Everyone expected Intu Properties (INTU) to deliver a poor set of results for the year to December 2018, and the retail landlord did not fail to disappoint. Headline profits were wiped out by a £1.33bn devaluation in the property portfolio, and this, together with disposals contributing to a 2 per cent drop in net rental income, left adjusted net asset value almost a quarter lower at 312p a share.
Like-for-like rental income grew by 0.6 per cent as a result of new lettings, but income is expected to fall between 1 per cent and 2 per cent in 2019 due to tenant failures including the impact of the House of Fraser, and this assumes there no more retailers go to the wall.
Net debt was little changed at £4.8bn, but the valuation drop meant that the loan-to-value ratio rose from 45 per cent in 2017 to 53 per cent. To bring this back to below management's 50 per cent target limit, Intu expects to make further disposals (£171m in 2018) and has also omitted paying a final dividend.
Analysts at Peel Hunt are forecasting adjusted net asset value at the December 2019 year-end of 274p per share (from 312p in 2018).
| INTU PROPERTIES (INTU) | ||||
| ORD PRICE: | 108.4p | MARKET VALUE: | £1.47bn | |
| TOUCH: | 108.4-108.6p | 12-MONTH HIGH: | 220p | LOW: 101p |
| DIVIDEND YIELD: | 4.2% | TRADING PROPERTIES: | nil | |
| DISCOUNT TO NAV: | 62% | NET DEBT: | 125% | |
| INVESTMENT PROPERTIES: | £8.9bn | |||
| Year to 31 Dec | Net asset value (p) | Pre-tax profit (£bn) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 347 | 0.59 | 48.0 | 13.7 |
| 2015 | 374 | 0.51 | 39.3 | 13.7 |
| 2016 | 371 | 0.19 | 13.7 | 14 |
| 2017 | 378 | 0.23 | 16.1 | 14 |
| 2018 | 284 | -1.18 | -84.3 | 4.6 |
| % change | -25 | - | - | -67 |
| Ex-div: | - | |||
| Payment: | - |
