Town Centre Securities

Latest Quarter (Q4):

• TCS billed a total of £5.2m of rent and service charge (inc. VAT) for the English quarters payable on 24 June and 1 July 2020
• As of 8 July 2020, TCS had successfully collected £3.5m or 68%. A further £0.6m or 11% has been agreed to be deferred. This totals an agreed collection of £4.1m or 79%
• Of the £1.1m remaining, £0.2m has been waived with a further £0.9m requiring some form of agreement

Previous Quarter (Q3):

• As an update on the previous March / April quarter (including monthly payments) and the Scottish quarters payable in May:
o TCS billed a total of £6.6m of which £5.2m or 79% has been successfully collected
o A further £0.5m or 8% of deferrals have been agreed, giving a total agreed collection amount of £5.7m or 87%
o A further £0.9m remaining outstanding of which £0.4m has been waived

Cumulative total for Q3 and Q4:

• Therefore for all the cumulative rent payments that have fallen due since 25 March 2020, of the £11.8m rent and service charge billed we have collected £8.7m or 74%, with a further £1.1m or 9% that we have agreed to defer, totalling £9.8m or 83% of the amounts due
• Of the £2.0m remaining (out of £11.8m):
o We have agreed certain concessions over £0.6m of this outstanding amount, in return for an improvement in the terms or length of the lease
o Of the balance of £1.4m, we continue to attempt to come to a fair and equitable conclusion with the respective tenants

Operational Update:

• Over 75% of our retail and leisure portfolio, which makes up just under half of the asset base, is now open and trading. At the Merrion Centre this continues to increase and now stands at approximately 60%
• We are working closely with our tenants to help ensure a safe and successful reopening of their businesses
• We have experienced one administration during the period in respect of Go Outdoors, following the recent announcement by its parent company, JD Sports Fashion Plc, which is a tenant at our Piccadilly Basin site; we already have alternative use options identified for this space and are reviewing our options
• We have now reopened all of our CitiPark car parking branches and with the easing of lockdown we are beginning to see a gradual improvement in usage. As previously disclosed, our CitiPark business has been hardest hit so far, experiencing a material reduction in income
• As the business continues to furlough some staff, the Board has determined that it is appropriate for the salaries of all Board members to remain reduced by 20% for a further three months until the end of September
• Consistent with its previously declared strategy, the Company continues to explore opportunities to dispose of retail properties from within its portfolio

“Whilst common sense has prevailed in the majority of conversations with our stakeholders, this has not universally been the case; we were particularly disappointed with JD Sports in relation to the administration of its subsidiary Go Outdoors. Fortunately, such actions have been the exception rather than the norm.

“Recognising that we are operating in an uncertain environment that is impacting our financial performance, we continue to manage TCS through this difficult period with the long-term sustainability, and continuing reshaping, of the portfolio being our primary aim and focus”.

To read the all announcements visit: tcs-plc.co.uk/investors