Leeds-based property investor and car park operator Town Centre Securities has reported a 6% fall in its net asset value to £191.8m in the six months to 31 December 2018.
Net asset per share also decreased, to 361p, mainly as a result of the unrealised revaluation deficit and loss on disposal of investment property. This included the sale of a retail park in Rochdale that was below the June valuation in December. With costs included, this resulted in a £1m disposal loss.
TCS saw the value of its portfolio fall to £368.5m, from £403.5m in June last year. The decrease primarily stemmed from its retail portfolio, which in total saw a 4.3% reduction in value compared with June 2018.
The business also reported a pretax loss of £8.7m for the period, compared with a £12.4m profit for the same period in 2017.
TCS said this reflected the “challenging market conditions for retail property in particular”.
In addition, TCS reported that EPRA earnings for the period decreased by 8.8% to £3.7m, compared with £4m for same period in 2017. EPRA earnings per share decreased to 6.9p, from 7.6p in 2017.
TCS’ total net borrowings at 31 December 2018 were £186.9m, giving a loan-to-value ratio of 46.8%.
Edward Ziff, chairman and chief executive of TCS, said: “While it is disappointing to report half-year valuation reductions and profits slightly down due to short-term market fluctuations and some one-off costs, I remain confident in the quality and potential of our portfolio and the changes we are making to it.
“Our substantial development pipeline also underlines the opportunity for meaningful long-term growth.”
To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette
