Interim Management Statement

8 MAY 2014 INTU PROPERTIES PLC INTERIM MANAGEMENT STATEMENT FOR THE PERIOD FROM 1 JANUARY 2014 TO 8 MAY 2014 Highlights of the period: * Acquired 2 more top 25 UK shopping centres in £868 million transaction, funded by £500 million rights issue and asset-specific debt facilities * Occupancy remains high at 95 per cent * Footfall year to date 1 per cent higher than same period of 2013 * 50 new long term leases agreed for £8 million new annual rent, 5 per cent above previous passing rent and in line with valuation assumptions * Projects underway at intu Lakeside (foodcourt), intu Potteries (cinema and restaurants), intu Eldon Square (mall upgrade), intu Victoria Centre (restaurants and reconfigurations), progress with intu Watford Charter Place extension David Fischel, Chief Executive, commented: "We are delighted to have concluded such a significant transaction, reinforcingour position as the leading owner, developer and manager of top UK shoppingcentres, with intu Derby and intu Merry Hill increasing our national coverageof branded centres. Investor interest in quality UK shopping centres hasstrengthened in the period. The strong momentum of our development projectscontinues, with signs of increased retailer interest as the UK retailenvironment continues to improve, particularly for space in those centres whereinvestment and improvement projects are underway or imminent." Acquisition We announced last week that we had completed the £868 million purchase ofinterests in two top 25 UK shopping centres and a retail park funded by a 2 for7 rights issue raising £500 million (gross) and £424 million of new debtfacilities secured on the properties. The acquisition of a further two prime shopping centres is in line with ourstrategy to focus on the UK's largest and most successful destinations andestablishes a partnership with QIC, a major global investor, at Merry Hill. Itstrengthens Intu's position as the leading owner, developer and manager ofprime UK shopping centres, fills gaps in our national coverage and extends thefootprint of our nationwide consumer facing brand: * intu Merry Hill and intu Derby, as they are now known, are being rebranded with intu's signage, website, uniforms and World Class Service approach * at intu Merry Hill, we are confident that our active asset management, particularly repositioning the tenant line-up, increasing the catering and leisure offer and improving the mall environment, should deliver significant rental growth over the medium term * intu Derby provides an attractive income return, with potential for capital growth from yield compression * Sprucefield provides the potential for further retail development at a relatively low initial capital cost The transaction is expected to be accretive in terms of earnings per share in2014 and was structured in line with the Group's overall capital ratios: * combined annual rent at the date of acquisition was around £55 million (Intu share) before anticipated annual outgoings and administration costs of around £4 million * gross properties of £7.6 billion at 31 December 2013 augmented to £8.5 billion (illustrative, adding acquired assets at valuation on date of transaction) * three new 2 ½ year debt facilities, each secured on one of the properties at a weighted loan to value ratio of 49 per cent. The weighted average all-in cost is 2.5 per cent for the first year, stepping up by 50 basis points after a year and every six months thereafter Trading update The UK retail environment has continued to improve, with another quarter ofpositive like-for-like non food sales, a fifth consecutive quarter of GDPgrowth and improving consumer confidence with the first above-inflation rise inwages for several years. We are beginning to see areas of increased interest from retailers, includingfor new brands and flagship stores, particularly in centres where we have beenor have plans for investing. The Group's operating metrics are broadly stable: * Footfall for the year to date is one per cent higher than the same period of 2013, ahead of Experian's measure of national retail footfall which is unchanged year on year * Occupancy across our centres remains high at 95 per cent (31 December and 31 March 2013 - 95 per cent). There were no significant tenant failures in the period. In aggregate units amounting to one per cent of rent are currently being traded by administrators and are treated as occupied within the 95 per cent * 50 new long term leases were signed in the quarter, representing £8.1 million of new passing rent, in aggregate five per cent above previous passing rent and in line with valuation assumptions. These include: * + 13 new catering lettings, including Five Guys now open at intu Trafford Centre and soon to open at the newly refurbished intu Lakeside foodcourt, Carluccio's in newly converted space at intu Bromley and intu's first Tortilla at intu Watford + a first letting in an intu centre to Michael Kors at intu Trafford Centre + new brands to individual centres such as Kuoni at intu Braehead, Hugo Boss at intu Chapelfield and Fat Face and Hotter Shoes at intu Watford * We have initiated "Tell intu", the first customer feedback programme of its kind in the shopping centre industry, which attracted an overwhelmingly positive response in its first two months. We will be able to respond quickly to issues, identify trends, reward and spread best practice and benchmark a "net promoter score" against other consumer-focused businesses * The installation of fibre-optic backbone at intu Watford and intu Potteries is now complete with high quality Wi-Fi now available at 11 centres. Total connections are now approaching three million with well over half of registrants opting to receive marketing information Investment market As announced in March, we have signed non-binding heads of terms to form ajoint venture in respect of intu Uxbridge. The third party investor wouldacquire 80 per cent of the centre for a small premium to book value with Inturetaining 20 per cent and continuing to manage the asset. While there can be nocertainty that a transaction will be concluded, the process continuessatisfactorily. The investment market has had a positive start to the year, with IPD retailcapital values continuing to rise. There appears to be good investment demand,particularly from overseas investors, for better quality shopping centres andevidence of demand moving beyond London and the South East to other regions ofthe UK. Financing Net external debt was unchanged at £3.7 billion at 31 March 2014 and the debtto assets ratio (based on 31 December valuations) was 48 per cent. On a proforma basis, were the 2.5 per cent convertible bonds 2018 to convert intoequity, the net debt to assets ratio would reduce to 44 per cent. Overlaying the impact of the rights issue and acquisition, illustrative netexternal debt at 31 March 2014 would have been £4.1 billion and the debt toassets ratio would not have been significantly different. On 30 April 2014 our partnership with CPPIB signed a €95 million 5 year termloan with HSBC secured on Parque Principado, Asturias, Northern Spain, at anattractive all-in cost (Intu's share €47.5 million). Cash and available facilities amounted to £476 million at 31 March 2014 and ona pro forma basis, after the rights issue, acquisition and Parque Principadoloan, would have been around £540 million. Development activity * intu Lakeside: we have received consent for our £80 million leisure development. Phased construction, expected to start from 2015, will provide a wide range of new leisure and restaurant uses such as ten-pin bowling, family restaurants, a health and fitness centre, a night club, a comedy venue and a hotel * intu Bromley: as well as the Queen's Garden restaurant terrace soon to be constructed, we have submitted a planning application to create a cinema-anchored leisure development with a cluster of restaurants to provide more choice and variety for the highly affluent catchment * intu Potteries: with pre-lets including the cinema anchor securing two thirds of the income, we have started construction of the leisure development * intu Eldon Square: our mall upgrade is close to completion, with an impressive new entrance now open, and has increased the level of interest from quality retailers such as Lakeland, to open this month, and several catering operators new to the region * intu Victoria Centre: we have started works which will include 12 new restaurants and a striking new entrance near the historic Clock Tower * intu Watford: we are close to exchanging contracts for the cinema and have embarked on pre-development activities before commencing the £100 million leisure and catering led redevelopment of Charter Place Conference call A conference call for analysts and investors will be held today at 8.30 BST. A copy of this announcement is available for download from our website atintugroup.co.uk ENQUIRIES Intu Properties plc David Fischel Chief Executive +44 (0)20 7960 1207Matthew Roberts Finance Director +44 (0)20 7960 1353Kate Bowyer Business Relations Director +44 (0)20 7960 1250 Public relations UK: Michael Sandler/Wendy Baker, Hudson +44 (0)20 7796 4133 Sandler SA: Frédéric Cornet, College Hill +27 (0)11 447 3030 NOTES FOR EDITORS Intu owns and operates some of the very best shopping centres, in some of thestrongest locations right across the country, including twelve of the UK's top25. You can find the UK's top retailers in our shopping centres, alongsidesome of the world's most iconic global brands. With over 21 million sq ft of retail space, our centres attract over 400million customer visits a year and more than two thirds of the UK populationlive within a 45 minute drive time of one of our centres. At the forefront of UK shopping centre evolution since the 1970s, our focus ison creating compelling destinations for customers with added theatre. Our nationwide consumer facing shopping centre brand - intu - is transformingour customer experience and digital proposition, including a transactionalwebsite with a view to providing the UK's leading shopping centre experienceboth on and off-line at 15 centres We have an investment plan of £1.2 billion over the next ten years withprojects at most of our centres. Over 80,000 people are employed at our centres across the UK and we are fullycommitted to supporting our local communities and the wider environment throughmeaningful and hands-on initiatives.

For further information see www.intugroup.co.uk