30th Jul 2015 07:25
LONDON (Alliance News) - Intu Properties PLC Thursday reiterated guidance that it's on track to deliver a like-for-like rental performance for the 2015 as a whole, as well as a "more meaningful uplift" in the next year.
The FTSE 100 company, which owns retail and leisure properties in the UK, said it made a GBP265.6 million pretax profit in the six months to the end of June, compared with GBP602.0 million in the corresponding period the prior year.
Net rental income was up to GBP186.4 million from GBP177.6 million. Revaluing investment and development property contributed GBP99.0 million to profit in the half, compared with GBP547.2 million in the corresponding period last year.
Underlying earnings, a closely watched measure of profit that excludes valuation movements, exceptional items and related tax, increased to GBP88.7 million from GBP72.0 million year-on-year. Intu kept its interim dividend at 4.6 pence per share.
"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% above previous passing rent and we have a promising number of further lettings in the pipeline," Chief Executive David Fischel said in a statement.
"As we continue to prepare for our larger projects, units held vacant or on flexible terms are now 2% of group ERV. We highlighted in our 2014 annual results that this factor would continue to impact like-for-like rents in the first half of 2015, but would be more than offset by improvements in the second half of 2015 to deliver a return to like-for-like net rental income growth for the full year assuming no material tenant failures. These results are in line with our expectations set out at the start of the year and we re-iterate this message, positioning ourselves for more meaningful uplifts in 2016," Fischel said.
Intu shares were up 0.4% to 334.00 pence on Thursday morning.
By Samuel Agini; [email protected]; @samuelagini
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