Town Centre Securities PLC (LON:TOWNT) says that FY18 ended positively with overall trading in line with the board’s expectations. Like-for-like property rental income increased, with a good level of occupancy maintained, and car parking revenues and profits grew further. In addition to refinancing existing bank debt facilities, TCS has also now completed an innovative refinancing of Merrion House in Leeds, which allows it to maintain its joint ownership, benefit from rental increases and receive a £26.4m cash injection. This will provide additional financial flexibility as TCS continues to invest for growth.
No changes in forecasts
Like-for-like passing rent increased by 4.1% or 1.9% excluding the post-completion step-up in rent at Merrion House and vacancy created by the previously reported exit of Homebase at Milngavie. Occupancy was maintained at a good level of 95% (FY17 99%) with the majority of the increase in voids attributable to Milngavie, with no obvious signs that retailer stress is having a material impact on the portfolio. CitiPark is benefiting from improved performance at newer sites. Progress with key developments – current and planned – continues, while the refinancing of bank debt and the innovative Merrion House refinancing provide added certainty and flexibility to investment funding for future growth. We will review our development assumptions and estimates with the full year results in September.
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