Property firm Town Centre Securities sees profit growth despite Brexit uncertainty

The Leeds-based property developer said pre-tax profit rose from £6.6m to £7m. While earnings per share was up 6.7 per cent to 13.2p.

Edward Ziff, chairman and chief executive of TCS, said: “We are pleased with the progress that we achieved last year which belied the market backdrop of economic and political uncertainty following the Brexit referendum.

“Our continuing intensive management of the portfolio has again produced increases in rental income and capital value, broadly mitigating those assets which experienced market driven falls in value.

“Our capital recycling programme has accelerated with the disposals from our Scottish portfolio and we expect to make further disposals this year.”

The firm reported sales of properties in Scotland for a total consideration of £19.5m.

Mr Ziff added: “We are actively looking to reinvest the proceeds of these sales as and when we see the right opportunities.”

TCS said its development programme was on track to deliver increases of £1.8m per annum in income and over £10m in net assets. Total spend in the year was £20m, with £5m additional costs to complete Merrion House, ibis Styles Hotel and the Whitehall Road Premier Inn, all in Leeds.

Merrion House is expected to be completed in January 2018. ibis Styles Hotel was completed in March 2017 and is said to be trading above expectations. The Whitehall Road site was handed over to Premier Inn in February 2017.

“The development programme has gone well and continues to drive increases in income throughout the portfolio which has allowed us to be bold in terms of disposing of mature properties,” Mr Ziff said. “The portfolio holds extensive further development opportunities.”