Intu share price dips as 2014 underlying earnings miss forecasts

on Feb 27, 2015
Updated: Oct 21, 2019
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Shares in Intu Properties (LON:INTU) slid this morning, after the real estate investment trust (REIT) revealed its results for the year ended December 31. The UK shopping centre owner said in a statement that its property valuations had improved, but a fall in rents led to slightly lower underlying earnings per share (EPS).

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Intu’s underlying EPS came in at 13.3p, down 2.9 percent as like-for-like (LFL) net rental income fell 3.2 percent. The consensus estimate was for unchanged underlying EPS of 13.7p. However, total net rental income improved 7.3 percent to £397 million. The company also recorded a revaluation gain on property valuations of £648 million, compared to just £126 million the year before. The market value of Intu’s portfolio rose 17.6 percent to £8.96 billion. The company said that occupancy at its shopping centres held steady at 95 percent, while footfall stabilised after a two percent fall in 2013.

These improvements, along with lower one-off finance costs, helped pre-tax profit surge 63.4 percent to £593.7 million. Despite the rise, the company kept its dividend unchanged at 13.7p.
CEO David Fischel said: “Intu’s improved 2014 results demonstrate we are well positioned to benefit further from rising consumer confidence and strengthening demand from retailers for quality space.” Looking ahead, he added: “Following excellent acquisitions both in the UK and Spain in the last few years, we also look to the organic growth opportunity from driving forward our £1.9bn development programme.”

By 09:47 GMT, Intu’s share price had eased 3.17 percent to 360.70p. According to the Financial Times, the 17 analysts projecting 12-month price targets for the FTSE 100-listed company have a median target of 350.00p, with a high estimate of 398.98p and a low of 290.49p. As of 14 February 2015, the consensus forecast amongst 23 polled investment analysts covering Intu Properties has it that investors should hold their position in the company.
As of 10:46 GMT, Friday, 27 February, Intu Properties PLC share price is 357.75p.

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