Town Centre Securities PLC COVID-19 Update and Interim Dividend Confirmation (7436O)

TIDMTOWN

RNS Number : 7436O

Town Centre Securities PLC

03 June 2020

3 June 2020

Town Centre Securities PLC

('The Company' or 'TCS')

COVID-19 Update and Interim Dividend Confirmation

Town Centre Securities Plc today provides an update on the impact of COVID-19 on its business and confirmation of its intentions with regards to the declared interim dividend.

COVID-19 Update:

-- For the cumulative rent payments that have fallen due since the outbreak of COVID-19, of the GBP6.6m rent and service charge billed we have collected GBP5.0m or 75%, with a further GBP0.7m (or 11% of payments) that we have agreed to defer, totalling GBP5.7m or 86% of the amounts due

   --     Of the GBP0.9m remaining (out of GBP6.6m): 

o We have agreed certain concessions over GBP0.3m of this outstanding amount, in return for an improvement in the terms or length of the lease

o Of the balance of GBP0.6m, we continue to attempt to come to a fair and equitable conclusion with the respective tenants

-- As previously disclosed, our CitiPark car parking business has been hardest hit so far, experiencing a material reduction in income. Despite detailed cost cutting measures including the temporary closure of seven branches, the impact of fixed costs such as rents and rates will result in a significant reduction in profitability

Over a third of our retail and leisure portfolio, which makes up just less than half of the asset base, is currently open and trading. At the Merrion Centre this continues to increase and now stands at approximately 43%. We are now making detailed plans in order to be ready to open all of our locations from the 15(th) June, in line with government guidelines.

Dividend update:

-- The Board has decided to continue with its payment of the previously announced 3.25p per share interim dividend at a total cost of GBP1.7m, payable on 26 June 2020 to shareholders registered on 29 May 2020

-- This decision is based on a review of cashflow forecasts and various operating scenarios and also recognises the fact that this dividend relates to the six month period ended 31 December 2019

-- Clearly, significant uncertainty remains around the level of rent receipts for the next quarter, payable at the end of June, and the rate of recovery in the car park business, which will be crucial in determining future financial performance

-- The decision regarding payment of any final dividend, which, if paid, is expected to be substantially lower than in the prior years due to the effect of the crisis, will be considered as part of the announcement of the full year results in September, but we may choose to defer the decision beyond that date in order to know the outcome of the September and October quarter rent payments and the rate of improvement in the CitiPark business

-- As previously stated, it remains too early to quantify the on-going impact of COVID-19 on the business and as a result, all previous guidance on performance remains suspended at this time

Edward Ziff, Chairman and Chief Executive commented:

"I am pleased with the progress made in rent collections during this period of disruption, although we have experienced a wide range of responses from tenants. These continue to be unprecedented times and we are working tirelessly to support all of our stakeholders whilst remaining in close dialogue with tenants.

"We are doing everything possible to manage TCS through this challenging period with the long-term sustainability of the business being our primary aim and focus, recognising that we are now operating in an uncertain environment which will impact our current and future financial performance. However, we are proud of our dividend history and believe strongly that it is both appropriate and responsible to pay the declared interim dividend for the period ended 31 December 2019."

-Ends-

For further information, please contact:

Town Centre Securities PLC www.tcs-plc.co.uk / @TCS PLC

Edward Ziff, Chairman and Chief Executive 0113 222 1234

Mark Dilley, Group Finance Director

MHP Communications 07734 769 359

Reg Hoare / Alistair de Kare-Silver / Florence Mayo [e-mail]

Notes to Editors:

Town Centre Securities PLC (TCS) is a Leeds, Manchester, Glasgow and London based property investment and car parking operator with assets of over GBP394m. With 60 years' experience, a commitment to sustainable development and a reputation for quality and innovation, TCS create mixed use developments close to transport hubs in major cities across the UK. Their current portfolio delivers an annual income of more than GBP31m.

For more information visit www.tcs-plc.co.uk

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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June 03, 2020 02:00 ET (06:00 GMT)