24th Feb 2015 09:06
LONDON (Alliance News) - Town Centre Securities PLC Tuesday reported higher earnings for the first half of its financial year thanks to a property portfolio valuation increase, said total shareholder return was 21% over the last 12 months, and predicted growth in valuations, rental income and car park income.
The Leeds-based property investor and car park operator reported a pretax profit of GBP13.3 million for the six months to December 31, up from GBP12.3 million a year earlier, reflecting the portfolio valuation increase.
However, its underlying pretax profit fell to GBP3.4 million, from GBP4.0 million, as net revenue declined to GBP8.8 million, from GBP9.7 million, thanks to a drop in rental income caused by GBP17.3 million of property disposals.
The company was bullish about its prospects, saying the regional property markets were getting a boost as valuations in London became stretched.
"The first half has seen good performance and values have continued to move forward as the market begins to appreciate the attractions of regional property compared to stretched London valuations. Rental income growth is expected and we are also growing income through active management especially at the Merrion Centre. The car park business provides another opportunity for income growth and we continue to expand these operations," Chief executive Edward Ziff said in a statement.
The company's net asset value per share was 326 pence at the end of the half, up from 283p at the end of December 2013, and 308p at the end of last June. Its total accounting return for the six months to end-December was 8.2%, down from 8.7% a year earlier.
"Town Centre Securities PLC has delivered a total shareholder return of 21% over the last 12 months ahead of the wider real estate sector," Ziff said.
The company is keeping its interim dividend unchanged at 3.1p.
Separately, Town Centre Securities said it is establishing a new London office after it recently bought a Grade II Listed office on Duke Street, London. The building was acquired for GBP3.1 million on a 125 year lease and is currently being refurbished.
The company said the new London office will principally be used as a base to manage the expansion of Town Centre's growing car park subsidiary, CitiPark.
Town Centre's car parking business reported revenue of GBP3.0 million for the first half of the year, up from GBP2.5 million a year earlier, although underlying profit was flat at GBP1.4 million.
The company's shares were up 0.1% at 291.19 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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