Overview
The Board is pleased to report that TCS ended its year strongly with significant development, asset management and capital recycling activity completed and ongoing. Since the half year results reported on 23 February 2017, we have completed three key transactions whilst our Ibis Styles hotel and Merrion House developments are on schedule and are contributing to trading profits.
Principal highlights are set out below:
Trading
· Overall occupancy level 99% (June 2016: 96%)
· 178 management transactions during the financial year (2016: 141)
· Like-for-like passing rent up by 2.3% (2016: 2.8%)
· Trading in the Merrion Centre remains strong and we are continuing to grow its rental income
· Car Parking continues to grow its revenues and profits
Good progress with developments
We anticipate an increase in future underlying trading profits flowing from our Leeds developments and completion is on schedule as follows:
· Premier Inn at Whitehall Road successfully completed and handed over in March 2017. The hotel has a 25 year lease with an initial annual rent of £680,000 with RPI uplifts;
· Obtained detailed consent for office and car parking scheme at Whitehall Road;
· Ibis Styles Merrion Hotel opened on 8 April 2017 and initial trading has been better than expected. Previously stated expectations are for annual trading profits of over £600,000;
· Merrion House development on track to complete in early 2018, and is expected to result in an increase in annual rent of c.£900,000.