Town Centre Securities sees profits grow

PROPERTY firm Town Centre Securities said today that half-yearly profits had risen as empty shopping centre units were filled or sold.

The Leeds-based firm said underlying profit before tax for the six months to 31 December 2010 was £4.4m, up from £2.5m for the same period in 2009.

Town Centre, which owns shopping venue the Merrion Centre in Leeds, said rent collections had been strong with a “small profit” being made from the sale of two properties in Bradford and Kings Lynn for net proceeds of £1.5m.

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Rental income has increased by 1.8 per cent with the Merrion Centre seeing income growth of 4.7 per cent.

Edward Ziff, chairman and chief executive, said: “We have reported a significant improvement in our underlying profitability.

“This follows the continued focus on reducing occupancy voids and the rebasing of our operating costs and interest charges.

“Our investment portfolio has demonstrated continued stability with an increase in value of 1.6 per cent. We have also seen income growth of 1.8 per cent on our current portfolio due to increased occupancy.”

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TCS was the best performing real estate investment trust (REIT) in 2010 according to Arbuthnot Securities, Mr Ziff added.

Profit after tax was £7.8m , compared to £31.5m (including £9m profit on repurchase of debenture stock) for the same period in 2009.