Intu share price: REIT delivers improved annual results
Real estate investment trust (REIT) Intu Properties (LON:INTU) today published its audited results for the year ended 31 December 2014.
**Highlights from the company’s statement:**
Delivering improved returns: Property valuations increased 8.2 per cent (£648 million), outperforming the IPD monthly retail index which increased 7.3 per cent; Total property return, as calculated by IPD, 13.1 per cent (2013 – 7.3 per cent); Net asset value per share (diluted, adjusted) of 379 pence, giving a total financial return for the year of 17 per cent on the pro forma opening net asset value per share of 335 pence; Underlying earnings per share 13.3 pence (H1 6.4 pence; H2 6.9 pence) (2013 – 13.7 pence1) reflecting a reduction in like-for-like net rental income of 3.2 per cent in the year; Signed 210 long-term leases for £34 million new annual rent at an average 5 per cent above previous passing rent
Significant corporate activity: Acquired two UK top 20 shopping centres, intu Merry Hill and intu Derby, along with Sprucefield retail park in Northern Ireland in May 2014 for £855 million; Exchanged contracts in December 2014 to acquire a top 10 Spanish shopping centre Puerto Venecia, Zaragoza for €451 million. Acquisition completed in January 2015; Formed a joint venture at intu Uxbridge introducing an 80 per cent partner for £175 million, a small premium to the December 2013 book value; Debt financing activity of £2 billion; weighted average maturity over eight years; Cash and committed facilities of £671 million at 31 December 2014
Development momentum: Development pipeline of £1.9 billion, £1.3 billion in the UK and £0.6 billion in Spain; Completed the remodelled food court at intu Lakeside, on site with the leisure extension at intu Potteries and mall refurbishment and catering quarter at intu Victoria Centre; On target to commence a major £110 million extension at intu Watford in 2015
David Fischel, Chief Executive of Intu Properties plc, commented: “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. As the UK’s leading owner and manager of prime regional shopping centres, we welcome over 400 million customer visits through our centres each year and our clear focus on delivering outstanding customer experience under the intu brand is proving a powerful factor in the successful performance of our centres. 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 £1.9 billion development programme”.
**More to follow…**
As of 07:25 GMT, Friday, 27 February, Intu Properties PLC share price is 372.50p.
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