Town Centre Securities (TOWN) H2 2024 earnings summary

Executive summary

• Delivered resilient performance for the year ended 30 June 2024 despite challenging macroeconomic conditions.

• Continued strategic repositioning with retail and leisure assets now stable at 30% of portfolio, residential increased to 12%.

• Focused on reducing gearing, increasing headroom, and progressing a significant development pipeline.

Financial highlights

• Gross revenue rose 5% year-over-year to £32.0m; EPRA earnings up 77% to £5.5m.

• Statutory loss reduced by £21.5m year-over-year to £8.0m; EPRA NTA per share down 7p to 277p.

• Interim dividend of 8.5p, fully covered by EPRA earnings of 12.3p per share.

• Rent receipts averaged 99.1% over the year.

• 4.7% like-for-like decrease in property values, in line with market index.

Outlook and guidance

• Robust rent receipts provide confidence for future performance.

• Inflation and cost of living pressures remain a concern, particularly for leisure and retail.

• No further disposals expected; focus shifting to investment in development pipeline.

• Unique strengths in Leeds and Manchester markets and a large, high-quality development pipeline underpin future growth.