Town Centre Securities has posted a like-for-like passing rent increase of 0.9% for the six months to December 2018.
The firm said that despite eight of its tenants being hit by CVAs or insolvencies in the past 12 months, including Poundworld and Mothercare, it expected rents to continue to increase.
“Our experience in active asset management will result in on-going rents rising due to an enhanced mix of replacement tenants,” it said.
The company has relet some vacant units to new tenants including Iceland and The Works. It now has two vacant units which are being “actively marketed” and represent 0.5% of the total rent roll.
It said like-for-like passing rent was also boosted by the updated Merrion House lease to Leeds City Council.
Edward Ziff, chairman and chief executive, said: “We continue to improve our portfolio and maintain our track record of managing the business for long-term success, notwithstanding that the combination of Brexit uncertainty and continued seismic change in retailing makes it a tougher environment in which to operate. This means the importance of our development pipeline, which we have built up over time into a sizable opportunity, is clearer than ever.”
He added that as the company reduces its exposure to retail, the “resulting greater focus on supermarket and convenience retailing is helping de-risk the company from the worst of the high street disruption”.
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