Slides
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Results Presentation Year ended 30 June 2025 Edward Ziff – Chairman & CEO Stewart MacNeill – Group FD “A year of continued resilience”
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Business Review 2 Protecting shareholder value whilst safeguarding the business for the future : • Key elements include: • Disposal of Retail and Leisure assets, either where they have matured following investment, or where they are under-performing – this has now been completed following a significant disposal programme started in 2020 • Reduce proportion of Retail and Leisure in the portfolio – retail and leisure have now stabilised at 30% of the portfolio and with increased exposure to other sectors, including residential now at 14% • Reduce Gearing and LTV – gearing has been brought below 100%, with 87.5% of the Company’s external debt is fixed interest • Create headroom for future growth to enable us to bring forward development sites. Headroom of £24.6m at the year end.
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3 Dividend 5.0p FY24: 8.5p Statutory Loss £3.4m Loss down £4.4m YOY EPRA earnings £1.8m FY24: £6.3m LTV 53.1% FY24: 50.8% EPRA NTA 261p Down 11p vs FY24 • EPRA earnings include impact of deferred taxation on IFRS16 right of use impairments and profits of disposal – even though impairments and profits are adjusted in calculating EPRA. Prior year EPRA includes tax credit impact of recognising brought forward losses • EPRA earnings per share 4.2p (FY24: 14p) • EPRA earnings per share before tax 7p (FY24: 8.6p) • Rent receipts remain strong averaging 99.2% over the year • 2.4% LFL decrease in property values over the period • Total proposed dividend for FY25 5.0p (Interim dividend of 2.5p paid and proposed final dividend of 2.5p). FY24 total dividend 8.5p, including ‘special’ interim dividend of 6.0p resulting from the Company leaving the REIT regime. Gross Revenue £32.7m Up 2.3% YOY Resilient performanceFY25 Financial Summary
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4 • Both our CitiPark business and our ibis Styles Hotel have traded consistently through the period • CitiPark - FY25 revenues up 4.6% YOY • ibis Styles Leeds City Centre Arena Hotel – FY25 revenues up 0.9% YOY • Served notice on one underperforming right-of-use car park – recognising a profit on disposal of £1.8m in the FY25 income statement and highlighted in the net assets bridge (see slide 9) Car Park and Hotel Businesses – Stable and resilient performance
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Financial Performance
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6 FY25 Income Statement • Operating profit down £0.8m in the year, impacted by cost inflation ahead of revenue growth, one-off rates rebates in the prior year and an increase in voids across the portfolio (30 June 2025: 7.4%, 30 June 2024: 8.1%, 30 June 2023: 5.6%) • Taxation has a significant impact on EPRA earnings – this is summarised on the following slide £m FY25 FY24 YOY Gross Revenue 32.7 32.0 2.3% Debtor Impairment Movement 0.0 0.0 - Property Expenses (17.8) (15.6) 14.2% Net Revenue 14.9 16.4 (9.2%) Other Income / JV Profit 3.0 2.0 50.5% Other Expenses 0.0 0.0 - Administrative Expenses (7.5) (7.3) 3.0% Operating Profit 10.3 11.1 (6.4%) Finance Costs (7.4) (7.2) 3.1% Taxation (1.2) 2.4 - EPRA Earnings 1.8 6.3 (71.8%) EPRA EPS (p) 4.2 14.0 Segmental £m FY25 FY24 YOY Property Net Revenue 8.8 9.9 (11.2%) Operating Profit 6.0 6.3 (4.4%) CitiPark Net Revenue 5.5 5.8 (5.2%) Operating Profit 3.8 4.1 (8.6%) ibis Styles Hotel Gross Revenue 0.6 0.6 (13.0%) Operating Profit 0.6 0.6 (13.0%)
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7 FY25 EPRA Earnings - Impact of Deferred Taxation • Underlying pre tax EPRA earnings of £3.0m down £0.9m on prior year reflecting reduction in operating profits highlighted on previous slide • As mentioned on the previous slide, significant impact on FY24 EPRA results following the REIT regime exit and the subsequent recognition of a deferred tax asset relating to brought forward tax losses • Ongoing impact to EPRA earnings relating to impairments and profits recognised from IFRS16 right-of-use assets £m EPS (p) £m EPS (p) EPRA Earnings (before tax) 3.0 7.1 3.9 8.6 Tax attributable to EPRA Earnings (0.8) (2.0) (1.0) (2.3) 2.2 5.1 2.8 6.4 Deferred tax * Initial recognition of tax losses 0.0 0.0 2.9 6.4 IFRS16 Impairments 0.1 0.1 0.6 1.2 IFRS16 Profit on disposal (0.4) (1.0) 0.0 0.0 EPRA Earnings 1.8 4.2 6.3 14.0 * Deferred tax recognised in EPRA Calculation but do not relate to constituents of EPRA Earnings before tax FY25 FY24
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• Property portfolio down 2.4% LFL • Net borrowings up 1.1% from FY24 • Only 12.5% of borrowings at variable interest rate; weighted average cost of debt at the period-end 5.2% • EPRA NTA per share down 11p from FY24 • EPRA Net Tangible Assets of £109.9m • Final element of YPS deferred consideration of £3.1m received in July 2024. 8 FY25 Balance Sheet £m FY25 FY24 vs FY24 Freehold and Right to Use Investment Properties 160.5 156.5 2.6% Development Properties 22.6 24.5 (7.8%) Car Park related Assets, Goodwill and Investments 54.9 64.1 (14.4%) Hotel Operations 10.2 9.9 3.0% 248.2 255.0 (2.7%) Joint Ventures 5.6 4.8 16.7% Listed Investments 2.6 3.3 (21.2%) Other Non-Current Assets 2.2 2.0 10.0% Total Non-Current Assets 258.6 265.1 (2.5%) Net Borrowings (139.9) (141.4) (1.1%) Deferred tax 1.0 3.1 - Other Assets/(Liabilities) (7.4) (9.4) (21.3%) Statutory NAV 112.3 117.4 (4.3%) Statutory NAV per Share 266p 279p (4.4%) EPRA Net Tangible Assets (NTA) 109.9 114.5 (4.0%) EPRA NTA per Share 261p 272p (4.0%)
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9 Statutory Net Assets Bridge
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• 2.4% LFL decrease in property portfolio at the period • Driven by valuation reduction in Merrion Retail, Development and Car Parks 10 Year End Valuation
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Strategy Review
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Four key areas of strategy: 12 Four Key Areas of Strategy: 1. Disposals of assets – served notice on one underperforming right-of-use car park asset 2. Maintain reduced proportion of Retail and Leisure 3. Maintain reduced levels of debt and gearing 4.Create headroom for future growth
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At 30 June 2025: • Retail & Leisure represents 30% of the portfolio, down from 60% in 2016, and 80% in 2008 • Offices represent 29% of the portfolio, up from 13% in 2016 and are predominantly recently modernised buildings including Merrion House and Town Centre House • Residential now represents 14% of the portfolio, up from 6% in June 22 13 2. Proportion of retail and leisure
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• Loan to Value increased to 53.1% following an increase in lease liabilities and valuation movements downwards • £82.4m debenture stock (5.375% maturing in 2031) outstanding • £75m RCFs with RBS, Lloyds and Handelsbanken, plus £5m overdraft facility. Handelsbanken facility has next expiry, in June 2026– currently £0.5m outstanding. Lloyds and RBS facilities recent extended to expire June 2027 and December 2026 respectively • £13.8m single asset facility (3.02% maturing in January 2029), secured on Burlington House, residential asset 14 • Headroom of £24.6m at the year end. • Restructuring of the security pool and/or the charging of unsecured properties will give the opportunity for further increases in headroom 3. Debt and LTV FY25 FY24 FY23 Net Debt (excl finance leases) £111.2m £108.6m £101.9m Loan to value 53.1% 50.8% 46.9% Interest cover (underlying) 4.4 4.5 4.5 Weighted average cost of debt 5.2% 5.3% 5.1% Bank facilities (total facilities) £88.8m £88.8m £88.8m Debenture £82.4m £82.4m £82.4m Weighted average maturity 5.4 6.4 7.6
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15 Core part of strategy to improve sustainability credentials of all refurbished buildings (starting with offices): • Town Centre House – EPC B • Merrion House – EPC B • 123 Albion Street – EPC B (previously EPC D) • Ducie House – EPC C for newly refurbished units (previously EPC D) • Carvers Warehouse – EPC D • Merrion Centre (Retail and Leisure) –EPC C • Urban Exchange (Retail Warehouse) – EPC B • ibis Styles Leeds City Centre Arena Hotel – EPC B Percentage of portfolio currently EPC B or above 43.2% (FY24: 39.2%) EPC C - 27.8%, EPC D – 16.2%, EPC E and over 12.7% Estimated cost to bring all of the portfolio to EPC B or better: £14.3m (FY24: £16.8m) 4. Sustainability – EPC Performance of the Portfolio
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4. Investing in our development pipeline 16 • TCS's development pipeline, with an estimated GDV of over £400m, is a valuable and strategic point of difference, which we continue to progress and enhance. Notably, in the past six months at two of our largest sites with greatest potential: o Merrion Centre: In June 2025, we received planning approval for student accommodation as part of the Merrion Centre's evolution. This approval incorporates a 1,039 new bed purpose built student accommodation scheme based on the redevelopment of Wade House and the adjacent 100MC site o Whitehall Riverside: Following the securing of planning consent at Whitehall Riverside, a mixed-use scheme, in May 2023 (the formal decision notice was then issued in March 2024), we continue to move forward with both build contractors/professional teams and potential tenants for all phases of the development
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• GDV pipeline value of over £400m (excluding unscoped), following recent development site land sales • Land currently in TCS ownership with detailed planning or strategic frameworks in place for the majority • Exploring options to unlock Piccadilly Basin, Manchester developments 17 100MC, Merrion, Leeds CGI Whitehall Road developments, Leeds CGI Eider House PRS, Manchester CGI 4. Create headroom for future growth – Status Estimated GDV Estimated Income Yield on Cost Manchester - Eider House Residential Pre-app planning £52,000,000 2,200,000£ 4.1% Leeds - MSCP Car Park Detailed planning £22,380,000 1,365,000£ 6.0% Leeds - Whitehall Road No.2 Offices Detailed planning £64,000,000 4,135,000£ 8.2% Leeds - Whitehall Road No.4 Aparthotel/Hotel Outline planning £19,400,000 1,300,000£ 8.6% Leeds - Whitehall Road No.9 Offices Outline planning £51,600,000 3,300,000£ 8.2% Leeds - Wade House PBSA Pre-app planning £28,000,000 1,400,000£ 5.7% Leeds - 100MC Merrion Office Offices Detailed planning £62,000,000 4,000,000£ 7.1% Manchester - Residential D Residential Strategic Framework £24,600,000 1,040,000£ 4.3% Manchester - Ducie House Offices Unscoped £21,000,000 1,300,000£ 7.8% Manchester - Commercial Mixed Use Strategic Framework £76,000,000 5,000,000£ 7.9% Manchester - MSCP Car Park Strategic Framework £20,000,000 1,500,000£ 8.0% Leeds - Merrion/Woodhouse Corner Residential / Mixed Use Unscoped £98,000,000 4,110,000£ 4.1% 538,980,000£ 30,650,000£ Excluding Manchester - Ducie House Offices Unscoped £21,000,000 1,300,000£ 7.8% Leeds - Merrion/Woodhouse Corner Residential / Mixed Use Unscoped £98,000,000 4,110,000£ 4.1% 419,980,000£ 25,240,000£ Also Excluding Vicar Lane - Mixed Use Ilford - MSCP Rickmansworth - MSCP Development Type Development pipeline of +£400m GDV
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Outlook
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19 • Focus on our core operations and bringing forward our developments • Continue to explore opportunities both within traditional real estate in Leeds, Manchester and London and in complementary areas that can add value and further diversify risk. • Resilient trading performance has continued into the first half of FY26: o Rent collections remain robust with over 99% of amounts invoiced in the last quarter of the year now collected o Car parks’ recovery momentum continues o Significant headroom of £24.6m on existing revolving credit facilities o Weighted average cost of borrowings at period end of 5.2%, with 87.5% at fixed rates Outlook and next steps tcs-plc.co.uk
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- Our portfolio - Our Leeds assets - Piccadilly Basin, Manchester - ESG Appendices:
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Our diversified portfolio 21 Our diversified portfolio • LFL decrease of 2.4% during the period • Reversionary yield of 8.1% • Total Retail and Leisure stabilised at 30%, Residential percentage to 14% in the period Note the above table includes Merrion House within Offices and therefore differs from the notes in the accounts Note excludes IFRS16 adjustments to Car Park valuations Passing rent ERV Value % of portfolio Valuation incr/(decr) Initial yield Reversionary yield £m £m £m Retail & Leisure 0.4 1.5 15.9 6% 14.5% 2.3% 9.2% Merrion Centre (ex offices) 4.0 4.7 48.1 19% -7.1% 7.9% 9.2% Offices 4.9 6.5 73.7 29% 0.7% 6.3% 8.3% Hotels 0.9 0.9 10.2 4% 3.0% 8.5% 8.5% Out of town retail 1.1 1.3 13.1 5% 4.6% 7.6% 9.7% Residential 1.7 1.9 34.5 14% 6.7% 4.6% 5.1% 13.0 16.8 195.5 77% 1.0% 6.3% 8.1% Development property 22.6 9% -14.9% Car parks 36.1 14% -10.9% Portfolio 254.1 100% -2.4%
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• Part of the 4th largest conurbation in the UK • City alone has a workforce of over 2m • Significant growth in employment and city living forecast • Merrion Estate o In recent years over 4,500 student rooms have been completed around the Merrion Centre alone, with over 1,000 currently under construction and more in the pipeline o £117m asset, over £40m invested since 2012 o Significant student developments around the centre will continue to drive footfall o Planning approval received for 1,039 student rooms in the refurbished Wade House and Separate 100MC Tower 22 Merrion House Vicar Laneibis Styles hotel, Merrion Leeds - A city of opportunity tcs-plc.co.uk The Merrion Centre Estate 1. Merrion Centre Mall entrance 2. Morrisons 3. first direct Arena 4. Merrion House 5. Town Centre House 6. Wade House 7. ibis Styles Hotel 8. CitiPark car park 9. Future site of 100MC tower 10. Future site of Corner Tower 1 3 2 4 5 6 7 8 9. 10
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• Part of the 2nd largest conurbation in the UK • 7m people within 1hr drive • Significant growth in employment and city living forecast • Piccadilly Basin o 30% of our portfolio based in the city with Piccadilly Basin providing our largest development opportunity – over £190m GDV o 12.5-acre mixed use development site in the heart of Manchester o Mixed-use scheme with Offices, Residential, Retail, Leisure and Car Parking o Framework includes residential units, a multi-storey car park and c.177,000 sq ft of commercial development o Opened first bespoke PRS building in Sept’19, with a second building having detailed planning consent, although we are in the process of revising these o Redeveloped Ducie House has further development opportunity within its car park o Development value rising in the area and in our portfolio 23 Manchester - Significant potential growth tcs-plc.co.uk Entrance to Piccadilly Basin Ducie House
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24 Leeds – TCS Assets first direct Arena Merrion House Merrion Centre Town Hall Vicar Lane Corn Exchange Trinity Shopping Centre No.1 Whitehall Riverside Premier Inn CitiPark Whitehall Road Car Park Victoria Gate Victoria Quarter Leeds Station 123 Albion Street Central Road 1 143 2 4 5 6 7 89 10 11 12 13 3 14 13 12 11 10 3 2 1 4 5 6 7 8 9 15 15 TCS Assets
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25 Currently operated as CitiPark car park operation with £150m GDV development opportunity: • 2WR office – 167k sq.ft with detailed planning consent – in discussions with potential tenants • 478 space multi-story car park with detailed planning consent • 3WR & 7WR - 160k sq.ft in strategic framework Development Pipeline – Whitehall Road, Leeds
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Title ExampleDelivering for future generations. The strategy for the development of Whitehall Riverside not only provides provisions to be sympathetic to its existing surroundings, but also to safeguard for future generations. We have received a detailed consent for an energy-efficient office building and a multi-storey car park. The office will be best-in-class for the city in terms of its ESG credentials and we will be seeking a pre- let occupier prior to developing the building Air Quality Monitoring Smart Enabled BMS Energy Monitoring & Management Demand Controlled Fresh Air Wired Score Platinum Visitor Management System Contactless Access Control Building App SMART Building • Target EPC A Rating • BREEAM target ‘Outstanding’ • Target net zero carbon in operation • Targeting 38.5% less energy consumption than buildings regulations target • 100% of energy from renewable sources • All electric building • Heating & Cooling via zoned VRF system with heat recovery • Fabric first approach to minimise every demand • NABERS accredited • WELL accreditation – base build designed to WELL Ready Whitehall Riverside Case Study – the next step in the Company’s sustainability strategy
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27 As is Piccadilly Basin Manchester Development Pipeline – Piccadilly Basin, Manchester Burlington House Urban Exchange Ducie House Carvers Warehouse AVRO (Urban Splash Dev) 1 2 3 4 CitiPark Tariff Street Eider House Development Car Park & Development (x4) Premier Inn Hotel Dakota Hotel 5 6 7 8 810 9 1 3 5 6 7 9 8 10 2 4 TCS Assets 8 8
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28 Future – Piccadilly Basin, Manchester Residential Tower A Estimated 255 apartments Residential Tower B Estimated 173 apartments Residential Tower D Estimated 82 apartments Eider House Estimated 128 residential units Commercial Block 177,000 sq.ft of mixed use space Multi-Storey Car Park 524 space car park 1 2 3 5 4 1 2 5 6 TCS Assets 6 4 3
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We have a 5-part approach to ESG incorporating: 29 ESG – a long-term commitment to Corporate Responsibility 1. Minimise our environmental impact Engage with our external stakeholders 2. 3. Engaged and committed employees 4. Make a positive contribution to the communities we operate in 5. Always do the right thing • Much of this has formed a long-standing part of our way of doing business, and is embedded within our culture • The Marjorie & Arnold Ziff Charitable Foundation controls approximately 6.5m shares (15%) using the income for charitable endeavours • We directed a portion of the proceeds from the sale of YPS to set up a staff charitable foundation with a view to colleagues suggesting the causes they want to support
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Town Centre Securities PLC Town Centre House The Merrion Centre Leeds, LS2 8LY +44 (0)113 222 1234 info@tcs-plc.co.uk tcs-plc.co.uk