Intu Properties has released its interim report for the six months ended 30 June 2015, which show a 1.6% increase in NAV during the period (from 379p to 385p). Underlying earnings per share increased by 6% (from 6.4p to 6.8p per share), whilst a £162 million (1.9 per cent) revaluation surplus and the acquisition of Puerto Venecia in Zaragoza raised the total property value to £9.5 bn. Net external debt has increased by £313m (7.9%) to £4.3bn. Profit for the period was £262m, this includes the £162m property revaluation surplus.
The company says they are seeing a 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. They also have a strong pipeline of potential lettings and that they are seeing robust operating metrics for occupancy and footfall with estimated retailer sales up 3.4 per cent.
The company has also exercised an option on land near Malaga where they expect to begin construction next year on a major shopping resort to be called intu Costa del Sol. In total they have four major developments (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) that are on target to commence in the next 18 months.
Intu Properties sees underlying EPS grow 6% in H1 : INTU