24th Feb 2016 09:16
LONDON (Alliance News) - Property investor and car park operator Town Centre Securities PLC said Wednesday earnings were broadly flat in the first half of its financial year, but it said the current low-interest-rate and low-inflation economic environment in the UK should help to drive up profit and income in the future.
Town Centre Securities reported a dip in pretax profit to GBP11.7 million for the six months to December 31 from GBP13.3 million a year before, despite an increase in net revenue to GBP9.3 million from GBP8.8 million, due to a lower valuation movement on investment properties, down to GBP7.6 million from GBP10.1 million.
However, the company said its net asset value per share rose to 359.0 pence at the end of December from 326.0p at the same point a year earlier, as it delivered a total shareholder return of 13.3% for the six months. In the prior period, total shareholder return was 8.2%.
Town Centre Securities' occupancy level remained unchanged at 97%, whilst rental income from both its investment properties and from car parks were up from 2014, with the company saying it benefited from underlying growth and the income derived from acquisitions. Its investment properties generated a rental income of GBP8.2 million, up from GBP7.9 million, and its income from car parks rose to GBP5.0 million from GBP3.0 million.
Town Centre Securities proposed an interim dividend of 3.1p per share, in line with the year before.
It said it has a "strong pipeline of developments and refurbishments, with over GBP30.0 million of development spend underway".
"We believe that the current low interest and low inflation environment is here to stay for the foreseeable future and will continue to give us opportunities to grow our income and profits and thereby enable us to further enhance the net asset value of the group," said Chairman and Chief Executive Edward Ziff.
Town Centre Securities shares were up 8.2% at 300.00p on Wednesday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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