Town Centre Securities Reports Half-Year Results Amid Challenging Market Conditions

Town Centre Securities PLC, a property investment and development firm with a focus on Leeds, Manchester, and London, has released its financial results for the six months ending 31 December 2025. The report highlights a cautious yet strategic approach to operations, as articulated by Chairman and Chief Executive Edward Ziff.

Ziff remarked, “We have focused on our core operations, maintaining a cautious approach rooted in financial prudence, and positioning TCS for long-term value creation. Alongside this, we have made two investments in the period; the acquisition of a retail property in Central London and an investment in a US-based fund targeting multi-family residential properties in the mid-west of the US. We believe both investments will deliver both income and capital growth over the coming years.”

Despite these investments, Ziff emphasised the need for balance, stating, “Notwithstanding, we remain ever mindful that taking advantage of potentially accretive opportunities needs to be balanced against retaining robust finances.”

The company’s property rental business, car park, and hotel operations have shown resilience, generating steady revenues and earnings despite challenging macroeconomic and geopolitical conditions. However, these factors have contributed to a slight decrease in the valuation of its property portfolio, with a 1.2% decline noted since June 2025.

Financially, Town Centre Securities reported a statutory loss before tax of £1.4 million, a notable shift from a profit of £1.0 million in the previous half-year. This resulted in a statutory loss per share of 3.2p, compared to earnings of 2.3p in HY25. The EPRA earnings before tax stood at £1.7 million, down from £2.4 million in the same period last year.

In terms of net assets, the company reported statutory net assets of £109.0 million, equivalent to 258p per share, down from £112.3 million or 266p per share in FY25. EPRA net tangible assets were recorded at £106.7 million, or 253p per share.

Loan to Value has increased slightly to 54.8%, up from 53.1% in FY25, with total net borrowings amounting to £148.7 million, including £82.4 million in debentures. The weighted average cost of borrowings at the end of the period was 5.2%, with 79.5% of borrowings fixed.

Shareholders will receive an interim dividend of 2.5p, fully covered by EPRA earnings, consistent with the previous year. Looking ahead, the company remains optimistic about its financial position, aiming to pursue attractive opportunities while maintaining a focus on core operations.

“Our resilient trading performance has continued into the second half of FY26,” Ziff noted, highlighting that rent collections have remained robust, with over 99% of amounts invoiced in the last quarter collected. The momentum in car parks has also persisted, with growth continuing into January and February 2026.

With a significant headroom of £21.3 million on existing revolving credit facilities, Town Centre Securities is well-positioned to explore further acquisitions in its key markets. However, the company’s share price continues to trade at a notable discount to its net tangible assets per share, raising questions about market perceptions.