Town Centre Securities (TOWN) H2 2026 earnings summary

Executive summary

• FY26 was described as stable despite macro volatility; low voids, strong rent collection and CitiPark growth supported operations, while valuation movements and impairments drove a statutory loss.

• Portfolio value was £258.9m, down 1.5% YoY on the stated valuation basis; the development pipeline’s estimated GDV exceeded £500m.

Financial highlights

• Gross revenue rose 4.6% YoY to £34.2m; EPRA earnings after tax increased 64% to £2.9m from £1.8m.

• Statutory loss narrowed to £1.4m from £3.4m; basic EPS was -3.2p versus -8.2p, while EPRA EPS increased to 6.9p from 4.2p.

• Statutory results included £3.6m of non-cash valuation and impairment movements, a £0.3m disposal loss, a £0.2m gain on debenture repurchase and £0.6m deferred tax on valuation movements.

• Net asset value per share was 258p; EPRA NTA per share was 255p, down from 266p and 261p respectively in FY25.

Outlook and guidance

• Development spending will remain risk-controlled; schemes will proceed when yields, construction economics, funding and tenant demand meet financial criteria.

• Priorities include advancing the Merrion student scheme, securing pre-lets and funding for Whitehall Riverside, and refreshing the Piccadilly Basin regeneration framework.

• Outlook is cautiously optimistic, with asset management the near-term focus; further acquisitions are to be selective and funded through recycling existing capital after non-core disposals.

• Forecasts support going concern through 31 October 2027; base-case minimum cash headroom is £9.2m, with covenant compliance maintained under significant downside assumptions through June 2029.