Final results for the year ended 30 June 2017

2017-09-13

Resilient Portfolio Performance Underpins Growing Dividends

Town Centre Securities PLC (“TCS”), today announces its audited final results for the year ended 30 June 2017.

Financial highlights
• EPRA Net assets per share up 0.6% at 359p (2016: 357p)
• Full Year dividend up 4.5% to 11.5p (2016: 11.0p), 1.2 times covered
• Statutory profit before tax £6.7m (2016: £11.9m) and statutory earnings per share 12.7p (2016: 22.4p)
• EPRA profit before tax up 6.7% to £7.0m (2016: £6.6m)
• EPRA earnings per share up 6.7% to 13.2p (2016: 12.4p)
• Total shareholder return of 9.6% (2016:(3.9%)) vs comparable market of 9.2% (2016: (11.7%))
• Bank facilities total £108m with headroom of £26m (2016: £27.7m)

Operating performance
• Total property return of 6.0% (2016: 7.8%) vs MSCI All Property 5.5% (2016: 8.9%)
• Passing rent up 2.3% like for like
• Total ERV up 2.7% like for like
• Like for like investment property valuation decrease of 1.4% (2016:0.2%), development property increase of 20.1% (2016:23.5%), overall property valuation flat (2016:2.2%);
• Occupancy remains high at 99% (2016:98%)

Operational highlights
• Active capital recycling enables reinvestment:
o Sales of properties in Scotland for a total consideration of £19.5m, with the sales ahead of previous valuations

• Intensive asset management has increased like for like revenue:
o Good progress with Merrion Centre enhancements; Arena quarter now fully let which will add another £155,000 annualised to income
o 178 transactions completed in the year, up from 141

• Development programme on track to deliver increases of £1.8m per annum in income and over £10m in net assets. Total spend in the year of £20m, with additional costs to complete of £5m:
o Merrion House, Leeds – completion expected in January 2018
o ibis Styles Hotel, Leeds – completed in March 2017, trading above expectations
o Whitehall Road, Leeds – handed over to Premier Inn in February 2017

• Development of Piccadilly Basin, Manchester represents an exciting programme for years to come:
o 2 JV’s established as part of a potential wider £240m residential programme
o 91 unit scheme on Tariff Street, and 31 unit loft scheme in Brownsfield Mill

• Innovative swap deal with Evans of Leeds (“Evans”) completed in June 2017 in relation to our Piccadilly Basin (Manchester) and Buckley House (Leeds) holdings:
o Sale on a long lease of a 0.6 acre section of our Manchester site for £2.775m to Evans, who have obtained planning permission for a 137 bedroom 5 star Dakota Deluxe Hotel
o TCS has purchased Evans’ joint venture shares to take 100% ownership of Buckley House on Vicar Lane, Leeds, for £1.8m. TCS now controls the full island site at the front of the new Victoria Gate (John Lewis) shopping centre;

• CitiPark – further progress in expansion of car parking business:
o profits up 11.8% on prior year
o 16th car park acquired at Rickmansworth underground station for £2.3m; a freehold 140 space multi storey branch

Commenting on the results, Chairman and Chief Executive Edward Ziff, said:

“We are pleased with the progress that we achieved last year which belied the market backdrop of economic and political uncertainty following the Brexit referendum.

“Our continuing intensive management of the portfolio has again produced increases in rental income and capital value, broadly mitigating those assets which experienced market driven falls in value.

“Our capital recycling programme has accelerated with the disposals from our Scottish portfolio and we expect to make further disposals this year. We are actively looking to reinvest the proceeds of these sales as and when we see the right opportunities.

“The development programme has gone well and continues to drive increases in income throughout the portfolio which has allowed us to be bold in terms of disposing of mature properties. The portfolio holds extensive further development opportunities.”

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For further information, please contact:

Town Centre Securities PLC
Edward Ziff, Chairman and Chief Executive 0113 222 1234
Mark Dilley, Group Finance Director 0113 222 1234

MHP Communications
Reg Hoare / Gina Bell 020 3128 8100
tcs@mhpc.com