Net assets rise comfortably at Town Centre Securities

Property investment, development and car parking company Town Centre Securities announced its audited final results for the year ended 30 June on Wednesday, reporting a 6.8% improvement in EPRA net assets per share to 384p.

The London-listed firm said its full-year, fully-covered dividend had increased to 11.75p from 11.50p, with it now having held or improved its dividend every year for the past 58 years.

Statutory profit before tax was £18.4m, rising from £6.7m last year, with and statutory earnings per share ahead at 34.6p from 12.7p, which the board said reflected portfolio revaluation gain and disposals.

EPRA profit before tax did drop 1.9% to £6.9m, which was put down to the timing of strategic disposals, with EPRA earnings per share also down 1.9% at 13.0p.

On the financing front, Town Centre said it had headroom of more than £30m following the Merrion House financing and Ducie House purchase in July, up from £12m headroom in the 2017 financial year.

Its loan-to-value ratio was 47.5% as at 30 June, down from 49.3% year-on-year, with its pro forma loan-to-value at 45.3% post the Merrion House financing in July.

“The business has undergone considerable change in recent years as part of a strategy to reposition the portfolio, ensure a resilient income stream, and to unlock growth for the future,” said chairman and chief executive officer Edward Ziff.

“In the past two years we have reduced our exposure to retail and leisure from 70% to 55% of the portfolio. We are very pleased with the progress made and feel confident about the future.”

Ziff said that, in those two years the company had disposed of more than 8% of the portfolio, during which time it managed to hold EPRA profitability “broadly flat” and increased net asset value by 8%.

“Furthermore, we have strengthened the balance sheet, improved our banking facilities and lowered leverage.

“Our recent financing activity increased capital headroom, however we continue to explore new capital raising options in order to facilitate our significant development pipeline.”