Interim Management Statement

5 NOVEMBER 2013 INTU PROPERTIES PLC INTERIM MANAGEMENT STATEMENT FOR THE PERIOD FROM 1 JULY 2013 TO 5 NOVEMBER 2013 David Fischel, Chief Executive, commented: "We are encouraged by the positive impact of the launch of Intu and ourinvestment in infrastructure and teams. The national scale of our operations isnow apparent to retailers, national media partners and local authorities. Wehave continued to drive our £1 billion development programme, with a number offurther planning applications submitted, some notable approvals and worksunderway at several centres." CONFERENCE CALL A conference call for analysts and investors will be held today at 9.00 GMT. A copy of this announcement is available for download from our website atwww.intugroup.co.uk ENQUIRIES Intu Properties plc David Fischel Chief Executive +44 (0)20 7960 1207Matthew Roberts Finance Director +44 (0)20 7960 1353Kate Bowyer Head of Investor Relations +44 (0)20 7960 1250 Public relations UK: Michael Sandler/Wendy Baker, Hudson Sandler +44 (0)20 7796 4133 SA: Frédéric Cornet/Cara White, College Hill +27 (0)11 447 3030 Introduction The wide-ranging positive change underway throughout Intu has continued in thethird quarter, as we have rolled out our new brand and progressed our activeasset management and development pipeline. Our aim is to attract visitors fromfurther, for longer, more often, thereby reinforcing our centres' status aspriority locations for retailers and driving long term value creation forshareholders. Six months after launch, we are already seeing significant impact from the intubrand. The full national scale of our operations is now apparent to retailers,media partners and local authorities. Shoppers are appreciating our innovativeapproach with refreshed environments, high quality digital connectivity and arevitalised customer service experience. Our teams are motivated around ourvalues, with new belief and commitment. We have continued to drive our £1 billion development programme, with a numberof further planning applications submitted, some notable approvals and worksunderway at several centres. Also since July we have raised some £170 million of new financing facilities tohelp fund the expenditure. The UK retail environment has continued its gradual recovery, with statisticsshowing a 15 month unbroken trend of increasing like-for-like non-food retailsales. The IPD retail property capital value index has turned positive for thelast two months, not least due to increased availability of funding forinvestment. Trading update We continue to see signs of recovery in the UK economy with a series ofpositive retail sales figures and improved consumer sentiment influenced by thebetter housing market and reduced expectations of unemployment. Occupiers arebeginning to show more confidence, with continued strong demand from cateringand leisure operators and successful retailers taking the opportunity toupsize. Key operating metrics: occupancy remains unchanged from June at 95 per cent by rent, including one percent of rent currently being traded by administrators. There have been nosignificant tenant failures in the quarter 57 long term leases were signed in the quarter; in aggregate £11 million ofannual rent and eight per cent above previous passing rent (like-for-likeunits). This brings the total for the year to date to 152 leases producing £33million of new annual rent, four per cent above previous passing rent. Fivesignificant transactions were signed in the period to introduce flagshipretailers with a view to improving the rental tone over the medium term.Excluding these strategic transactions, in aggregate new long term leases werein line with valuation assumptions Signings in the period include: a further £1 million of lettings at Cribbs Causeway. We have now concludedleases for three quarters of those expiring at this centre in 2013 11 new names to Intu centres, including "Size?" making their shopping centredebut in the Platinum Mall at intu Metrocentre two new lettings to Next, including a much larger store at intu Uxbridge,following their recent flagship investments at intu Watford, intu Braehead andintu Trafford. In aggregate, Next now occupy over 650,000 sq ft across ourcentres, a third more than in 2008 (like-for-like centres) 48 new shops have opened in our centres since June, and 125 so far this yearwhich represent about five per cent of our 2,600 units. A further 30 stores arecurrently undergoing shop fitting. Tenants have invested almost £70 million instores across the Intu portfolio in 2013, a significant demonstration of theircommitment the two per cent reduction in footfall we have experienced this year isunchanged from June, when we also reported a one per cent increase in estimatedretailer sales (updated bi-annually), and compares favourably to a four percent reduction in the national Experian benchmark Development activity We have made considerable progress with projects across the portfolio. Planningapplications have been approved for new restaurants at intu Eldon Square, intuBromley and intu Victoria Centre and we have made applications for majorleisure and catering extensions at intu Watford and intu Lakeside: intu Watford: submitted planning application to redevelop and integrate therecently acquired Charter Place into a substantially refurbished intu Watford.The £100 million development will provide new, larger unit retail space, acinema and leisure complex and a restaurant hub, significantly increasingWatford's draw as a wider regional destination. Construction is expected tostart in 2015 for completion in 2017 intu Lakeside: started works on the £9 million refurbishment of the food court.Demand for the units has been strong, with terms exceeding our expectations.The new combination of operators, including several international names, isexpected to significantly lengthen the average dwell time and spend in theeating area and broaden the range to complement the casual dining available onthe Boardwalk. We have also applied for planning consent for a major leisuredevelopment in the waterfront area, to include an extended cinema, restaurants,bowling, a fitness centre and night clubs intu Victoria Centre: planning consent has been received for 12 restaurants,part of the £40 million refurbishment programme starting in Spring 2014, thefirst stage of our intended investment in Nottingham. Our regeneration plansare attracting new retail and catering names to the city, such as UrbanOutfitters who will soon be opening a major store in a key outward-facinglocation next to the main entrance. The second stage of our investment inNottingham is expected to be a major repositioning and upgrading at intuBroadmarsh, to be followed by an extension of intu Victoria Centre. See ourvideo atwww.intugroup.co.uk/where-we-do-it/our-centres/intu-victoria-centre/nottingham-like-youve-never-seen-it-before/ intu Eldon Square: planning consent received for a £17 million (Intu share £10million) development of over 20 restaurants and in advanced negotiations with anumber of catering operators new to Newcastle intu Bromley: following a successful appeal, planning consent obtained for ourrestaurant development enabling us to start securing a line up of cateringoperators new to Bromley. Attracted by the affluent catchment and planned £3million mall refreshment, new names such as The White Company and Reebok havealready committed to units in the centre We are pleased with the momentum which we have generated this year and, with aview to facilitating impending development starts, have in this quarterincreased units held vacant or on flexible terms. Altogether 2.4 per cent ofERV is now held for development, about a third of which is let on short termleases for flexibility. While we foresee some pressure in the short term onunderlying earnings from these units held for redevelopment and from the tenantfailures we experienced in 2012 and earlier in 2013, we continue our focus ondelivering attractive long term overall total returns in the form of income andcapital appreciation from effective asset management. Funding for our £1 billion pipeline of projects will include recycling ofexisting assets as well as the possible introduction of partners into majorassets. Parque Principado In October we announced the €162 million acquisition with Canada Pension PlanInvestment Board (CPPIB) of Parque Principado, an 800,000 sq. ft. shoppingcentre in Oviedo, Northern Spain, one of the country's top 10 regional centres. Key features of this transaction are: an initial yield of 7.2 per cent a projected equity investment by Intu of around €40 million, as we intend tosecure debt finance at around 50 per cent loan to value earnings accretive the establishment of an operational presence in Spain without divertingsignificant financial or management resources from the UK Combined with our joint venture with Eurofund, the founding investor anddeveloper of Puerto Venecia in Zaragoza, experience gained on the ground willinform our assessment of the potential for returns from the three developmentsites held under option on which the joint venture is engaged. The sites are inMalaga, where we have made good progress on developing a master plan, Valenciaand Vigo. Financing Net external debt was unchanged in the quarter, at £3.6 billion on 30 September2013. The net debt to assets ratio based on 30 June 2013 valuations was 48.6per cent. On a pro forma basis, were the convertible bonds to convert intoequity, the net debt to assets ratio would reduce to 44 per cent. On 30 September 2013, the Group had cash and available facilities of £363million including £215 million undrawn on the revolving credit facility. On 4October, this was augmented by a new £42.5 million three year facility securedon Barton Square, intu Trafford Centre. The Group's weighted average cost ofgross debt remains 5.2 per cent. Nationwide consumer-facing brand and transformed digital proposition We are encouraged by the positive impact of the launch of Intu and ourinvestment in infrastructure and teams. The national scale of our operations isnow apparent to retailers, national media partners and local authorities.Shoppers are seeing a fresh approach in their centre with improved physical,digital and customer service experience. Our aim is to increase footfall, dwelltime and spend, with progress on several initiatives including: free, high quality Wi-Fi is now available at seven centres, with a further twoscheduled for launch by the end of 2013. Enhanced footfall and dwell timeanalytics are being tested which will give valuable feedback on how customersspend their time in our centres. With more than half of registrants opting toreceive marketing communications, we are developing the opportunity to provideshoppers with highly relevant messaging our multi-channel shopping centre, intu.co.uk, is in test mode with 70retailers. Around 40 more are currently being integrated and test marketing istaking place ahead of a consumer launch in 2014. This will coincide with theopening of customer lounges at several centres which will offer click andcollect, changing rooms and return facilities building on our nationwide network of centres and relationships with majorpartners such as Mercedes Benz, Sky, Nintendo, Blackberry and Cadbury, we havecreated an in-house sales team focused on introducing high quality promotionalactivities to enhance the visitor experience Property valuations Investors continue to demonstrate a good level of interest for the highestquality retail assets which is keeping yields firm and underpinning valuations.With an improved range of funding sources available, demand has now broadenedbeyond the most prime, with capital values according to the IPD monthly indexrelating to all retail turning positive after 25 months of falling values, andincreasing by 0.4 per cent in the third quarter. This has reduced the fall inthe index for the year to date from 1.1 per cent at 30 June to 0.7 per cent at30 September (Intu six months to 30 June 2013 - increase of 1.0 per cent). The next independent valuation of Intu's assets will be undertaken on 31December 2013 and published with the results for 2013 in February 2014. Outlook We are encouraged by the continuing signs of improvement in the UK consumerenvironment. We are confident that the income foregone in the short term by ourapproach of holding units vacant or on flexible terms to enable a timely starton a number of projects within our £1 billion development programme will bemore than offset by the significant enhancement to the long term total returnof the business from these projects. We remain focused on creating the rightmix of retail brands, with a broad range of leisure and dining options, in anenjoyable environment, and remain confident that our centres will benefit asincreasing retailer confidence in due course leads to increased commitment tothe best locations. NOTES FOR EDITORS Intu Properties plc (formerly Capital Shopping Centres Group PLC) is the UK'smarket-leading developer, owner and manager of prime regional shopping centres.Intu owns and operates some of the very best shopping centres, in the strongestlocations right across the UK, including ten of the country's top 25. Every oneof the UK's top 20 retailers is in Intu's shopping centres, alongside some ofthe world's most iconic global brands. With over 17 million sq ft of retail space valued at over £7 billion, Intu's 16centres attract some 350 million customer visits a year and two thirds of theUK population live within a 45 minute drive time of one of the centres. At the forefront of UK shopping centre evolution since the 1970s Intu's focusis on creating compelling destinations for consumers with added theatre. On 15 January this year, the company announced the creation of a nationwideconsumer facing shopping centre brand - intu - and the transformation of theGroup's digital proposition including a transactional website, to provide theUK's leading shopping centre experience on and off-line. Intu has a UK investment programme of £1 billion over the next ten years onactive management projects and major extensions at most of the centres. Fundingfor this programme will include recycling of existing assets as well as thepossible introduction of partners into major assets. Intu also has interests outside the UK including an effective interest of 9 percent in Equity One, a US retail REIT, a 32 per cent interest in Prozone, anIndian shopping centre developer, and a joint venture in Spain forpre-development activity on three major sites under option, in Malaga, Valenciaand Vigo. In October 2013 Intu acquired, with a partner, a regional shoppingcentre in Northern Spain for €162 million. Over 80,000 people are employed at Intu centres across the UK and the companyis fully committed to supporting local communities and the wider environmentthrough meaningful and hands-on initiatives.

For further information see www.intugroup.co.uk