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Town Centre Securities keeps head above water in tough retail market

By Josh White

Date: Wednesday 17 Jul 2019

Town Centre Securities keeps head above water in tough retail market

(Sharecast News) - Property investor and car park operator Town Centre Securities ended its year in line with its expectations, it said in a trading update on Wednesday.
The London-listed company said it continued to deliver on the strategy of repositioning its portfolio, investing in its estate, and delivering and improving its development pipeline.

Its board said the firm had continued to produce consistent operational results despite the challenging market during the year ended 30 June, adding that it remained focussed on delivering improving long-term returns.

As at the end of June, Town Centre's like-for-like passing rent was up 2.6%, which it said was driven by new lettings at Milngavie, though that was slower than the 4.1% growth reported a year ago.

Its overall occupancy level was 96%, compared to 95% a year earlier, with the board also reporting that "strong" credit control ensured at least 94% of its rent was paid within four days of the due date.

The company's CitiPark operation also continued to grow its revenues and profits.

"We continue to improve the business for the long term in line with our strategy of repositioning our portfolio, strengthening it through asset management and investing in our development pipeline," said chairman and chief executive officer Edward Ziff.

"I am particularly pleased with the completion of Burlington House, our private rented sector property in Piccadilly Basin, Manchester.

"It is a high-quality asset and its early popularity re-enforces our belief in the wider Piccadilly Basin development opportunity."

Ziff said the firm had been able to mitigate the continued disruption within the retail sector through its "proven ability" to quickly re-let units impacted by company voluntary arrangements and administrations, while improving rents.

"This highlights the quality of our assets and the fact that stronger performing retailers trade well within them.

"We are not complacent however, and our sale this year of Rochdale Retail park reinforces our willingness to continue to focus on recycling our portfolio, this freeing up funds for investment and development."

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