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Interim Report for the Half Year Ended 30 June 2013
INTU PROPERTIES PLC
(Registration number UK3685527)
ISIN: GB0006834344
JSE: ITU
1 AUGUST 2013
INTU PROPERTIES PLC
INTERIM REPORT FOR THE HALF YEAR ENDED 30 JUNE 2013
David Fischel, Chief Executive of Intu Properties plc, commented:
"We are delighted with the impact of rebranding the company and our regional shopping
centres as Intu and the business opportunities the change is providing. Momentum across
the whole company is significant with the important acquisitions in the period of Midsummer
Place, Milton Keynes and Charter Place, Watford.
We have strengthened our financial position with debt refinancings and equity issuance and
advanced a number of investment projects which form part of our GBP1 billion pipeline. Today
we report steady occupancy and letting progress as signs now emerge of economic recovery
in the UK".
Enquiries:
INTU PROPERTIES PLC ("INTU"):
David Fischel Chief Executive +44 (0)20 7960 1207
Matthew Roberts Finance Director +44 (0)20 7960 1353
Kate Bowyer Head of Investor Relations +44 (0)20 7960 1250
Public relations:
UK: Michael Sandler/Wendy Baker, Hudson Sandler +44 (0)20 7796 4133
SA: Nick Williams/Vanessa Hillary, College Hill +27 (0)11 447 3030
A presentation to analysts and investors will take place at UBS, Room 29, 1 Finsbury Avenue,
London EC2M 2PP at 09.30BST on 1 August 2013. The presentation will also be available to
international analysts and investors through a live audio call and webcast. The presentation and this
announcement are available for download from our website intugroup.co.uk.
Contents:
First Half 2013 Highlights
Operating and Financial Review
Key Risks and Uncertainties
Directors' Responsibility Statement
Independent Review Report
Unaudited Financial Information
Investment and Development Property
Other Information
Dividends
Glossary
Top Properties
NOTES TO EDITORS
Intu Properties plc (formerly Capital Shopping Centres Group PLC) owns and operates some of the very best
shopping centres, in the strongest locations right across the country, including ten of the UK's top 25. You can
find every one of the UK's top 20 retailers in our shopping centres, alongside some of the world's most iconic
global brands.
With over 17 million sq ft of retail space valued at over GBP7 billion, our centres attract some 340 million customer
visits a year and two thirds of the UK population live within a 45 minute drive time of one of our centres.
At the forefront of UK shopping centre evolution since the 1970s our focus is on creating compelling
destinations for consumers with added theatre.
On 15 January this year, we announced the creation of a nationwide consumer facing shopping centre brand
intu and the transformation of our digital proposition including a transactional website, to provide the UK's
leading shopping centre experience on and off-line.
We have an investment plan of GBP1 billion over the next ten years on active management projects and major
extensions at most of our centres.
Over 80,000 people are employed at our centres across the UK and we are fully committed to supporting our
local communities and the wider environment through meaningful and hands-on initiatives.
For further information see intugroup.co.uk
This announcement contains "forward-looking statements" regarding the belief or current expectations of Intu Properties plc, its Directors and other members of
its senior management about Intu Properties plc's businesses, financial performance and results of operations. These forward-looking statements are not
guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other
factors, many of which are outside the control of Intu Properties plc and are difficult to predict, that may cause actual results, performance or developments to
differ materially from any future results, performance or developments expressed or implied by the forward-looking statements. These forward-looking
statements speak only as at the date of this announcement. Except as required by applicable law, Intu Properties plc makes no representation or warranty in
relation to them and expressly disclaims any obligation to update or revise any forward-looking statements contained herein to reflect any change in Intu
Properties plc's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Any information contained in this announcement on the price at which shares or other securities in Intu Properties plc have been bought or sold in the past, or
on the yield on such shares or other securities, should not be relied upon as a guide to future performance.
FIRST HALF 2013 HIGHLIGHTS
Operational highlights
Building momentum reinforcing our destinations:
- Investment projects underway or close to commencement at intu Eldon Square, intu Victoria Centre,
intu Lakeside, intu Metrocentre and intu Potteries, in aggregate GBP90 million; part of our GBP1 billion
pipeline across the portfolio
- Strategic acquisitions in period Midsummer Place, Milton Keynes, and Charter Place, Watford
Created nationwide consumer-facing brand, intu, offering an engaging and digitally-connected
experience:
- Single brand for company and shopping centres bringing operating efficiencies and nationwide
business opportunities
- Previously out-sourced facilities management and customer-facing teams brought in-house
- Installed fully-owned fibre-optic infrastructure and launched high quality free Wi-Fi in four centres to
date; intu Trafford Centre is UK's first 4G-enabled shopping centre
- UK's first multi-channel shopping centre, intu.co.uk, in live testing phase before full consumer launch in
autumn 2013
Improved financial flexibility and strengthened balance sheet:
- Long term debt issuance of GBP1.15 billion, refinancing one-third of Group's debt, including 10 and 15
year bond issues
- Equity placing of GBP280 million, with shareholders on the South African register for the first time able to
participate in Rand
- Net assets increased from GBP3.0 billion to GBP3.4 billion
- Debt to assets ratio 48.6 per cent (31 December 2012 49.5 per cent)
- Cash and available facilities GBP250 million at 30 June; augmented in July by raising GBP125 million bank
loan secured on intu Midsummer Place
- Property valuations increased 1.0 per cent, comparing favourably with benchmark index which fell 1.1
per cent
- NAV per share (diluted, adjusted) of 377 pence with GBP70 million valuation surplus offset by derivative
liability crystallised on refinancing and impact of equity placing
Steady occupancy and letting progress:
- Occupancy remains firm at the 95 per cent level reported in the first quarter IMS (31 December 2012
96 per cent)
- Like-for-like net rental income down 2.9 per cent, with rental increases offset by tenant failures
- 95 new long term leases signed, GBP23 million annual rent, in line with valuation assumptions and 3 per
cent above previous passing rent (like-for-like units)
- Footfall down 2 per cent, significantly out-performing Experian benchmark down 4 per cent
- Estimated retailer sales up 1 per cent, in line with BRC benchmark
Financial highlights (1)
Six months ended 30 June
2013 2012
Net rental income (GBPm) 181 182
Underlying earnings (GBPm) 68 70
Property revaluation surplus (GBPm) 70
Profit for the period (GBPm) 200 78
Underlying EPS (pence) 7.4 8.1
Interim dividend per share (pence) 5.0 5.0
30 June 31 December
2013 2012
Market value of investment properties (GBPm) 7,386 7,073
Net external debt (GBPm) 3,593 3,504
Net assets attributable to shareholders (GBPm) 3,399 2,977
NAV per share (diluted, adjusted) (pence) 377 392
Debt to assets ratio (per cent) 48.6 49.5
(1) Please refer to glossary for definition of terms
OPERATING AND FINANCIAL REVIEW
OPERATING REVIEW
INTRODUCTION
We have been very focused in 2013 on pursuing our strategic priorities for the year which are:
- to optimise the performance of our existing assets, prioritising medium-term value creation
- to continue to invest in the business, including pursuing our pipeline of development opportunities
- to increase our financing flexibility to advance the business
- to take forward our new brand, intu, and transformed digital proposition
We have made significant progress on all the above in the first half of 2013 and have a strong momentum of
change across the business, as evidenced by:
- major initiatives across our portfolio (see Building Momentum Reinforcing Our Destinations below)
- creation of nationwide consumer-facing brand, intu, offering an engaging and digitally-connected
experience (see UK Retail Property Market below)
- significant improvement in our financial flexibility by the establishment of a new debt funding platform
and a GBP280 million equity issuance augmented by a further GBP35 million from 2012 final scrip dividend
take up (see Financial Review below)
- the increase in the aggregate market value of our shopping centres through letting activity and active
management projects (see Stable Occupancy and Letting Progress below)
We are delighted with the immediate impact of our bold decision to rebrand the company and centres as intu.
The initiative is driving significant cultural change throughout the organisation and customers are already
experiencing our refreshing new style in the centres (see Intu is leading the change below).
The retail environment in the UK has continued to be testing, with earnings affected by failures in the last
eighteen months of tenants representing annual rent of GBP35 million (2013 to date GBP13 million). However
favourable letting activity, particularly at our larger centres, has limited the impact to a 2.9 per cent reduction in
like-for-like net rental income which was the main factor in the reduction in underlying earnings per share from
8.1 pence to 7.4 pence in the first half.
We have taken steps in the period which have strengthened the balance sheet. The principal factors in the 15
pence reduction in diluted adjusted net assets per share to 377 pence are the crystallisation of the negative
mark to market position on interest rate swaps as part of the debt refinancing (9 pence) and the dilution on
issue of new equity (7 pence). These offset the positive impact of the GBP70 million property valuation uplift.
The scale of our business and our national coverage was augmented in the period by the GBP250 million
acquisition of Midsummer Place, Milton Keynes, which gives us an important investment in a major and thriving
regional retail destination.
OUTLOOK
We are encouraged by the recent signs of improvement in the UK economy which should in due course lead to
increased retailer demand for well-configured space in our high quality shopping centres.
The new debt funding platform and additional equity position Intu to take advantage of opportunities for growth.
We remain confident that our management approach of focusing on tenant mix strategy, capital expenditure
and rebranding will drive medium-term value creation, particularly as market conditions improve.
GRAPHIC REMOVED - PLEASE REFER TO THE PDF VERSION OF FULL ANNOUNCEMENT WHICH CAN
BE FOUND AT www.intugroup.co.uk OR ON SENS
UK RETAIL PROPERTY MARKET
UK retail property occupational market
GDP grew marginally, by 0.3 per cent, in the first quarter and grew more strongly in the second quarter at
0.6 per cent. Like-for-like retail sales as measured by the BRC non-food index have increased marginally for twelve
successive months showing, in aggregate, 1 per cent growth for the year to 30 June 2013. Consumer
confidence indices have recently picked up slightly, albeit from very low levels.
At the same time technology is changing long-standing shopping habits and enabling new levels of interaction
between consumers and brands. Many retailers are focusing on the effectiveness of their network of stores in
driving traffic to their brand, with multi-channel strategies polarising occupier interest onto key locations such as
those owned by Intu.
Intu is leading the change created a nationwide consumer-facing brand offering an engaging and
digitally-connected experience
As the leading specialist operator of prime UK shopping centres, we recognised the opportunity to create a
national identity and to integrate physical and online retail experiences. Since the January announcement of
the "intu" brand and of a digitally-enabled environment we have:
- rebranded the company and each of our directly-managed shopping centres with our refreshing new
style. The scope of the rebranding ranges from physical signage to new uniforms to World Class
Service training for 1,800 employees
- in-sourced facilities management services across our shopping centres, bringing the local teams into
alignment with our brand aspirations and values and allowing us to take control over the customer
experience
- installed fibre optic infrastructure and launched free Wi-Fi in four centres, with direct ownership of the
technology and the subsequent data. The other centres will follow each month until spring 2014. Intu
Trafford Centre is now the UK's most digitally connected shopping centre, the first to be 4G-enabled
- developed the UK's first multi-channel shopping centre, intu.co.uk, which is now undergoing testing in a
live environment with a full consumer launch in the autumn. By launch we expect the site to have
around 80 retailers and over 1,000 brands available for home delivery or click and collect in store or in
our centres. For the year to June 2013 nine million unique devices accessed our websites, of which
around half were mobile, providing immediate traffic to our new single domain
The purpose of these initiatives is to increase footfall, dwell time and spend in our centres and reinforce the
success of our tenants. We are already seeing benefits of our approach:
- reinforcing with retailers the scale of Intu's activities and the importance of their stores in intu centres
- launch of nationwide marketing partnerships with the potential to generate ancillary income
- increased national press coverage of Intu Properties plc and Intu centres
- operational efficiencies, particularly for marketing initiatives and materials
- motivated and energised centre teams aiming to deliver a higher quality of service
- excellent customer response to the rebranding and high quality Wi-Fi
- retailer interest in Wi-Fi with potential to generate additional income
- initial interest by online-only retailers in physical stores in our malls to maximise their own multi-channel
opportunities
- identification of opportunities for infrastructure efficiencies within centres such as CCTV, facilities
management communications and building management systems
UK retail property investment market
Transaction activity in the shopping centre investment market in the first half of the year has indicated
continuing strong interest in the most prime assets which has contributed to slightly tightening yields. Signs
have also begun to appear of broader interest in the sector with the limited supply of prime assets stimulating a
revival of demand for the better secondary assets.
Debt markets have strengthened significantly in the last twelve months. From very limited availability a year
ago, the current healthy range of funding sources and variety of providers of debt to the sector should underpin
asset values.
Intu property valuation performance
The aggregate like-for-like market value of our investment property increased by 1.0 per cent in the first half of
the year, a significant out-performance of the benchmark IPD monthly index which we have consistently out-
performed from the IPD peak at June 2007 to date. The prime and resilient nature of our assets has been
reinforced by our robust asset management style and creative active management at each centre. As a result
both the change in valuation yields and the underlying rental levels have out-performed the benchmark in the
period. We have seen pockets of ERV growth in our largest centres, although some weaker areas of smaller
centres have performed closer to the benchmark.
The weighted average nominal equivalent yield at 30 June 2013 was 5.85 per cent, a reduction of 9 basis points
in the first half. Based on the gross portfolio value, the net initial yield "topped up" for the expiry of rent free
periods was 5.10 per cent.
First Second First
half half half
2013 2012 2012
Group revaluation surplus like-for-like +1.0% +0.6%
Benchmark* capital growth -1.1% -3.0% -2.9%
Group weighted average nominal equivalent yield 5.85% 5.94% 5.96%
Like-for-like change in Group nominal yield -9bp -2bp -2bp
Benchmark* equivalent yield shift +2bp +12bp +10bp
Group "topped up" initial yield (EPRA) 5.10% 5.24% 5.22%
Group change in like-for-like estimated rental value (ERV) +0.2% -0.3%
Benchmark* change in rental value index -0.8% -0.9% -0.4%
* IPD monthly index, retail
There has been some variation of performance between assets. Each of the five super-regional centres
increased in value and in general the larger city centre shopping centres were more resilient than the smaller
scale centres. Notable changes include:
- intu Trafford Centre (+GBP47 million, 2.6 per cent) has benefited from national evidence of stronger yields
for the most prime assets as well as significant progress on renewing leases expiring in 2013
- intu Lakeside (+GBP21 million, 2.0 per cent) has benefited from an earnings-enhancing food court
refurbishment
- intu Eldon Square (-GBP4 million, 1.5 per cent) where committed refurbishment expenditure has not yet
been reflected in the valuation ERV
- St David's, Cardiff (+GBP9 million, 3.9 per cent) has benefited from continued income growth in the 2009
extension
- intu Bromley (-GBP5 million, 2.8 per cent) has not yet benefited from potential valuation yield or ERV
increases from committed refurbishment expenditure
- intu Potteries (-GBP4 million, 2.3 per cent) has been affected by reduced passing rent due to vacancy and
rent free periods as we work through the 2013 lease expiries (see Expiries below)
- Manchester Arndale (+GBP8 million, 2.1 per cent) has benefited from national evidence of stronger yields
STEADY OCCUPANCY AND LETTING PROGRESS
Occupancy has been maintained at a high level despite failures of tenants representing annual rent of
GBP22 million in 2012 and GBP13 million to date in 2013. These administrations have however affected 2013 earnings.
Concentrations of lease expiries, particularly at Cribbs Causeway and intu Potteries, are also impacting
earnings as we remodel the tenant mix in these centres but we are making good progress on renewals. We
have been encouraged by pockets of ERV growth, particularly at our larger centres. With GBP23 million of new
leases signed and some GBP50 million of shopfit investment commitments by retailers, our assets have continued
to demonstrate their key role in dynamic retailers' portfolio requirements. Key operating metrics include:
- Occupancy: Occupancy remains firm at the 95 per cent level reported at the end of the first quarter
(31 December 2012 96 per cent) which compares favourably to overall UK retail vacancy as measured by
Local Data Company at 14 per cent. The small reduction since the year end is the result of the expiry
of seasonal lettings and tenant administrations. In aggregate units amounting to 1 per cent of rent are
currently being traded by administrators and are treated as occupied within the 95 per cent.
We continue to take a firm line on relettings with a view to maintaining the quality of our centres. In
particular we are repositioning aspects of the tenant mix at intu Watford and intu Bromley which has
resulted in slightly lower occupancy levels at those centres.
Short-term leases, those for less than five years, are now primarily entered into for flexibility in the run
up to development projects or for trials of new concept stores. As a result, passing rent attributable to
units occupied under short-term leases has continued to reduce and now amounts to 1 per cent of
group total.
- Net rental income: Aggregate net rental income is broadly unchanged year on year with income from
acquisitions, primarily Midsummer Place, Milton Keynes, in March 2013, offset by a like-for-like net
reduction.
Like-for-like net rental income was 2.9 per cent lower in the first half of 2013 than the same period of
2012. While gross rent on like-for-like assets was GBP3 million higher due to increases on letting activity,
this was more than offset by the GBP5 million rent foregone and direct costs associated with tenant
failures.
- Lettings: We have agreed 95 new long term leases in the first half representing GBP23 million of new
annual rent, 3 per cent above previous passing rent (like-for-like units) and, excluding a significant pre-
development signing at intu Watford, in line with valuation assumptions for those units. These include:
- GBP6 million of new lettings and renewals at Cribbs Causeway, Bristol, representing 22 of the 35
units and two thirds of the income expiring in 2013. This includes a new flagship
Topshop/Topman store which opened in May
- first lettings for the intu portfolio for The White Company at St David's, Cardiff, and Blott at intu
Lakeside, Manchester Arndale and St David's, Cardiff
- further broadening of the catering offer with Circle 360 Champagne & Cocktails at intu
Lakeside, Ed's Diner at intu Metrocentre and intu Chapelfield, Nando's at intu Braehead and
Mount Fuji at St David's, Cardiff
- a major new flagship store, key to repositioning the retailer mix at intu Watford ahead of its
expansion with the Charter Place redevelopment (see below)
- Expiries: Weighted average unexpired lease term has reduced slightly to 7.5 years (31 December
2012 7.8 years).
We have completed the 2011/12 programme at Metrocentre and are carefully managing the 2013
concentrations of expiries at Cribbs Causeway and intu Potteries. We have now secured leases with
existing or new retailers for well over half of the 2013 expiries in each case.
Whilst these concentrations involve risk and can create some short-term earnings impact, they also
provide the opportunity for a repositioning of the tenant mix for creating potential medium-term value
enhancement. Examples include the introduction of Schuh and Swarovski to intu Potteries.
- Footfall: Footfall in our centres in the first half of 2013 has been 2 per cent lower than the same period
of 2012. This represents a significant out-performance of Experian's measure of UK national retail
footfall which declined 4 per cent.
- Retailer sales: Estimated retailer sales in centres increased by 1 per cent in the year to 30 June 2013,
in line with the benchmark BRC non-food like-for-like aggregate growth. The estimated occupancy cost
ratio (annual rent to retailer turnover) is 12.3 per cent excluding anchor stores, compared to 12.4
percent for the year ended 31 December 2012 and 13.0 per cent for the year ended 30 June 2012.
BUILDING MOMENTUM - REINFORCING OUR DESTINATIONS
We are investing across our estate to reinforce the destination status of each centre within its catchment, in
particular looking to provide the right environment to support an extension of trading hours wherever possible.
As well as generating income from incremental space, the projects are designed to provide more reasons for
shoppers to visit, to come from further afield and stay longer in our centres.
Dwell time has a strong relationship with retail spend. This relationship is stronger in visitors who purchase
some form of catering, a particular driver of evening trading. Our research indicates that customers who eat or
drink at a centre stay around two thirds longer and spend around two thirds more than those who solely shop in
the centre.
The majority of projects we are planning feature an increased amount and range of catering and leisure options.
Catering and leisure operators now account for 11 per cent of the aggregate rent roll, 17 per cent of units
across the portfolio and, we estimate, generate turnover of around GBP330 million. As an example in the period
we have seen the successful opening of the Sealife Aquarium next to the Legoland Discovery Centre in Barton
Square.
The table below sets out a summary of the project pipeline.
We would expect our major extensions, which constitute the bulk of the expenditure, to generate an initial
stabilised yield on cost in the range of 7 to 8.5 per cent.
In the case of expansionary projects creating additional lettable space for which direct incremental rent can be
identified, we would expect to generate an initial stabilised yield on cost in the range of 6 to 10 per cent.
Other projects are to a greater or lesser extent focused on reconfiguration or refurbishment of existing space in
order to generate enhanced tenant mix and rental tone. The motivation of these initiatives is the wider
improvement of the centre and its attractions creating significant medium term rental upside. In these cases
returns would be generated in future rent reviews and new lettings. We would assess project return in the
context of an internal rate of return, based on the overall impact on centre performance over a period usually
around five years.
Intu
Size(1) Indicative investment
000 sq ft timing(2) GBPm
Committed
Intu Lakeside food court refurbishment 2013-14 9
Intu Eldon Square refurbishment(3) - 2013-14 7
Other committed expenditure(4) 37 2013-15 33
49
Active management pipeline
Intu Victoria Centre refurbishment 2014-15 40
Intu Eldon Square "Sidgate" redevelopment and
restaurants 2014-15 10
Intu Metrocentre Platinum mall 2013-14 3
Intu Potteries leisure extension 58 2013-14 18
Intu Bromley Queen's Gardens restaurants 14 2013-14 4
Intu Trafford Centre Barton Square courtyard
enclosure and second floor retail 112 2014-15 30
Other active management(4) 95 95
200
Major extensions
Intu Watford - Charter Place 380 2014-16 100
Intu Lakeside Northern extension 440 2015-17 180
Intu Braehead extension(5) 475 2015-17 200
Intu Lakeside leisure extension 225 2016-18 80
Nottingham projects 500 2016-19 260
2,020 820
1 Represents net additional floor space of retail, catering and leisure
2 Timing subject to change due to a number of internal and external factors
3 Intu's share of the total project cost is GBP9 million of which GBP2 million has already been spent
4 The majority of smaller committed and pipeline projects do not involve the creation of additional floor space
5 Size excludes arena and hotel
Significant progress in the period includes:
Intu Eldon Square: we are half way through major refurbishment works to the original centre and have
consolidated temporary lettings into the Sidgate area ahead of our planned 20 restaurant, two level dining
quarter.
Intu Metrocentre: we have begun work to create the new Platinum Mall which has already resulted in new
lettings to Mamas & Papas, Tessuti and Phase Eight.
Intu Victoria Centre: we plan to start in early 2014 major refurbishment work including new entrances,
reconfigured public areas and new lighting, ceilings and floors. As a result, we are in negotiation with some
exciting new retailers who had been delaying their plans for Nottingham while uncertainty remained over retail
development in the city. We have also submitted a planning application for a cluster of 12 new restaurants
incorporating an existing piazza area. This is a precursor to major investment in intu Broadmarsh and the
extension to intu Victoria Centre.
Intu Lakeside: we are about to embark on the refurbishment and extension of the food court which will
increase direct rent and raise the quality of the catering offer.
Intu Potteries: the pre-letting of our development of a cinema and five restaurants is in solicitors' hands and we
expect to start construction later this year.
Intu Bromley: having secured planning consent, we now have leases in solicitors' hands for the five new
restaurants in Queen's Gardens. We expect to start construction in the Autumn and will at the same time
undertake some high impact, low outlay refurbishment works across the centre.
Intu Watford: we have acquired the adjoining Charter Place which we intend to replace with a cinema,
restaurants and large format retail units to create a combined 1.4 million sq ft shopping and leisure destination.
We have been encouraged by the level of interest from retailers and operators and plan to start on site with pre-
lets secured during 2014.
Intu Midsummer Place: in March we acquired Midsummer Place, Milton Keynes, for GBP250 million. The centre
adjoins the town's original "thecentre:mk" and consumers shop the two assets as a single major regional retail
destination. Located in a planned "new town" established in the 1960s with an affluent and growing catchment,
it is particularly accessible for a UK city centre shopping centre. We are in discussions with retailers regarding
reconfiguration of aspects of the tenant mix and are planning other active management projects. We are
confident of generating significant rental income growth in a three to five year timeframe.
International: our effective 9 per cent interest in Equity One, a US retail REIT, increased in value in the first
half by GBP23 million to GBP170 million. Our associate company in India, Prozone, has continued to make progress
towards its next phase of mixed-use developments. In the period we established a joint venture in Spain (up to
5 million investment) with Eurofund, a local partner with a track record of successful retail development, for
pre-development activity at two sites, in Valencia and Vigo, with potential for regional shopping centres. We are
also working with Eurofund on the masterplan for the site of a potential major regional shopping centre in the
province of Malaga over which Intu acquired a purchase option in 2012.
Dividends
The Directors have resolved to pay an interim dividend of 5.0 pence per share on 19 November 2013 to
shareholders on the register on 18 October 2013.
Following the approval by shareholders at the Annual General Meeting on 29 April 2012 of the scrip dividend
scheme, the Board may choose to offer a scrip dividend for any individual dividend. Scrip dividend take up of
the 2012 dividends averaged 39 per cent resulting in GBP45 million of cash being retained by the Group.
Should the Directors decide to offer a scrip alternative to the 2013 interim dividend, shareholders will be advised
no later than Friday 27 September 2013. The Board's decision will be dependent on the stock market
conditions, in particular the level of the share price relative to the net asset value per share, up to that date.
Details of the apportionment between the PID and non-PID elements per share will be confirmed at that time as,
in the event of a scrip alternative being offered, the cash dividend may be wholly PID and the scrip alternative
may be non-PID.
FINANCIAL REVIEW
In 2013 the Group's financial management has focused on creating the financing flexibility to advance the
business. As announced in February this year the Group established a new debt funding platform, raising
GBP1,150 million of bond and bank debt. In March, the Group issued 86 million new ordinary shares at 325 pence
per share raising net proceeds after costs of GBP273 million to fund the acquisition of Midsummer Place.
Subsequently in July, GBP125 million of bank debt was raised, secured on the property.
Key points of note
- The tough market conditions affected the financial results for the period (see "Results For the Period Ended
30 June 2013" below)
- Underlying earnings of GBP68 million, down 2 per cent on the 2012 comparable period, giving
earnings per share of 7.4 pence
- NAV per share at 377 pence; total return for the period -1 per cent
- Improved financial flexibility (see "Financial position at 30 June 2013" below)
- Debt to assets ratio at 48.6 per cent, would reduce to around 44 per cent were the convertible
bonds to convert to equity: target range 40-50 per cent
- Interest cover ratio at 1.63x: target level 1.60x
RESULTS FOR THE PERIOD ENDED 30 JUNE 2013
Although there are indications that the UK economy may be improving the general retail environment continues
to be challenging as evidenced by further tenant administrations. It is therefore encouraging that underlying
earnings per share only reduced slightly in the period and that property valuations were in aggregate positive,
largely due to the performance from the Group's super-regional centres.
Income statement
The Group recorded a profit for the period of GBP200 million, a significant improvement on the profit of GBP78 million
reported for the period ended 30 June 2012. At an underlying level, excluding valuation and exceptional items,
earnings were marginally lower at GBP68 million (2012 GBP70 million).
The major factors in the increase in profit to GBP200 million are valuation items. The major components in the
movement from 2012 include:
- a favourable movement of GBP184 million in the Group's provision for fair value of financial instruments
(2012 GBP29 million favourable). The financial instruments are largely interest rate swaps used to
hedge the interest rate payable on the majority of the Group's floating rate borrowings
- an increase in the revaluation gain on the Group's properties to GBP70 million from a gain of less than GBP1
million in the comparable period in 2012
- offsetting these factors were higher exceptional finance costs, totalling GBP112 million, mainly arising from
terminating interest rate swaps. This was required as part of refinancing a significant proportion of the
Group's borrowings and creating the new debt funding platform, further details of which are provided in
the "Financial position at 30 June 2013" section below
Underlying earnings, which excludes valuation and exceptional items, were marginally lower in 2013 at GBP68
million as shown in the chart below and as set out in the Underlying Profit Statement. Taking into account
additional shares issued as part of the Midsummer Place acquisition, underlying earnings per share reduced by
9 per cent to 7.4 pence.
The principal components of the change in underlying earnings are as follows:
- while net rental income was steady overall due to the impact of the acquisitions, in particular that of
Midsummer Place in March 2013, on a like-for-like basis it reduced by 2.9 per cent largely due to the
impact of tenant administrations. This has been partially offset by the favourable impact of new lettings
and rent reviews at intu Lakeside, intu Trafford Centre, Manchester Arndale and intu Braehead (see
below)
- as illustrated in the table below the Group's net rental margin has remained in line with 2012 with higher
void costs being offset by tight control over property operating costs.
Period ended Period ended
30 June 30 June
2013 2012
GBPm GBPm
Gross rental income 219 221
Head rent payable (12) (13)
207 208
Net service charge expense and void rates (7) (6)
Bad debt and lease incentive write-offs (5) (5)
Property operating expense (14) (15)
Net rental income 181 182
Net rental income margin 87% 87%
- underlying net finance costs, which exclude exceptional items, reduced due to the favourable impact of
increased access to lower rates currently available
- ongoing administration expenses increased to GBP14 million (2012 GBP13 million), largely due to higher
employee related costs as the Group builds its capabilities
Balance sheet
The Group's net assets attributable to equity shareholders have increased by GBP0.4 billion from 31 December
2012 to GBP3.4 billion at 30 June 2013. The increase is largely due to the equity placing in March 2013 to fund the
Midsummer Place acquisition and the retained earnings for the period.
As detailed in the table below, net assets (diluted, adjusted) have increased by GBP247 million from 31 December
2012.
30 June 31 December
2013 2012
GBPm GBPm
Investment, development and trading properties 7,320.2 7,011.8
Investments 211.2 189.7
Net external debt (3,593.3) (3,504.2)
Other assets and liabilities (506.0) (691.1)
Net assets 3,432.1 3,006.2
Minority interest (33.3) (29.2)
Attributable to equity shareholders 3,398.8 2,977.0
Fair value of derivatives (net of tax) 283.2 481.8
Other adjustments 67.0 56.6
Effect of dilution 13.7
Net assets (diluted, adjusted) 3,762.7 3,515.4
The investments of GBP211 million comprise the Group's interests in the US and India. The investment in the US
comprises the 11.4 million shares in a joint venture with Equity One, a US REIT. Based on the Equity One
share price of $22.63 at 30 June 2013, the Group's investment amounts to GBP170 million. The remaining amount
represents the Group's interests in India, largely comprising a 32.4 per cent interest in its associate company,
Prozone, a shopping centre developer.
The GBP185 million reduction in Other assets and liabilities is largely due to the reduction in the provision for the
fair value of derivative financial instruments.
Adjusted net assets per share
As illustrated in the chart below, diluted adjusted net assets per share were 377 pence at 30 June 2013, a
decrease of 15 pence from 31 December 2012.
The most significant factor in the reduction relates to the closure of interest rate swaps that were required as
part of refinancing a significant element of the Group's borrowings and creation of the new funding platform,
further details of which are given below. The 2012 final dividend of 10 pence per share was paid in June 2013.
Offsetting these movements were the positive impacts of the underlying earnings and the property valuation
gain for the period, both of which contributed 7 pence to the net assets per share.
GRAPHIC REMOVED - PLEASE REFER TO THE PDF VERSION OF FULL ANNOUNCEMENT WHICH CAN
BE FOUND AT www.intugroup.co.uk OR ON SENS
Cash flow
The cash flow summary below analyses the decrease in the Group's cash balance in the period. This can be
attributed to the exceptional finance costs.
Six months Six months
to June to June
2013 2012
GBPm GBPm
Underlying operating cash generated 166.8 179.0
Net finance charges paid (87.9) (97.9)
Exceptional finance and other costs (128.2) (39.5)
Net movement in working capital (2.6) (3.9)
Taxation/REIT entry charge (0.3) (10.6)
Cash flow from operations (52.2) 27.1
Property development/investments (10.6) (30.2)
Sale proceeds of property/investments 15.6 49.3
Other investing activities (0.6) (8.4)
Acquisition of business (248.4)
Dividends (51.5) (7.9)
Cash flow before financing and equity raises (347.7) 29.9
Net debt raised/(repaid) 30.1 (20.4)
Equity capital raised 273.0 0.1
Other (3.4) 0.2
Net (decrease)/increase in cash and cash equivalents (48.0) 9.8
The GBP248.6 million acquisition of business relates to Midsummer Place which was funded by an equity raise.
There were no individually large capital expenditure projects in the period with the largest expenditure being GBP2
million at intu Lakeside.
The property sale proceeds of GBP15.6 million are in respect of the disposal of a long leasehold interest in a
property adjacent to St David's, Cardiff to a major new tenant.
The increase in dividends paid in the current year is a timing difference with the 2011 final dividend having been
paid in July 2012 whereas the 2012 final dividend was paid in June 2013.
The table below illustrates that recurring cash flow covers the 2013 interim dividend of 5.0 pence per share that
will be paid for the period.
Pence per
share
Underlying operating cash generated 18.2
Net finance charges excluding exceptional items (9.6)
Convertible bond coupon (0.3)
Net movement in working capital (0.3)
Recurring cash flow 8.0
2013 interim dividend 5.0
The actual cash dividend outlay may be less than the 5 pence per share dividend declared if the Board decides
to offer a scrip dividend alternative with the 2013 interim dividend.
Capital commitments
The Group has an aggregate commitment to capital projects of GBP49 million at 30 June 2013. In addition to the
committed expenditure, the Group has an identified project pipeline, excluding major extensions, of some GBP200
million covering the period up to the end of 2017. It is anticipated that approximately GBP40 million relating to
capital projects, including those projects currently accrued on the Group's balance sheet, will be funded in the
balance of 2013.
Financial position at 30 June 2013
At 30 June 2013, the Group had net external debt of GBP3,593 million, an increase of GBP89 million over the
31 December 2012 balance of GBP3,504 million. In addition to cash balances of GBP140 million the Group had
GBP110 million undrawn on the revolving credit facility at 30 June 2013, giving total cash and available facilities of
GBP250 million.
On the 16 July 2013 the Group arranged a GBP125 million facility secured on intu Midsummer Place. The facility is
for a term of three years and three months with the possibility of being extended up to a further two years
subject to both parties agreeing.
As announced in February this year, the Group has established a new debt funding platform ("Secured Group
Structure") by contributing GBP2.3 billion of assets into a flexible, ring-fenced security pool and raising GBP1.15 billion
of bond and bank debt secured on it. The inaugural bond issue was highly successful with strong demand
supporting upsizing to two tranches of A' rated debt totalling GBP800 million with the balance of GBP350 million
provided by a five year bank loan. The transaction represents the first sterling multi-debt sourced real estate
structured financing since 2007. Key benefits of the structure are:
- access to the bond markets and a range of other instruments diversifies our sources of funding
- blended cost of 4.4 per cent, in line with previous funding cost of debt secured on the four assets, whilst
extending the weighted maturity on these assets from 2 years to 10 years
- tranches of GBP450 million and GBP350 million maturing in 2023 and 2028 respectively significantly extend
our overall debt maturity profile, from 6 years to 8 years
- in refinancing a third of the Group's debt, we have significantly de-risked the 2015-2017 maturities and
demonstrated that our prime assets can be financed at around 50 per cent loan to value at competitive
margins
The structure has a tiered operating covenant regime giving the Group a significant degree of flexibility when
the covenants are below certain levels. In higher tiers the level of flexibility is reduced. The Group retains
operating control below loan to value of 72.5 per cent and interest cover above 1.4x. No financial covenant
default occurs unless the loan to value exceeds 80 per cent or the interest cover falls below 1.25x. The current
loan to value is 49 per cent and interest cover is 2.26x.
Group debt ratios were as follows:
30 June 31 December
2013 2012
Debt to assets 48.6% 49.5%
Interest cover for the period 1.63x 1.69x
Weighted average debt maturity 7.6 years 6.1 years
Weighted average cost of gross debt 5.2% 5.2%
Proportion of gross debt with interest rate protection 95% 98%
Net debt repayments, excluding drawings of the Group's Revolving Credit Facility, totalled GBP235 million. This
included a net repayment of GBP155 million as part of the creation of the new debt funding platform. In addition
GBP27 million of bonds matured in the period, with the majority of the remaining repayments representing ongoing
principal amortisation payments.
Following the refinancing and these repayments the Group's debt maturity profile is illustrated below:
Hedging
The majority of the Group's debt is floating rate. The Group uses interest rate swaps to fix short- and medium-
term interest obligations, reducing cash flow volatility caused by changes in interest rates. The Group is
currently effectively fully hedged.
The table below sets out the nominal amount and average rate of hedging, excluding lenders' margins, in place
under current and forward starting swap contracts:
Average
Nominal amount rate
In effect on or after: GBPm %
1 year 2,269 3.99
2 years 1,727 3.64
5 years 804 4.99
10 years 678 4.82
15 years 669 4.83
20 years 456 4.59
Covenants
Full details of the loan financial covenants are included in the Other Information section of this report. The
Group is in compliance with all of its corporate and asset-specific loan covenants.
Tax policy
To continue to behave as a good corporate citizen we believe that paying and collecting taxes is an important
part of our role as a business and our wider contribution to society.
Intu is committed to acting with integrity and transparency in all tax matters, and we have an open, up-front and
no-surprises policy in dealings with HMRC. We are in regular discussions with HMRC and they are kept
informed and are asked for advance clearance in relation to complex areas and transactions undertaken by the
Group.
The REIT legislation was designed to allow people to invest in property without actually buying bricks and
mortar and hence encourage inward investment into the UK. To become a REIT we paid a REIT entry charge of
GBP199 million to HMRC. As a REIT we are exempt from paying UK corporation tax on most of our profits but we
have to meet other requirements including paying 90% of our profits to shareholders as dividends which are
then subject to tax. The tax is still paid but the effect is that it is moved from the company level to the investor
level as if the investors owned the property directly.
The special REIT regime only applies to our UK property rental business. In addition, we pay corporation tax on
overseas and non-property rental earnings, business rates, employer's national insurance and stamp taxes; and
collect VAT from our tenants, PAYE and national insurance from our employees and dividend withholding tax
from our shareholders and pay these amounts to HMRC in full and on time. In 2012, taxes paid by Intu
totalled GBP28 million and taxes collected totalled GBP84 million. In addition, business rates, principally paid by
tenants, in respect of the Group's properties amounted to around GBP250 million in 2012.
Tax credit for the period
The tax credit in the period of GBP4.9 million comprises a current tax expense on the income from US investments
of GBP0.3 million and a deferred tax credit largely on the revaluation of interest rate swaps of GBP5.2 million.
KEY RISKS AND UNCERTAINTIES
The key risks and uncertainties facing the Group are as set out in the table below:
Risk and impact Mitigation Change 2013 commentary
Property market # Focus on prime assets <> # Further increase in aggregate valuation of
Macro environment assets, out-performing IPD benchmark
weakness could # Covenant headroom
undermine rental monitored and stress tested # Slight improvement in covenant headroom
income levels and on a number of properties during the year
property values, # Regular monitoring of tenant
reducing return on strength and diversity # Careful monitoring of continuing retailer
investment and administrations alongside further efforts
covenant headroom made to improve covenant strength of
tenant base
Financing # Regular reporting to Board of <> # New debt funding platform refinanced
Reduced availability of current and projected funding approximately one third of Group's debt
funds could limit position
liquidity leading to # Average debt maturity increased to 7.6
restriction of investing # Effective treasury years
and operating activities management aimed at
and/or increase in balancing long debt maturity # Midsummer Place acquisition funded via
funding cost profile with diversification of equity placing and subsequently utilised to
sources of finance secure debt facility
Operations # Strong business process and <> # Establishment of Intu Retail Services, the
Accident, system procedures supported by Group's joint venture with Europa, will bring
failure or external regular training and exercises all centre based employees under one
factors could threaten management team
the safe and secure # Annual audits of operational
environment provided standards carried out by # Customer RIDDOR incidents remain at a
for shoppers and internal and external low level
retailers, leading to consultants
financial and/or # Group crisis management training
reputational loss # Culture of visitor safety undertaken
# Retailer liaison and briefings # Insurance broker changed following
competitive tender with the aim of
# Appropriate levels of enhancing service levels
insurance
Strategy and # Annual strategic review by <> # Intu rebrand undertaken
execution Board informed by external
Misjudged or poorly research and advice # Wi-Fi installation in line with plan with 4
executed strategy fails centres now live
to create shareholder # Board and management team
value experienced in shopping # Transactional website development
centre and broader retail progressed ahead of launch later this year
industry
# Third party expert review of transactional
# Engagement with national and website readiness for "go-live"
international retailers
# Key staff succession planning,
performance-based incentives
Development and # Capital Projects Committee <> # Progress made on a number of planning
acquisitions reviews detailed appraisals applications, positioning the Group for next
Misjudged or poorly before and monitors progress phase of growth
executed project during significant projects
results in increased # External analysis of market value and
cost or income # Research and third party due assessment of opportunity obtained as part
foregone, hence fails diligence undertaken for of Midsummer Place due diligence
to create shareholder transactions
value # Adequate contingency allowances
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors are responsible for preparing the interim report and condensed set of financial statements, in
accordance with applicable law and regulations. The Directors confirm that, to the best of their knowledge:
- the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial
Reporting, as adopted by the European Union; and
- the interim report includes a fair review of the information required by Sections DTR 4.2.7R and DTR
4.2.8R of the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.
The operating and financial review refers to important events which have taken place in the period.
The principal risks and uncertainties facing the business are referred to in the operating and financial review.
Related party transactions are set out in note 24 of the condensed set of financial statements.
A list of current Directors is maintained on the Intu Properties plc website: intugroup.co.uk.
On behalf of the Board
David Fischel
Chief Executive
Matthew Roberts
Finance Director
1 August 2013
INDEPENDENT REVIEW REPORT TO INTU PROPERTIES PLC
Introduction
We have been engaged by the company to review the condensed set of financial statements in the interim
report for the half year ended 30 June 2013, which comprises the consolidated income statement, consolidated
statement of comprehensive income, consolidated balance sheet, consolidated statement of changes in equity,
consolidated statement of cash flows and related notes. We have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or material inconsistencies with
the information in the condensed set of financial statements.
Directors' responsibilities
The interim report is the responsibility of, and has been approved by, the Directors. The Directors are
responsible for preparing the interim report in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as
adopted by the European Union. The condensed set of financial statements included in this interim report has
been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as
adopted by the European Union.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the
interim report based on our review. This report, including the conclusion, has been prepared for and only for
the company for the purpose of the Disclosure and Transparency Rules of the Financial Conduct Authority and
for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may come save where expressly
agreed by our prior consent in writing.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland)
2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the
Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical
and other review procedures. A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of
financial statements in the interim report for the half year ended 30 June 2013 is not prepared, in all material
respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the
Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
PricewaterhouseCoopers LLP
Chartered Accountants
London
1 August 2013
CONSOLIDATED INCOME STATEMENT (unaudited)
For the six months ended 30 June 2013
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
Notes GBPm GBPm GBPm
Continuing operations
Revenue 4 259.3 263.4 525.7
Net rental income 4 181.0 181.8 362.6
Net other income 5 2.4 3.1 6.3
Revaluation and sale of investment and development property 6 70.2 0.4 40.9
Gain on acquisition of subsidiaries 2.3
Sale and impairment of other investments 1.4 1.4
Impairment of goodwill (8.8)
Distribution of shares received from Provogue 10.2 10.2
Administration expenses ongoing (13.9) (13.3) (26.7)
Administration expenses exceptional 7 (16.5) (1.0) (1.1)
Operating profit 223.2 182.6 387.1
Finance costs 8 (98.5) (98.5) (197.3)
Finance income 0.6 0.1 0.2
Other finance costs 9 (115.0) (42.8) (67.9)
Change in fair value of financial instruments 184.0 28.8 30.5
Net finance costs (28.9) (112.4) (234.5)
Profit before tax and associates 194.3 70.2 152.6
Current tax 10 (0.3) (0.1) (0.5)
Deferred tax 10 5.2 7.2 5.6
Taxation 4.9 7.1 5.1
Share of profit of associates 15 0.6 0.8 0.9
Profit for the period 199.8 78.1 158.6
Attributable to:
Owners of Intu Properties plc 195.7 78.9 155.9
Non-controlling interest 4.1 (0.8) 2.7
199.8 78.1 158.6
Basic earnings per share 12 21.1p 8.9p 17.6p
Diluted earnings per share 12 19.4p 8.8p 17.3p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (unaudited)
For the six months ended 30 June 2013
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
GBPm GBPm GBPm
Profit for the period 199.8 78.1 158.6
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Revaluation of other investments 9.7 30.0 28.7
Recognised in sale and impairment of other investments 2.7 2.7
Exchange differences 11.2 (2.4) (7.4)
Tax relating to components of other comprehensive income (5.2) (7.6) (6.0)
Total items that may be reclassified subsequently to profit or loss 15.7 22.7 18.0
Other comprehensive income for the period 15.7 22.7 18.0
Total comprehensive income for the period 215.5 100.8 176.6
Attributable to:
Owners of Intu Properties plc 211.4 101.6 173.9
Non-controlling interest 4.1 (0.8) 2.7
215.5 100.8 176.6
CONSOLIDATED BALANCE SHEET (unaudited)
As at 30 June 2013
As at As at As at
30 June 31 December 30 June
2013 2012 2012
Notes GBPm GBPm GBPm
Non-current assets
Investment and development property 14 7,319.2 7,009.7 6,916.8
Plant and equipment 8.8 5.6 4.8
Investments in associate companies 15 40.7 40.9 41.5
Other investments 15 170.5 148.8 155.6
Goodwill 4.0 4.0 8.8
Derivative financial instruments 22.4 21.2 22.7
Trade and other receivables 104.0 104.0 101.1
7,669.6 7,334.2 7,251.3
Current assets
Trading property 1.0 2.1 4.1
Trade and other receivables 78.2 66.6 68.5
Derivative financial instruments 0.7 0.7 1.6
Cash and cash equivalents 16 139.9 188.1 100.4
219.8 257.5 174.6
Total assets 7,889.4 7,591.7 7,425.9
Current liabilities
Trade and other payables (241.1) (220.9) (328.9)
Current tax liabilities (0.6) (0.6) (0.6)
Borrowings 17 (43.4) (94.2) (92.3)
Derivative financial instruments (14.0) (19.1) (27.4)
(299.1) (334.8) (449.2)
Non-current liabilities
Borrowings 17 (3,846.6) (3,751.6) (3,502.6)
Derivative financial instruments (308.3) (495.8) (509.1)
Other provisions (1.2)
Other payables (3.3) (3.3) (0.3)
(4,158.2) (4,250.7) (4,013.2)
Total liabilities (4,457.3) (4,585.5) (4,462.4)
Net assets 3,432.1 3,006.2 2,963.5
Equity
Share capital 19 483.5 434.2 432.6
Share premium 677.4 577.4 577.4
Treasury shares (48.5) (43.9) (44.5)
Convertible bonds 20 143.7 143.7 143.7
Other reserves 516.8 336.7 341.4
Retained earnings 1,625.9 1,528.9 1,487.2
Amounts attributable to owners of Intu Properties plc 3,398.8 2,977.0 2,937.8
Non-controlling interest 33.3 29.2 25.7
Total equity 3,432.1 3,006.2 2,963.5
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (unaudited)
For the six months ended 30 June 2013
Attributable to owners of Intu Properties plc
Non-
Share Share Treasury Convertible Other Retained controlling Total
capital premium shares bonds reserves earnings Total interest equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
At 1 January 2013 434.2 577.4 (43.9) 143.7 336.7 1,528.9 2,977.0 29.2 3,006.2
Profit for the period 195.7 195.7 4.1 199.8
Other comprehensive
income:
Revaluation of other
investments 9.7 9.7 9.7
Exchange differences 11.2 11.2 11.2
Tax relating to
components of other
comprehensive income (5.2) (5.2) (5.2)
Total comprehensive
income for the period 15.7 195.7 211.4 4.1 215.5
Ordinary shares issued 49.3 100.0 164.4 313.7 313.7
Dividends (note 11) (94.4) (94.4) (94.4)
Interest on convertible
bonds (note 20) (2.9) (2.9) (2.9)
Share-based payments 0.8 0.8 0.8
Acquisition of treasury
shares (7.0) (7.0) (7.0)
Disposal of treasury shares 2.4 (2.2) 0.2 0.2
49.3 100.0 (4.6) 164.4 (98.7) 210.4 210.4
At 30 June 2013 483.5 677.4 (48.5) 143.7 516.8 1,625.9 3,398.8 33.3 3,432.1
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (unaudited)
For the year ended 31 December 2012
Attributable to owners of Intu Properties plc
Non-
Share Share Treasury Convertible Other Retained controlling Total
capital premium shares bonds reserves earnings Total interest equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
At 1 January 2012 430.2 564.1 (29.5) 143.7 318.7 1,494.9 2,922.1 23.5 2,945.6
Profit for the year 155.9 155.9 2.7 158.6
Other comprehensive
income:
Revaluation of other
investments 28.7 28.7 28.7
Recognised in sale
and impairment
of other investments 2.7 2.7 2.7
Exchange differences (7.4) (7.4) (7.4)
Tax relating to
components of other
comprehensive income (6.0) (6.0) (6.0)
Total comprehensive
income for the year 18.0 155.9 173.9 2.7 176.6
Ordinary shares issued 4.0 22.3 26.3 26.3
Dividends (note 11) (127.8) (127.8) (127.8)
Transfer relating to scrip
dividends (9.0) 9.0
Interest on convertible
bonds (note 20) (5.8) (5.8) (5.8)
Share-based payments 3.8 3.8 3.8
Acquisition of treasury
shares (15.6) (15.6) (15.6)
Disposal of treasury shares 1.2 (1.1) 0.1 0.1
Non-controlling interest
additions 3.0 3.0
4.0 13.3 (14.4) (121.9) (119.0) 3.0 (116.0)
At 31 December 2012 434.2 577.4 (43.9) 143.7 336.7 1,528.9 2,977.0 29.2 3,006.2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (unaudited)
For the six months ended 30 June 2012
Attributable to owners of Intu Properties plc
Non-
Share Share Treasury Convertible Other Retained controlling Total
capital premium shares bonds reserves earnings Total interest equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
At 1 January 2012 430.2 564.1 (29.5) 143.7 318.7 1,494.9 2,922.1 23.5 2,945.6
Profit for the period 78.9 78.9 (0.8) 78.1
Other comprehensive
income:
Revaluation of other
investments 30.0 30.0 30.0
Recognised in sale
and impairment
of other investments 2.7 2.7 2.7
Exchange differences (2.4) (2.4) (2.4)
Tax relating to
components of other
comprehensive income (7.6) (7.6) (7.6)
Total comprehensive
income for the period 22.7 78.9 101.6 (0.8) 100.8
Ordinary shares issued 2.4 13.3 15.7 15.7
Dividends (note 11) (85.4) (85.4) (85.4)
Interest on convertible
bonds (note 20) (2.9) (2.9) (2.9)
Share-based payments 2.2 2.2 2.2
Acquisition of treasury
shares (15.6) (15.6) (15.6)
Disposal of treasury shares 0.6 (0.5) 0.1 0.1
Non-controlling interest
additions 3.0 3.0
2.4 13.3 (15.0) (86.6) (85.9) 3.0 (82.9)
At 30 June 2012 432.6 577.4 (44.5) 143.7 341.4 1,487.2 2,937.8 25.7 2,963.5
CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
For the six months ended 30 June 2013
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
Notes GBPm GBPm GBPm
Cash flows from continuing operations
Cash generated from operations 18 147.7 173.9 339.2
Interest paid (200.2) (136.3) (252.7)
Interest received 0.6 0.1 0.2
Taxation (0.3) 4.6 4.2
REIT entry charge (15.2) (15.2)
Cash flows from operating activities (52.2) 27.1 75.7
Cash flows from investing activities
Purchase and development of property, plant and equipment (10.6) (30.2) (81.2)
Sale of property 15.6 0.6 1.2
Sale of other investments 48.7 48.7
Acquisition of businesses (248.4) (4.2)
Cash acquired with businesses 1.6
Other investing activities (0.6) (8.4) (17.2)
Cash flows from investing activities (244.0) 10.7 (51.1)
Cash flows from financing activities
Issue of ordinary shares 273.0 0.1 0.1
Issue of convertible bonds 300.0
Acquisition of treasury shares (0.9) (0.1) (0.1)
Sale of treasury shares 0.2 0.1 0.1
Partnership equity introduced 3.0 3.0
Cash transferred from restricted accounts 0.2 0.1 0.5
Borrowings drawn 1,389.4 10.0
Borrowings repaid (1,359.3) (30.4) (107.3)
Interest on convertible bonds (2.9) (2.9) (5.8)
Equity dividends paid (51.5) (7.9) (117.2)
Cash flows from financing activities 248.2 (28.0) 73.3
Net (decrease)/increase in cash and cash equivalents (48.0) 9.8 97.9
Cash and cash equivalents at beginning of period 186.1 88.2 88.2
Cash and cash equivalents at end of period 16 138.1 98.0 186.1
NOTES (unaudited)
1 Basis of preparation
The condensed set of financial statements for the six months ended 30 June 2013 is unaudited and does not constitute statutory
accounts within the meaning of s434 of the Companies Act 2006. The condensed set of financial statements has been prepared
in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and with IAS 34 as adopted by the
European Union.
The comparative information presented for the year ended 31 December 2012 is not the Group's statutory accounts for that year.
Those financial statements have been reported on by the Group's auditors and delivered to the registrar of companies. The
auditors' opinion on those accounts was unqualified and did not contain an emphasis of matter paragraph or a statement made
under Section 498 (2) or (3) of the Companies Act 2006.
The condensed set of financial statements should be read in conjunction with the Group's statutory financial statements for the
year ended 31 December 2012 which have been prepared in accordance with International Financial Reporting Standards
(IFRSs) as adopted by the European Union.
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported amount of assets and liabilities, income and expense. Actual results
may differ from these estimates. Except as described below, in preparing the condensed set of financial statements, the
significant judgements made by management in applying the Group accounting policies and the key sources of estimation
uncertainty were the same as those applied to the consolidated financial statements as at and for the year ended 31 December
2012.
The largest area of estimation and uncertainty in the condensed set of financial statements is in respect of the valuation of the
property portfolio, where external valuations were obtained.
The Group prepares regular forecasts and projections which include sensitivity analysis taking into account reasonably possible
changes in trading performance and asset values and assesses the potential impact of these on the Group's liquidity position
and available resources.
At 30 June 2013 the Group has cash and available facilities of GBP250 million. This was augmented in July by raising GBP125 million
bank loan secured on intu Midsummer Place. The new debt funding platform created in March this year refinanced
approximately one third of the Group's debt extending the weighted average debt maturity to 7.6 years.
The Directors have concluded, based on the Group's most recent forecasts, that there is a reasonable expectation that the
Group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the
going concern basis of accounting in preparing the condensed set of financial statements.
2 Accounting policies
The accounting policies applied are consistent with those of the Group's statutory financial statements for the year ended
31 December 2012 as set out on pages 103 to 105 of the Annual Report except for the following standards, amendments and
interpretations which are effective for the first time for the Group's 31 December 2013 year end:
- IFRS7 Financial Instruments: Disclosures (amendment)
- IFRS13 Fair Value Measurement
- IAS1 Presentation of Financial Statements (amendment)
- IAS12 Income Taxes (amendment)
- IAS19 Employee Benefits (revised)
These have resulted in changes to presentation or disclosure only.
Taxes on income in interim periods are accrued using tax rates expected to be applicable to total annual earnings.
3 Seasonality and cyclicality
There is no material seasonality or cyclicality impacting interim financial reporting.
4 Segmental reporting
Operating segments are determined based on the internal reporting and operational management of the Group. The Group
is a UK shopping centre focussed business and has one reportable operating segment being UK Shopping Centres.
The principal profit indicator used to measure performance is net rental income. All net rental income is derived from the UK
Shopping Centres segment and an analysis of net rental income is given below.
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
GBPm GBPm GBPm
Revenue 259.3 263.4 525.7
Rent receivable 219.4 221.2 441.4
Service charge income 38.8 38.7 78.7
258.2 259.9 520.1
Rent payable (11.7) (12.7) (24.7)
Service charge costs (43.2) (42.6) (87.0)
Other non-recoverable costs (22.3) (22.8) (45.8)
Net rental income 181.0 181.8 362.6
5 Net other income
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
GBPm GBPm GBPm
Profit on sale of trading property 0.1
Write down of trading property (0.1) (0.1)
Dividends received from other investments 3.3 3.2 6.3
IntuDigital (0.9)
Net other income 2.4 3.1 6.3
6 Revaluation and sale of investment and development property
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
GBPm GBPm GBPm
Revaluation of investment and development property 70.2 0.2 40.8
Sale of investment property 0.2 0.1
Revaluation and sale of investment and development property 70.2 0.4 40.9
7 Administration expenses exceptional
Exceptional administration expenses in the period totalled GBP16.5 million (six months ended 30 June 2012 GBP1.0 million, year ended
31 December 2012 GBP1.1 million), including costs relating to the acquisition of Midsummer Place (see note 23) of GBP11.2 million,
being predominantly stamp duty. Costs relating to the rebranding of the Group totalling GBP3.8 million were expensed in the period.
8 Finance costs
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
GBPm GBPm GBPm
On bank loans and overdrafts 93.1 96.5 191.7
On convertible bonds 3.7 1.8
On obligations under finance leases 1.7 2.0 3.8
Finance costs 98.5 98.5 197.3
No finance costs were capitalised in the six months ended 30 June 2013 nor in the comparative periods presented.
9 Other finance costs
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
GBPm GBPm GBPm
Amortisation of Metrocentre compound financial instrument 3.3 3.5 6.9
Costs of termination of derivative financial instruments and other fees(1) 112.2 38.5 59.9
Foreign currency movements(1) (0.5) 0.8 1.1
Other finance costs 115.0 42.8 67.9
(1) Amounts totalling GBP111.7 million in the six months ended 30 June 2013 are treated as exceptional and therefore excluded from underlying earnings (six months ended 30 June 2012 GBP39.3 million,
year end 31 December 2012 GBP61.0 million).
10 Taxation
Taxation for the period:
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
GBPm GBPm GBPm
Current tax 0.3 0.1 0.5
Deferred tax:
On other investments (0.3) (1.0) (1.9)
On derivative financial instruments (4.8) (5.6) (3.2)
On other temporary differences (0.1) (0.6) (0.5)
Deferred tax (5.2) (7.2) (5.6)
Total tax credit (4.9) (7.1) (5.1)
10 Taxation
Movements in the provision for deferred tax:
Derivative Other
Other financial temporary
investments instruments differences Total
GBPm GBPm GBPm GBPm
Deferred tax provision:
At 1 January 2013 8.7 (11.2) 2.5
Recognised in the income statement (0.3) (4.8) (0.1) (5.2)
Recognised in other comprehensive income 5.2 5.2
At 30 June 2013 13.6 (16.0) 2.4
Unrecognised deferred tax asset:
At 1 January 2013 (37.1) (36.6) (73.7)
Income statement items 12.5 (6.8) 5.7
At 30 June 2013 (24.6) (43.4) (68.0)
In accordance with the requirements of IAS 12 Income Taxes, the deferred tax asset has not been recognised in the Group
financial statements due to uncertainty over the level of profits that will be available in the non-REIT elements of the Group
in future periods.
11 Dividends
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
GBPm GBPm GBPm
Ordinary shares
Final dividend declared of 10.0 pence per share 94.4 85.4 85.4
2012 interim dividend paid of 5.0 pence per share 42.4
Dividends declared 94.4 85.4 127.8
Proposed 2013 interim dividend of 5.0 pence per share 47.7
The Company offered shareholders the option to receive ordinary shares in lieu of the cash 2012 interim and final dividends of 5
pence and 10 pence per share respectively. As a result of elections made by shareholders 3,268,230 new ordinary shares of 50
pence each were issued on 20 November 2012 and 10,693,407 new ordinary shares of 50 pence each were issued on 4 June
2013 in lieu of dividends otherwise payable, and GBP45.2 million of cash was retained in the business.
12 Earnings per share
(a) Earnings per share
Basic and diluted earnings per share as calculated in accordance with IAS 33 Earnings per Share. All earnings arise from
continuing operations.
Six months ended Six months ended Year ended
30 June 2013 30 June 2012 31 December 2012
Pence Pence Pence
Earnings Shares per Earnings Shares per Earnings Shares per
GBPm million share GBPm million share GBPm million share
Basic earnings per share(1) 192.8 914.3 21.1p 76.0 853.6 8.9p 150.1 853.8 17.6p
Dilutive convertible bonds,
share options and share awards 6.6 111.2 2.9 39.5 7.6 56.2
Diluted earnings per share 199.4 1,025.5 19.4p 78.9 893.1 8.8p 157.7 910.0 17.3p
(1) The weighted average number of shares used for the calculation of basic earnings per share has been adjusted for shares held in the ESOP and treasury shares. Basic earnings
per share are stated after deducting interest on convertible bonds recognised directly in equity of GBP2.9 million in the six months ended 30 June 2013 (six months ended 30 June 2012
GBP2.9 million, year ended 31 December 2012 GBP5.8 million) in accordance with IAS 33 Earnings per share.
(b) Headline earnings per share
Headline earnings per share has been calculated and presented as required by the Johannesburg Stock Exchange listing
requirements.
Six months ended Six months ended Year ended
30 June 2013 30 June 2012 31 December 2012
Gross Net(1) Gross Net(1) Gross Net(1)
GBPm GBPm GBPm GBPm GBPm GBPm
Basic earnings 192.8 76.0 150.1
Remove:
Revaluation and sale of investment and
development property (70.2) (68.7) (0.4) (1.2) (40.9) (39.5)
Gain on acquisition of subsidiaries (2.3) (2.3)
Impairment of goodwill 8.8 8.8
Sale and impairment of other investments (1.4) (1.8) (1.4) (1.8)
Share of associates items (0.5) (0.5) (0.6) (0.6) (0.6) (0.6)
Headline earnings 123.6 72.4 114.7
Dilution(2) 6.6 2.9 7.6
Diluted headline earnings 130.2 75.3 122.3
Weighted average number of shares 914.3 853.6 853.8
Dilution(2) 111.2 39.5 56.2
Diluted weighted average number of shares 1,025.5 893.1 910.0
Headline earnings per share (pence) 13.5p 8.5p 13.4p
Diluted headline earnings per share (pence) 12.7p 8.4p 13.4p
(1) Net of tax and non-controlling interest
(2) The dilution impact is required to be included as for earnings per share as calculated in note 12(a) even where this is not dilutive for headline earnings per share.
12 Earnings per share
(c) Underlying earnings per share
Underlying earnings per share is a non-GAAP measure but has been included as it is considered to be a key measure of the
Group's performance and an indication of the extent to which dividend payments are supported by current earnings.
Six months ended Six months ended Year ended
30 June 2013 30 June 2012 31 December 2012
Pence Pence Pence
Earnings Shares per Earnings Shares per Earnings Shares per
GBPm million share GBPm million share GBPm million share
Basic earnings per share(1) 192.8 914.3 21.1p 76.0 853.6 8.9p 150.1 853.8 17.6p
Remove:
Revaluation and sale of
investment and
development property (70.2) (7.7)p (0.4) (40.9) (4.8)p
Distribution of shares received
from Provogue (10.2) (1.2)p (10.2) (1.2)p
Sale and impairment of other
investments (1.4) (0.2)p (1.4) (0.2)p
Impairment of goodwill 8.8 1.0p
Gain on acquisition of subsidiaries (2.3) (0.3)p
Exceptional administration costs 16.5 1.8p 1.0 0.1p 1.1 0.2p
Exceptional finance costs 111.7 12.2p 39.3 4.6p 61.0 7.2p
Change in fair value of
financial instruments (184.0) (20.1)p (28.8) (3.4)p (30.5) (3.6)p
Tax on the above (5.2) (0.6)p (7.6) (0.9)p (5.9) (0.7)p
Share of associates items (0.5) (0.1)p (0.6) (0.1)p (0.6) (0.1)p
Non-controlling interest
in respect of the above 7.0 0.8p 2.2 0.3p 8.5 1.0p
Underlying earnings per share 68.1 914.3 7.4p 69.5 853.6 8.1p 137.7 853.8 16.1p
Dilutive convertible bonds,
share options and share awards 6.6 111.2 2.9 39.5 7.6 56.2
Underlying, diluted earnings
per share 74.7 1,025.5 7.3p 72.4 893.1 8.1p 145.3 910.0 16.0p
(1) The weighted average number of shares used for the calculation of basic earnings per share has been adjusted for shares held in the ESOP and treasury shares. Basic earnings
per share are stated after deducting interest on convertible bonds recognised directly in equity of GBP2.9 million in the six months ended 30 June 2013 (six months ended 30 June 2012
GBP2.9 million, year ended 31 December 2012 GBP5.8 million) in accordance with IAS 33 Earnings per share.
13 Net assets per share
(a) NAV per share (diluted, adjusted)
As at 30 June 2013 As at 31 December 2012 As at 30 June 2012
Net NAV per Net NAV per Net NAV per
assets Shares share assets Shares share assets Shares share
GBPm million (pence) GBPm million (pence) GBPm million (pence)
NAV per share attributable to
owners of Intu Properties plc(1) 3,398.8 954.3 356p 2,977.0 857.1 347p 2,937.8 853.7 344p
Dilutive convertible bonds,
share options and share
awards 13.7 44.3 39.6 3.8 40.9
Diluted NAV per share 3,412.5 998.6 342p 2,977.0 896.7 332p 2,941.6 894.6 329p
Remove:
Fair value of derivative
financial instruments
(net of tax) 283.2 29p 481.8 54p 487.9 55p
Deferred tax on investment
and development property
and other investments 13.6 1p 8.7 1p 11.2 1p
Non-controlling interest
on the above (17.9) (2)p (23.4) (3)p (27.5) (3)p
Add:
Non-controlling interest
recoverable balance not
recognised 71.3 7p 71.3 8p 71.3 8p
NAV per share (diluted)
adjusted) 3,762.7 998.6 377p 3,515.4 896.7 392p 3,484.5 894.6 390p
(1) The number of shares used has been adjusted for shares held in the ESOP and treasury shares.
(b) NNNAV per share (diluted, adjusted)
As at 30 June 2013 As at 31 December 2012 As at 30 June 2012
Net NAV per Net NAV per Net NAV per
assets Shares share assets Shares share assets Shares share
GBPm million (pence) GBPm million (pence) GBPm million (pence)
NAV per share
(diluted, adjusted)(1) 3,762.7 998.6 377p 3,515.4 896.7 392p 3,484.5 894.6 390p
Fair value of derivative
financial instruments (net of
tax) (283.2) (29)p (481.8) (54)p (487.9) (55)p
Excess of fair value of debt
over book value (39.3) (4)p (2.4) 75.0 8p
Deferred tax on investment
and development property
and other investments (13.6) (1)p (8.7) (1)p (11.2) (1)p
Non-controlling interest
on the above 10.2 1p (5.3) (1)p 27.5 3p
NNNAV per share (diluted,
adjusted) 3,436.8 998.6 344p 3,017.2 896.7 336p 3,087.9 894.6 345p
(1) The number of shares used has been adjusted for shares held in the ESOP and treasury shares.
14 Investment and development property
GBPm
At 1 January 2013 7,009.7
Midsummer Place acquisition 250.5
Additions 4.4
Disposals (15.6)
Surplus on revaluation 70.2
At 30 June 2013 7,319.2
As at As at As at
30 June 31 December 30 June
2013 2012 2012
GBPm GBPm GBPm
Balance sheet carrying value of investment and development property 7,319.2 7,009.7 6,916.8
Adjustment in respect of tenant incentives 103.5 100.4 100.9
Adjustment in respect of head leases (36.5) (37.0) (37.5)
Market value of investment and development property 7,386.2 7,073.1 6,980.2
The fair value of the Group's investment and development properties as at 30 June 2013 was determined by independent
external valuers at that date. The valuation conforms with the Royal Institution of Chartered Surveyors (RICS) Valuation
Standards 8th Edition and with IVS 1 of International Valuation Standards, and was arrived at by reference to market transactions
for similar properties.
The main assumptions underlying the valuations are in relation to market rent, taking into account forecast growth rates and
yields based on known transactions for similar properties and likely incentives offered to tenants.
15 Investments in associate companies and other investments
Investments
in associate Other
companies investments
GBPm GBPm
At 1 January 2013 40.9 148.8
Share of profit of associates 0.6
Revaluation 9.7
Foreign exchange movements (0.8) 12.0
At 30 June 2013 40.7 170.5
The investments in associate companies largely represents the Group's 32.4 per cent holding in Prozone Capital Shopping
Centres, a shopping centre developer whose shares are listed in India. The market price per share at 30 June 2013 was
INR27 (31 December 2012 INR41).
16 Cash and cash equivalents
As at As at As at
30 June 31 December 30 June
2013 2012 2012
GBPm GBPm GBPm
Unrestricted cash 1 8.1 186.1 98.0
Restricted cash 1.8 2.0 2.4
139.9 188.1 100.4
Restricted cash reflects amounts held to match the 2014 loan notes shown within borrowings.
17 Borrowings
As at As at As at
30 June 31 December 30 June
2013 2012 2012
GBPm GBPm GBPm
Current
Bank loans and overdrafts 9.6 21.2 18.5
Commercial mortgage backed securities ("CMBS") notes 30.2 40.8 41.8
Loan notes 2014 1.8 2.0 2.4
CSC bonds 2013 26.8 26.8
Current borrowings, excluding finance leases 41.6 90.8 89.5
Finance lease obligations 1.8 3.4 2.8
43.4 94.2 92.3
Non-current
Revolving Credit Facility 2016 265.0 55.0
CMBS notes 2015 436.8 960.6 975.9
CMBS notes 2022 51.7 51.8 52.0
CMBS notes 2029 95.5 97.9 100.5
CMBS notes 2033 370.0 375.4 379.1
CMBS notes 2035 182.8 181.8 180.6
Bank loan 2014 120.9 135.4 115.0
Bank loans 2016 465.7 720.7 727.8
Bank loan 2017 502.5 504.6
Bank loan 2018 346.0
Debentures 2027 227.5 227.4 227.3
3.875% bonds 2023 438.9
4.625% bonds 2028 339.9
2.5% convertible bonds 2018 314.4 311.0
Non-current borrowings, excluding finance leases and Metrocentre compound
financial instrument 3,655.1 3,564.5 3,317.8
Metrocentre compound financial instrument 156.8 153.5 150.1
Finance lease obligations 34.7 33.6 34.7
3,846.6 3,751.6 3,502.6
Total borrowings 3,890.0 3,845.8 3,594.9
Cash and cash equivalents (139.9) (188.1) (100.4)
Net debt 3,750.1 3,657.7 3,494.5
Net external debt (adjusted for Metrocentre compound financial instrument) at 30 June 2013 was GBP3,593.3 million (31 December
2012 GBP3,504.2 million; 30 June 2012 GBP3,344.4 million). The fair value of total borrowings as at 30 June 2013 was GBP3,929.3
million.
18 Cash generated from operations
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
Notes GBPm GBPm GBPm
Continuing operations
Profit before tax and associates 194.3 70.2 152.6
Remove:
Revaluation and sale of investment and development property 6 (70.2) (0.4) (40.9)
Gain on acquisition of subsidiaries (2.3)
Sale and impairment of other investments ( 1.4) (1.4)
Impairment of goodwill 8.8
Distribution of shares received from Provogue (10.2) (10.2)
Depreciation 0.8 0.7 1.5
Share-based payments 0.8 2.2 3.8
Lease incentives and letting costs (4.3) 4.3 (3.2)
Finance costs 8 98.5 98.5 197.3
Finance income (0.6) (0.1) (0.2)
Other finance costs 9 115.0 42.8 67.9
Change in fair value of financial instruments (184.0) (28.8) (30.5)
Changes in working capital:
Change in trading property 1.1 3.4 5.4
Change in trade and other receivables (6.8) (4.8) (0.7)
Change in trade and other payables 3.1 (2.5) (8.7)
Cash generated from operations 147.7 173.9 339.2
19 Share capital
GBPm
Issued and fully paid
At 31 December 2012 868,473,001 ordinary shares of 50p each 434.2
Shares issued 49.3
At 30 June 2013 966,994,656 ordinary shares of 50p each 483.5
During the period the Company issued a total of 106,584 ordinary shares in connection with the exercise of options under
the Intu Properties plc Approved Share Option Scheme and the Intu Properties plc Unapproved Share Option Scheme.
In connection with joint ownership elections by participants under the Company's Joint Share Ownership Plan (JSOP) a total
of 1,721,664 ordinary shares were issued during the period to the trustee of the Company's Employee Benefit Trust.
On 27 February 2013, the Company announced a placing of 86 million new ordinary shares at a price of 325 pence per
share. The placing represented in aggregate 9.9 per cent of the issued share capital of the Company immediately prior to
the placing, increasing share capital by GBP43.0 million. For the first time shareholders on the South African register were able
to participate in a placing in Rand. As a result 28 per cent of the placing shares were denominated in Rand.
On 4 June 2013, the Company issued 10,693,407 new ordinary shares to shareholders who elected to receive their 2012
final dividend in shares under the Scrip Dividend Scheme. The value of the Scrip Shares was calculated in accordance with
the terms of the Scrip Dividend Scheme, being the average middle market quotations for each day between 5 to 11 April
2013 inclusive less the gross amount of dividend payable.
20 Convertible bonds
2.5 per cent convertible bonds
In 2012 the Group issued GBP300.0 million, 2.5 per cent guaranteed convertible bonds due 2018 at par. The exchange price is
adjusted upon certain events including the payment of dividends by the Company. At 30 June 2013, the exchange price was
GBP4.1840 per ordinary share (31 December 2012 GBP4.3098). These bonds are designated as at fair value though profit and loss
and so are presented on the balance sheet at fair value with all gains and losses taken to the income statement through the
changes in fair values of financial instruments line. They all remain outstanding at 30 June 2013.
At 30 June 2013, the fair value of the bonds was GBP314.4 million (31 December 2012 GBP311.0 million). During the six months ended
30 June 2013, interest of GBP3.7 million has been recognised on these bonds within finance costs (year ended 31 December 2012
GBP1.8 million).
3.75 per cent convertible bonds
In 2011 the Company issued GBP154.3 million, 3.75 per cent perpetual subordinated convertible bonds, with a conversion price of
GBP4.00 per ordinary share, in connection with the acquisition of The Trafford Centre. These are accounted for as equity at their fair
value on issue which totalled GBP143.7 million. They all remain outstanding at 30 June 2013.
During the six months ended 30 June 2013, interest of GBP2.9 million has been recognised on these bonds directly in equity (six
months ended 30 June 2012 GBP2.9 million, year ended 31 December 2012 GBP5.8 million).
21 Financial instruments
The table below presents the Group's financial assets and liabilities recognised at fair value.
June 2013
Level 1 Level 2 Level 3 Total
GBPm GBPm GBPm GBPm
Assets
Derivative financial instruments:
Fair value through profit or loss 23.1 23.1
Available for sale investments 1.0 169.5 170.5
Total assets 1.0 192.6 193.6
Liabilities
Convertible bonds
Designated as at fair value through profit or loss 314.4 314.4
Derivative financial instruments:
Fair value through profit or loss 322.3 322.3
Total liabilities 314.4 322.3 636.7
Fair value hierarchy
Level 1: Valuation based on quoted market prices traded in active markets.
Level 2: Valuation techniques are used, maximising the use of observable market data, either directly from market prices or derived
from market prices.
Level 3: Where one or more inputs to valuation are not based on observable market data. Valuations at this level are more
subjective and therefore more closely managed, including sensitivity analysis of inputs to valuation models. Such testing has not
indicated that any material difference would arise due to a change in input variables.
There were no transfers between Levels 1, 2 and 3 during the period.
Derivative financial instruments are initially recognised on the trade date at fair value and subsequently re-measured at fair value. In
assessing fair value the Group uses its judgement to select suitable valuation techniques and make assumptions which are mainly
based on market conditions existing at the balance sheet date. The fair value of interest rate swaps is calculated by discounting
estimated future cash flows based on the terms and maturity of each contract and using market interest rates for similar instruments
at the measurement date. These values are tested for reasonableness based upon broker or counterparty quotes.
Available-for-sale investments, being investments intended to be held for an indefinite period, are initially and subsequently
measured at fair value. For listed investments, fair value is the current bid market value at the reporting date. For unlisted
investments where there is no active market, fair value is assessed using an appropriate methodology.
22 Capital commitments
At 30 June 2013, the Board had approved GBP48.6 million (31 December 2012 GBP50.0 million, 30 June 2012 GBP46.5 million) of future
expenditure for the purchase, construction, development and enhancement of investment property, of this GBP22.9 million (31
December 2012 GBP20.0 million, 30 June 2012 GBP5.6 million) is contractually committed.
23 Business combinations
On 25 March 2013, the Group acquired 100 per cent of the Midsummer Place Shopping Centre with certain integrated activities,
assets and liabilities for cash consideration of GBP248.6 million. The acquisition addresses a gap in Intu's UK regional coverage
and, as well as having strong operating metrics and good demographics, offers considerable scope for rental growth. The
acquisition fits well in Intu's strategy of focusing on the best shopping centre destinations across the country. Assets and
liabilities acquired consisted of investment property with book and fair value of GBP250.5 million, along with other payables with
book and fair value of GBP1.9 million. No goodwill was recorded on the transaction as consideration was equal to the fair value of
assets and liabilities acquired. Acquisition related costs of GBP11.2 million were incurred and recognised in the income statement in
exceptional items.
During the six months ended 30 June 2013 the acquired business contributed GBP3.7 million to the revenue and GBP3.3 million to the
profit of the Group.
24 Related party transactions
There have been no related party transactions during the period that require disclosure under Section DTR 4.2.8 R of the
Disclosure and Transparency Rules or under IAS 34 Interim Financial Reporting except those disclosed elsewhere in this
condensed set of financial statements.
INVESTMENT AND DEVELOPMENT PROPERTY (unaudited)
Property data
Market Initial
value Initial Nominal
Notes yield "Topped-up" equivalent
GBPm Ownership (EPRA) NIY (EPRA)(F) yield Occupancy
As at 30 June 2013
Intu Trafford Centre 1,850.0 100% 4.3% 4.8% 5.3% 96%
Intu Lakeside 1,115.5 100% 5.0% 5.1% 5.6% 97%
Intu Metrocentre 883.7 90% (A) 5.1% 5.5% 5.7% 94%
Intu Braehead 602.3 100% 4.5% 4.8% 5.9% 91%
Manchester Arndale 391.3 48% (B) 5.1% 5.2% 5.6% 96%
Intu Watford 323.0 93% 4.9% 4.9% 6.5% 91%
Intu Victoria Centre 305.0 100% 4.9% 5.1% 6.7% 95%
St David's, Cardiff 266.2 50% 5.2% 5.4% 5.7% 94%
Intu Midsummer Place 250.5 100% 5.1% 5.1% 5.5% 97%
Intu Eldon Square 249.0 60% 4.9% 5.0% 6.6% 94%
Intu Chapelfield 245.1 100% 5.9% 6.0% 6.5% 95%
Cribbs Causeway, Bristol 233.3 33% (C) 4.0% 4.6% 6.0% 94%
Intu Uxbridge 212.3 100% 5.5% 5.9% 6.4% 96%
Intu Potteries 162.9 100% 6.1% 6.6% 7.6% 94%
Intu Bromley 159.4 64% 5.6% 5.6% 7.5% 87%
Other 136.7 (D)
Total investment and development property 7,386.2 4.81% 5.10% 5.85% 95% (E)
As at 31 December 2012 7,073.1 5.04% 5.24% 5.94% 96%
Please refer to the glossary for the definition of terms.
Notes
(A) Interest shown is that of the Metrocentre Partnership in intu Metrocentre (90 per cent) and the Metro Retail Park (100 per cent).
The Group has a 60 per cent interest in the Metrocentre Partnership which is consolidated as a subsidiary of the Group.
(B) The Group's interest is through a joint venture ownership of a 95 per cent interest in Manchester Arndale, and a 90 per cent
interest in New Cathedral Street, Manchester.
(C) The Group's interest is through a joint venture ownership of a 66 per cent interest in The Mall at Cribbs Causeway and a 100
per cent interest in The Retail Park, Cribbs Causeway.
(D) Includes the Group's 67 per cent economic interest in intu Broadmarsh and the Group's 100 per cent economic
interest in Xscape, Braehead.
(E) The EPRA vacancy rate at 30 June 2013 was 2.6 per cent (31 December 2012 1.9 per cent).
(F) Net initial yield adjusted for the expiration of rent free periods and other unexpired lease incentives.
Analysis of capital return in the period
Market value
30 June 31 December Revaluation surplus *
2013 2012 30 June 2013
GBPm GBPm GBPm %
Like-for-like property 7,128.0 7,065.7 70.2 1.0
Acquisitions 250.5
Redevelopments and developments 7.7 7.4
Total investment and development property 7,386.2 7,073.1 70.2 1.0
* Revaluation surplus includes amortisation of lease incentives and fixed head leases.
INVESTMENT AND DEVELOPMENT PROPERTY (unaudited)
Additional property information
As at As at
30 June 31 December
2013 2012
GBPm GBPm
Passing rent 360.4 357.5
ERV 471.7 456.0
Weighted average unexpired lease 7.5 years 7.8 years
EPRA Cost Ratios
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2013 2012 2012
GBPm GBPm GBPm
EPRA Costs (including direct vacancy costs) 39.5 38.9 78.6
EPRA Costs (excluding direct vacancy costs) 33.6 34.0 67.8
Gross Rental Income 206.6 207.4 414.5
EPRA Cost Ratio (including direct vacancy costs) 19.1% 18.8% 19.0%
EPRA Cost Ratio (excluding direct vacancy costs) 16.3% 16.4% 16.4%
OTHER INFORMATION
FINANCIAL COVENANTS (unaudited)
Loan
Financial outstanding at Loan to Interest Interest
covenants on 31 July 2013(1) LTV 30 June 2013 cover cover
asset-specific debt Maturity GBPm covenant market value(2) covenant actual(3)
Intu Metrocentre 2015 515.7 90% 59% 120% 140%
Intu Chapelfield 2016 206.1 n/a n/a 120% 162%
Intu Uxbridge 2016 148.2 80% 70% 120% 185%
Intu Bromley 2016 117.1 80% 73% 120% 196%
Xscape 2014 45.6 80% 80% 120% 260%
St David's, Cardiff(4) 2014 78.6 70% 30% 180% 336%
Intu Trafford Centre
There are no financial covenants on the Trafford Centre debt. However a debt service charge ratio is assessed quarterly and
where this falls below specified levels certain restrictions come into force. The loan to 30 June 2013 market value ratio is 41 per cent.
Intu Midsummer Place
A new GBP125.3 million loan facility has been secured on intu Midsummer Place. This facility was drawn in July 2013 and has a LTV
covenant of 65 per cent and an interest cover covenant of 150 per cent.
Notes
(1)
The loan values are the principal balances outstanding at 31 July 2013, which take into account any principal repayments
made up to 31 July 2013. The balance sheet value of the loans includes unamortised fees. Voluntary pre-payments were
made in January 2013 for Bromley (GBP15 million) and Uxbridge (GBP5 million). In April 2013 GBP15 million of the St David's loan
was repaid under the terms of the facility following the sale of a long leasehold interest.
(2)
The Loan to 30 June 2013 market value provides an indication of the impact the 30 June 2013 property valuations
undertaken for inclusion in the condensed financial statements could have on the LTV covenants. The actual timing and
manner of testing LTV covenants varies and is loan specific.
(3)
Based on latest certified figures, calculated in accordance with loan agreements, which have been submitted between 30
June 2013 and 31 July 2013. The calculations are loan specific and include a variety of historic, forecast and in certain
instances a combined historic and forecast basis.
(4)
50 per cent of the debt is shown which is consistent with accounting treatment and the Group's economic interest.
Secured Group Structure at 30 June 2013
Interest Interest
Loan LTV LTV cover cover
Maturity GBPm covenant* actual covenant* actual
4.625 per cent bonds 2028 350.0
3.875 per cent bonds 2023 450.0
Term loan 2018 351.8
1,151.8 80% 49% 125% 226%
* Tested on the Security Group, the principle assets of which are intu Lakeside, intu Braehead, intu Watford and intu Victoria Centre. Further
details on the operating covenant regime are included in the Financial Review.
Financial covenants on corporate facilities at 30 June 2013
Interest Interest Borrowings/ Borrowings/
Net worth Net worth cover cover net worth net worth
covenant actual covenant* actual covenant* actual
GBP375m facility, maturing in 2016* GBP750.0m GBP1,787.5m 120% 177% 110% 85%
GBP300m due in 2018 - 2.5 per cent n/a n/a n/a n/a 175% 34%
convertible bonds**
* Tested on the Borrower Group which excludes, at the Group's election, certain subsidiaries with asset-specific finance. The
facility is secured on the Group's investments in Manchester Arndale and Cribbs Causeway.
** Tested on the Group excluding, at the Group's election, the borrowings of certain subsidiaries with asset-specific finance.
Intu Debenture plc at 30 June 2013
Capital Capital Interest Interest
Loan cover cover cover cover
Maturity GBPm covenant actual covenant actual
2027 231.4 150% 201% 100% 104%
The debenture is currently secured on the Group's interests in intu Potteries, intu Eldon Square, and intu Broadmarsh.
Should the capital cover or interest cover test be breached, Intu Debenture plc (the issuer') has three months from the date of
delivery of the valuation or the latest certificate to the Trustees to make good any deficiencies. The issuer may withdraw property
secured on the debenture by paying a sum of money or through the substitution of alternative property provided that the loan to
value and income tests are satisfied immediately following the substitution.
OTHER INFORMATION
UNDERLYING PROFIT STATEMENT (unaudited)
For the six months ended 30 June 2013
Six months Six months Six months Year
ended ended ended ended
30 June 30 June 31 December 31 December
2013 2012 2012 2012
GBPm GBPm GBPm GBPm
Net rental income 181.0 181.8 180.8 362.6
Net other income 2.4 3.1 3.2 6.3
183.4 184.9 184.0 368.9
Administration expenses (13.9) (13.3) (13.4) (26.7)
Underlying operating profit 169.5 171.6 170.6 342.2
Finance costs (98.5) (98.5) (98.8) (197.3)
Finance income 0.6 0.1 0.1 0.2
Other finance costs (3.3) (3.5) (3.4) (6.9)
Underlying net finance costs (101.2) (101.9) (102.1) (204.0)
Underlying profit before tax and associates 68.3 69.7 68.5 138.2
Tax on underlying profit (0.3) (0.5) (0.3) (0.8)
Remove amounts attributable to non-controlling interest 2.9 3.0 2.8 5.8
Share of underlying profit of associates 0.1 0.2 0.1 0.3
Interest on convertible bonds deducted directly in equity (2.9) (2.9) (2.9) (5.8)
Underlying earnings 68.1 69.5 68.2 137.7
Underlying earnings per share (pence) 7.4p 8.1p 8.0p 16.1p
Weighted average number of shares 914.3 853.6 854.0 853.8
DIVIDENDS
The Directors of Intu Properties plc have announced an interim dividend per ordinary share (ISIN GB0006834344) of 5.0
pence (2012 5.0 pence) payable on 19 November 2013 (see salient dates below).
The dividend may be partly paid as a Property Income Distribution ("PID") and partly paid as a non-PID. The PID element
will be subject to deduction of a 20 per cent withholding tax unless exemptions apply (please refer to the PID Special note
below). Any non-PID element will be treated as an ordinary UK company dividend.
Should the Directors decide to offer a scrip alternative to the 2013 interim dividend, shareholders will be advised by no later
than Friday 27 September 2013.
If a scrip alternative is offered, the calculation for shareholders electing to receive scrip shares will be based on either a full
non-PID dividend or a combination of non-PID and PID, to be determined by the Board. The basis of calculation will be
included in the advice to shareholders to be issued no later than 27 September 2013.
Dates
The following are the salient dates for the payment of the interim dividend:
Thursday, 3 October 2013 Sterling/Rand exchange rate struck.
Friday, 4 October 2013 Sterling/Rand exchange rate and dividend amount in SA currency announced.
Monday, 14 October 2013 Ordinary shares listed ex-dividend on the JSE, Johannesburg
Wednesday, 16 October 2013 Ordinary shares listed ex-dividend on the London Stock Exchange.
Friday, 18 October 2013 Record date for interim dividend in London and Johannesburg.
Friday, 18 October 2013 UK shareholders only: Last date for receipt of Tax Exemption Declaration forms to
permit dividends to be paid gross.
Tuesday, 19 November 2013 Dividend payment day for shareholders
South African shareholders should note that, in accordance with the requirements of Strate, the last day to trade cum-
dividend will be Friday, 11 October 2013 and that no dematerialisation or rematerialisation of shares will be possible from
Monday, 14 October to Friday, 18 October 2013 inclusive. No transfers between the UK and South African registers may
take place from Thursday, 3 October to Sunday, 20 October 2013 inclusive.
PID SPECIAL NOTE:
UK shareholders:
For those who are eligible for exemption from the 20 per cent withholding tax and have not previously registered for
exemption, an HM Revenue & Customs ("HMRC") Tax Exemption Declaration is available for download from the "Investors"
section of the Intu Properties plc website (intugroup.co.uk), or on request to our UK registrars, Capita Registrars. Validly
completed forms must be received by Capita Registrars no later than the Record Date, Friday 18 October 2013; otherwise
the dividend will be paid after deduction of tax.
South African and other non-UK shareholders:
South African shareholders may apply to HMRC after payment of the dividend for a refund of the difference between the 20
per cent withholding tax and the UK/South African double taxation treaty rate of 15 per cent. Other non-UK shareholders
may be able to make similar claims for a refund of UK withholding tax deducted. Refund application forms for all non-UK
shareholders are available for download from the "Investors" section of the Intu Properties plc website (intugroup.co.uk), or
on request to our SA registrars, Computershare, or HMRC. UK withholding tax refunds are not claimable from Intu
Properties plc, the South African Revenue Service ("SARS") or other national authorities, only from the UK's HMRC.
Additional information on PIDs can be found at intugroup.co.uk/investors/shareholders-bondholders/real-estate-investment-
trust/
The above does not constitute advice and shareholders should seek their own professional guidance. Intu Properties plc
does not accept liability for any loss suffered arising from reliance on the above.
GLOSSARY
ABC1 customers
Proportion of customers within UK social groups A, B and C1 defined as members of households whose chief earner's occupation is
professional, higher or intermediate management or supervisory.
Annual property income
The Group's share of passing rent plus the external valuers' estimate of annual excess turnover rent, additional rent in respect of
unsettled rent reviews and sundry income such as that from car parks and mall commercialisation.
Debt to assets ratio
Net external debt divided by the market value of investment and development property.
Diluted figures
Reported amounts adjusted to include the effects of dilutive potential shares issuable under convertible bonds and employee incentive
arrangements.
Earnings per share
Profit for the period attributable to owners of Intu divided by the weighted average number of shares in issue during the period.
EPRA
European Public Real Estate Association, the publisher of Best Practice Recommendations intended to make financial statements of
public real estate companies in Europe clearer, more transparent and comparable.
ERV (estimated rental value)
The external valuers' estimate of the Group's share of the current annual market rent of all lettable space net of any non-recoverable
charges, before bad debt provision and adjustments required under IFRS regarding tenant lease incentives.
Exceptional items
Exceptional items are those items that in the Directors' view are required to be separately disclosed by virtue of their size or incidence
to enable a full understanding of the Group's financial performance.
Headline rent ITZA
Annual contracted rent per square foot after expiry of concessionary periods in terms of zone A.
Interest cover
Underlying operating profit excluding trading property related items divided by the net finance cost plus interest on convertible bonds
recognised in equity excluding the change in fair value of derivatives, exceptional finance costs and amortisation of compound financial
instruments.
Interest rate swap
A derivative financial instrument enabling parties to exchange interest rate obligations for a predetermined period. These are used by
the Group to convert floating rate debt to fixed rates.
IPD
Investment Property Databank Ltd, producer of an independent benchmark of property returns.
Like-for-like property
Investment property which has been owned throughout both periods without significant capital expenditure in either period, so that
income can be compared on a like-for-like basis. For the purposes of comparison of capital values, this will also include assets owned
at the previous reporting period end but not throughout the prior period.
Loan-to-value (LTV)
LTV is the ratio of attributable debt to the market value of an investment property.
NAV per share (diluted, adjusted)
NAV per share calculated on a diluted basis and adjusted to reflect any unrecognised surplus on trading properties (net of tax), to
remove the fair value of derivatives (net of tax) and to remove deferred tax on investment and development property and other
investments.
Net asset value (NAV) per share
Net assets attributable to owners of Intu Properties plc divided by the number of ordinary shares in issue at the period end.
Net external debt
Net debt after removing the Metrocentre compound financial instrument.
Net initial yield (EPRA)
Annualised net rent on investment property (after deduction of revenue costs such as head rent, running void, service charge after
shortfalls, empty rates and merchant association contribution) expressed as a percentage of the gross market value before deduction of
theoretical acquisition costs, consistent with EPRA's net initial yield.
Net rental income
The Group's share of net rents receivable as shown in the income statement, having taken due account of non-recoverable costs, bad
debt provisions and adjustments to comply with IFRS including those regarding tenant lease incentives.
Nominal equivalent yield
Effective annual yield to a purchaser from the assets individually at market value after taking account of notional acquisition costs
assuming rent is receivable annually in arrears, reflecting estimated rental values (ERV) but disregarding potential changes in market
rents.
Occupancy
The passing rent of let and under offer units expressed as a percentage of the passing rent of let and under offer units plus ERV of un-let
units, excluding development and recently completed properties. Units let to tenants in administration and still trading are treated as let
and those no longer trading are treated as un-let.
Passing rent
The Group's share of contracted annual rents receivable at the balance sheet date. This takes no account of accounting adjustments
made in respect of rent free periods or tenant incentives, the reclassification of certain lease payments as finance charges or any
irrecoverable costs and expenses, and does not include excess turnover rent, additional rent in respect of unsettled rent reviews or sundry
income such as from car parks etc. Contracted annual rents in respect of tenants in administration are excluded.
Property Income Distribution (PID)
A dividend, generally subject to UK withholding tax at the basic rate of income tax, that a UK REIT is required to pay to its shareholders
from its qualifying rental profits. Certain classes of UK shareholder may qualify to receive a PID gross shareholders should refer to
intugroup.co.uk for further information. The Group can also pay non-PID dividends which are not subject to UK withholding tax.
Real Estate Investment Trust (REIT)
A tax regime which exempts from corporation tax the rental profits and capital gains of the REIT's qualifying investment property activities.
In the UK, the regime must be elected into and the REIT must meet certain ongoing qualifications, including the requirement to distribute
at least 90 per cent of qualifying rental profits to shareholders. The Group elected for REIT status with effect from 1 January 2007.
Scrip Dividend Scheme
The Group offers shareholders the opportunity to participate in the Scrip Dividend Scheme. This enables participating shareholders to
receive shares instead of cash when a Scrip Alternative is offered for a particular dividend. For more information, please visit
intugroup.co.uk/investors/shareholders-bondholders/dividends
Tenant (or lease) incentives
Any incentives offered to occupiers to enter into a lease. Typically incentives are in the form of an initial rent free period and/or a cash
contribution to fitout the premises. Under IFRS the value of incentives granted to tenants is amortised through the income statement on
a straight-line basis over the lease term.
Topped-up NIY (EPRA)
Net initial yield adjusted for the expiration of rent free periods and other unexpired lease incentives.
Total financial return
The change in NAV per share (diluted, adjusted) plus dividends per share paid in the period expressed as a percentage of opening NAV
per share (diluted, adjusted).
Trading property
Property held for trading purposes rather than to earn rentals or for capital appreciation and shown as current assets in the balance sheet.
Underlying earnings per share (EPS)
Earnings per share adjusted to exclude valuation movements, exceptional items and related tax.
Underlying figures
Amounts described as underlying exclude valuation movements, exceptional items and related tax.
Vacancy rate (EPRA)
The ERV of vacant space divided by total ERV.
Yield shift
A movement (usually expressed in basis points) in the yield of a property asset.
Sponsor:
Merrill Lynch South Africa Proprietary Limited
Date: 01/08/2013 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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