|Town Centre Securities
||EPS - Basic
||Market Cap (m)
|Real Estate Investment Trusts
|castleford tiger: I see NAV at 400p this time next year so a further 30% fair value uplift in share price.
plus 3% yield means I bought more yesterday.
Several properties are due re valuation and Leeds is very strong.
Cost of money falling as well as they state.
I like it.
|jonwig: Interim results:
They're a busy lot, with developments and disposals. Particularly expansion of the car parks division.
Opening a London office in Duke Street (posh - Mayfair).
Share price will love all this, though it's already risen well in recent weeks.
But are they getting rather over-confident, brazen even?|
|jonwig: Highly satisfactory results.
The Merrion Centre may be nothing like Trinity (which is quite marvellous), but the rents will be more manageable for units unable to afford the latter, and the car park and Morrison's are sound anchors for university clients.
Not to speak of the council contract.
Car parks are hugely profitable, with over 50% margin (I assume gross margin, haven't looked too closely), which still undercuts the council's on-street tariffs.
The planned new development will cash in on an 'under-hotelled' Leeds.
I haven't looked closely at the detailed numbers yet, but the NAV uplift should be good for a few pence on the share price this morning.|
|inki: IC says
Town Centre: enjoy the high yield and await re-rating
5.1 per cent dividend yield
24 per cent discount to NAV
Property markets bottoming out in regional cities
Strong long-term track record
Town Centre Securities (TCSC) owns properties in Leeds, Manchester, Glasgow and Edinburgh - just the kind of big regional cities that should benefit as the commercial property recovery spreads beyond London. Yet its shares are cheap. Having lagged the market over the past year, they trade at less than three-quarters forecast book value. With limited risk of further property writedowns and ample scope for a share price re-rating and property valuation gains as investors warm to the potential of a regional property market recovery, we think now is prime time for investors to bag a well-covered 5.1 per cent dividend yield while awaiting more upside.|
|jonwig: Simon Thompson covers again in Investors' Chronicle.
Subscription only, conclusion is:
Ahead of a trading update in mid-May, I remain a buyer of Town Centre's shares on a bid-offer spread of 195p to 200p. I still believe that a run up in the share price to around 230p is possible, to provide us with 15 per cent upside.
I haven't a date for any May IMS.|
|chairman20: The "Old man" is still clearly crucial in what happens to TC
my explanation for the spike up is the fact that the
company came out of a 'close period' with
the half yearly results announcement and insiders
(directors and employees) are free to go into the market.
This may be nothing more sinsiter than the co. buying of
several hundred thousand shares for the stock options plans.
Clumsily done that would move the share price.|
|jonwig: AGM (in Merrion House) was brief with about 20 present, plus the six directors. Most of the 20 were either staff or connected persons and they all seemed to know each other.
There were no questions apart from mine:
1) You mention the wide discount to NAV. Have you considered ways to bring about a narrowing of this?
We give it a lot of thought, and have a share buyback facility in place should we want to use it. This would no doubt move the share price, but we feel it would provoke some institutions to sell down and hence have no net impact. Currently we feel cash is best conserved given the possibilities for acquisitions.
2) A change in legislation is under consideration which would allow REITs to invest in other REITs and not be taxed on PID income received. Have you any comment to make on this?
Currently we wouldn't consider such an investment. At some point there might be a compelling case, but at present we are more concerned to manage our own property portfolio.
3) Can you comment on the new developments in Leeds being made by Land Securities and Hammerson?
These are prestige projects which Leeds has been missing. Arrival of some big names (John Lewis, etc.) would give rise to a general hardening of rents in the city, which would benefit us. We also have focus on developing our car parks.
The remark was also made about two key performance points: low vacancies at 3% and prompt rent collection at 98% of dues. They are also focussed on the areas they know well (Leeds, Manchester, Glasgow, Edinburgh) and have no ambitions toward diversification.
I came away with some confidence that I was invested in a sound company with no debt problems (the main debt is the 2032 debenture) and a decent yield of 6%, and no significant threats.
I'll add to my holding if there are dips in the share price, which sometimes happens.|
|jonwig: IC has an article featuring eight small property companies for their yields:
Their out-and-out pick is redefine International [RDI] which at first sight looks a basket case, but who knows?
TCSC is in the list:
Town Centre Securities (Buy, 168p, 11 Jul 2012) has generated a total return of 14.4 per cent since December, mainly due to a 12.2 per cent rise in the share price. But it still trades at a huge discount to book value, which is at odds with an excellent long-term dividend record. We stand by our recent buy tip (160p, 16 Feb 2012).|
|jammy00: There is something wrong Mr Ziff.
After an Interim management statement which produced no news
no purchases or sales, major letting or anything else much
save the news of a renegotiation of bank facilities that (if)
will be replaced with far more expensive alternatives
then an AGM so somulescent it did not wake anyone up - even
then there are no shares in treasury because there are no
buy backs or any other mechanism to reduced the discount to NAV....
The continued dive lower in the share price tells you
the maarket doew not rate management or like what is
going on (nothing is going on) nut I expect the xmas
bonus will be paid to staff even if there is not much
|chairman2: hey ho another four months gone
share price modestly responding to unscary figures
50th anniversary of listing in 2011 - whisper it
could we get a special divi to celebrate???|
Town Centre share price data is direct from the London Stock Exchange