Town Centre Securities, Edward Ziff’s Leeds-based property investment and development company, has posted a 263p net asset value per share – a 2.6% fall from 270p last June.
In its half-year results for the six months ended 31 December 2012, chairman and chief executive Ziff blamed an increase in borrowing costs, following refinancing at the end of 2011, for a “slight” fall in profits.
Gross borrowings rose to £153.4m from £145.5m last June after it spent £9.7m on acquisitions.
The group’s underlying profit before tax stood at £3.8m compared with £4m in 2011.
Overall occupancy across the portfolio increased to 97.9% from 97% last June.
The groiup bought 6-7 Park Row, Leeds and Apperley Bridge, Bradford during the period at an average running yields of 9.2%.
Ziff said: “The increase in our borrowing costs, following refinancing at the end of 2011, resulted, as anticipated, in a slight fall in profits. Importantly our underlying portfolio performance was in line with our expectations, despite difficult market conditions.
“We have operated in a market lacking consumer and general business confidence for a number of years and we do not expect that situation to change in the short term. For the year as a whole, however, our outlook is unchanged. We retain a robust financial position with the majority of our funding secured until 2031 and bank funding until 2015 and 2016.”
annabel.dixon@estatesgazette.com
