Town Centre Securities has posted declines in portfolio value and net asset value per share in the six months ending 31 December, as the pandemic continues to dent its bottom line.
The value of the REIT’s portfolio fell by 0.8% on a like-for-like basis, compared with the previous half-year mark in June. It now stands at £306.9m.
However, TCS’s development pipeline value grew by 6.1%, driven by a 9.7% rise in the value of its Piccadilly Basin site in Manchester.
Its NAV per share dropped by around 2% year-on-year to 286p.
As part of its disposals strategy TCS has reduced its retail and leisure exposure to 39%, down from 47% in June. It sold £41.2m of retail properties during the six months, with sales agreed on average 2% below June 2020 book values.
The REIT, which specialises in investment, development and car parking in Leeds, Manchester, Scotland and London, made a loss before tax of £3.5m.
Edward Ziff, chairman and chief executive, said the pandemic “continues to have a material impact” on profitability, highlighting that as a car park operator, it has continued to pay rent to its local government landlords as well as rates.
He added that TCS will continue to invest in its pipeline and acquire and improve its investment properties to diversify its portfolio.
It’s loan-to-value ratio stood at 48.6% at the end of December.
Ziff said: “The past six months have been critical in the resetting and reinvigorating of the business, and I am particularly pleased with both the progress of our disposal programme and the resilience of the continuing portfolio.
“The reduction in absolute borrowing levels gives both additional security and, as the disposal programme continues, the ability to reinvest in the long-term growth opportunities in our development pipeline.”
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