Financial highlights
· Net assets:
o EPRA net assets per share up 6.8% at 384p (2017: 359p)
· Dividends:
Commenting on the results, Chairman and Chief Executive Edward Ziff, said:
“The business has undergone considerable change in recent years as part of a strategy to reposition the portfolio, ensure a resilient income stream, and to unlock growth for the future. In the past two years we have reduced our exposure to retail and leisure from 70% to 55% of the portfolio. We are very pleased with the progress made and feel confident about the future.
“In those two years we have disposed of over 8% of the portfolio, during which time we have managed to hold EPRA profitability broadly flat and have increased NAV by 8%. Furthermore, we have strengthened the balance sheet, improved our banking facilities and lowered leverage. Our recent financing activity increased capital headroom, however we continue to explore new capital raising options in order to facilitate our significant development pipeline.”
o Full year, fully covered, dividend increased to 11.75p (2017: 11.50p)
o TCS has now held or improved its dividend every year for the past 58 years
· Profits and earnings per share:
o Statutory profit before tax £18.4m (2017: £6.7m) and statutory earnings per share 34.6p (2017: 12.7p), reflecting portfolio revaluation gain and disposals
o EPRA profit before tax down 1.9% to £6.9m (2017: £7.0m), due to timing of strategic disposals
o EPRA earnings per share down 1.9% to 13.0p (2017: 13.2p)
· Financing:
o Headroom of over £30m following Merrion House financing and Ducie House purchase in July 2018 (2017: £12m)
o Loan to value of 47.5% as at 30 June 2018 (2017: 49.3%), and proforma LTV of 45.3% post Merrion House financing in July 2018
Outlook
The business has undergone considerable change in recent years as part of a strategy to reposition the portfolio, ensure a resilient income stream, and to unlock growth for the future. In the past two years we have reduced our exposure to retail and leisure from 70% to 55% of the portfolio. We are very pleased with the progress made and feel confident about the future.
In those two years we have disposed of over 8% of the portfolio, during which time we have managed to hold EPRA profitability broadly flat and have increased NAV by 8%. Furthermore, we have strengthened the balance sheet, improved our banking facilities and lowered leverage. Our recent financing activity increased capital headroom, however we continue to explore new capital raising options in order to facilitate our significant development pipeline.”
Edward Ziff OBE DL
Chairman and Chief Executive