TIDMTOWN
RNS Number : 5582N
Town Centre Securities PLC
21 January 2019
21 January 2019
Town Centre Securities PLC
('The Company' or 'TCS')
Half Year-end Trading Update & Notice of Results
Town Centre Securities PLC, the Leeds, Manchester, Glasgow and
London property investor and car park operator, today announces an
update for its half-year ended 31 December 2018 and its notice of
results.
Overview
TCS has continued to make good progress in the on-going
repositioning of its portfolio. Since July we have undertaken
further asset recycling, made progress in the next phase of our
development programme, and completed the innovative refinancing of
Merrion House. Overall, continued asset recycling has reduced the
proportion of retail and leisure assets to 52%, down from 70% in
2016.
The Company continues to produce consistent operational metrics,
critical to delivering stable long-term underlying financial
performance, despite the challenging market.
Trading
-- Overall occupancy level increased to 96% (June 2018: 95%).
-- Like-for-like passing rent up by 0.9% (FY18: 4.1%) versus a
year ago, supported by the updated Merrion House lease to Leeds
City Council.
-- Rent collection remains strong with 99% of rents collected
within a week of the quarter commencing.
-- CitiPark continues to grow its revenues and profits.
-- Refinancing of Merrion House enhanced financial flexibility
and provided an immediate benefit to our leverage ratios.
Continued repositioning of the portfolio
-- The most recent asset sales and purchases activity further
reduces the proportion of retail and leisure assets to 52%, down
from 70% in 2016.
-- Sale of Rochdale Central Retail Park for GBP13.2m in December
2018, previously generating GBP1.15m annual net rent.
-- Previously announced acquisitions of The Cube in Leeds for
GBP12.8m, a retail unit in Gordon Street, Glasgow for GBP2.6m, and
a retail and residential unit on Chiswick High Road, London for
GBP1.7m. In total these acquisitions will generate on-going annual
income of over GBP1.4m.
Active asset management
-- Whilst TCS has seen some disruption from retail and leisure
administrations and CVAs, our experience in active asset management
will result in on-going rents rising due to an enhanced mix of
replacement tenants.
-- We have seen eight CVAs or insolvencies from tenants in the
last 12 months including Poundworld and Mothercare, representing
2.5% of the total rent roll.
-- By December 2018, six of the eight units had been re-let with
rent ahead of previous levels with new tenants including Iceland
and The Works. The two most recently vacated units are being
actively marketed, accounting for just 0.5% of the total rent
roll.
Investing in acquisition and development opportunities in Leeds
& Manchester
-- TCS continues to focus on property acquisition and
development opportunities in Leeds and Manchester, which it
believes have excellent prospects:
-- In Leeds:
o The JV with Leeds City Council to develop a 126 room
Apart-Hotel with additional ground floor units on George Street,
has received detailed planning consent and work is anticipated to
begin this year.
-- In Manchester:
o Burlington House, a 91-unit residential private rented scheme
(PRS) being developed in JV with Highgrove is on track to achieve
practical completion in May 2019.
o Eider House, our next PRS development in Piccadilly Basin,
Manchester, which has detailed planning consent, is expected to
commence ground works this year.
Notice of half year results
The Company expects to issue its results for the half-year ended
31 December 2018 on 26 February 2019.
Edward Ziff, Chairman and Chief Executive, commented:
"We continue to improve our portfolio and maintain our track
record of managing the business for long-term success,
notwithstanding that the combination of Brexit uncertainty and
continued seismic change in retailing makes it a tougher
environment in which to operate. This means the importance of our
development pipeline, that we have built up over time into a
sizable opportunity, is clearer than ever.
"Our expertise in active asset and tenant management has
resulted in TCS improving future income levels from properties
vacated due to CVAs and insolvencies. Furthermore, while we reduce
the overall proportion of retail in our portfolio, the resulting
greater focus on supermarket and convenience retailing is helping
de-risk the Company from the worst of the high street
disruption.
"We remain optimistic about TCS's prospects and the
opportunities in our development pipeline."
-Ends-
For further information, please contact:
Town Centre Securities PLC www.tcs-plc.co.uk / @TCS PLC
Edward Ziff, Chairman and Chief Executive 0113 222 1234
Mark Dilley, Group Finance Director
MHP Communications 0203 128 8100
Reg Hoare/ Alastair de Kare Silver
Notes to Editors:
Town Centre Securities PLC (TCS) is a Leeds, Manchester, Glasgow
and London based property investment and car parking operator with
assets of over GBP400m. With more than 50 years' experience, a
commitment to sustainable development and a reputation for quality
and innovation, TCS create mixed use developments close to
transport hubs in major cities across the UK. Their current
portfolio delivers an annual income of more than GBP30m.
For more information visit www.tcs-plc.co.uk
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END
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