Shares in Intu Properties (INTU) fell nearly 5 per cent after the shopping mall landlord delivered a sub-par performance last year. Aside from a £568m uplift on the portfolio value, which was buoyed by the regional property recovery, there was not much to cheer.
The company has been selective in replacing tenants following a spate of retail bankruptcies in 2012-13. Signing up the likes of Hugo Boss, Superdry and Footasylum has succeeded in keeping rents high - 210 new long-term contracts were signed last year at an average 5 per cent premium to the previous passing rent - but at the expense of occupancy, which remains stubbornly low at 95 per cent. As a result, like-for-like net rental income - a measure of underlying top-line growth - fell by 3.2 per cent, and adjusted EPS fell to 13.3p, leaving the dividend uncovered.