The challenging retail environment exerted pressure on shopping centre landlord Intu Properties (INTU), pushing like-for-like net rental income down 1.5 per cent in the six months to June 2017. This is in stark contrast to last year’s 3.6 per cent increase, though management is expecting a recovery in the second half of the year. However, an improvement in the value of derivatives from a £128m charge at the end of June 2016 to an £18.1m credit this year flattered profits, but this was offset by the absence of last year's gains from the sale of Equity One and Intu Merry Hill.
The group maintained occupancy levels around 96 per cent. Footfall decreased by 0.5 per cent, but the decline was not as steep as the national ShopperTrak survey average, which fell by 2.7 per cent over the same period. The market value of the investment properties crept up to £10.1bn, from £9.99bn in the first half of 2016. The group is looking to grow in both the UK and Spain, and management indicated it would look to pursue opportunities using its £920m in cash and available facilities. The group made 103 lettings in the period, 80 in the UK and 23 in Spain.
Analysts at Numis are forecasting adjusted net asset value of 405p in the year to December 2017, dropping off to 381p in 2018 (FY2016: 404p).
| INTU PROPERTIES (INTU) | ||||
| ORD PRICE: | 268p | MARKET VALUE: | £ 3.63m | |
| TOUCH: | 267.8-268p | 12-MONTH HIGH: | 319p | LOW: 257p |
| DIVIDEND YIELD: | 5.2% | DEVELOPMENT PROPERTIES: | nil | |
| DISCOUNT TO NAV: | 27.0% | |||
| INVESTMENT PROPERTIES: | £10.1bn* | NET DEBT: | 95% | |
| Half-year to 30 Jun | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 403 | 64.8 | 3.90 | 4.6 |
| 2017 | 404 | 123 | 9.50 | 4.6 |
| % change | +1 | +90 | +144 | - |
| Ex-div: | 19 Oct | |||
| Payment: | 21 Nov | |||
| *Includes investment in joint ventures | ||||
