Intu Properties share price: Company updates market on full -year perfromance
Intu Properties (LON:INTU) has released its financial results for the year ended 31 December 2015.
*Highlights from the company’s statement:**
· net rental income increased by 8 per cent, due to a return to like-for-like growth of 1.8 per cent and the full-year impact of acquisitions
· property revaluation surplus of £351 million represents a like-for-like increase in capital values of 4.0 per cent in the year, outperforming the IPD monthly retail index which increased by 2.8 per cent
· profit for the year of £518 million included £351 million property revaluation surplus (2014: £600 million included £648 million property revaluation surplus)
· underlying earnings per share increased by 7 per cent to 14.2 pence (2014: 13.3 pence)
· net asset value per share (diluted, adjusted) increased to 404 pence, an increase of 25 pence, delivering a total financial return in the year of 10 per cent including dividend
· debt to assets ratio improved to 43.1 per cent and on a pro forma basis to 41.0 per cent, after the disposal of the Equity One investment in January 2016
· cash and available facilities of £588 million at 31 December 2015 with a further £202 million received from the disposal of Equity One shares in January 2016
David Fischel, Chief Executive of intu properties plc, commented:
“We are pleased to report a strong set of results for 2015 with a 7 per cent increase in underlying earnings per share and a 4 per cent revaluation surplus taking investment properties to £9.6 billion. Particularly encouraging was the return to like-for-like growth in net rental income, the result of quality lettings in aggregate 10 per cent ahead of previous passing rent, improved occupancy at 96 per cent and benefits from our investment programme with projects successfully concluded in 2015 in Nottingham, Newcastle and Stoke-on-Trent.
As economic recovery spreads out from London and the south east to the regions, consumer confidence is positive, driving improved retailer demand for space in our centres at a time when new supply of quality retail space is very limited. Investor interest for prime regional shopping centres remains keen.
These factors provide a favourable background for our development programme as we look to introduce the next level of leisure concepts. We expect to undertake around £600 million of mixed retail and leisure projects in the next three years in the UK, in particular the intu Watford extension, and commence our major Spanish shopping resort development, intu Costa del Sol.
Our top shopping destinations help deliver high footfall and long dwell times for our retailers and restaurateurs. We attract some 400 million shopper visits a year and focus on delivering a great customer experience. We are continuing to make the intu brand really count through digital initiatives, including our transactional website, and multichannel promotional events, reflected in very positive customer feedback via our Tell intu programme.
While financial markets are volatile, the improved economic environment and tenant demand, together with the returns we are achieving from our investment in development, active management, technology and branding mean we are well positioned to achieve further organic growth in 2016”.
As of 07:26 GMT, Friday, 26 February, Intu Properties PLC share price is 281.70p.
