Interim Management Statement

13 May 2013

TOWN CENTRE SECURITIES PLC("TCS" or "the Company")Interim Management Statement

Town Centre Securities PLC, the Leeds based property investment and development company, presents its Interim Management Statement covering the period from 1 January 2013 to 10 May 2013 ("the period").

Overview

The Company has remained focussed on its existing portfolio of investment properties and car parks. Performance remains in line with the Board's expectations for the financial year as a whole.

Portfolio occupancy remains at 98%.

Asset Management

Our investments in the core cities of Leeds, Manchester, Edinburgh and Glasgow, have continued to stand us in good stead. We have a broad tenant base, only three tenants have more than two leases, comprising just 2% of our rental income and hence we do not have an over reliance on any tenant or group of tenants.

Rent collection was again strong with over 99% of our quarter day rents collected within five days of the quarter dates. Three tenants went into administration or liquidation. The most significant was Jessops at our Edinburgh property although this retail unit has been assigned to Wm Morrison who are due to open a convenience store following a comprehensive fit-out.

At the Merrion Centre work has commenced on site to create seven new retail and leisure units and to refurbish the Merrion Centre multi-storey car park. Pure Gym will be the first occupier and is due to open in the autumn.

At the end of April our planning application for a new 36,000 square foot Waitrose Supermarket, opposite the Homebase store we own in Milngavie, Glasgow, received full council backing. We are hoping to commence on site within the next 12 months.

Debt

As at 10 May 2013, the Company had gross borrowings of £155.2m, (31 December 2012: £153.4m) comprising £106.0m of 5.375% debenture stock repayable in 2031, and £49.2m of bank loans and overdrafts.

TCS has three term loan facilities, together totalling £90.0m, with maturity dates in late 2015 and late 2016 and a £5.0m overdraft facility. There is significant headroom in our facilities and we are operating comfortably within our loan to value and interest cover covenants.

Acquisitions and Disposals

In March we disposed of a property in York let to Lloyds TSB Bank plc in excess of book value.

We have continued to look for opportunities to grow our property portfolio and car parking business as well as progressing organic opportunities within our existing portfolio. 

Car Parking

We have benefitted in the period from changes to our operational teams and have invested further in our IT and marketing infrastructure to allow us to benefit from changing consumer purchasing behaviour and payment technologies. We have also increased our usage of social media. Income remains in line with expectations. 

Edward Ziff, Chairman, commenting, said:

"Town Centre Securities PLC continues to perform in line with our expectations. Our strong asset management capabilities and focus on the value for money retail sector continue to serve us well."

"We are looking forward to the Leeds Arena opening in July and to the significant impact it will have on Leeds and the Merrion Centre in particular. We are delighted to have secured council backing to build a new 36,000 square foot store for Waitrose in Milngavie, Glasgow. Our high occupancy level continues to underpin our rental income and we continue to work with our tenants to provide them with opportunities to grow their profitability, recognising that they operate in a difficult economic climate."

Ends

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