Town Centre Securities Share Discussion Threads

[inki] 19/1/2021 15:47

The Ziff family would loose the REIT status if they chose or were in a position to acquire the company personally

[nickrl] 19/1/2021 10:51

TOWN rent collection out today and they've collected 76% at the cash level for this qtr. https://www.londonstockexchange.com/news-article/TOWN/latest-rent-collections-and-notice-of-hy-results/14831524 There forecasting 83% at the cash level ytd or 87% with deferrals. 5% in exchange for improved lease terms and 8% is o/s no some of it can pay but won't brigade. I like the comment "Premier Inn, owned by Whitbread Plc, unexpectedly paid only half of their rent due for the latest quarter, leaving £0.1m unpaid, without any agreement" Well trailed in the mainstream press they were going to do this! They sold several income producing assets last year so income is down several million but costs aren't. At the cash level be surprised if they will cover operating costs and interest (the debenture at 5.75% is a real drain) so nothing left for divi but we will see when half year results released on 24 February 2021. The Ziff family could have taken this at a low price but haven't isn't a good omen either and whilst its on hefty discount to NAV the interims we show another stepdown.

[spob] 30/12/2020 12:33

Https://www.bbc.co.uk/sounds/play/m000nzr1 The Bottom Line (BBC podcast) Commercial Property Wars Released On: 05 Nov 2020 Commercial landlords and tenants are at odds over unpaid rents due to the pandemic. Many retail, hospitality and leisure businesses are suffering acutely. Most have landlords who collect rent for their premises. In turn, many landlords have to pay interest on their loans to the banks. The pandemic is upsetting that delicate financial balance. It's estimated that billions of pounds is owed to landlords in unpaid rents. Threats of legal action against tenants are hitting the headlines. Just who should take more of the financial hit - commercial landlords or their tenants? Guests Edward Ziff, Chair and CEO of Town Centre Securities, a property investment firm Mark Dixon, CEO of international Workplace Group, which rents, develops and sublets office space and Charlotte Heyes, director of the small pub chain, Common and Co.

[spob] 30/12/2020 07:22

Many companies have been taken private for well below TNAV in the past

[spob] 30/12/2020 07:19

Why would they need to find £75-100m they already own most of the shares

[castleford tiger] 29/12/2020 14:04

what is latest asset value per share 292 at end of June We get currently just over 5% ( based on price as was 95p) tiger

[inki] 29/12/2020 14:01

To take it private they would probably have to find £75M to £100M - and that would be taking it at a steal. Someone lending would be taking on the gearing effectively, into consideration as well.

[castleford tiger] 29/12/2020 13:54

be difficult shafting long term holders at these silly valuations

[spob] 29/12/2020 13:43

Would the ziffs consider taking this private ?

[inki] 29/12/2020 13:18

Castleford - quite so - Banks have bigger issues than with TCS - Gearing is one issue, yet the Asset Value to share price is still relevant. There is a diversification factor here which should help the company survive. It will prosper if the country does.

[castleford tiger] 29/12/2020 12:27

A sale of any part of the group more than sorts out the LTV Banks understand property issues and are more relaxed. There is potential 100% gain here this year and by spring it will be too late to buy tiger

[nickrl] 29/12/2020 12:09

hybrasil my sentiments exactly but market is doing usual Xmas to New Year leap aided by Brexit and Oxford Vaccine as well and im tempted with a spread bet but timing it is key as its cost money to keep them open.

[castleford tiger] 29/12/2020 12:04

no chance of this failing. I bought 90k at under 100p and all in the drawer tiger

[hybrasil] 29/12/2020 11:53

Its simply too highly geared for me. Look at their last report. They state there is december 2020 covenant and that there is a risk they may breach it. Remember Warner estates. They had lasted generations. This could go the same way

[playful] 29/12/2020 09:17

Nice to see a jump here

[its the oxman] 25/12/2020 13:01

Is this a buy now at 100p with Brexit done and things perking up possibly?

[speedsgh] 22/10/2020 13:06

COVID-19 Update - HTTPS://www.investegate.co.uk/town-centre-secs---town-/rns/covid-19-update/202010220700058363C/ ...Edward Ziff, Chairman and Chief Executive commented: "We continue to see a consistent and reassuring level of rent collection. To have maintained collection and deferred payment levels at 87% to date reflects the quality, uniqueness and diversified nature of our portfolio and the collaborative and strong relationships we have built in partnership with our tenants over many years. "I am also pleased with the significant and swift progress made on our disposal programme. £41.2m of sales since our June year end has allowed us to significantly reduce debt, lower the proportion of retail and leisure assets in our portfolio, increase financial headroom, and create greater flexibility for the future as we reset and reinvigorate the business."

[speedsgh] 12/10/2020 13:08

PurplePelmets - I know it is somewhat out-of-date now that the 2020 Final Results have been released (we are still awaiting release of the 2020 Annual Report) but according to the 2019 Annual Report, the Ziff family owns 52% of the company's shares. AFAIAA it has been at this level for a while and hasn't changed materially since release of the 2019 Annual Report. HTTPS://s3-eu-west-1.amazonaws.com/tcs-plc-uploads/tcs-plc/files/bbcab04031_2019-10-25-08-57-20.pdf Again out-of-date but this analysis of TOWN by Maynard Paton (published March 2018) is well worth a read for background info if you haven't already seen it. HTTPS://maynardpaton.com/2018/03/08/town-centre-securities-57-years-of-unbroken-dividends-and-a-share-price-25-below-nav/

[purplepelmets] 12/10/2020 01:54

Stocko shows the combined Ziffs own about 20%. No comparison with the likes of Daejan where the Rainwaters owned 80 odd% and took it private. Unless Stockos figures are wrong?

[nickrl] 24/9/2020 09:28

The debenture is locked in til 2031 costing c5.5m/pa so the recent sales are only reducing the lower interest loans by c0.9m pa at the cost of loss of 1.8m pa rent so not sure of the sense of that especially as peter27 notes these tenants are reliable and in a reasonable stable part of retail. My guess is they know they are bumping up against LTVs and may have difficulty refinancing so are dealing with it with retail assets that can be shifted. There reduction in property values is comparable to others yet are valued at around 30% of NAV and as tiger says that does seem low and certainly at the bottom end of the sector. However, they are being delirious on there reversionary ERV imv so in terms of supporting a reasonable dividend don't see that happening and be luck to sustain it at 50% of current payment. However, with Ziffs grouping owning so much seems to me a full takeout has to be possibility here.

[spectoacc] 22/9/2020 06:09

47.9% LTV, was c.53% before the disposals, and can only see it rising again with impending new lockdowns.

[castleford tiger] 21/9/2020 13:32

How can the market value this at 47m Even allowing for all the current issues and debt being 4 times market cap is one this is silly. I don’t like to see any sale but what’s the borrowing cost as a % 3% or higher? The net return here was 5% so with little capital growth maybe it fits. Don’t the Ziffs own 80% Tiger

[castleford tiger] 21/9/2020 13:22

Market don’t like it. The family may try to take this private? Banks are not happy with property at the moment.

[spectoacc] 21/9/2020 08:59

Not looked in detail in a while, but recall TOWN's LTV at higher end. Then there's the development side, the car parks, offices, retail, some resi flats, all city centre-focussed. Not good in current environment.