26th Feb 2016 07:41
LONDON (Alliance News) - Shopping centre owner Intu Properties PLC on Friday posted a rise in rental income but a much lower revaluation surplus for 2015, as pretax profit for the group dipped.
The FTSE 100 mall operator said it made a pretax profit of GBP513.0 million for the year to the end of December, down from a GBP593.7 million profit a year earlier, as a significant decline in the valuation gain it made on its portfolio offset much lower financing costs for the business.
Net rental income rose to GBP381.8 million from GBP362.6 million, helping total revenue for the group rise to GBP571.6 million from GBP536.4 million. On a like-for-like basis, Intu's net rental income grew 1.8% year-on-year, which the group attributed to active asset management initiatives undertaken over the past few years.
Occupancy increased to 96% at the close of the year, up from 95% at the end of 2015, and retailer sales rose 2.0% across the portfolio, helped by robust footfall levels being maintained.
Intu said it will pay a final dividend of 9.1 pence per share, meaning its total dividend remains flat at 13.7p.
"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," said David Fishel, Intu's chief executive.
"These factors provide a favourable background for our development programme as we look to introduce the next level of leisure concepts," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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