Town Centre Securities (TCS) has announced it will pay an interim dividend for the six months to the end of December 2019, but has put future payments under review.
The company, which owns a portfolio of retail, leisure and car parks, has said it will pay the previously announced 3.25p dividend in June, but its final dividend will depend on future rent collections.
Of the £6.6m of rent and service charge that has been billed since the outbreak of covid-19, 75% has been collected with a further 11% deferred. Of the remaining £0.9m, concessions have been agreed on £0.3m of rent in return for an improvement in terms or length of lease and tenant discussions remain on £0.6m of rent.
The group said its CitiPark car parking business has been hardest hit so far, experiencing a material reduction in income, while fixed costs such as rents and rates will result in a significant reduction in profitability.
Over a third of its retail and leisure portfolio, which makes up just less than half of the asset base, is currently open and trading. At the Merrion Centre, in Leeds, around 43% is open and TCS is making detailed plans to open all of its locations from the 15 June.
Edward Ziff, chairman and chief executive, said : “We are doing everything possible to manage TCS through this challenging period with the long-term sustainability of the business being our primary aim and focus, recognising that we are now operating in an uncertain environment which will impact our current and future financial performance. However, we are proud of our dividend history and believe strongly that it is both appropriate and responsible to pay the declared interim dividend for the period ended 31 December 2019.”
TOWN : Town Centre Securities to pay interim dividend