Portfolio valuation down 5.6 per cent at June 201
Intu faced a 650.4m valuation hit in the six months to 30 June 2018, as valuers marked its portfolio down 5.6 per cent from £10.5bn to £9.8bn.
Tenant failures accounted for 0.9 per cent of rental income, but strong letting performance more than counteracted this resulting in a 1.3 per cent increase in overall rental income. Intu agreed 116 long term leases amounting to £16 million of annual rent with aggregate lettings 6 per cent ahead of previous rents. Occupancy levels fell slightly from 97 to 96.6 per cent.
Chief executive David Fischel said: “During a period of weakening sentiment in the retail market which has impacted prime shopping centre valuations, intu has delivered a resilient operational performance in the first half of 2018. This reflects the high quality of our business which was able to perform in a challenging retail environment.
“Intu centres are in prime locations with high footfall and offer plenty of opportunities to increase density through additional mixed-use developments. They have remained prime because we have always adapted and responded vigorously to the ever-changing retail environment with continued investment and creative asset management satisfying the needs of retailers.”