Intu Properties reports steady occupancy and letting in interim results

Posted On Friday, 02 August 2013 09:14 Published by Commercial Property News
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JSE-listed Intu Properties’ share price fell 2.12% to trade at R49.87 by 3pm on Thursday after the UK property company reported an unchanged 5p interim dividend per share for the six months ended June and a 2.9% drop in like-for-like net rental income.

 

David Fischel Intu PropertiesIntu had strengthened its financial position over the period with debt refinancing and equity issuance and had advanced a number of investment projects which form part of its £1bn pipeline.

 

Investment projects underway or close to commencement at intu Eldon Square, intu Victoria Centre, intu Lakeside, intu Metrocentre and intu Potteries..

During the period, the London- and JSE-listed company changed its name from Capital Shopping Centres and announced the creation of a nationwide consumer-facing shopping centre brand, "intu". It also announced the creation of a single transactional website for its centres and the roll-out of free WiFi in its malls.

David Fischel, Chief Executive of Intu Properties plc, commented: "We are delighted with the impact of rebranding the company and our regional shopping centres as Intu and the business opportunities the change is providing. Momentum across the whole company is significant with the important acquisitions in the period of Midsummer Place, Milton Keynes and Charter Place, Watford. We have strengthened our financial position with debt refinancings and equity issuance and advanced a number of investment projects which form part of our £1 billion pipeline. Today we report steady occupancy and letting progress as signs now emerge of economic recovery in the UK".

The company brought in-house previously out-sourced facilities management and customer-facing teams.  

Intu is also testing UK's first multi-channel shopping centre, intu.co.uk, in live testing phase before full consumer launch in autumn 2013.

Property valuations increased 1.0 per cent, comparing favourably with benchmark index which fell 1.1 per cent.

Occupancy remains firm at the 95 per cent level reported in the first quarter IMS (31 December 2012 – 96 per cent). 

Like-for-like net rental income was down 2.9 per cent, with rental increases offset by tenant failures.

Footfall was down 2 per cent, though significantly out-performing Experian benchmark down 4 per cent.

Kagiso Asset Management investment analyst Justin Floor said the result "points to a weak operational performance, with tenant failure costs putting pressure on rental income and negating the progress made in achieving higher rentals".

Mr Floor said while Intu’s balance sheet remained highly indebted, "flexibility appears to have improved with a longer debt maturity profile".

"The company still owns a large portfolio of mostly high-quality shopping centres in the UK, with healthier vacancies and shopper footfall characteristics than the average market, which sets it up well for an improvement in the UK market," said Mr Floor.

Last modified on Friday, 02 August 2013 10:37

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