14th Sep 2016 07:43
LONDON (Alliance News) - Town Centre Securities PLC on Wednesday said its portfolio has not seen the negative Brexit effect reported by others in central London, but noted the increases in market value seen over the last few years have "come to an end".
The Leeds-based property investment, development and car parking company said its net asset value per share rose 3.8% over its financial year ended June 30 to 357.00 pence from 344.00p a year earlier.
Town Centre Securities said its pretax profit declined to GBP11.9 million from GBP24.0 million, due to a smaller property revaluation surplus of GBP3.5 million, down from GBP14.8 million a year earlier.
Excluding property revaluation and property disposals, Town Centre Securities said its EPRA pretax profit came in at GBP6.6 million, slightly ahead of the GBP6.5 million recorded a year earlier. The company's occupancy increased to 98% from 96% a year earlier.
Town Centre Securities noted that its portfolio has not seen the same Brexit blow reported by others in central London. Around 8.0% of the value of Town Centre Security's portfolio was in London at the end of the year, compared to the 53% in Leeds, 22% in Scotland and 17% in Manchester.
"There is no doubt that the market increases in value we have seen in the last couple of years have come to an end, but our portfolio has not seen the Brexit effects reported in central London, and the end of year values reflect the hard work we have done in recent times. In fact we have seen excellent valuation results from some of our assets, particularly the development sites," said Chairman and Chief Executive Edward Ziff.
The company said it was recommending a final dividend of 7.90 pence per share, taking its total dividend to 11.00p per share, ahead of the 10.44p per share offered a year earlier.
"While the market absorbs the unfolding story of our exit from the European Union, we will carry on doing what we have always done - we have an exciting development programme which will add three top quality assets to our investment portfolio while increasing rental income and net assets significantly and we will continue to generate gains through our intensive management activities," Ziff added.
Shares in Town Centre Securities were up 1.1% at 317.50p on Wednesday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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