Intu posts £346m fall in profit
The shopping centre group recorded revenue of £594m in 2016, up from £572m in 2015, but announced a significant drop in profits from £518m to £172m, due to property revaluations connected to new developments.
In Intu’s final results for what chief executive David Fischel described as “a year which will be remembered for its political turbulence”, the Trafford Centre owner recorded net rental income of £447m, compared to £428m in 2015. The total market value of Intu’s properties is near to £10bn, at £9.985bn.
Intu experienced a valuation deficit of £64m, “mostly from new developments, with the deficit expected to reverse as projects progress”.
The FTSE 100 company said the £346m profit drop compared to the previous year was due to an “impact of property revaluations”. However, Intu said that the 2015 figure of £572m had been boosted by a £351m valuation surplus.
A £60.8m reduction came from Intu’s Charter Place extension in Watford.
Intu is set to embark on £200m of development projects in 2017, including the enclosure of Barton Arcade at the Trafford Centre.
Within the Trafford Centre, Intu said it had seen an increase in fashion retailers upsizing and rolling out more of their brands. New Look is increasing its space at the Trafford Centre, while Inditex has opened a new larger Zara store.
Intu totally owns the Trafford Centre, and has a 48% stake in Manchester Arndale alongside M&G Real Estate. The largest Intu shareholder is Peel chairman John Whittaker.
Intu shares were up 16.2p this morning to 291.6p per share.