FINANCE: Town Centre Securities has posted a 15% rise in net asset value to 308p a share in its final results for the year to 30 June.
The Leeds-based property investment, development and car parking business revealed the rise after the value of its property portfolio rose £19.8m, up from a £3.8m deficit last year.
On a like-for-like basis the investment portfolio showed an increase in value of £27m or 9.9%.
The strongest-performing property was the Merrion Centre in Leeds with a 16.3% increase in capital value and growth of over £1m pa in both passing rent and ERV, reflecting the benefit of the capital expenditure during the year. Overall the ERV has grown by 15% or £3m to £22.7m.
The group also announced that Morrisons has agreed a lease renewal of its store at the shopping centre. This will result in a 20% expansion of the shop and will add around £500,000 pa to rental income. The transaction relocates Peacocks and 3 Store within the centre, significantly improving the overall retail offering.
After including acquisitions and developments TCS’s portfolio at the year end stood at £325.2m, up from £301.0m last year. The current occupancy rate is 97.5%.
The rise in value contributed to a statutory profit after revaluation of £27.4m – up from £3.6m in 2013, while underlying profit was ahead of expectation at £7.6m.
Underlying earnings per share were 14.4p – up from 13.7p – at the same time last year. Basic earnings per share including the property valuation surplus were 51.6p.
Chairman and chief executive Edward Ziff said: “We have produced another strong trading performance and our properties are now starting to show some of the growth which we have seen in London recently.
“Our returns to shareholders are showing the benefit of our continuing intensive management and regular churning of the portfolio.
“Recent letting deals in the Merrion Centre have been exceptional and we have seen excellent growth in value as well. The car park business has also outperformed.
“We remain conservatively funded and committed to delivering superior cash returns to shareholders.”
bridget.oconnell@estatesgazette.com
