Intu's book value soars

But don’t be too impressed. As property analyst Robert Duncan of broker Jefferies told us, that was "all about yield shift", reflecting the high price achieved earlier this year for Lend Leases’s 30 per cent stake in Bluewater. This deal set a high benchmark for valuing shopping centre assets, which has proven to be especially positive for Intu’s Trafford Centre and Lakeside malls: the company's external valuers wrote these up 16 per cent and 11 per cent respectively.

Intu’s operational performance, however, stood in sharp contrast to that valuation performance. Against the backdrop of a recovery in UK retail spending, occupancy improved just a percentage point to 96 per cent, while like-for-like net rental income fell 3.6 per cent. That depressed adjusted EPS, on which dividends depend, by 6 per cent to 6.4p.

Chief executive David Fischel says that reflects lease expiries, tenants going bust and a decision to keep some space empty for redevelopment. The group boasts a £1.2bn development pipeline, essentially focused on improving and extending existing centres. With the economic recovery bolstering consumer confidence, Mr Fischel says retailers are showing "a good level of interest" in taking more space.