Intu Properties records strong first half of 2015 results with 6 per cent growth in earnings per share

Posted On Thursday, 30 July 2015 12:03 Published by
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Intu Properties has recorded a strong first half with 6 per cent growth in underlying earnings per share for the six months ended 30 June 2015.

David Fischel

David Fischel, Chief Executive, commented:  “Intu has recorded a strong first half of 2015 with 6 per cent growth in underlying earnings per share and a £162 million (1.9 per cent) revaluation surplus, taking our total property value to £9.5 billion.

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

Retailers are responding positively to taking space in centres where change and investment are underway. We attract over 400 million customer visits a year and aim to provide them with a great experience which encourages them to come more often, stay for longer and spend more with our retailers. Intu has the UK’s most digitally connected centres with an active online marketing database of over two million subscribers.

Our ten year UK investment programme has risen to £1.5 billion. We are on site with leisure and restaurant projects at five separate centres and expect to start the major retail and leisure extension at intu Watford in the final quarter of 2015, turning the centre into a major north of London regional destination.

We continue to seize the significant opportunity we see in Spain to create a quality business of scale in an attractive market. We acquired our second top 10 centre earlier this year – Puerto Venecia in Zaragoza – and exercised our option on land near Malaga where we expect to begin construction next year on a major shopping resort to be called Intu Costa del Sol.

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 Sunday Trading legislation is vastly out of date in today’s multi-channel world and creates unfairness amongst retailers.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.” 

Last modified on Friday, 31 July 2015 04:20

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