Intu Properties rental income grows but profit falls

Intu Properties reported a drop in 2015 pre-tax profit and a lower property revaluation surplus, although the shopping centre owner saw an increase in rental income.

For the year to the end of December, the group – which owns Bluewater in Kent and Lakeside in Essex – made a pre-tax profit of £513m, down from £593.7m in 2014, while the property revaluation surplus fell to £351m from £648m.

Net rental income, however, grew 7.8% to £428m due to a return to like-for-like growth of 1.8% and the full-year impact of acquisitions. Total revenue for the group advanced to £571m from £536.4m.

Occupancy rose to 96% at the close of the year from 95% the previous year, while retailer sales increased 2% across the portfolio and footfall remained robust across the portfolio.

Chief executive David Fischel said: “As economic recovery spreads out from London and the south east to the regions, consumer confidence is positive, driving improved retailer demand for space in our centres at a time when new supply of quality retail space is very limited. Investor interest for prime regional shopping centres remains keen.

“These factors provide a favourable background for our development programme as we look to introduce the next level of leisure concepts.”

The company announced plans to undertake around £600m of mixed retail and leisure projects in the next three years in the UK, in particular the intu Watford extension.

It also said it would begin its major Spanish shopping resort development, intu Costa del Sol.

Intu said it will pay a final dividend of 9.1p per share, bringing the total amount paid and payable in respect of 2015 to 13.7p, flat on the previous year.