Intu reports portfolio and rent increase

Trafford Centre and Arndale owner Intu Properties has recorded a £600m increase in the value of its property portfolio over the last year, which reached £9.5bn in the six months to 30 June 2015, compared to £8.9bn in the same period in 2014.

In the 2015 half year results issued to the stock market today, Intu said that rental income had reached £207.6m, up from £189.2m in June 2014.

Estimated retailer sales were up by 3.4% due to increased occupancy and footfall.

Profit for the period was £262m, including £162m of property revaluation surplus. In June 2014, profit was £602m, but included a pay-out of £573m of property revaluation surplus.

Intu is currently executing a 10-year investment programme across its portfolio, which it previously valued at £1.3bn. Following the 2015 half year results, Intu said that it has increased the value of the investment to £1.5bn.

David Fischel, chief executive, said: “Intu has recorded a strong first half of 2015 with 6% growth in underlying earnings per share and a £162m revaluation surplus, taking our total property value to £9.5bn.

“We were particularly encouraged by the continued improvement in retailer demand for quality space in pre-eminent destinations, with leases signed in the period in aggregate a healthy 12% above previous passing rent and we have a promising number of further lettings in the pipeline.

He continued: “On the broader retail landscape, we were pleased with the news from the recent UK Budget that Sunday Trading laws are to be reviewed. Sunday Trading legislation is vastly out of date in today’s multi-channel world and creates unfairness amongst retailers. As such, we believe the case for deregulation is overwhelming; it would generate substantial economic growth, create thousands of extra jobs and would benefit our customers, the vast majority of whom are telling us that they want the flexibility to shop where and when they want.

In summary, we are now clearly seeing the benefits of our strategy of the last few years, combining selective quality acquisitions, a focus on tenant mix, improved customer experience, both on and offline, and continuing investment in our existing centres.  As previously guided, we remain on track to return to a positive like-for-like rental performance for the full year and are well positioned to deliver a more meaningful uplift in 2016.”

Shares in Intu were down 1.6p to 331.1p.

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