Intu Properties’ (INTU) latest results boast resilient performance, and indeed the shopping centre owner managed modest growth in like-for-like net rental income. However, as the owner of 10 of the UK’s top 25 shopping centres, the group was bound to be hit by negative sentiment surrounding the retail market. The impact on property values has been extreme. At the half-year the group had a revaluation deficit of £650m, from a £47.3m surplus at the end of December.
Management said there is little to support such a dim view. Indeed, occupancy rates remained high at 97 per cent and the group agreed 116 long-term leases in the period. But administrations and company voluntary arrangements are still expected to affect net rental income growth, pushing it towards the bottom of the 1.5-2.5 per cent stated range for the full year.
In light of this, investors may find little comfort in the announcement that chief executive David Fischel is planning to stand down. Numis said his departure is likely to be welcomed, but an external candidate might be preferable for the process to gain credibility. It expects an adjusted net asset value (NAV) per share of 405p in 2018 (from 411p in 2017).
| INTU PROPERTIES (INTU) | ||||
| ORD PRICE: | 165p | MARKET VALUE: | £2.24bn | |
| TOUCH: | 164.9-165p | 12-MONTH HIGH: | 278p | LOW: 162p |
| DIVIDEND YIELD: | 8.5% | TRADING PROP: | nil | |
| PREMIUM TO NAV: | -50% | |||
| INVESTMENT PROP: | £9.6bn* | NET DEBT: | 105% | |
| Half-year to 30 Jun | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 | 378 | 123 | 9.5 | 4.6 |
| 2018 | 333 | -507 | -36.2 | 4.6 |
| % change | -12 | - | - | - |
| Ex-div: | 18 Oct | |||
| Payment: | 20 Nov | |||
| *Includes joint ventures and investment in associates | ||||
