Leeds-based property investor and car park operator Town Centre Securities has reported an 8% fall in its net asset value per share from 384p to 354p for the year ended 30 June 2019.
EPRA earnings per share also decreased by 8% to 12p. Meanwhile, EPRA profit before tax fell by 8% to £6.4m, with the firm attributing this to various factors, including investments, the short-term effect of retail CVAs, and a one-off dilapidation benefit in the prior year.
The business also reported a statutory loss of £12.5m for the period, compared with a £18.4m profit in 2018. It said the loss reflected a £18.3m valuation movement on its investment properties
Retail and leisure now accounts for 50% of TCS’s portfolio value, down from 70% in 2016.
Chairman and chief executive Edward Ziff said: “We have delivered a robust underlying performance, while continuing to reposition the portfolio for the long-term and maintaining our 59-year dividend record, despite a challenging retail sector context and ongoing economic uncertainty.”
He added that the firm would ramp up its efforts to diversify away from retail. “Given the current sector challenges and the growing gap between our share price and the underlying value of the business, we continue to look at our potential strategic options. We believe it is appropriate to accelerate the disposal of ex-growth retail properties, which despite the potential short-term impact to income, will de-risk the portfolio and free up capital to re-invest.”
The firm is in the process of reviewing its development pipeline and is also considering an “earnings and NAV-enhancing” share buy-back due to its “deeply discounted share price”.
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