Intu trading in line with expectations ahead of AGM

Intu Properties was still on target to deliver growth of 2%-3% in like-for-like net rental income on Wednesday, as investors prepared for the FTSE 100 company’s annual general meeting.

The group’s board said active retailer demand was continuing, with 43 new long-term leases agreed in the year to date for £7m of new annual rent - 10% above previous passing rent.

Its year-on-year footfall to date was up 1.4%, with occupancy at 95.3% - a marginal reduction from 95.8% on 31 December as a result of seasonal fluctuations.

Intu’s UK development pipeline was on track, it reported, with 11 new restaurants opened at its Metrocentre site and the main contractor now on site for the extension at Watford.

The board said there was a “meaningful improvement” in its in-centre customer satisfaction measure against a year ago, and web traffic had grown 30% in 2016 so far.

Both of its Spanish centres - Puerto Venecia and Asturias - had seen growth in footfall and sales in the year to date, along with “encouraging” lettings.

Intu had cash and available facilities of £750m and a debt-to-asset ratio of 41% on 31 March.

"Encouragingly we have seen little impact on customer flow into our shopping centres or tenant interest for space which remains very positive despite financial markets being volatile ahead of the EU referendum vote on 23 June,” said Intu chief executive David Fischel.

“Global investors continue to look actively at prime regional shopping centres in the UK, focussing on the quality income streams provided by this asset class."