intu Properties has today issued its first half interim statement in which the group reveals a significant boost in net rental income and underlying earnings, bringing profit for the period to £262 million including a £162 million property revaluation surplus.
Thanks to a series of acquisitions, including that of the Puerto Venecia development in Zaragoza, Spain, the market value of assets in Intu’s portfolio rose to £9.5 billion from the previous valuation of £9.0 billion.
Furthermore, rental value growth of 0.6 per cent helped the group to achieve a like-for-like property valuation surplus of 1.9 per cent, significantly outperforming the IPD monthly retail property index’s recorded growth average of 1.2 per cent.
With the economy improving, strong footfall levels at intu’s centres boosted retail sales by 3.4 per cent. As a result, demand for space increased, allowing the company to seal 107 long term leases in the UK and Spain which equate to an annual rental lift of £18 million.
Intu chief executive David Fischel believes that the strategies currently undertaken by the group are proving successful.
He says; “Intu has recorded a strong first half of 2015 with 6 per cent growth in underlying earnings per share and a £162 million (1.9 per cent) revaluation surplus, taking our total property value to £9.5 billion.
“We were particularly encouraged by the continued improvement in retailer demand for quality space in pre-eminent destinations, with leases signed in the period in aggregate a healthy 12 per cent above previous passing rent and we have a promising number of further lettings in the pipeline.”
For some time now, Intu has focused upon upgrading and redeveloping a number of its centres. This has seen the group engage in a £100 million- plus improvement scheme at five of its UK retail destinations, with intu Potteries (pictured) and intu Victoria Centre set to benefit from a major overhaul of their leisure and restaurant offerings. Consumers at intu Eldon Square, intu Bromley and intu Metrocentre, meanwhile, will enjoy major restaurant projects in the near future.
Elsewhere in the development pipeline, intu has invested around £400 million into four schemes at intu Watford, intu Broadmarsh, intu Lakeside and intu Costa del Sol, with development partners contributing additional finances for the total £650 million cost of these projects.
These all form part of the £1.5 billion development programme announced by Intu several years ago and all are progressing in line with the group’s timetable, with several due to be completed by the latter part of this year or in early 2016.
With strong investment into the future, a wide ranging acquisition programme and development pipeline intu is on course for a strong second half of 2015.
