Town Centre Securities (TOWN) has posted a 17.4% fall in net asset value (NAV) in full year results to the end of June 2020.
The company, which owns property in Leeds, Manchester and London, saw its NAV fall from 354p to 292p per share, primarily as a result of a revaluation of its portfolio, which fell 6.9%.
Earnings were heavily impacted by COVID-19, with adjusted EPRA earnings before tax falling to £2.6m (2019: £6.4m) driven by an estimated £3.6m COVID-19 impact. Adjusted EPRA earnings per share was 4.9p (2019: 12.0p).
The result was a statutory loss before tax of £24.2m (2019: loss of £12.5m) and statutory loss per share of 45.5p (2019: loss of 23.4p), impacted by the unrealised £26.4m portfolio valuation and impairment movement.
The group’s loan to value (LTV) is now 53.2% (2019: 49.3%). This improves to 47.9% following the £35.2m of sales since year end. It has headroom of £13.9m as at 1 September 2020 on debt covenants.
TOWN paid a reduced dividend in the year of 5p per share (2019: 11.75p) due to the impact of COVID-19. A final dividend of 1.75p was declared, following interim dividend of 3.25p declared at the half-year.
Of the £13.3m rent billed since March 2020, £10.9m or 82% has been paid, as at 15 September 2020. A further £0.5m or 4% has agreed to be deferred, while £0.8m has been waived. On the remaining £1.1m, no agreement has yet been reached with the tenant.
Chairman and chief executive Edward Ziff, said: “The final third of our financial year was especially tough, but I believe the underlying strength of the business, together with our conservative focus on long-term, sustainable performance, as well as recent strategic changes to our portfolio, have enabled us to limit the worst impact of COVID-19.
“We are very disappointed to break our 60-year track record of delivering a maintained or increased dividend although we were pleased to be able to keep our commitment to pay the interim dividend. However, the unpredictable nature of the COVID-19 crisis has made the decision to reduce the full year dividend payment the right one for the business.
“Looking forward, the board is using this moment to reset and reinvigorate the business; we have determined that the overall strategy remains appropriate but requires acceleration particularly with regards to the disposal programme, as evidenced by the significant sales completed recently. This will affect future earnings and dividend levels, however we believe longer-term we shall emerge as a stronger business and look to the future with confidence.”
TOWN : Town Centre Securities sees NAV fall 17.4% in year