intu properties is reporting a 7 per cent increase in both its NAV per share (adjusted, diluted) and its underlying earnings per share from 13.3p to 14.2p and a 4 per cent revaluation surplus taking the value of investment properties to £9.6bn. The total return for the year was 10%. They see like-for-like net rental income in the 2 per cent to 3 per cent range for 2016 subject to no material tenant failures.
They saw like-for-like growth in net rental income of 1.8%, with lettings in aggregate 10 per cent ahead of previous passing rent and improved occupancy at 96 per cent. They successfully concluded projects in Nottingham, Newcastle and Stoke-on-Trent (the £42m mall refreshment and restaurant quarter at intu Victoria Centre and the £19m leisure extension at intu Potteries), generating a combined £3.6m of new annual rent. The biggest percentage uplift in value came from St David’s in Cardiff (+21%) where improved tenant mix has seen the centre achieve super prime status as it becomes ever more established in its market. Rental uplifts from new lettings and the first series of rent reviews have further driven an exceptionally strong performance. The only centre that fell in value was intu Braehead (-3%) where the less buoyant occupier and investment market in Scotland has resulted in a reduction in value of the centre .
They are on site with three restaurant projects costing £30m (intu share) at intu Eldon Square (20 units), intu Metrocentre (11 units) and intu Bromley (five units). All are due to complete in 2016 and are substantially let. They are also on site with the £178m leisure and retail extension of intu Watford anchored by Cineworld and Debenhams. intu are due to commence redevelopment of intu Broadmarsh and the leisure extension at intu Lakeside in 2016.
INTU : intu reports rising rental income