Town Centre Securities

Town Centre Securities Dividend Analysis and Summary

• Declared dividend: Final 2.5p per share (FY25 total dividend: 5.0p).
• Ex-dividend date: 18/12/2025 (record date 19/12/2025).
• Payment date: 08/01/2026.
• Coverage: Dividend explicitly stated as uncovered; FY25 dividends of £2.1m equal 119% of EPRA earnings (EPRA EPS 4.2p vs DPS 5.0p).
• Context vs prior year: FY24 total 8.5p included one-off REIT exit distribution; FY25 marks a resumed “normal” cycle (2.5p interim + 2.5p final).
• Indicative trailing yield: ~3.7% based on 5.0p DPS and 135.5p share price at 30/06/2025.

• Earnings support: FY25 EPRA earnings after tax fell to £1.8m (EPS 4.2p) from 14.0p; statutory result a £3.4m loss. The final dividend is not covered by either EPRA or statutory earnings.
• Balance sheet and liquidity: LTV 53.1% (up from 50.8%) after valuation declines; net borrowings £139.9m. Liquidity headroom of £24.6m on revolving facilities; 87.5% of debt fixed; average cost 5.2%. These factors provide short-term funding capacity but limit scope for aggressive dividend growth while earnings remain subdued.
• Cash generation and operations: Rent collection remains robust at ~99%; voids improved to 7.4%. However, property and car park impairments and higher property operating costs compressed underlying profitability.
• Growth trajectory: With EPRA EPS down and LTV elevated, the 5.0p DPS appears a holding pattern rather than a stepping-stone to growth. Near-term dividend progression likely depends on execution of the development pipeline (GDV >£400m), operational recovery in car parks, and stabilisation in asset valuations.