26th Feb 2019 11:54
LONDON (Alliance News) - Town Centre Securities PLC said Monday it swung to a loss in the first half of 2019 financial year due to a loss in the revaluation of investment properties.
For the six months to the end of December, the property investor reported a pretax loss of GBP8.7 million versus GBP12.4 million profit due to a GBP11.2 million loss in the revaluation of investment properties, compared to a GBP5.2 million gain the prior year.
There was also a GBP856,000 loss on the disposal of investment properties for the period, compared to a gain of GBP1.2 million the year before.
Town Centre's net asset value per share as at December 31 was 361 pence, down from 375p the same date the prior year, and from 384p as at June 30.
The company's portfolio value as at the end of 2018 decreased to GBP368.5 million from GBP392.2 million the same date the year before, mainly due to a change in the value of investments in joint venture following the refinancing of Merrion House property in Leeds.
Revenue edged up slightly to GBP15.8 million from GBP15.3 million, mainly on continued growth in Town Centre's car park business CitiPark.
The group declared an interim dividend of 3.25 pence per share, in line with the year before.
"Whilst it is disappointing to report half year valuation reductions and profits slightly down due to short term market fluctuations and some one-off costs, I remain confident in the quality and potential of our portfolio and the changes we are making to it. Our substantial development pipeline also underlines the opportunity for meaningful long-term growth. This confidence is reflected in continuing our long history of increasing or maintaining our dividend," said Edward Ziff, chair and chief executive.
Shares in Town Centre Securities were down 3.2% at 212.00 pence on Tuesday.