Town Centre Securities (TOWN) investor relations material

Executive summary

• Stable FY26 performance amid macroeconomic volatility; void rate fell to 4.9% from 7.4%, rent collection exceeded 99%, and car parking traded strongly.

• Portfolio strategy combines active asset management, selective investment diversification and cautious development, with future projects dependent on market conditions and risk thresholds.

Financial highlights

• Gross revenue rose 4.6% YoY to £34.2m; net revenue increased 6.9% to £15.9m and operating profit grew 12.6% to £7.1m.

• Statutory loss narrowed to £1.4m from £3.4m; FY26 included £3.7m of property valuation losses and impairments.

• EPRA earnings increased 64.4% to £2.9m from £1.8m; EPRA EPS was 6.9p versus 4.2p.

• Like-for-like portfolio value declined 1.5% after £8.5m of capital expenditure; statutory NAV was £108.8m, or 258p per share.

Outlook and guidance

• Focus remains on core property and parking operations, advancing developments only when market conditions and returns fit a conservative risk appetite.

• Targeting LTV below 50% through asset recycling, retained earnings and income growth; acquisitions to be funded through recycling existing capital.

• FY27 H1 trading remained resilient: rent collections exceeded 99%, while car park and hotel operations performed in line with expectations.

• Construction costs, funding conditions and tenant uncertainty continue to delay development decisions; projects will proceed only when economics meet financial criteria.