TCS improves but ‘remains cautious’

Lettings at the Urban Exchange retail phase of Town Centre Securities' Piccadilly Basin in central Manchester helped lift the group's net asset value in the year to July.

NAV rose 7% from 269p to 288p a share. Pre-tax profit fell from £39.4m in 2010 to £15.4m. Underlying earnings per share came in at 15.1p (2010: 14.8p) and basic earnings per share 28.8p (2010: 74.6p).

Debt was down slightly from £141.3m last time to £140.2m, representing gearing of 92%, better than 99% in 2010. Overall occupancy level improved from 93.2% to 96.9%. Disposal of assets raised £6.5m during the period.

In Urban Exchange, lettings were completed with Go Outdoors, M&S and Pure Gym.

Edward Ziff, chairman and chief executive, said: "We continue to implement our strategy for growth. Our results reflect our emphasis on securing income for shareholders and the returns we have made by investing in our existing portfolio. We remain cautious about the economy however and are wary of the potential for tenant failures and pressure on rental levels.

"Our investment in Urban Exchange in Manchester demonstrates our ability to successfully redevelop and manage major retail assets and to attract major tenants."

Shares in TCS were unchanged at 165p.

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