AGM Trading Update

6 MAY 2015

INTU PROPERTIES PLC

AGM TRADING UPDATE FOR THE PERIOD FROM 1 JANUARY 2015 TO 6 MAY 2015

Highlights of the period:

· Continued improvement in retailer demand with 44 new long term leases agreed for £7 million new annual rent, 10 per cent above previous passing rent and in line with valuation assumptions

· Key operating metrics are stable, with year-on-year footfall to date unchanged and occupancy marginally reduced since 31 December 2014 from 95 per cent to 94 per cent reflecting seasonal fluctuations since Christmas

· UK development pipeline on track with restaurant projects at intu Metrocentre and intu Bromley started in the period

· Strong footfall growth in Spain at both Puerto Venecia and Parque Principado along with encouraging increases in retailer sales

· Shareholders approved exercise of the option to acquire site in Malaga for a major shopping resort development. Detailed discussions with key retailers and leisure operators are underway for a 2016 start

· Over 40 per cent growth in year-on-year website traffic at intu.co.uk following the introduction in 2014 of a fully mobile responsive site and an increase in the number of participating retailers

· Cash and available facilities of over £500 million at 31 March 2015 providing headroom for our present development activities

David Fischel, Chief Executive, commented:

"The continuing improvement in the letting market and overall performance at centre level are encouraging. We are moving forward strongly on a number of fronts and particularly with our active development projects both in the UK and Spain"

Optimising the performance of existing assets

The Group's operating metrics are stable. In terms of lettings, 44 new long term leases were signed in the quarter, representing £7 million of new passing rent, in aggregate 10 per cent above previous passing rent and in line with valuation assumptions. Signings in the period include:

· 15 new restaurant lettings across the portfolio including Byron, Joe's Kitchen and Zizzi at intu Derby, Wagamama and Coast to Coast at intu Trafford Centre and Five Guys at intu Braehead

· New brands to centres such as Kiko and Swatch at intu Victoria Centre where retailers are responding to the improved mall environment and Kurt Geiger at intu Lakeside where the tenant mix continues to strengthen

Units entering administration in the period were Bank, Blott and USC, with Blott and USC continuing to trade. These administrations amount in total to just over one per cent of Intu's rent roll and we are actively engaged in reletting these units

Driving forward the £1.3 billion UK investment programme

Our UK development pipeline is on track:

· The £42 million restaurant and mall refreshment project at intu Victoria Centre and the £19 million cinema and restaurant extension at intu Potteries are both on target for openings in autumn 2015

· The extension of the Qube dining area at intu Metrocentre with 14 new restaurants and the Queens Gardens project at intu Bromley with five new restaurants have both commenced in the period and are due to be completed in early 2016. Letting is almost complete with one unit remaining at each site

· The hotel development at intu Lakeside has been pre-let to Travelodge and construction will commence in the second half of this year

· At intu Watford, we are still awaiting the outcome of the CPO enquiry before we can start on site but in the meantime we have continued to make letting progress, with some 50 per cent of the projected rent roll now exchanged, in solicitors hands or under offer

Making the brand count

· The Tell intu programme through which we measure customer experience is now over one year old allowing year-on-year comparisons of net promoter scores and provides valuable information to enable us to continuously improve the customer experience in our centres

· All but one centre now have our high quality Wi-Fi installed. Visits to intu.co.uk have increased by over 40 per cent against the same period in 2014 and the marketing database has surpassed two million individuals. We are now actively using this database and the fully mobile responsive website to generate advertising, media and commission income

· We continue to provide high quality promotions both physically and digitally to our customers, working on a national basis with global brands, such as the Home film promotion over the half term holiday

Seizing the growth opportunity in Spain

· Our centres continue to perform well in an improving Spanish economy. Footfall at both Puerto Venecia and Parque Principado is up year-on-year, and we have achieved quality new lettings at both centres at improved rental levels

· We are now taking ownership of the Malaga site and we intend to push forward strongly with a view to starting the 175,000 square metre shopping resort development in 2016. We are also making good progress at our other sites under option in Valencia, Palma and Vigo

Conference call

A conference call for analysts and investors will be held today at 08:00 BST

A copy of this announcement and the presentation from our recent analyst and investor site visit to intu Lakeside are available for download from our website at intugroup.co.uk

ENQUIRIES

NOTES FOR EDITORS

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