Terrace Hill NAV dips

Terrace Hill has reported a slight drop in net asset value, despite making “good operational progress” in the six months to 31 March 2012.

Filing its half-yearly report this morning, the group revealed that its EPRA net asset value per share was 27.7p, down from 28.1p on 30 September 2011. The developer/investor made a pretax loss of £8.4m during the six months, compared with a £1.9m pretax profit in the six months to 31 March 2011.

The group said that, over the period, it had made progress with its supermarket development programme and its planned withdrawal from the residential sector, and had substantially reduced its debt exposure.

Terrace Hill said that despite the large discount at which its shares traded relative to the group’s EPRA NAV, it intended to retain its AIM listing, which it saw as “useful operationally”.

It said that it had made strong returns from supermarket developments, and that it was on site with a £35m store in Sunderland and had forward funded a £13.5m store in Skelton. In its London office pipeline, Terrace Hill said it was well advanced with construction of its 160,000 sq ft mixed-use scheme at Howick Place in Victoria, SW1, and had gained planning consent for a 29,000 sq ft office and retail development on the corner of Mayfair’s Savile Row and Conduit Street.

The group’s net gearing as a percentage of its EPRA net assets was up, at 93.1%, at 31 March 2012, compared with 86% at 30 September 2011.

Robert Adair, chairman of Terrace Hill, said: “I am encouraged by the group’s progress in meeting its key objectives: growing our foodstore development business, maximising the realisation value of our residential and other legacy assets and reduction of debt. While our EPRA NAV has remained fairly static, this does mask the substantial progress made and I look forward to seeing further advances in the current and future periods.”