Intu share price: company posts H1 results

on Jul 30, 2015
Updated: Oct 21, 2019
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Intu Properties Plc (LON:INTU) today updated investors with results for the six months ended June 30. Following are the highlights from the company’s statement.

**Highlights:**
• Significant increase in net rental income and underlying earnings from recent acquisitions. Encouraging improvement in like-for-like net rental income trend (H1 2015: -1.0 per cent due to units held for redevelopment; 2014: -3.2 per cent)

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• Profit for the period of £262 million, including £162 million property revaluation surplus (2014 – £602 million profit, including £573 million of property revaluation surplus)

• Property revaluation surplus of 1.9 per cent like-for-like, partially attributable to rental value growth of 0.6 per cent. Out-performed the IPD monthly retail property index growth of 1.2 per cent which included rental value growth of 0.1 per cent

• Underlying earnings per share increased by 6 per cent to 6.8 pence reflecting not only the positive impact of acquisitions but also lower average finance costs

• Continuing improvement in retailer demand for quality space, both in the UK and Spain, with 107 long term leases signed for £18 million new annual rent, 12 per cent above previous passing rent and in line with valuation assumptions. Strong pipeline of potential lettings

• Robust operating metrics for occupancy and footfall with estimated retailer sales up 3.4 per cent

• Net asset value per share increased to 385 pence, a total financial return for the period of 4 per cent

• Market value of properties increased to £9.5 billion from £9.0 billion with the acquisition of Puerto Venecia in Zaragoza, Spain and revaluation surplus

• Five projects with a total cost of over £100 million are on site including leisure and restaurants at intu Potteries and intu Victoria Centre and major restaurant projects at intu Eldon Square, intu Metrocentre and intu Bromley

• Four major developments at intu Watford, intu Broadmarsh, intu Lakeside and intu Costa del Sol, with a total cost of around £650 million (anticipated Intu cost of £400 million) are on target to commence in the next 18 months
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 pre-eminent 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.

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.”
As of 07:51 BST, Thursday, 30 July, Intu Properties PLC share price is 332.70p.

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