Trading resilience at property group amidst tough environment
Property investment, development, hotel and car parking company, Town Centre Securities, (TCS) has reported a statutory pre-tax loss of £29.5m (FY22: profit of £11m) in its audited final results for the year ended 30 June 2023.
Like-for-like portfolio valuation was down 12.6% from June 2022, with real estate investor and market sentiment around the macro-economic outlook negatively impacting valuation yields.
Leeds-headquartered TCS also reports net revenues of £14.8m (FY22: £14.5m) and statutory net assets of £141.1m or 291p per share (FY22: £179.3m, 341p).
The business says its resilient trading performance has continued into the second half of 2023, with rent collections remaining robust at over 99.1% and continuing recovery of momentum in its car parks operation.
Chairman and chief executive, Edward Ziff, said: “It has been another year where we have further strengthened TCS through our disposal programme, the resulting repayment and redeployment of borrowings, and a successful tender offer.
“Our property rental business, car park and hotel operations delivered resilient underlying revenues and earnings against challenging macro-economic conditions, which have led to a further valuation reduction of our property portfolio and impairments to our car park assets.
“However, with low levels of variable interest rate bank debt and reduced loan to value, I am confident we are in a strong position to face up to the challenges that may present themselves.
“Having undertaken such a successful disposal programme over the past few years, our attention is now turning to opportunities to selectively acquire assets and invest in our development programme, ever mindful of adding value whilst retaining robust finances.”
TCS adds it has significant headroom of £30m on its existing revolving credit facilities.
There were 14 new commercial lettings and lease renewals across the business’s portfolio in the period.
And the proportion of retail and leisure assets in TCS’s portfolio has stabilised at 29%, whereas the proportion of residential assets has increased from 6% to 12%.
