Town Centre Securities Share Discussion Threads

[castleford tiger] 29/11/2018 19:55

Are we heading south following INTU fall out
Tiger

[jonwig] 26/9/2018 10:07

strathroyal - Thanks for your comments - I'd tend to agree with you.

A discount of 30% to epra nav ought to take account of these factors.

[strathroyal] 26/9/2018 09:57

Jonwig - Probably means that they are currently scratching their heads over how to build out these projects and obtain the profit for themselves. Being a family controlled company no chance of a rights issue, borrowings are probably as high as they want them to be so they appear to have put together a very good development plan which they can't fully afford.

Options could be bringing in other plcs interested in the region (HLCL are looking to increase their Manchester assets) or someone like GRI to buy the residential development. Whichever way they move, they are going to have to give away a fair amount of profit. Until these issues are worked through I think that the share price will continue to lag but I'm still happy to hold with the present dividend and and the future prospects.

[jonwig] 26/9/2018 07:53

FY results:



So they are good; Liberum says "Town Centre Securities' full year results confirm good progress driving rental growth, repositioning assets towards better uses and delivering the group’s significant development schemes. NAV +7% to 384p was just ahead of our expectation, with earnings also resilient and 2% ahead of forecast."

So was recent price weakness misplaced?

Or maybe they are developing at the wrong stage in the cycle. They also say, "... Our recent financing activity increased capital headroom, however we continue to explore new capital raising options in order to facilitate our significant development pipeline." Meaning what?

[jonwig] 24/9/2018 14:45

FY statement on Wednesday. They aren't usually leaky.

[its the oxman] 24/9/2018 14:39

Cheap c.260p .

[jonwig] 28/8/2018 08:13

FT's "Opening Quote" on today's acquisition:

Town Centre Securities doubles down on town centre

Town Centre Securities, the commercial property group, has announced a deal to acquire The Cube building in Leeds from insurer Aviva. This includes 22,000 sq ft of ground floor leisure units, together with 50,000 sq ft of offices over three floors let to Capita and the government, plus the freehold for 84 apartments which are leased to Persimmon Homes at a peppercorn rent.

Key numbers:

Purchase price of £12m represents an initial yield of over 12.5 per cent on the rental income. But with lease expiries in 2019 and 2020 the yield will reduce to around 9 per cent.

Bottom line: No big impact on finances - TCS is paying for it using “existing resources and planned disposals” - helped by a deal to re-finance its Merrion House property in July this year.

What was said: “The acquisition is consistent with our focus on true mixed-use assets and lowering our exposure to retail, which has helped ensure we have been protected from the worst of the turmoil on the high street.”

OQ Verdict: This is all about diversification - basically, reducing exposure to pure retail property. However, with the high street casual dining and leisure sectors under such pressure, buying a building that has Hard Rock Café and Mecca Bingo as tenants is a risk.

[jonwig] 24/7/2018 06:40

A new note from Edison:

[topvest] 23/7/2018 17:34

Nice property company this one and very well run.

[jonwig] 23/7/2018 07:09

More detail on the MH re-financing, now completed. A very good deal, it seems:

[jonwig] 16/7/2018 07:47

Trading update:



No murky bits. Current development work should boost future earnings.

[jonwig] 06/7/2018 15:06

Yes, makes sense Jeff - thanks.

[jeff h] 06/7/2018 15:02

Yes interesting. Town have a lot of developments on the go and do not have the cash to fund them.

Think they are due to receive a basic £1.66m from Leeds for 25 years so depending on what discount factor you use they may get about £25 million up front.

Leeds can borrow cheaply from the Public Works Loan Board and so will make an overall saving on the lease cost.

[jonwig] 06/7/2018 14:57

Interesting RNS:

Town Centre Securities (TCS), the Leeds based property investor and car park operator, is pleased to announce that it is in detailed discussions with Leeds City Council (LCC) in relation to a re-financing of Merrion House in Leeds.

On 6th February 2018, the Company announced practical completion of its Merrion House redevelopment. The 170,000 sq ft, ten-storey building is jointly owned by TCS and LCC in Merrion House Limited Liability Partnership, with LCC occupying the building on a new 25-year lease.

The Company is in advanced discussions with LCC with the aim of LCC making a discounted rent advance for the fixed, non RPI, element of the 25-year lease commitment.

A further announcement will be made assuming the transaction receives LCC approval to proceed.

Comments welcome on the relative advantage to each party.

[mortimer7] 23/5/2018 09:48

Ex Divi tomorrow (24/5)

[jonwig] 17/4/2018 11:01

Thanks Jeff. I don't think they've ever been covered, apart from the house broker. Interesting that you can post a comment on the page linked - a new feature, I think.
Maybe I will.

[jeff h] 17/4/2018 09:56

Edison now covering:-

[inki] 24/3/2018 14:44

Interesting report on REIT's from A J Bell, (Town Centre likewise)

[jonwig] 26/2/2018 09:41

Liberum BUY, tp 340p. Summary:

H1 results were ahead of our expectation and provide promise in the future
value creation its significant development schemes can offer. H1 NAV +4%
to 375p was 4% ahead of our forecast. While disposals weighed on
earnings this was also still ahead of forecast and the dividend was held flat.
A significant 30% revaluation gain on developments, principally in
Manchester, enhanced a stable LFL portfolio valuation aided by its
increasingly mixed use nature. A large development pipeline across Leeds
and Manchester provides scope for significant future income and capital
growth. The shares trade on a CY18E P/NAV of 0.75x vs the sector on
0.84x and yield 4.3%.

[inki] 26/2/2018 08:28

Interim results look quite balanced.
Disposals at or higher than valuations, dispel the view recently presented in the FT that analysts/brokers view retail based property companies as valued too high.
Diversification of property activities continuing at a measured pace.

[jonwig] 26/2/2018 07:13

Here they are:



Look very OK. Share price has gone sideways for ages. 28% discount to NAV is far too high given all the developments which will start producing income this year.

[manrobert] 22/2/2018 18:08

interim results on monday

[manrobert] 15/2/2018 16:52

managed to buy some at 274.cheapest for some time.