Despite robust metrics, portfolio marked down by 14%
Intu Properties has seen the valuation of its portfolio slashed from £10.53m to £9.17m over the course of 2018. The move, disclosed in the company’s annual results for the year ended 31 December 2018, reflects the collapse in investor confidence in the retail property sector rather than the performance of intu’s properties.
Like-for-like net rental income was up 0.6% and occupancy was broadly stable at 96.7%. Footfall has consistently beaten industry benchmarks, decreasing by 1.6% against a fall of -3.5% in the national ShopperTrak retail average.
And the company reported strong letting performance, with 248 long-term leases signed delivering £39m in annual rent at an average of 6% above previous passing rent.
Intu continued to invest in its centres, spending £201m in the year predominantly on extensions at intu Watford and intu Lakeside and the company said it was actively reviewing exciting mixed-use opportunities that leverage the substantial land bank that surrounds many of its centres.
However it announced plans to cut its debt ration to below 50% through property disposals and by cancelling the final dividend for 2018.
Chairman John Strachan said: “Intu has had a challenging year with a difficult retail and uncertain economic environment, together with responding to 2 abortive corporate offers for the company. However, our management team has produced a robust operational performance.”
