Town Centre Securities makes solid progress as it continues to expand

Leeds-based property investor and car park operator Town Centre Securities announced its results for the six months ended 31 December on Monday, reporting that net assets per share were up 4.3% since 30 June at 375p.

The London-listed firm said statutory profit before tax was ahead £9.8m at £12.4m, including a £6.4m gain from net movement on its investment property valuation.

EPRA profit before tax decreased 4.6% to £4.0m, which the board put down to strategic disposals, while EPRA earnings per share fell to 7.6p from 8.0p.

The board confirmed an interim dividend of 3.25p - precisely in line with that paid a year ago.

Its loan-to-value ratio fell to 47%, from 49% at the start of the period.

On the operational front, Town Centre said its like-for-like investment portfolio value increased by 0.3%, reversing the 1.4% decrease reported at the end of the second half of the prior financial year.

Its total portfolio value increased 2.4%, with like-for-like passing rent growth slowing slightly to 2.2% from 2.3% in the prior six months.

New net income of £0.3m was reported from the ibis Styles hotel, in addition to its like-for-like rent growth.

Rent receipts for the current quarter were 99% collected within four days of the quarter start, the board reported.

Merrion Centre trading remained strong, and the company was continuing to grow its rental income, while CitiPark was continuing to grow its revenues and profits.

“We are very pleased with the results for the first half of the year, with an increase in the value of our portfolio driving an improved statutory profit,” said chairman and chief executive Edward Ziff.

“To have maintained EPRA profitability close to last year's levels, despite a significant level of strategic disposals and continued investment in our business, demonstrates the strength of the recently completed development programme.”

Ziff said the company was continuing to successfully progress considerable change within its portfolio.

He said the combination of asset recycling, intensive asset management, and a strong development pipeline was ensuring that its future potential is being enhanced, whilst providing new opportunities for growth in income and capital values.

Those opportunities required funding, and having self-funded more than £85m of investment in recent years, the board was now exploring how it might fund investments in our future growth, Ziff explained.

“The strength of our portfolio, and the success of the most recent development phase have allowed us to be bold in the sale of more mature assets.

“Furthermore, the strength of our CitiPark business continues to support financial delivery, whilst also bringing new opportunities such as YourParkingSpace.co.uk.

“We look forward to the future with confidence.”