-based property investment, development, car park and hotel operator said share buybacks continue to be an appropriate means of returning value, whilst maximising sustainable long-term growth for shareholders. The new programme will use the remaining buyback authority granted by shareholders in its AGM in December 2021.
It said the board remains “acutely aware” that its shares are trading at a discount compared to its reported net asset value per share (333p compared to an NAV of 341p).
Its results in June showed revenues up by 3.5 million to 14.5 million. The firm has continued to lower its liabilities and refocus its portfolio on residential rental properties.
TCS chairman Edward Ziff told TheBusinessDesk last month that its debt reduction strategy left the firm in a stronger position than it had been in years.
“Property had a great time for quite a long period of time,” he said. “And that was almost too good to be true. And as such, the thing that always follow the boom is the downturn. We sort of set about selling our properties, because I was seriously worried about us being over geared, overtrading, and the impact that that might have in values did collapse.”
He added, “The thing that I quite like about residential investment is that it’s quite counter-cyclical to the rest of the portfolio. Residential values tend to rise during a downturn because people don’t want to risk capital, so there are more people looking to rent properties.”
