Town Centre Securities has "confidence" in future growth as property portfolio value increases

Town Centre Securities PLC, the Leeds-based property investor and car park operator, is looking to the “future with confidence” after announcing its results for the six months ending 31st December 2017.

During this period, the company reported a rise of £9.8m in statutory pre-tax profits to £12.4m, including a £6.4m increase in TCS’s investment property portfolio.

TCS also reported that revenue had increased by 12% to £15.3m, and its net assets rose by 4% to £199.3m. Net assets per share to grew to 375p.

Rental income from investment properties fell £8m (2016: £8.2m), but TCS said was a result of “a number of strategic disposals in the last 12 months which has lowered short term rental income.”

This dip in rental income also saw EPRA pre-tax profit decrease by 4.6% to £4m and EPRA earnings per share decrease to 7.6p.

However, new sources of income from the completion of TCS’s latest development phase, combined with strong Car Park income growth has protected total income levels. Income from car parks increased to £5.8m.

Edward Ziff, chairman and chief executive of TCS, said: “We are very pleased with the results for the first half of the year, with an increase in the value of our portfolio driving an improved statutory profit.

“To have maintained EPRA profitability close to last year’s levels, despite a significant level of strategic disposals and continued investment in our business, demonstrates the strength of the recently completed development programme.

“We continue to successfully progress considerable change within our portfolio. The combination of asset recycling, intensive asset management, and a strong development pipeline ensure that our future potential is being enhanced, whilst providing new opportunities for growth in income and capital values.

“These opportunities require funding, and having self-funded over £85m of investment in recent years, we are exploring how we might fund investments in our future growth.

“The strength of our portfolio, and the success of the most recent development phase have allowed us to be bold in the sale of more mature assets. Furthermore, the strength of our CitiPark business continues to support financial delivery, whilst also bringing new opportunities such as YourParkingSpace.co.uk. We look forward to the future with confidence.”