Town Centre Securities said on Friday that it is in 'robust' shape and intends to convert to real estate investment trust (REIT) status in October. But the company cautioned that adding to its £518 mln portfolio would be dependent on easing of inflated pricing in the UK commercial property market.
Town Centre Securities said on Friday that it is in 'robust' shape and intends to convert to real estate investment trust (REIT) status in October. But the company cautioned that adding to its £518 mln portfolio would be dependent on easing of inflated pricing in the UK commercial property market.
The Leeds-based property investment and development company reported an underlying profit of £8.6 mln before tax and other deductions for period to 30 June. Net asset value per share fell to 451 pence from 487 pence the year before. Total dividend per share rose to 27.5 pence from 9.2 pence in 2006 due to a special dividend of 20 pence which will be paid during the year.
Chairman Edward Ziff commented: 'I reported last year concern that the price of property was being pushed too high. We have therefore been careful to control the potential dilution of earnings from property acquisitions and ensure purchases provide the opportunity for good capital appreciation and future value.'
'Recent interest rate increases have taken the heat out of the investment market and there has been a marked slow down in transaction activity over the last two months. I do not believe that the property market has remained unscathed in the face of the global credit issues and financial uncertainties. As we move into the autumn we will see that property values have fallen. If there is a more realistic attitude towards property values from the investment market we will actively seek to add to our portfolio. We will continue our long-term programme of investment to upgrade and refurbish our assets in order to build on our strong foundations.'