Town Centre Securities

Financial performance

• Net assets – resilient relative performance:
o Like for like portfolio valuation down 4.7% from June 2023:
• outperformance versus the MSCI/IPD All Property Capital Index which fell by 4.5% over the period
• reduction primarily due to real estate investor and market sentiment around the macro-economic outlook adversely impacting valuation yields
o Statutory net assets of £119.6m or 284p per share (FY23: £141.1m, 291p). EPRA net tangible assets (‘NTA’)$ measure at £116.7m or 277p per share (FY23 equivalent: £137.7m, 284p)
• Statutory results – reduced loss before tax:
o Statutory loss before tax of £8.0m (FY23: loss of £29.5m) and statutory loss per share of 17.9p (FY23: earnings of 60.1p) due to valuation reduction
• EPRA results – improvement in underlying earnings, also benefited from a tax credit of £1.7m in the year:
o EPRA earnings* before tax of £3.8m (FY23: £3.1m)
o EPRA earnings per share before tax* of 8.5p (FY23: 6.2p)
• Loan to value – increased in the period by 500bps to 50.8% following successful tender offer and reduction in portfolio value:
o Total net borrowings of £137.2m (FY23: £129.9m) including £82.4m debenture
• Shareholder returns – enhanced by tender offer:
o As previously announced, no proposed final dividend, but significant interim dividends due to REIT requirements paid making the total dividend for the year of 8.5p (FY23: 5.0p)
o NAV enhancing tender offer in the first half of the year (6,292,920 shares bought back in total) following on 4,075,000 bought back in FY23, at a total cost of £9.44m

_{* Alternative performance measures are detailed, defined and reconciled within Note 4 and the financial review section of this announcement
** LTV Calculation includes finance lease assets and liabilities}

Protecting shareholder value whilst continuing to reset and reinvigorate the business for the future
Progress delivered under the four key strategic initiatives is as follows:

Actively managing our assets
Our long-standing strategy of active management and redevelopment, to drive income and capital growth, has continued:
• We now have a well diversified portfolio comprising: 30% invested in retail and leisure; 29% offices; 16% car parks; 13% residential; 8% developments; and 4% hotels
• The portfolio is also very well focused, with 88% located in Leeds and Manchester
• The void rate across our portfolio increased to 8.1% at 30 June 2024 (5.5% at 30 June 2023)
• Strong rent collection for the period of 99.2% (FY23: 99.1%)
• Eleven new commercial lettings and lease renewals at ERV across the portfolio in the period totaling £0.7m of rental income per annum
• Wilko (with one store in the Merrion Centre) and the Merrion nightclub operator entered into CVAs during the period
• Rolling out our own car park management system across our car park portfolio which will ultimately give us both operational and financial efficiencies

Maximising available capital
A conservative capital structure, with a mix of short and long-term secure financing, has always underpinned our approach:
• The first element of deferred consideration arising from the successful sale of our investment in YourParkingSpace Limited was received in July 2023 (£4.4m) with the contingent consideration received in April 2024 (£2.3m)
• After the year end, in July 2024, the final element of deferred consideration was received (£3.1m)
• Comfortable loan to value headroom over our bank facilities of £20.4m based on 30 June 2024 borrowings and valuations
• Loan to value increased to 50.8% following revaluation decreases and impairments in the period and a slight increase in borrowings (FY23: 45.8%)

Investing in our development pipeline
Our development pipeline, with an estimated GDV of over £400m, is a valuable and strategic point of difference for TCS which we continue to progress and enhance. Notably, in the past six months:
• In December 2023 a planning application was submitted for student accommodation as part of the Merrion Centre’s evolution (read full story here). This application incorporates a 1,110 new bed purpose built student accommodation scheme based on the redevelopment of Wade House and the adjacent 100MC site
• Following the securing of a planning consent at Whitehall Riverside 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

Acquiring and improving investment assets to diversify our portfolio
We continue to improve investment assets, with a stable portfolio of diverse properties:
• We increased the number of car parks operated under our CitiPark brand to 20, with three new car park management agreements secured in the year
• Acquired a city centre car park investment property leased to NCP in Wellington Street, Sheffield for £1.5m

Outlook – strong financial position to pursue attractive opportunities

• Focus on bringing forward our developments
• Continue to explore opportunities to acquire assets in Leeds and Manchester; appetite to also make acquisitions in London
• Resilient trading performance has continued into the first half of FY25:
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, other than for those reliant on office workers such as Merrion MSCP
o Significant headroom of £20.4m on existing revolving credit facilities
o Weighted average cost of borrowings at period end 5.3%, 87.5% at fixed rates
• The Company’s share price continues to trade at a significant discount to its NAV (50.4% as at 14 October 2024)

To read in full and see all announcements please visit tcs-plc.co.uk/investors