Intu issues solid trading update
The shopping centre group said it has agreed 43 leases so far in 2016, worth a total of £7m annually, at an average rent 10% above the previous level.
Intu told the stockmarket it remains “on target to deliver growth in like-for-like net rental income for the year in the range of 2% to 3%.”
The statement continued: “Year-on-year footfall to date is up 1.4% and occupancy is 95.3% (March 2015: 94.3%), marginally reduced from 95.8% at 31 December 2015 (December 2014: 95.0%) reflecting seasonal fluctuations since Christmas.”
Intu said there was cash and available facilities at the bank of over £750m and the portfolio had a debt to asset ratio of 41% at 31 March 2016.
David Fischel, chief executive, commented: “Encouragingly we have seen little impact on customer flow into our shopping centres or tenant interest for space which remains very positive despite financial markets being volatile ahead of the EU referendum vote on 23 June 2016.
Global investors continue to look actively at prime regional shopping centres in the UK, focussing on the quality income streams provided by this asset class.”
Intu owns the Trafford Centre and around half of Manchester Arndale. The largest Intu shareholder is Peel chairman John Whittaker.
Shares in Intu were flat at 296p, valuing the business at £4bn.