Leeds-based Town Centre Securities has started its financial year with a 4.3% uptick in its net asset value to £199.3m.
In the six months to the end of December, the developer said its net asset value per share was up 4% to 375p which was 4% ahead of its 361p forecast, aided by a strong revaluation gain on developments, in addition to a stable like-for-like portfolio.
An overall 2.4% increase in property revaluation reflected a 0.3% rise in valuation of TCS’s like for like portfolio and a 30.2% uplift on developments, principally in Manchester, as the group’s schemes make progress.
Within the existing portfolio, valuations of hotels were up 8.7% and offices saw an uplift of 2.5%. Out-of-town retail declined by 6.6%, which TCS said was principally to Rochdale retail park, Greater Manchester, and the decision by Homebase to vacate a large unit at Milngavie in Scotland. TCS said: “Reassuringly, management intends to split this unit into three and discussions are already underway with potential occupiers which should reverse this decline.”
Statutory profit before tax was up £9.8m to £12.4m, including a £6.4m gain from net movement on the investment property valuation.
Edward Ziff, TCS chairman and chief executive, said: “We are very pleased with the results for the first half of the year, with an increase in the value of our portfolio driving an improved statutory profit. To have maintained EPRA profitability close to last year’s levels, despite a significant level of strategic disposals and continued investment in our business, demonstrates the strength of the recently completed development programme.
“We continue to successfully progress considerable change within our portfolio. The combination of asset recycling, intensive asset management, and a strong development pipeline ensure that our future potential is being enhanced, whilst providing new opportunities for growth in income and capital values. These opportunities require funding, and, having self-funded over £85m of investment in recent years, we are exploring how we might fund investments in our future growth.”
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