Intu Properties (INTU) has been through a tough trading period, its performance marred by a number of high-profile business failures. There is still plenty to do as it struggles to shrug off its reputation as the property sector’s serial underperformer.
Rental income rose 2 per cent to £370m, but only because it acquired the Midsummer Place mall in Milton Keynes: like-for-like rental income fell 1.9 per cent. And while new leases were signed at rents 4 per cent above previous levels, this was down from 7 per cent a year earlier. Occupancy levels slipped from 96 per cent to 95 per cent and there was a 2 per cent decline in footfall.
Intu has a £1.2bn development pipeline over the next ten years, representing around 2.6m sq ft of new retail space. This will be financed through a combination of asset disposals, either whole or into joint ventures. Property sales will be keenly watched by analysts, who have long doubted the realism of Intu's balance-sheet valuations.
These valuations were marked up by 1.8 per cent over the year, but dilution from the liquidation of interest-rate derivatives and the equity placing for the Milton Keynes purchase left adjusted net asset value (NAV) 12p lower at 380p. Cantor Research expects NAV to creep up to 388p by the year-end.
| INTU PROPERTIES (INTU) | ||||
|---|---|---|---|---|
| ORD PRICE: | 330p | MARKET VALUE: | £3.21bn | |
| TOUCH: | 330-331p | 12-MONTH HIGH: | 363p | LOW: 297p |
| DIVIDEND YIELD: | 4.5% | TRADING PROPERTIES: | £0.4m | |
| DISCOUNT TO NAV: | 10% | |||
| INVESTMENT PROP: | £7.55bn | NET DEBT: | 108% | |
| Year to 31 Dec | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009* | 390 | -120 | -35.2 | 15 |
| 2010 | 331 | 446 | 68.3 | 15 |
| 2011 | 342 | 27 | 2.9 | 15 |
| 2012 | 347 | 153 | 17.6 | 15 |
| 2013 | 366 | 363 | 37.8 | 15 |
| % change | +5 | +137 | +115 | - |
Ex-div: tba Payment: tba *Restated to reflect the demerger from Liberty International | ||||
