intu has published results for the year ended 31 December 2016. It reported six per cent growth in underlying earnings per share (from 14.2p to 15.0p), an increased dividend (2.2% increase to 14p per share) and stable property values, leaving net assets per share (diluted, adjusted) unchanged at 404 pence. Net rental income rose from £428m to £447m.
They increased like-for-like net rental income by 3.6 per cent in the year, reflecting improving rental levels from new lettings and rent reviews. 214 long-term leases (187 in the UK and 27 in Spain) were signed delivering £38 million of annual rent at an average of 4 per cent above previous passing rent and in line with valuers’ assumptions.
They incurred capital expenditure of £93 million in the year including £37 million on the extension of intu Watford and £13 million on completed restaurant developments. They completed the casual dining developments at intu Metrocentre (nine restaurants) and intu Eldon Square (20 restaurants). intu also report good letting progress on the extension of intu Watford which is on budget and on target to open in late 2018. They intend to commence over £200 million of development projects in 2017 – the Nickelodeon-anchored leisure scheme at intu Lakeside, the enclosure of Barton Square at intu Trafford Centre and the redevelopment of intu Broadmarsh.
They ended the year with a debt to assets ratio of 43.7%, £922 million of cash and available facilities, and believe they are well placed to pursue their pipeline of active management projects, development and acquisition opportunities both in the UK and Spain. Their centres recorded increased footfall and 96 per cent occupancy. Major retailers including Zara and New Look have upsized and upgraded existing units and rolled out more of their exciting brands in intu’s prime regional centres. They welcomed international brands such as Victoria’s Secret together with the expansion of premium fashion and lifestyle brands such as Jack Wills, Cath Kidston and Joules. In all, tenants invested around GBP100 million in new shops and refits over the year which is a significant commitment to their centres.
INTU : intu reports unchanged NAV for 2016