Town Centre Regulatory News (TOWN)

18 May 2012

TOWN CENTRE SECURITIES PLC("TCS" or "the Company")Interim Management Statement

Town Centre Securities PLC, the Leeds based property investment and development company, presents its Interim Management Statement covering the period from 1 January 2012 to 17 May 2012 ("the period").

Overview

During the period the Company has remained focussed on the management of its existing portfolio of investment properties and car parks. Performance remains in line with the Board's expectations for the year as a whole, although trading conditions for retailers remain difficult.

We have further progressed our plans for the redevelopment of our Merrion Way frontage and Multi-Storey Car Park and other opportunities within our portfolio. We are pleased that in York we have started the conversion of a 2,600sq ft retail unit for a Tesco Express with occupation commencing in the summer and renewed our lease in Parliament Street with Lloyds Bank for an 11 year period.

Our void level, as anticipated, is slightly higher at 3.2% compared to 2.8% at 31 December 2011. In the period Bon Marche, Peacocks and Game went into administration although only the Game unit is vacant and we are pursuing tenant interest.

Asset Management

On a like for like basis rental income for the first three quarters of the year was flat, with additional income from our Urban Exchange property in Manchester offsetting reductions elsewhere. Since January, Merrion Centre footfall has increased by 5.3% over the same period last year.

Rent collection was again strong with 99% of our quarter day rents collected. The broad spread of our tenants (TCS has only three tenants with three leases which comprise just 2% of our rental income) and our focus on the value for money retail sector, has continued to stand us in good stead.

Debt

As at 17 May 2012, the Company had net debt of £143.4m, (31 December 2011: £142.5m) comprising £106.0m of 5.375% debenture stock repayable in 2031, and £37.4m of bank loans.

TCS has three term loan facilities, together totalling £90.0m, with maturity dates in late 2015 and late 2016 and a £5.0m overdraft facility. There is significant headroom in our facilities and we are operating comfortably within our loan to value and interest cover covenants.

Acquisitions and Disposals

During the period we disposed of a small shop in London occupied on a temporary licence. The disposal proceeds amounted to £1.2m which was slightly better than valuation and brings our total disposal proceeds for the financial year to £2.55m compared to a book value of £2.47m.

We have continued to look for opportunities to grow our property portfolio and car parking business but are currently focussed on organic opportunities within our existing portfolio.

Car Parking

Since the half year car parking revenues have been in line with our expectations and we have benefitted from active marketing of our sites. Our Merrion Centre car park has performed particularly strongly.

Edward Ziff, Chairman, commenting, said:

"I am pleased with our performance which has been in line with our expectations. We are making the most of our strong asset management capabilities and retain our focus on the value for money retail sector."

"We monitor the market closely and have been successful in improving the quality of our tenant line up despite the retail sector showing no material signs of recovery. Our high occupancy level continues to underpin our rental income and we are investing in marketing activity to improve the performance of our assets."

Ends

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