After what broker Numis describes as "several years of pain", Intu Properties (INTU) has something to show for its efforts. To recap, the group owns 15 retail and leisure centres across the UK and a growing portfolio of properties in Spain. Like-for-like rental income returned to growth in ther reported period, up 8 per cent. Overall, a 4 per cent like-for-like valuation gain across the portfolio saw net asset value rise, but this £351m uplift compared unfavourably with the £648m achieved in 2014, meaning profits were lower.
Selling physical retail space in an increasingly online-focused market is tough, but Intu is coping. The group signed 261 long-term leases in the period, compared with 210 last year, and occupancy ticked up from 95 per cent to 96 per cent. Plans to further expand the portfolio are under way; the current year will see the completion of three major projects and the start of a £178m leisure and retail extension at Intu Watford. The development pipeline has also been enhanced by new projects in Spain, including a 175,000 square mile site near Malaga which will house intu Costa del Sol.
Broker Peel Hunt expects adjusted NAV at 31 December 2016 of 397p, the same level reached at the reported period-end.
| INTU PROPERTIES (INTU) | ||||
|---|---|---|---|---|
| ORD PRICE: | 287.5p | MARKET VALUE: | £3.87bn | |
| TOUCH: | 287.2p-287.6p | 12-MONTH HIGH: | 373p | 269p |
| DIVIDEND YIELD: | 4.8% | TRADING PROP: | nil | |
| DISCOUNT TO NAV: | 23% | |||
| INVESTMENT PROP: | £9.6bn* | NET DEBT: | 83% | |
| Year to 31 Dec | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p)** | Dividend per share (p)** |
|---|---|---|---|---|
| 2011 | 311 | 27 | 2.6 | 13.7 |
| 2012 | 316 | 153 | 16.0 | 13.7 |
| 2013 | 333 | 363 | 34.5 | 13.7 |
| 2014 | 347 | 594 | 48.0 | 13.7 |
| 2015 | 374 | 513 | 39.3 | 13.7 |
| % change | +8 | -14 | -18 | - |
Ex-div: 14 Apr Payment: 26 May *Includes £1.1bn in joint ventures **2010-2013 figures adjusted for April 2014's rights issue | ||||
