This is when the Merrion shopping centre in Leeds will be fully open

Property developer Town Centre Securities (TCS) is to still go ahead with its interim dividend payout despite the coronavirus outbreak hitting its car parking business hard.
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The Leeds-based firm said it will continue with its payment of a previously announced 3.25p per share interim dividend at a total cost of £1.7m, payable on June 26 to shareholders registered on May 29.

Cumulative rent payments have fallen since the outbreak of Covid-19. Out of the £6.6m rent and service charge billed the firm, which owns the Merrion Centre in Leeds, has collected £5m, or 75 per cent. It has agreed to defer a further £700,000, or 11 per cent of payments, totalling £5.7m or 86 per cent of the amounts due.

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Of the £900,000 remaining, the firm has agreed certain concessions over £300,000 of the outstanding amount, in return for an improvement in the terms or length of the lease.

Edward Ziff, chairman and chief executive of TCS, said: I am pleased with the progress made in rent collections during this period of disruption".Edward Ziff, chairman and chief executive of TCS, said: I am pleased with the progress made in rent collections during this period of disruption".
Edward Ziff, chairman and chief executive of TCS, said: I am pleased with the progress made in rent collections during this period of disruption".

Edward Ziff, chairman and chief executive of TCS, said: “I am pleased with the progress made in rent collections during this period of disruption, although we have experienced a wide range of responses from tenants.

"These continue to be unprecedented times and we are working tirelessly to support all of our stakeholders whilst remaining in close dialogue with tenants."

Its CitiPark car parking business has been hardest hit so far, experiencing a material reduction in income. Despite cost cutting measures including the temporary closure of seven branches, the impact of fixed costs such as rents and rates will result in a significant reduction in profitability, TCS said.

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Over a third of its retail and leisure portfolio, which makes up just less than half of its asset base, is currently open and trading.

At the Merrion Centre this continues to increase and now stands at approximately 43 per cent, the Leeds-based firm said. TCS is now making detailed plans in order to be ready to open all of its locations from June 15, in line with Government guidelines.

TCS said its decision to pay the interim dividend is based on a review of cashflow forecasts and various operating scenarios and also recognises the fact that the dividend relates to the six month period ended December 31, 2019.

However, it added that significant uncertainty remains around the level of rent receipts for the next quarter, payable at the end of June, and the rate of recovery in its car park business.

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“We are doing everything possible to manage TCS through this challenging period with the long-term sustainability of the business being our primary aim and focus, recognising that we are now operating in an uncertain environment which will impact our current and future financial performance," Mr Ziff said.

"However, we are proud of our dividend history and believe strongly that it is both appropriate and responsible to pay the declared interim dividend for the period ended 31 December 2019.”

The decision regarding payment of any final dividend, which, if paid, is expected to be substantially lower than in the prior years due to the effect of the crisis.

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