Town Centre Securities (TCS), the property investor, developer and car park operator, has updated the market on its performance in the half-year ended 31 December 2019 ahead of its half-year results.
TCS is continuing to reposition its portfolio away from retail, investing in its estate through asset management and delivering and improving its development pipeline.
In December, the group exchanged contracts to sell a retail unit in Shandwick Place in Edinburgh. The 6,000 sq ft unit was empty but let for a remaining eight years to Morrisons, and was sold for £2m, 5% above valuation, at a yield of 7%. The sale completed in January 2020.
TCS completed or renewed 42 new leases in the six month period, 16 of which related to the Merrion Estate, its mixed-use, retail scheme in Leeds.
In the six months to 31 December the company was hit by one new administration and no new CVAs. The administration related to a small leisure unit in Leeds with annual rent of £125,000.
TCS continued to make progress with its developments in Leeds (The Cube) and Manchester (Ducie House) and is also about to commence stage four design of its George St Joint Venture development with Leeds City Council with work anticipated to begin in the next six months
Occupancy across its portfolio increased to 96.7% (June 2019: 95.8%), while like-for-like passing rent was up by 0.4% underlying versus a year ago (FY19: 2.6%), excluding the effect of our two significant redevelopment projects:
Its redevelopment in Milngavie in Glasgow is now fully occupied and income producing, delivering £0.6m of annual income and its redevelopment of The Cube, in Leeds is now underway, temporarily reducing income by £1.2m on an annualised basis. Like-for-like passing rent including these two properties was -2.8%.
Footfall at the Merrion shopping centre was 11.2m over the 12 month period, marginally up year on year. The final 10 weeks of the year saw footfall up 6.7% on the prior year.
The company’s CitiPark car park portfolio grew its revenues and profits.
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.
“This is our 16th year, and I am proud that our conservative approach combined with our local expertise and strong asset management skills continue to ensure we deliver for our shareholders over the long term.”
The company expects to issue its results for the half-year ended 31 December 2019 on Wednesday, 26 February 2020.
TOWN : Town Centre Securities updates on performance ahead of half-year results