Intu Properties on track for rental income growth

Real estate investment trust Intu Properties is on track for a return to like-for-like net rental income growth for the year following a 1% drop in the first half, as lettings and occupancy improve.

In a trading update for the period from 1 July to 6 November, the company said it has seen continued improvement in retailer demand with 84 new long-term leases agreed for £18m of new annual rent, which is 11% above last year.

Intu said occupancy rose by 40 basis points since the end of June to 95.5%, while year-on-year footfall to date is a touch higher in the UK and 5% higher in Spain, with both performing better than their respective benchmarks.

The group said the UK development pipeline is on track with £60m of developments completing at the Victoria Centre and Intu Potteries.

As at the end of September, the group had cash and available facilities of over £550m and debt to asset ratio of 44%.

Chief executive David Fischel said: “The economic recovery is now more obviously rippling out from London and the South East to other regions of the UK and our prime centres across the country are seeing strengthening underlying retailer sales performance.

“As this translates into improved demand for space and rising occupancy, we look forward to a return to like-for-like net rental income growth for 2015 and are well positioned for a more meaningful uplift next year.”