A revival in the regional property scene helped Leeds-based real estate group Town Centre Securities (TCSC) report a £14.8m valuation gain for the year to June 2015 - equivalent to 7.1 per cent portfolio growth. Underlying profits and earnings per share were lower, but this reflected a lower rental income as the group continued to recycle funds from disposals into new developments. Property disposals at Apperley Bridge and Victoria Gate in Leeds pulled in £9.7m for an exit yield of 3.3 per cent, while four acquisitions were secured for £11.3m, at a net initial yield of 5.1 per cent.
The group's principal asset is the Merrion Centre in Leeds, where a combination of new lettings, renewals and relocations helped lift both rental income and the average lease length. The Merrion Centre Hotel is currently vacant but, subject to final planning consent, work will start on a 134-bed hotel for Ibis Styles and a Marco Pierre White restaurant.
Town Centre also owns car park assets, which were bolstered with the acquisition of sites in Ilford and Watford. With wages forming the second largest expense, the company hopes to make significant savings by using a centralised control room.
Analysts at Liberum are forecasting net asset value (NAV) of 364p a share for June 2016.
| TOWN CENTRE SECURITIES (TCSC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 305p | MARKET VALUE: | £162m | |
| TOUCH: | 302-305p | 12-MONTH HIGH: | 322p | LOW: 242p |
| DIVIDEND YIELD: | 3.4% | TRADING PROPERTIES: | £3.5m | |
| DISCOUNT TO NAV: | 11% | |||
| INVESTMENT PROP: | £348m | NET DEBT: | 95% | |
| Year to 30 Jun | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 288 | 15.4 | 28.8 | 10.44 |
| 2012 | 270 | -4.1 | -7.90 | 10.44 |
| 2013 | 267 | 3.6 | 6.70 | 10.44 |
| 2014 | 308 | 27.4 | 51.6 | 10.44 |
| 2015 | 344 | 24.0 | 45.1 | 10.44 |
| % change | +12 | -13 | -13 | - |
Ex-div: 3 Dec Payment: 5 Jan | ||||
