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INTU PROPERTIES PLC - AGM Trading Update for the Period from 1 January 2015 to 6 May 2015

Release Date: 06/05/2015 08:00
Code(s): ITU     PDF:  
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AGM Trading Update for the Period from 1 January 2015 to 6 May 2015

INTU PROPERTIES PLC
(Registration number UK3685527)
ISIN Code: GB0006834344
JSE Code:      ITU

6 MAY 2015

INTU PROPERTIES PLC


AGM TRADING UPDATE FOR THE PERIOD FROM 1 JANUARY 2015 TO 6 MAY 2015

Highlights of the period:
   -   Continued improvement in retailer demand with 44 new long term leases
       agreed for £7 million new annual rent, 10 per cent above previous passing rent
       and in line with valuation assumptions
   -   Key operating metrics are stable, with year-on-year footfall to date unchanged
       and occupancy marginally reduced since 31 December 2014 from 95 per cent
       to 94 per cent reflecting seasonal fluctuations since Christmas
   -   UK development pipeline on track with restaurant projects at intu Metrocentre
       and intu Bromley started in the period
   -   Strong footfall growth in Spain at both Puerto Venecia and Parque Principado
       along with encouraging increases in retailer sales
   -   Shareholders approved exercise of the option to acquire site in Malaga for a
       major shopping resort development. Detailed discussions with key retailers
       and leisure operators are underway for a 2016 start
   -   Over 40 per cent growth in year-on-year website traffic at intu.co.uk following
       the introduction in 2014 of a fully mobile responsive site and an increase in the
       number of participating retailers
   -   Cash and available facilities of over £500 million at 31 March 2015 providing
       headroom for our present development activities


David Fischel, Chief Executive, commented:
“The continuing improvement in the letting market and overall performance at centre level
are encouraging. We are moving forward strongly on a number of fronts and particularly with
our active development projects both in the UK and Spain”


Optimising the performance of existing assets
The Group’s operating metrics are stable. In terms of lettings, 44 new long term leases were
signed in the quarter, representing £7 million of new passing rent, in aggregate 10 per cent
above previous passing rent and in line with valuation assumptions. Signings in the period
include:
   -   15 new restaurant lettings across the portfolio including Byron, Joe’s Kitchen and
       Zizzi at intu Derby, Wagamama and Coast to Coast at intu Trafford Centre and Five
       Guys at intu Braehead
   -   New brands to centres such as Kiko and Swatch at intu Victoria Centre where
       retailers are responding to the improved mall environment and Kurt Geiger at intu
       Lakeside where the tenant mix continues to strengthen
Units entering administration in the period were Bank, Blott and USC, with Blott and USC
continuing to trade. These administrations amount in total to just over one per cent of Intu’s
rent roll and we are actively engaged in reletting these units


Driving forward the £1.3 billion UK investment programme
Our UK development pipeline is on track:
   -   The £42 million restaurant and mall refreshment project at intu Victoria Centre and
       the £19 million cinema and restaurant extension at intu Potteries are both on target
       for openings in autumn 2015
   -   The extension of the Qube dining area at intu Metrocentre with 14 new restaurants
       and the Queens Gardens project at intu Bromley with five new restaurants have both
       commenced in the period and are due to be completed in early 2016. Letting is
       almost complete with one unit remaining at each site
   -   The hotel development at intu Lakeside has been pre-let to Travelodge and
       construction will commence in the second half of this year
   -   At intu Watford, we are still awaiting the outcome of the CPO enquiry before we can
       start on site but in the meantime we have continued to make letting progress, with
       some 50 per cent of the projected rent roll now exchanged, in solicitors hands or
       under offer


Making the brand count
   -   The Tell intu programme through which we measure customer experience is now
       over one year old allowing year-on-year comparisons of net promoter scores and
       provides valuable information to enable us to continuously improve the customer
       experience in our centres
   -   All but one centre now have our high quality Wi-Fi installed. Visits to intu.co.uk have
       increased by over 40 per cent against the same period in 2014 and the marketing
       database has surpassed two million individuals. We are now actively using this
       database and the fully mobile responsive website to generate advertising, media and
       commission income
   -   We continue to provide high quality promotions both physically and digitally to our
       customers, working on a national basis with global brands, such as the Home film
       promotion over the half term holiday


Seizing the growth opportunity in Spain
   -   Our centres continue to perform well in an improving Spanish economy. Footfall at
       both Puerto Venecia and Parque Principado is up year-on-year, and we have
       achieved quality new lettings at both centres at improved rental levels
   -   We are now taking ownership of the Malaga site and we intend to push forward
       strongly with a view to starting the 175,000 square metre shopping resort
       development in 2016. We are also making good progress at our other sites under
       option in Valencia, Palma and Vigo

Conference call

A conference call for analysts and investors will be held today at 08:00 BST
A copy of this announcement and the presentation from our recent analyst and investor site
visit to intu Lakeside are available for download from our website at intugroup.co.uk


ENQUIRIES
Intu Properties plc
David Fischel            Chief Executive                                                   +44 (0)20 7960 1207
Matthew Roberts          Chief Financial Officer                                           +44 (0)20 7960 1353
Adrian Croft             Head of Investor Relations                                        +44 (0)20 7960 1212

Public relations
UK:                      Justin Griffiths, Powerscourt                                     +44 (0)20 7250 1446
SA:                      Frédéric Cornet, Instinctif Partners                                +27 (0)11 447 3030


Sponsor:
Merrill Lynch South Africa (Pty) Limited


NOTES FOR EDITORS
Intu is the leading owner and manager of prime regional shopping centres in the UK.


A FTSE 100 company, Intu owns and operates many of the UK’s biggest and most popular retail and leisure
destinations, including nine of the top 20, incorporating super-regional centres such as intu Trafford Centre, intu
Lakeside and intu Metrocentre, together with a number of city centre locations from Watford to Newcastle.


With over 23 million sq. ft. of space hosting top UK and international retailers from Apple to Zara, Intu centres
attract some 400 million customer visits from over half of the UK’s population every year.


Intu has a UK investment pipeline of £1.3 billion over the next ten years to add 2.6 million sq. ft. of new retail and
leisure space, of which 2 million sq. ft. is already consented. Major projects due to be underway soon include the
extension and refurbishment at intu Watford and the leisure expansion at intu Lakeside.


Intu also has a growing presence in the Spanish market, owning two of Spain’s top 10 centres: Parque
Principado in Oviedo, and Puerto Venecia in Zaragoza, a development site in Malaga with options on a further
three sites in Valencia, Palma and Vigo.


intu creates a compelling experience for its customers, both on and offline, delivering on its brand promise to
provide the most digitally connected shopping centres, world-class service and events with a difference. National
initiatives include the annual ‘Everyone’s Invited’ event which in 2014 increased footfall that weekend by an
average of 13%. Our objective is for customers to come more often and stay for longer, in turn helping intu’s
retailers to flourish.


With some 115,000 people employed at Intu’s centres in the UK, representing some 4% of the UK’s total retail
workforce, intu is fully committed to supporting its local communities and the wider environment and is proud to
have received widespread recognition for its Corporate Responsibility achievements, including the coveted BitC
CommunityMark.


For further information see www.intugroup.co.uk


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