Yorkshire-based property developer Town Centre Securities (TCSC) is benefiting from increased interest, as investors begin to seek better returns outside of the expensive London market.
In fact, the group's property investment portfolio, which grew in value on a like-for-like basis by 4 per cent in the period, has been worked hard - it reported a 98 per cent occupancy rate and virtually all rents were collected within five days of the quarter date. Central to the portfolio is the Merrion Way complex in Leeds which, following redevelopment, has already achieved 70 per cent of the rental value. Three units have been kept back to allow entry for some well known restaurant brands when final terms can be agreed.
Work is also progressing on the refurbishment of Merrion House, currently used by Leeds City Council. The building is due for an update and the council is taking advantage of this by relocating from 15 existing sites into what will be an extended property. It's also taking on a 25-year lease and a 50 per cent interest. In addition, Town Centre has secured detailed planning consent for a 128-bedroom hotel, as well as outline consent for a 600,000 square foot mixed use development at Whitehall Riverside in Leeds.
Broker Oriel Securities expects full-year adjusted net asset value (NAV) per share of 280p, rising to 293p in 2015 (from 267p in 2013).
| TOWN CENTRE SECURITIES (TCSC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 231p | MARKET VALUE: | £121m | |
| TOUCH: | 226-238p | 12-MONTH HIGH: | 242p | LOW: 179p |
| DIVIDEND YIELD: | 4.5% | DEVELOPMENT PROP: | £13.7m | |
| DISCOUNT TO NAV: | 18% | |||
| INVESTMENT PROP: | £291m | NET DEBT: | £158m | |
| Half-year to 31 Dec | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 267 | 0.12 | 0.2 | 3.1 |
| 2013 | 283 | 12.3 | 23.2 | 3.1 |
| % change | +6 | +10150 | +11500 | - |
Ex-div: 28 May Payment: 27 Jun | ||||
