Town Centre Securities is back in the black after pulling in £11m profit.
The result is a marked improvement on last year’s loss of £600,000. The gain is largely due to a valuation increase, which lifted net asset value from £155.4m to £179.3m
Chair and chief executive Edward Ziff said it had been a “year of recovery for the business”.
The REIT has been steadily pulling away from its former retail and leisure base. It now has just 31% of its portfolio invested in the sectors, down from 40% in June 2020 and 60% in 2016.
TCS also has a development pipeline with a GDV of around £740m, including the Whitehall Riverside scheme and a separate office development in Leeds.
Ziff added: “Further successes after the year end, including the significantly accretive sale of our investment in YourParkingSpace, have helped to further reset TCS’s financial position.”
It currently has headroom of £24.7m and lowered net debt by 6.7% to £135m over the period. Net debt will drop to £120m following the sale of YPS after the year end.
Ziff said “opportunistic disposals” of assets to reduce debt would continue.
However, “unless there are acquisitions offering significant opportunities to increase value”, he said TCS was not “envisaging any further property investments until there is stability in the real estate sector and wider economy”.
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