Town Centre Securities has posted a 0.4% rise in like-for-like passing rent during the six months ending 31 December.
However, this does not include the impact of its two redevelopment projects in Leeds and Milngavie near Glasgow. Including these, like-for-like passing rent fell by 2.8%.
The Leeds project is generating annual income of £600,000, but the Milngavie scheme’s income has fallen by £1.2m on an annualised basis.
Occupancy has increased to 96.7%, from 95.8% in June 2019.
The company said it had completed or renewed 42 new leases in the past six months, 16 of which related to the Merrion Estate in Leeds. New tenants lined up for early 2020 include Domino’s and the Co-op.
During the period the company suffered the impact of one tenant administration, but no new CVAs. The administration related to a small leisure space in Leeds, with annual rent of £125,000.
Edward Ziff, chairman and chief executive, said: “Once again our diversified regional portfolio and high-quality tenant mix have ensured a stable and secure first six months of the year.
“Underlying rent continues to grow, with reductions largely being planned, strategic and for long -term gain. We remain confident about our future direction, highlighted by our continued investment in our existing properties and progress in our development pipeline.
“We continue to explore opportunities to dispose of further retail assets, but will only do so for the right deal.”
As well as the two redevelopment projects, it is preparing to commence stage-four design of its George Street joint venture development with Leeds City Council, with work anticipated to begin in the next six months.
The update comes ahead of its full half-year results announcement, which will be issued on 26 February.
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