Town Centre Securities hails strong portfolio management

Edward Ziff, Chairman and CEO Town Centre Securities, in his Office overlooking Leeds.   18 March 2013.'Picture Bruce Rollinson
Edward Ziff, Chairman and CEO Town Centre Securities, in his Office overlooking Leeds. 18 March 2013.'Picture Bruce Rollinson
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Statutory pre-tax profit rose at property investment company Town Centre Securities (TCS) as “strong” portfolio management drove a 6.8 per cent increase in net asset value (NAV).

The Leeds-based firm saw statutory pre-tax profit rise to £18.4m during the year ended June 30, up from £6.7m the previous year, reflecting portfolio revaluation gain and disposals.

EPRA profit before tax was down 1.9 per cent to £6.9m, from £7m the previous year, due to the timing of strategic disposals, the company said. EPRA earnings per share was down 1.9 per cent to 13p.

Edward Ziff, chairman and chief executive of TCS, said: “The business has undergone considerable change in recent years as part of a strategy to reposition the portfolio, ensure a resilient income stream, and to unlock growth for the future.

“In the past two years we have reduced our exposure to retail and leisure from 70 per cent to 55 per cent of the portfolio. We are very pleased with the progress made and feel confident about the future.

“In those two years we have disposed of over 8 per cent of the portfolio, during which time we have managed to hold EPRA profitability broadly flat and have increased NAV by 8 per cent.

“Furthermore, we have strengthened the balance sheet, improved our banking facilities and lowered leverage. Our recent financing activity increased capital headroom, however we continue to explore new capital raising options in order to facilitate our significant development pipeline.”

Full year dividend increased to 11.75p, up from 11.50p.

Analysts at Liberum reiterated a buy rating for the company’s stock. It said: “Town Centre Securities’ full year results confirm good progress driving rental growth, repositioning assets towards better uses and delivering the group’s significant development schemes.”