Town Centre Securities (LON: TOWN) has been reducing its dependence on retail property and that proved a good thing this year. COVID-19 has hit rents and property valuations, but the downside has been limited and the discount to NAV appears overdone.
Retail and leisure property used to account for four-fifths of the portfolio and that has been reduced to 42%. Offices account for around one-quarter of the portfolio.
The strategy to reduce dependence on retail is being accelerated and since June, there have been further disposals of two Waitrose supermarkets and other retail properties. These disposals show that the book values of the properties are reasonable.
Town Centre Securities focuses on northern England, London and Scotland. In the three years to June 2020, there has been £8...